RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/41 
20 December 2005 
 (05-6175) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
   
ACCESSION OF VIET NAM 
 
Additional Question and Replies
 
   The following submission, dated 9 December 2005, is being circulated at the request of the 
Delegation of the Socialist Republic of Viet Nam. 
  
 
_______________ 
  WT/ACC/VNM/41 
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 TABLE OF CONTENTS 
II. ECONOMIC POLICIES..........................................................................................................1  
- Monetary and Fiscal Policy..................................................................................................... .1 
- Foreign Exchange and Payments ............................................................................................3  
- Investment Regime.............................................................................................................. ......5  
- State Ownership and Privatization .......................................................................................19  
- Pricing Policies ............................................................................................................... .........29  
- Competition Policy............................................................................................................. .....31  
III. FRAMEWORK FOR MAKING AN D ENFORCING POLICIES ....................................31  
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................34  
- Trading Rights ................................................................................................................. .......34  
A. IMPORT REGULATIONS....................................................................................................43  
- Ordinary cust oms duties ........................................................................................................ 43 
- Other duties and charges....................................................................................................... .44 
- Tariff rate quotas, tariff exemptions.....................................................................................45  
- Fees and charges for services rendered.................................................................................50  
- Application of internal taxes to imports ...............................................................................51  
- Quantitative import restrictions, includi ng prohibitions, quotas and licensing 
systems ........................................................................................................................ .............55  
- Customs Valuation.............................................................................................................. ....60  
- Rules of origin ................................................................................................................ .........63  
- Other customs formalities ...................................................................................................... 64 
- Pre-shipment Inspection........................................................................................................ .65 
- Anti-dumping, countervailing duties, safeguard regimes ...................................................65  
B. EXPORT REGULATION......................................................................................................78  
- Customs tariffs, fees, and charges for s ervices rendered, application of internal 
taxes to export ................................................................................................................ .........78  
- Export rest rictions ............................................................................................................ ......79  
- Export subsidies ............................................................................................................... .......79  
C. INTERNAL POLICIES A FFECTING FOREIGN TRADE IN GOODS .........................80  
- Industrial policy, including subsidies....................................................................................80  
- Technical barriers to trade, standards and certification.....................................................86  
- Sanitary and phytosanitary measures...................................................................................92  
- Free Zones, special Economic Areas ...................................................................................103  
- Government procurement....................................................................................................105  
- Trade in transit ............................................................................................................... ......105  
- Agricultural policies.......................................................................................................... ....106  WT/ACC/VNM/41 
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 -
 Fisheries ...................................................................................................................... ...........110  
- Trade in ci vil aircraft........................................................................................................ ....111  
- Textiles regime ................................................................................................................ ......111  
- Core Labour Standards........................................................................................................11 1 
V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.....................................111  
- GENERAL........................................................................................................................ .....111  
- Geographical indications, including appellations of origin...............................................114  
- Enforcement .................................................................................................................... ......114  
VI. POLICIES AFFECTING TRADE IN SERVICES............................................................123  
VII.  TRANSPARENCY ...............................................................................................................126  
VIII.  TRADE AGREEMENTS .....................................................................................................127  
ANNEX I........................................................................................................................ .....................128  
ANNEX II ....................................................................................................................... ....................134  
ANNEX III...................................................................................................................... ....................144  
 
  WT/ACC/VNM/41 
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 II. ECONOMIC POLICIES 
- Monetary and Fiscal Policy Question 1 According to recent World Bank documentation, there is evidence that the number of non-
performing loans (NPLs) by state-owned commer cial banks is increasing.  We appreciate the 
table in the response to Question 1 in WTO/ACC/VNM/39.  
- Please indicate the value of non-perfor ming loans owed by SOEs to SOCBs.  
- What policy measures are being taken to slow the growth of SOE NPLs?  
Answer
: 
Concerning lending activities of credit institutions in  general and SOCBs in particular, the Central 
Bank issued Decision No. 1627 dated 31 Dece mber 2001 on Lending Regulations of credit 
organizations to clients. According to this Deci sion, credit organizations, including SOCBs, are also 
required to establish their own procedures for lend ing approval based on objective criteria such as 
feasibility assessment, investment project efficiency assessment, trading and production plans and client's credit-worthiness.  
The existing credit policies assure that SOCBs in pa rticular and credit organizations in general are 
self-responsible for their credit activities. The Stat e Bank does not interfere in lending activities of 
credit organizations in general a nd SOCBs in particular.  The stat istics on the value of non-performing 
loans owed by SOEs to SOCBs are as follows: 
 
NPL as of December 2004  
a) The total non-performing loans of SOEs to 
4 SOCBs (billion VND)  4,646  
b) The ratio of SOEs' non-performing loans in 
total debts of 4 SOCBs  3.67 per cent  
 
Question 2 
We appreciate the description of Decision No. 493/2005/QD-NHNN dated 22 April 2005 on debt 
classification and provisioning for credit risk  resolution in banking operation of credit 
institutions in the response to Question 1 in WTO/ACC/VNM/39.  While this helps us understand how Viet Nam intends to address its NPL problems, it does not advise what steps 
Viet Nam intends to take to reduce the number of  loans provided to applicants with poor credit 
risk.  Does Viet Nam have a plan to promote loan applications and placement by SOCBs on 
commercial terms, even to SOEs? If so, what near term steps are being taken to minimize 
lending to poor risk SOEs? 
Answer
: 
In order to enhance the efficiency of SOCBs ac tivities, since 2001, SOCBs have started financial, 
organizational and operationa l reorganization as follows: 
- SOCBs have strengthened the process to deal  with non-performing loans together with 
improving assets quality and enhancing disciplines, skills of risk management.  Therefore, non-performing loans in SOCBs, including those from SOEs, have been decreasing and credit quality has been improved; WT/ACC/VNM/41 
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 -   Policy lending has been separated from co mmercial credit activities of SOCBs, and has been 
endowed to social policies banks; 
-  Each SOCBs has established its own credit ha ndbook which has been applicable since late 
2004 and early 2005.  Concurrently, credit risk management system has been gradually completed in line with international standard s and customary practice; individual business 
strategy of each bank has been set out to 2005 and 2010.  Therefore, new credits are of higher 
quality; and 
-  According to the Law of Credit Organizati ons, credit organizations and SOCBs are required 
to establish Supervision Board to keep tr ack of financial activities, supervise the 
implementation of accounting regime, the safety of credit organizations' operation, implement 
internal auditing periodically in order to accu rately assess their operation and financial status. 
Credit organizations have to establish internal inspection system to examine and control the 
legal and internal regulatio ns observations, examine and control practical exercises. 
Question 3 
Will the Central Bank continue to remain the manag er and supervisor of state banks?  If so, for 
how long?  
Answer
: 
According to Vietnamese law, the State Bank is in charge of state management, inspection, and 
supervision over credit organizations, including SOCB s.  The chairmen of the BOM and the Directors 
General of SOCBs are appointed by the Prime Minister. 
Out of the 5 SOCBs, the Prime Minister has made  a Decision to equitize 2 SOCBs in 2006.  The 
objective of SOCBs equitization is to improve operati onal efficiency, ownership diversification.  At 
the same time, the State Bank is planning the equiti zation process for most of SOCBs by 2010.  In this 
process, the ownership role of the State Bank to SOCBs will be transferred to other management 
agencies. 
The State Bank of Viet Nam continues to be in  charge of state management, inspection, and 
supervision over SOCBs and credit organizations. 
Question 4 
Paragraph 10: What are the lending terms that SOCBs provide to SOEs? 
Answer : 
As indicated in paragraph 10, financial institutions themselves consider and decide whether to provide 
loans to state-owned enterprises, on commercial terms. 
Question 5 Paragraph 13:  What are the criteria used for applying the variable tax rates mandated by the 
Ordinance on Natural Resources Tax? 
Answer
: 
Circular No. 153/1998/TT-BTC of Ministry of  Finance dated 26 November 1998 provides the 
detailed guidelines for the implementation of De cree No. 68/1998/CP of the Government dated  WT/ACC/VNM/41 
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 3 September 1998 (which, in turn, provides deta iled provisions for the implementation of the 
amended Ordinance on Natural Resources Tax) Point 3, Section II of the Circular stipulates that: 
"Based on the value of each natural resource, the exploration conditions and the 
management requirements for each natural res ource in a particular period of time, the 
line Ministries or agencies gather relevant information and statistics of natural resource 
in question, then report to the Ministry of Fi nance to consider the adjustment of natural 
resources tax rate in line with tax frame which is stipulated in Article 6 of the Ordinance 
on Natural Resources Tax.  The adjustment will be  made if necessary to a particular type 
of resource, not to an individual circumstance." 
The detailed criteria used are: 
1. Category of natural resources:  Natural res ources under different categories are subject to 
different tax rates.  The Ordinance on Natural Resources classify natural resources into 8 categories: ferrous; non-ferrous; oil; gas; natura l forestry products; natural fishery products; 
natural water; others; 
2. Scarcity of natural resources:  Scarce natura l resources are subject to higher tax rates than 
ordinary natural resources, e.g. ordinary fishery products are subject to 1 per cent or 
2 per cent tax rates while pearl/holothurians/a balone are subject to from 6 per cent to 
10 per cent; 
3. Recyclable and ir-recyclable  natural resources: recyclable natural resources are subject to 
higher tax rates than irrecyclable natural resources; 
4. Economic value of natural resources: natura l resources of higher economic value are subject 
to higher tax rates; 
5. Exploitation condition of natu ral resources: natural resources in disadvantageous areas (less 
favourable conditions for exploitation) are subj ect to lower tax rates than those in more 
favourable conditions; and 
6. Purpose of the use of natural resources: In some cases, the same natural resources used for 
different purposes are subject to different tax rates.  E.g. natural water subject to 0-5 per cent 
tax rates but natural water used for electricity hydro plant subject to only 0-2 per cent . 
- Foreign Exchange and Payments  
Question 6 Paragraphs 19-20:  Please update the Working Party on the status of the two pending pieces of 
legislation designed to remove controls from th e acquisition and retention of foreign exchange: 
- Draft Decree on the Amendments of and Supplements to the Government Decree 
No. 63/1998/ND-CP dated 19 August 1998 on Foreign Exchange Control; slated for submission to the National Assembly this month, to remove "the obligation for legal 
residents to sell their current revenues in fo reign currencies to commercial banks, and 
providing that foreign exchange controls wo uld only be applied in exceptional cases to 
maintain the national financial and mone tary security in accordance with the IMF 
Articles Agreement and IMF Document No. 144 (52/51) of 14 August 1952."  We renew 
our request for a copy of this Decree. 
- Draft Ordinance on Foreign Exchange, slated  for issuance in July 2005, is supposed to 
"repeal all remaining foreign exchange rest rictions on payments and transfers for 
current account transactions and also pr ovide a concept of international current 
account transactions in complian ce with the IMF's definition."  WT/ACC/VNM/41 
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 Has the Ordinance on Foreign Exchange been s ubmitted to the National Assembly?  If not, 
when will Viet Nam submit it? 
Answer
: 
The Government has issued Decree No. 131/2005/ ND-CP dated 18 October 2005 on amendment and 
supplement of some Articles of Decree No. 63/1 998/ND-CP dated 17 August 1998 of the Government 
on Foreign Exchange Management. According to the Decree: 
- Current transactions are liberalized according to the principle: "Within the territory of 
Viet Nam, payments and money transfer of current transactions are freely conducted"; 
- Payments and money transfer of internati onal current transactions under the Decree consist 
of: 
(i) Payments relates to goods a nd services import – export, other current transactions, 
short-term credit; 
(ii) Payments for net income from direct and i ndirect investment, depreciation of direct 
investments (if applicable); 
(iii) Interest and loan payments for foreign loans; and 
(iv) One-way money transfer for consumption purpose or other similar transactions. 
- Non-resident and resident are eligible to buy,  transfer, or bring foreign currencies out of the 
country to meet the demand of legitimate curr ent payments without the presence of related 
documents to prove the fulfilment of tax ob ligations to the Government of Viet Nam. 
The Draft of the Ordinance on Foreign Exchan ge Management has been submitted by the 
Government to the Standing Committee of the National Assembly.  
Question 7 Paragraph 17 states in the fourth sentence "that income in Vietnamese Dong could be converted 
into foreign currency at authorized banks upon presentation of relevant documents and a 
certificate that all financial obligations in a ccordance with the laws had been fulfilled" and 
again in the next sentence "a certificate from th e competent tax authorities testifying that all 
financial obligations to the State of Viet Nam had been fulfilled." 
- This would seem to suggest that a requiremen t still exists that all tax obligations must be 
met before payments and transfers for current international payments may be made. Is that the case?  Will the ordinance eliminat e this restriction and the other current 
account restriction we understand still exists  - the exclusion of payments for loan 
amortizations and depreciation payments?  
- With respect to the response to Question 16 in WT/ACC/VNM/39, does Viet Nam intend 
to freely float the Dong?  If so, when?  
- We disagree with Viet Nam's response to Question 18 in WT/ACC/VNM/39.  The 
discussion of the fee on foreign currency imports should be moved to this section. The fee, in our opinion, is a restriction on current account transactions and should be 
eliminated. 
We support the draft commitment in paragrap h 28 and request that Viet Nam remove the 
brackets.  WT/ACC/VNM/41 
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 Answer : 
- The Government's Decree No. 131/2005/ND-CP  dated 18 October 2005 on amendment and 
supplement of some Articles of Decree No . 63/1998/ND-CP dated 17 August 1998 of the 
Government on Foreign Excha nge Management has eliminat ed the requirement that 
tax-fulfilment documents be presented as well as other restrictions on current account 
transactions. 
- Viet Nam has been applying floating exchange rate with management since early 1999.  The 
State Bank of Viet Nam has made announcement on average transactional exchange rate in 
the inter-bank market.  Commercial banks can d ecide at their own discretion the exchange 
rate within transactional exch ange rate announced by the State Bank plus/minus a certain 
transactional margin.  The applicable  margin now is +0.25 per cent.  
- The State Bank would only interferes in forei gn exchange inter-bank ma rket in appropriate 
time to contribute to the stabilization of exch ange rate and create fa vourable conditions for 
international payment activities.  
- We would like to clarify that there is no fee on the movement of foreign currency.  The issue 
under discussion is the custom fee applicable to notes and coins (a special kind of goods).  In 
addition, the issue has been addressed by Viet Nam's confirmation not to apply the fee.  
- We agree with the removal of the brackets. 
Question 8  
Referring to the response to Question 19 in WT/ACC/VNM/39, we would like to make the 
following points: 
- The "related declarations and decisions of the WTO" include the "Declaration on the 
Relationship of the WTO and the IMF" a nd the "WTO Agreements with the IMF and 
the World Bank." 
- Both are binding on WTO members since WTO members adopted both of the above 
declarations. (Both Agreements can be  found on the WTO and IMF websites) 
- "Contractual terms" implies that if a contract for the buying or selling of goods or the 
facilitation of an investment is in force or  has been negotiated allowing the government 
of either party to restrict current account  remittances, such terms would not be 
enforceable under the proposed commitment. 
Answer : 
We agree with the commitment language as proposed and will adjust accordingly. - Investment Regime Question 9 We have been informed that Viet Nam recentl y ratified an amended Commercial Law (2005 
Commercial Law), which was enacted by the National Assembly on 14 June 2005 and will 
become effective on 1 January 2006. 
On August 2005, the Ministry of Trade relea sed a draft decree (the Implementing Decree) 
providing detailed guidelines for the implementa tion of the 2005 Commercial Law with respect 
to commercial activities of foreign invested en terprises (FIEs) in Viet Nam.  Under the 
Implementing Decree, foreign business entities sh all be entitled to set up commercial foreign 
invested enterprises to conduct commercial activities in Viet Nam (including importation and 
distribution of goods), subject to various restrictions on goods and the timetable for Viet Nam's WT/ACC/VNM/41 
Page 6  
 
 commitments under international treaties.  In th is regard, Viet Nam provided information in 
Annex 2 of the revised Draft report, namely Table 7.   Also a list indicating transition periods for 
distribution rights had been provided in Viet  Nam's latest services offer dated April 2004. 
The draft Implementing Decree also provides fo r existing, licensed FIEs to engage in the 
distribution of goods subject to an amendment of  their existing invest ment licence.  It is 
suggested that only existing FIEs with inv estors from countries with which Viet Nam has 
reciprocal Most-Favoured Nation (MFN) status woul d be permitted to import products for sale 
into the Vietnamese market.  It is not clear, wh ether this is meant to apply to countries, with 
which Viet Nam has concluded bilateral Agreement s or whether this is meant to be with all 
WTO members. But in any case, it appears to us that there may be some problem with GATT 
Article III (National Treatment Clause), which unm istakably requires that laws and regulations 
affecting among others the internal sale, ..., distribution or use of products, should not be applied to imported or domestic products as to afford protection to domestic production. 
The Implementing Decree also proposes conditions for existing Foreign Invested Enterprises to 
import products such as minimum capital invest ment.  Yet, paragraph 29 of the Draft Report 
states that minimum legal capital requirements for the establishment of enterprises stipulated in 
the Law on Companies had been abolished, except for some financial services sectors. 
We therefore request Viet Nam to provide clarification on these points and make where 
necessary adaptations to the draft implementa tion decree.  Furthermore, the report should 
stipulate clearly that Viet Nam is committed upon accession not to apply any limitation on granting investment licenses for both local ma nufacturing, importing and marketing of any 
product, except those for which limitations have been indicated either in the schedule of specific 
commitments on trade in services or in the lists  concerning trading rights or import limitations 
or prohibitions (among others Table 7 of the Draft Report). 
Answer:
 
The comment refers to an old draft that w as made public to solicit comments from the public. 
The latest version is the 5th draft Decree providi ng detailed guidelines for the implementation of the 
amended Commercial Law with respect to commercia l activities of foreign invested enterprises in 
which there have been many changes compared with the previous versions.  We would like to clarify 
as follows: 
- Firstly, the draft Decree doesn't mean the only existing FIEs of investors from countries with 
which Viet Nam has reciprocal  MFN status would be permitted to import products for sale 
into Vietnamese market.  Paragraph 3 of Article 2 of the latest draft Decree stipulates that 
"…. for the businesses from the countries or terr itories with which Viet Nam does not have 
international commitments on market access with respect to commercial activities, the 
Minister of Trade shall decide whether or not to permit the establishment of FIEs according to 
the instructions of the Prime Minister"; and 
- Secondly, Article 5 of the draft Decree h as abolished the minimum capital investment.  
As such, the issues raised by the Member have al ready been effectively re solved in this revised 
version.   WT/ACC/VNM/41 
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 Question 10 
We welcome the table provided by Viet Nam under the reply to Question 4 of 
WT/ACC/VNM/38 and as Table 1 of Annex 2 in the revised draft Working Party report (WT/ACC/SPEC/VNM/5/Rev.1).  We note that: 
- Viet Nam refers to the prohibited business sect ors as "trading in …." (e.g. "trading in 
weapons…) and would appreciate advice as to whether this implies limitations on the 
rights of individuals or legal persons to be an importer of record (i.e. trading right to import) as well as the right to distribute these items within Viet Nam.  Could Viet Nam also indicated if these constitute additional trading rights limitations that need to be reflected in Table 7 to the revised Working Party  report? 
Many of these activities could be effectively reg ulated (i.e. to prevent problems for security, 
health etc) with the use of appropriate licensing  or standards, rather than via the maintenance 
of state-owned enterprises in these sectors.  We ask if Viet Nam is giving further consideration 
within its draft legislation to provide for pri vate activity and investment in these sectors.  
Answer:
 
A more appropriate translation of the Vietnamese term would be "conducting business in" rather than 
"trading in…" as the Vietnamese term covers bo th domestic and interna tional trading and other 
commercial activities.  It is therefore does not dir ectly related to limitati ons on being importer of 
record.  The list of prohibited business sectors in Tabl e 1, Annex 2 of Draft Report is applicable to all 
domestic enterprises, regardless their ownership, a nd FDI enterprises in Viet Nam for the legitimate 
national security, human health and plant protectio n and other reasons in line with Article XX and 
XXI of the GATT. 
Question 11 
We look forward to further information on the draft Investment Law and draft Enterprise Law, 
and its incorporation into the Working Party report. 
Answer:  
Viet Nam has provided the drafts of these laws to the Working Party.  We would welcome specific 
questions and comments on these draft laws. 
Question 12 
We appreciate the response to Question 5 of WT/ACC/VNM/38, but note that "reactionary 
cultural products" is not as much a sector of th e Vietnamese economy, but an  activity that could 
potentially be undertaken by individuals or bus inesses in any area of the economy involved in 
the publication of material.  In that case, does Viet Nam allow for private investment in sectors 
such as publishing, media, information technology  etc, provided there is no case of trading in 
"reactionary cultural products"?  
Answer:  
Domestic private sector may participate in many ac tivities in publication, broadcasting, information 
technology, etc. in line with the applicable la ws.  Foreign investors may participate in these 
sectors/activities in line with Viet Na m's commitments upon the WTO accession. WT/ACC/VNM/41 
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 Question 13 
We welcome Viet Nam's commitment (reply to Question 6 of WT/ACC/VNM/38) to provide the 
Working Party with a comprehensive list of busin ess licenses as soon as a review is completed. 
In providing that list and incorporating key elem ents in the revised Working Party  report, we 
request that Viet Nam clarify the different categories of business licenses, and the provisions 
that apply to them.  In particular, we would appreciate advice on what makes a "conditional 
business sector" conditional, even though Viet Na m notes that such sectors do not all require 
business licenses.  Again we ask that the table incl ude columns for (1) the sector/activity, (2) the 
conditions of the licence, and (3) the government bo dy or bodies involved in the issuance and the 
approval of licenses. 
Answer:
 
As directed by the Government, relevant Ministries is  required to (i) review, consolidate and publish a 
list of conditional business lines stipulated by the legal documents within the domains under their 
management; (ii) publish the list of effective licen ses provided for in the legal documents in their 
domain of management, publish provisions on proce dures, conditions, issuing authorities, time-limit 
for issuance of each licence.  
It is a regular and continuing task of all concerne d ministries/agencies.  Th erefore, Viet Nam cannot 
inform when this process will be completed.  Cu rrently, these tasks have b een carried out, and the 
results are available on the websites of the Vi et Nam's Chamber of Commerce and Industries 
(http://www.vcci.com.vn ) and a number of other government agencies.  An illustrative list of business 
licenses is provided in Annex I of this document. 
The conditional business activities that are not subject to licenses are those set out in the relevant 
laws.  These conditions include the conditions enterp rises must satisfy such as regulations on sanitary, 
environmental standards, food standards, fire re gulations, public order, traffic security and other 
conditions required for the corresponding business activities. 
Question 14 
We welcome Viet Nam's advice in its response to Question 9 of WT/ACC/VNM/38 that foreign 
investment requirements and regulations di scriminating between foreign and domestic 
investment are being addressed in the draft Inve stment Law and the draft Enterprise Law.  We 
request that Viet Nam incorporate advice on these laws in the Working Party report once 
finalized. 
Answer:  
We take note of this request. 
Question 15 
We thank Viet Nam for the reply provided to Question 13 of WT/ACC/VNM/38. - We look forward to seeing an English tr anslation of the Law on amendments of and 
supplements to some articles of the Mineral Law, if possible in draft form prior to 
enactment in the coming months.  WT/ACC/VNM/41 
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 We welcome the reference in the Working Party repor t to the fact that there are no grounds for 
refusal of an investment licence at the exploration stage.  We would also welcome further clarification of what grounds do exist for refusal of an investment licence. 
Answer:
 
We attach herewith an English translation of th e Law on amendments of and supplements to some 
Articles of the approved by the National Assembly  of the Socialist Republic of Viet Nam on 
14 June 2005.  
The Mineral Law passed in 1996, and the Law on amen dments of and supplements to some articles of 
the Mineral Law passed on 14 June 2005, ava ilable through document WT/ACC/VNM/41/Add.1 do 
not provide any provisions on the refusal of an investment licence at the exploration stage.  
Investment projects in mining are considered on case-by-case basis. 
Question 16 
We thank Viet Nam for its response to Question 14 of WT/ACC/VNM/38 that it maintains no 
further mandatory export ratio requirements ot her than those it has already committed to 
eliminate upon accession.  We would welcome fu ll details in the Working Party report on the 
range of export ratio requirements eliminated a nd a commitment in the report that this will be 
done upon accession. 
Answer:  
Viet Nam has provided all the information rela ting to export ratio requirements and has also 
committed to eliminate export ratio re quirements from the date of accession. 
Question 17 
Referring to paragraph 29 and Question 6 of WT/ACC/VNM/38, we note the Vietnamese 
statement that it is currently revising its busin ess licensing system, and that it will submit a 
comprehensive list of sectors where non-automatic business licenses are needed as soon as this 
review has been completed.  
We would be happy if Viet Nam could indicate wh en it expects the review process to be finalised 
and the documents submitted to the Working Party ? 
Answer:  
As directed by the Government, relevant Ministries is  required to (i) review, consolidate and publish a 
list of conditional business lines stipulated by the legal documents within the domains under their 
management; (ii) publish the list of effective licen ses provided for in the legal documents in their 
domain of management, publish provisions on proce dures, conditions, issuing authorities, time-limit 
for issuance of each licence.  
It is a regular and continuing task of all concerne d ministries/agencies.  Th erefore, Viet Nam cannot 
inform when this process will be completed.  Cu rrently, these tasks have b een carried out, and the 
results are available on the websites of the Vi et Nam's Chamber of Commerce and Industries 
(http://www.vcci.com.vn ) and a number of other government agencies. An illustrative list of business 
licenses is provided in Annex 1 of this document. WT/ACC/VNM/41 
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 The conditional business activities that are not subject to licenses are those set out in the relevant 
laws.  These conditions include the conditions enterp rises must satisfy such as regulations on sanitary, 
environmental standards, food standards, fire re gulations, public order, traffic security and other 
conditions required for the corresponding business activities. 
Question 18 
Article 23 of the draft Investment Law stipulat es that the ratio of purchased shares, capital 
contribution of domestic and foreign investors as regards each sector, shall be set out in 
accordance with regulations of the Government.  
When will these regulations be available? 
Answer:
 
If adopted by the National Assembly at this year-e nd session, the Investment Law would take effect as 
from 1 July 2006.  The implementing decrees of this  Law, including the regula tions on percentage of 
shares of existing Vietnamese enterprises which fore ign investors are allowed to purchase, would take 
effect concurrently with the Investment Law.  
Question 19 
Article 27: Conditional investment sectors: We would urge Viet Nam to set up an exclusive list 
of conditional investment sectors and to incorpor ate it into the investment law.  Also the 
procedures of granting an investment licence in th ese sectors should be clearly set out in the law. 
Could Viet Nam confirm what will be the maxi mum foreign shareholding in the conditional 
sectors? According to Article 27 it appears to be 49 per cent? 
Answer:  
The Draft Investment Law cannot set out specifically exclusive list of conditional investment sectors 
since this draft Law will be applied in a stable and long-term manner while the above-mentioned list 
may be adjusted from time to time.  To that end, in  line with the above principle, the Government will 
issue a Decree (taking effect concurrently with the Investment Law) to provide in detail for this list 
and specific conditions for each sector.  
Procedures for granting Investment Registration Certif icate to the projects that fall into the list of 
conditional investment sectors is provided for very  clearly in Article 48 of the 16th draft of the 
Investment Law.  
The provisions of Article 27 of the 13th draft of the Investment Law (i.e. Article 29 of the 16th draft 
Investment Law) are not designed to determine th e capped equity capital (49 per cent) of foreign 
investors investing in conditional investment sector s. The maximum foreign shareholding is subject to 
Viet Nam's commitments in services. 
Question 20 
We note that Article 30.3 stipulates that "where it is necessary to encourage the development of 
an extremely important industry or of a special  region or economic area, the Government may 
provide for other investment incentives different from those set out in this Law…".  WT/ACC/VNM/41 
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 We would urge Viet Nam to ensure that all inv estment incentives in Viet Nam are transparent 
and based on law.   Ad hoc measures in the me aning of Article 30.3 are highly questionable and 
we urge Viet Nam to change its legislation to remove from it the possibility of resorting to ad 
hoc measures. 
Answer:  
Article 30.3 (Article 39 of the 16th draft Investment Law) is aimed to encourage investment in certain 
sectors in line with development plans of the Govern ment from time to time.  Viet Nam undertakes to 
implement these measures in accordance with the principles set out in the Investment Law as well as 
the WTO's applicable rules.  
Question 21 
It is noted that the investment law stipulates in Article 26 that Viet Nam shall encourage 
investments in the sector of export production , and in Article 29 that Viet Nam encourages 
investors to make investments in geographical area s of export-processing zon es.  Because of this 
classification, all incentives listed under Section III  "Investment Incentives" of Chapter V of the 
law 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 46 concerning investment to infrastructure of industrial zones, export processing zones, 
high tech zones etc. It is also noted that infras tructure construction of industrial zones, export 
processing zones etc, is classified as "Important project" in Article 50.  
We urge Viet Nam to eliminate all prohibited subsidies upon accession.  We would also request 
Viet Nam to provide an updated list of all s ubsidies/subsidy programmes granted.  The list 
should take into account the draft Law on  Investment, and possible other updated legal 
provisions, and indicate the approximate value  of incentives provided under each scheme per 
annum.   
Answer:  
The 16th draft Investment Law has removed all of th e prohibited subsidies in the meaning of Article 3 
of the SCM Agreement.  In our view, the measures to support infrastructure construction of industrial 
zones, export processing zones and high-tech zon es are not prohibited under the SCM Agreement. 
The notification of industrial subs idies is being updated for the 20 03-2004 period, taking into account 
of the recent changes with respect to the investment incentives of Vi et Nam, and will be submitted to 
the Working Party.  The new notification will incl ude all the available information on each subsidy 
program applied by Viet Nam.  
With respect to export subsidies that are prohib ited under the SCM Agreement, Viet Nam commits:  
(i) Subsidies contingent upon localization ra tios and the use of domestic over imported goods 
shall be eliminated upon accession to the WTO;  
(ii) Subsidies in the form of direct payment from the State budget contingent upon export 
performance shall be eliminated upon of accession to the WTO; and 
(iii) Concerning the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives), Viet Nam has revised its draft Law on Investment to eliminate the practice of 
granting these subsidies from the date when the new rules become effective (i.e. 1 July 2006 
if so approved by the National Assembly).  Additionally, Viet Nam shall eliminate the 
prohibited subsidies in the form of investme nt incentives for the licensed projects no later 
than 7 years from the date of Viet Nam's accession to the WTO in order to observe its WT/ACC/VNM/41 
Page 12  
 
 commitments with the existing investors and st abilize the business environment.  The detailed 
information on the subsidies programs and the schedule for elimination of the prohibited 
subsidies shall be elaborated in the upda ted notification on industrial subsidies.  
Question 22 
In Draft Enterprise Law: 
- Article 6.2 refers to the list of prohibit ed business sectors to be declared by the 
government.  When would this list be available? We would urge Viet Nam to integrate it into the Enterprise law for sake of clarity and legal certainty. 
- Article 6.5 states that foreigners are prohibited or limited from conducting some 
businesses in accordance with the law on investment. 
We note that this provision is not in line with  the law on investment, which foresees as the only 
limitation for foreigners maximum 49 per cent investment in the conditional business sectors. The investment law does not foresee any sectors proh ibited for foreigners only.  We would urge 
Viet Nam to ensure, that the provisions of Investment law and Enterprise law are compatible with each other. 
Answer:
 
The conditional and prohibited business sectors will be set out in a governmental decree which will 
take effect concurrently with the Investment Law.  
The Investment Law does not set out a cap on forei gn ownership of 49 per cent as the only investment 
condition.  In addition, the Law does not specifica lly address this issue but instead authorizes the 
Government to provide for the cond itions to invest in certain areas, the limitations on foreign equity 
ownership and other investment conditions.  Ther efore, there is no contradiction between the 
provisions of this Law and the Enterprise Law.  
Question 23 
Paragraph 29:  Could Viet Nam please explain ho w it will put into practice its commitment that 
all future additions/deletions to the list of prohibited business sectors will comply with WTO 
rules?  Does Viet Nam have a specific Action Plan in this respect? 
Answer:  
This paragraph is to reconfirm that in the future, Viet Nam will act in line with the WTO rules and its 
commitments upon WTO accession.  As the current app licable laws of Viet Nam do not violate any 
rules of the WTO, no Action Plan in this respect is necessary. 
Question 24 
Paragraph 30:  Could Viet Nam please provide examples of how it is "encouraging foreign 
investment in almost all economic areas"? Are th ere any specific Action Plans/projects in place 
beyond amendments to the relevant legislation?  WT/ACC/VNM/41 
 Page 13 
 
 
 Answer:  
Except for the prohibited and some conditional sectors as have been elaborated in the Draft Report, 
Viet Nam may admit and/or encourage investment in other sectors. 
The lists of sectors in which investment is encour aged or especially encouraged have been issued 
under Decree No. 24/2000/ND-CP and Decree No. 27/ 2003/ND-CP (which have been submitted to 
the Working Party ). 
Question 25 
Paragraph 189 (and answer to Question 20 of WT/ACC/VNM/39): Can Viet Nam establish a 
clear legal definition for the phrase "depraved and reactionary cultural products" (as opposed 
to just "guidelines")? 
Answer:  
Under Viet Nam's regulations, if cultural products, including books, newspapers, magazines, pictures 
and paintings, calendars, posters, cat alogues, leaflets, pamphlets, pr opaganda leaflets, slogans, parallel 
sentences, tapes, sound discs, videos, video discs, films, applied artistic works and other cultural 
documents and products, etc. (under HS 9701, 9703,  9706, 9705, 4901, 4902, 4903, 4904, 4909, 4910, 
4911, 8524, 3706) which are found by government management authorities as "superstitious, 
depraved and reactionary cultural products" are a ll banned from production, exportation, importation, 
business and circulation in Viet Nam.  All the de finitions of "depraved and reactionary cultural 
products" as provided for in Vietnamese laws have been provided to the Working Party. 
Question 26 
Paragraph 30: We would be grateful if Viet Na m could provide justification for those areas of 
trade and economic activity where fore ign investment is not encouraged. 
Answer:  
As a general policy, Viet Nam encourages foreign investments.  Only a few areas of trade and 
economic activity where foreign investment is not  encouraged are due to Viet Nam's legitimate 
reasons. 
Question 27 Paragraph 32: Could Viet Nam provide an update  on the progress of its legislation towards a 
"level-playing field" for foreign and domestic investors (due for consideration by National 
Assembly in October 2005)? Which regulations st ill discriminate between foreign and domestic 
investment? 
Answer:
 
The update has been provided in draft Working Party re port, in particular in paragraph 30, 31, 32, 33, 
40, 41 and 42 of the Session on Investment Regi me.  Viet Nam has also submitted the draft 
Investment Law and draft Enterprise Law to the Working Party. WT/ACC/VNM/41 
Page 14  
 
 Question 28 
Paragraph 36:  Could Viet Nam please explai n how the need for Business Co-operation 
Contracts (BCCs) as a condition of providing serv ices in some circumstances relates to/differs 
from joint ventures? 
Answer:
 
BCCs may be applied as one of market access limitations in a very limited number of sectors.   Please 
see the Viet Nam's services offer for more detailed information.  
On the other hand, BCCs also provide investors w ith another option of commercial presence without 
establishment of a legal entity and are more flexib le than joint ventures.  As such, a number of 
investors have opted for BCCs even though no restri ctions on establishing joint ventures or wholly 
foreign-owned subsidiaries are applied. 
Question 29 
We appreciate the answer to Question 20 in WT/ACC/VNM/39.  Please provide a complete list 
of "superstitious cultural products" which Vi et Nam would not allow foreign investors to 
produce. 
Answer : 
Under Viet Nam's regulations, if cultural products, including books, newspapers, magazines, pictures 
and paintings, calendars, posters, cat alogues, leaflets, pamphlets, pr opaganda leaflets, slogans, parallel 
sentences, tapes, sound discs, videos, video discs, films, applied artistic works and other cultural 
documents and products, etc. (under HS 9701, 9703,  9706, 9705, 4901, 4902, 4903, 4904, 4909, 4910, 
4911, 8524, 3706) which are found by government management authorities as "superstitious, 
depraved and reactionary cultural products" are a ll banned from production, exportation, importation, 
business and circulation in Viet Nam.  All the de finitions of "depraved and reactionary cultural 
products" as provided for in Vietnamese laws have been provided to the Working Party. 
Cultural products which are identified as "superstiti ous, depraved and reactionary cultural products" 
by the relevant state management authorities are all banned from production, exportation, importation, 
business and circulation in Viet Nam (regardless for commercial purposes or not).  The regulation is 
applied on non-discriminatory basis to all organiza tions, individuals, domestic and foreign economic 
entities.  
Question 30 
The response to Question 21 in WT/ACC/VNM/39 designated that Ministry of Culture and 
Information as the Government of Viet Nam in stitution that determines which products meet 
the definitions identified in the response to Quest ion 20.  What are the criteria that the Ministry 
of Culture and Information uses to determine if a product is a "superstitious cultural product" 
or any of the other types of products listed in Question 20? 
Answer : 
All legally established economic entities in the Vi etnamese economy are allowed to do business in 
cultural and information.   WT/ACC/VNM/41 
 Page 15 
 
 
 The competent State management  agencies shall inspect and define whether a cultural product 
"superstitious, reactionary and depraved".  The insp ection process is applied to and executed by all 
State management agencies and to all economic s ectors and shall be based on the legal documents 
such as the Commercial Law, the Law on Press, the Law on Publication.  
Question 31 
This section will need to further revision once all services negotiations have been completed. 
Answer : 
We would like to take note of the comment.  
Question 32 
Viet Nam's "Investment Law" (Draft 13), continu es to include investment incentives contingent 
upon export. 
Answer : 
The latest version of draft Law on Investment is the 16th Draft.  This Draft Investment Law does not 
include any investment incentive contingent upon export. 
Question 33 
We remained concerned that Viet Nam's draft in vestment legislation continues to incorporate 
export-contingent subsidies.  Viet Nam should  address our concerns with respect to each of 
these subsidies and remove the prohib ited elements prior to accession. 
Answer : 
The latest version of draft Law on Investment is the 16th Draft.  This Draft Investment Law does not 
include any investment incentive contingent upon export. 
With respect to export subsidies in the form of in vestment incentives, including those operating in 
export processing zones that are prohibited under the SCM Agreement, Viet Nam has revised its draft 
Law on Investment to eliminate the practice of gr anting these subsidies from the date when the new 
rules become effective (i.e. 1 July 2006 if so a pproved by the National Assembly).  Additionally, 
Viet Nam shall eliminate the prohibited subsidies in  the form of investment  incentives for the licensed 
projects no later than seven years from the date of Viet Nam's accession to the WTO in order to 
observe its commitments with the existing invest ors and stabilize the business environment.  The 
detailed information on the subsidies programs and the schedule for elimination of the prohibited 
subsidies shall be elaborated in the update d notification on industrial subsidies.   
Question 34 
Transfers: Paragraph  6 - Chapter II, Article 9 provides a comprehensive list, but it only covers 
outward transfers. Should it not also include inwa rd flows of capital? Investors may wish to 
bring in money to buy locally, pay workers, etc. Not all expenses, especially early on, can be met 
out of an investment's profits. WT/ACC/VNM/41 
Page 16  
 
 Answer
: 
The Article 9 is named "Remittance of Capital and Assets Abroad" Article 9 of the draft Investment Law only provide s for the remittance of capital, assets and other 
lawful revenues.  The Draft Investment Law a nd other current Vietnamese laws do not have any 
limitation on the transfer of capital and lawful assets into Viet Nam to carry out the legitimate 
investment projects.  
Question 35 
Right to Buy Foreign Currencies Paragraph  8:  Chapter III, Article 18 suggests that the right to buy foreign exchange depends 
on the content of the draft foreign exchange ordi nance. We would appreciate receiving a copy of 
the draft Ordinance on Foreign Exchange as soon as possible? 
Answer
: 
The Draft of Foreign Exchange Ordinance has b een submitted by the Government to the Standing 
Committee of the National Assembly.  The 4th Draft of the Ordinance has already been submitted to 
the Working Party. 
Question 36 Chapter 2 Investment Guarantees: Article 12, it states that if a policy change occurs which 
affects an investor's interests, the inve stor shall be entitled to the following: 
- Continue to enjoy the rights and incentiv es previously granted to them for a specific 
period of time; 
- Enjoy a reduction of or exemption from t ax, or deduct loss from taxable income; or 
- Change the operational objective of the project. 
It is also noted that when a new law provides more favourable policies and incentives than 
previously applied to an investor, the more favou rable policies and incentives shall apply to the 
investor. We note that the continuation of incen tives which are contingent upon on export or the 
use of domestic over imported goods are deemed to  be prohibited under Article 3.1(a) and 3.1(b) 
of the SCM Agreement.  More over Viet Nam should  modify Article 12 to state that investors 
will only be entitled to previously enjoyed in centives, which are WTO consistent, including any 
reduction or exemption that is used to offset previously applied incentives.  
Answer
: 
Viet Nam takes note the drafting suggestions for th is Article and would like to propose that, with 
respect to export subsidies that are prohibited under the SCM Agreement, Viet Nam commits:   
(i) Subsidies contingent upon localization ra tios and the use of domestic over imported goods 
shall be eliminated upon accession to the WTO;  
(ii) Subsidies in the form of direct payment from the State budget contingent upon export 
performance shall be eliminated upon of accession to the WTO; 
(iii) Concerning the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives), Viet Nam has revised its draft Law on Investment to eliminate the practice of 
granting these subsidies from the date when th e new rules become effective (i.e. 1 July 2006  WT/ACC/VNM/41 
 Page 17 
 
 
 if so approved by the National Assembly). Additionally, Viet Nam shall eliminate the 
prohibited subsidies in the form of investme nt incentives for the licensed projects no later 
than seven years from the date of Viet Nam's accession to the WTO in order to observe its 
commitments with the existing investors and st abilize the business environment.  The detailed 
information on the subsidies programs and the schedule for elimination of the prohibited 
subsidies shall be elaborated in the upda ted notification on industrial subsidies. 
Article 11 on "Investment Guarantees in the event of  changes in law or policies" would be adjusted 
accordingly. 
Question 37 
Chapter 5 Investment Sectors and Geographica l Areas, Investment Incentives and Support: 
Under Article 28 of the Investment Law, Viet Nam states it will encourage investors to invest in 
"manufacture of goods for export." Could Viet Nam please explain how the encouragement to 
produce exports under Article 28 is consistent with the conditions set forth in Question 18: 
Article 9 of the Investment Law and with respect to Viet Nam's obligations under Article 3.1(a) 
of the SCM Agreement? 
Answer : 
Article 32.  Applicable entities for investment incentives In the latest Draft Investment Law, the List of sectors in which investment is encouraged no longer 
includes the projects for production of goods for export and projects using local goods or materials. 
Question 38 
It is our understanding that encouraged se ctors includes "manufacture of goods for export" 
under Article 28. Could Viet Nam please expl ain how corporate income tax incentives 
contingent upon exportation is consistent with  its obligations under Article 3.1(a) of the 
SCM Agreement? 
Answer
: 
Article 32. Applicable entities for investment incentives 
In the latest Draft Investment Law, the List of sectors in which investment is encouraged no longer 
includes the projects for production of goods for export and projects using local goods or materials. 
Question 39 
Under Article 37 of the Investment Law, Viet Nam states that investment projects in sectors and 
geographical areas which investment is "enc ouraged," may be eligible for accelerated 
depreciation of their fixed assets. Could Viet Nam please explain how Article 37 is consistent 
with its obligations under Article 3.1(a) of the SCM Agreement?  
Answer : 
Article 35.  Depreciation of Fix Assets Accelerated depreciation of assets shall only apply to the projects in the List of sectors and 
geographical areas in which investment is encouraged .  This List in the new Draft does not include the WT/ACC/VNM/41 
Page 18  
 
 projects for production of goods for export and project s using local goods or materials.  Therefore, 
these provisions are consistent with the SCM Agreement. 
Question 40 
Article 38, please confirm that Viet Nam's incen tives with respect to exemptions from duties 
under the Law on Export and Import Duties are co nsistent with Annex II and Annex III of the  
SCM Agreement, specifically the requirement that qualifying inputs must be consumed in the 
production of the exported product.  Also, please confirm that materials, spare parts, 
components, equipment and means of transport a re not eligible for duty exemptions under this 
law. 
We note that under Annex II and III of the SCM Agreement, tax rebate schemes allow for 
exemption of duties only on "inputs that are co nsumed in the production of the exported 
product (making normal allowance for waste)."  
Answer
: 
Article 33. Tax incentives  The import duty incentives available to some goods unde r this Article do not fall into the category of 
"inputs that are consumed in the production of the exported product (making allowance for waste)" as 
set out in Annexes 1 and 2 of the SCM Agreement. Import duty exemption for materials, spare parts, 
components, equipment and means of transport used for the capital construction (i.e. establishment) of 
the foreign invested enterprises a ccording to the Law on Import Export Duties is not contrary to the 
above said requirement since it is one-off exempti on that is not linked to projects producing export 
goods or the goods exported.  
Question 41 Article 40, Viet Nam states that investors, which invest in "encouraged" sectors, shall be 
entitled to land rent and fee exemptions. We note that Article 28 of the draft investment law includes manufacturing of goods for export as an "encouraged" sector.  Please explain how 
exemptions and reductions from land rent a nd land use fees, which are contingent upon 
exportation, is consistent with Viet Na m's obligations under Article 3.1(a) of the 
SCM Agreement?  
Answer
: 
In the new Draft Investment Law, the list of sectors where investment is encouraged no longer 
includes projects producing export goods and projects using local goods or materials. 
Question 42 
Article 42, Could Viet Nam please further explai n this article? Do investors qualify themselves 
for a certain level of benefits or incentives, or is it that investors must document and support 
whatever claim for benefits or incentives they make?   
Answer : 
Article 38. Procedures for grant investment incentives  WT/ACC/VNM/41 
 Page 19 
 
 
 According to this Article, the investor determines  the conditions for investment incentives, declares 
those incentives, and submits the declaration together  with the relevant documents for the competent 
body's decision (local tax office). 
Question 43 
Under Article 45, Viet Nam states it will provi de investment support services for various 
activities, including the establishment of associat ions of exporters.  Please explain how this 
article is consistent with Viet Nam's obligations under Article 3.1(a) of the SCM Agreement?  
Answer : 
Article 42:   The encouragement of establishment of expor ters' associations has been removed from 
this Article. 
- State Ownership and Privatization Question 44 Discussion at the recent Working Party meeting (16 September 2005) also raised a number of 
questions about the nature of "public goods and services" mentioned in this section of the 
report.  Can Viet Nam indicate: 
(i) If these "public goods and services" only relat ed to those that are for final consumption 
for Government in Viet Nam, or did they  also include goods and services procured by 
Government for final consumption of non-state entities. 
(ii) All relevant Government policies applying to their supply – i.e. competitive conditions 
between private suppliers and state enterpri ses, how prices for such goods and services 
are determined, and whether imported goods a nd services can also be provided to fulfil 
orders for ‘public goods and services'? 
Answer:
 
Public goods and services are products and services  necessary to social and economic life of the 
community and the country.  Thus, the Government purchases public goods and services for the final consumption of the Government  and non-governmental entities. 
Government policy on providing public goods and ser vices apply to all economic sectors.  All private 
and state owned enterprises can take part in the provision of public goods and services by competitive 
bidding.  The price of public goods and services are determined by bidding.  For public goods and services in the field of public security and national de fence, which are carried out by orders or task 
assignment, prices in these cases are based on government pricing regulation. 
Enterprises providing public goods and services can utilize all of their resources or can import goods 
to ensure production and providing public goods and services. 
Question 45 
Paragraphs 44, 68 and Question 27 of WT/ACC/VNM /38, we note the Viet Nam statement that 
the list of sectors and activities where the Stat e holds 100 per cent or the controlling equity is 
reconsidered in the purpose of reducing it furth er.  We would be happy if Viet Nam could 
indicate when it expects this process to be finalized? WT/ACC/VNM/41 
Page 20  
 
 Answer:
 
The list of sectors and activities where the State holds 100 per cent or the controlling equity set out in 
paragraph 1 is the list under Decision No. 155/2004/ QD-TTg.  The amendments of that list would be 
reconsidered on the basis of the assessment of the on-going equitization programme.  Therefore, 
Viet Nam cannot inform exactly when the am endments of this list will be finalized.  
Question 46 We understand that due to the above mentioned pr ocess, the lists of Decision No. 155/2004 will 
be modified as well.  Could Viet Nam explain th e link between the list mentioned in the previous 
paragraph and the list of Decision No. 155/2004?  
Answer:
 
The list of sectors and activities where the State holds 100 per cent or the controlling equity set out in 
paragraph 1 is the list under Decision 155/2004/QD-TTg. 
Question 47 
Paragraph 56, Questions 28 and 32 of WT/ACC/VNM /38 – fertilizers, we thank Viet Nam for 
the explanation given.  We would like to Viet Nam to clarify whether 100 per cent privately 
owned fertilizer companies can be currently established in Viet Nam. 
Answer:  
Investment in fertilizer production is not restrict ed.  To date, four 100 per cent foreign invested 
companies in this industry have been established. 
Currently, Viet Nam does not apply any restrictiv e measures on the particip ation of organizations, 
individuals in the production of fertilizers.  As a result, 100 per cent privately owned companies can 
produce fertilizers in Viet Nam.  
Question 48 
Question 31 of WT/ACC/VNM/38, we thank Viet Nam for the explanation given.  In the sake of 
clarification, we would like Viet Nam to clarify, whether 100 per cent privately owned companies can be currently established in Vi et Nam in the areas listed under (iii)-(v). 
Answer:
 
As we have explained in the answer to Question 31 of document WT/ACC/VNM/38, the areas listed 
from (iii)-(v) only referred to the sectors where the State retains certain ratio of shares in the 
equitisation process.  It does not mean that privately owned enterprises, including 100 per cent privately owned enterprises, are restricted from participating in these sectors.  
Question 49 
Question 33 of WT/ACC/VNM/38, we note the Viet Nam statement that it is currently revising 
the list of business sectors/lines that foreign inv estors are entitled to purchase shares and the 
limitations applicable to shares purchased by foreign investors in the Vietnamese company.  WT/ACC/VNM/41 
 Page 21 
 
 
 We would be happy if Viet Nam could indicate when it expects this revision process to be 
finalised and the necessary documents/legal  texts submitted to the Working Party ? 
Answer:  
If adopted by the National Assembly at this year-e nd session, the Investment Law would take effect as 
from 1 July 2006.  The implementing decrees of this  Law, including the regula tions on percentage of 
shares of existing Vietnamese enterprises which fore ign investors are allowed to purchase, would take 
effect concurrently with the Investment Law.  
Question 50 
What definitions does Viet Nam use for the follo wing terms: "state-owned," "state-invested," 
"state-controlled," and "equitized?" Would a company with 1 per cent of its shares equitized be 
an equitized firm?  A state-invested firm? 
Answer : 
The concept of "State-owned": Under the 2003 Law on SOEs, this concept cons ists of "State-owned 
enterprise" and "State-owned compan y".  The concept of "State-owned enterprise" refer to enterprises 
the total charter capital or more than 50 per cent is owned by the State, regardless under which law 
these enterprises are operating.  The concept of "State -owned Company" refers to enterprises the total 
charter capital of which is owned by the State and operate under the 2003 Law on SOEs. 
- The concept of "state-controlled" means ente rprises with controlling shares or contributed 
capital of the State (of more than 50 per cent of the charter capital). 
- The concept of "equitized" means an enterp rise converted from a company with 100 per cent 
State owned capital into a joint stock compan y, regardless how many percentages of the 
shares in that joint stock comp any are held by the State. 
- The concept of "state-invested firm" is not used  as a term in the legislation of Viet Nam and 
in fact does not appear in the official statistics of Viet Nam. 
Question 51 
Paragraph 44: We appreciate the statistics provided on the percentage of state involvement in 
the economy and in trade.  
In calculating these numbers, did Viet Nam including the state share of equitized firms' output? 
Answer : 
According to the statistical practice in Viet Nam, an equitized enterprise's output is included in the 
State's involvement in the economy and in trade if  the State has a controlling contributed capital or 
shares (of more than 50 per cent of the chartered capital) in the enterprise.  
Question 52 Paragraph 45: Viet Nam states that state-owned enterprises face the same bankruptcy 
procedures as private firms.  How many state- owned enterprises have declared and gone into 
bankruptcy since promulgation of the bankruptcy law? WT/ACC/VNM/41 
Page 22  
 
 Answer
: 
Since the Bankruptcy Law was promulgated, 17 SOEs have been gone into bankruptcy.  
Question 53 
Paragraph 45:  Viet Nam states "Under the new Law, equitized State-owned enterprises had the 
status of limited liability companies."  Is this th e case for all State-owned enterprises, equitized 
state-controlled enterprises, or equiti zed state minority stake enterprises? 
Answer : 
All State-owned enterprises, equitized state-controlle d enterprises, or equitized state minority stake 
enterprises has the legal status as a limited liability company in the meaning that the shareholders or 
capital contributors are responsible for the debts a nd other asset liabilities of the company within their 
capital share contributed to the company. 
Question 54 
Paragraph 45:  The Report notes that in the past  SOE profits had been transferred to the State 
budget.  Under the new SOE Law, how do SOEs disburse profits? 
Answer : 
Under the 2003 Law on SOEs, the remaining profits  of a State owned company (after making up 
losses for the previous year and payment of corpor ate income tax) will be distributed as follows: 
(i) paying to the members contributing capital in accor dance with the charter (if any); (ii) making up 
the previous years' losses the time limit for which to  be deducted from before-tax income has expired; 
(iii) distributing 10 per cent to the financial reser ve fund of the company until such fund reaches 
25 per cent of the charter capital; (iv) distributi ng to other funds from the after-tax profits in 
accordance with law with respect to  the companies operating in certain  sectors (e.g. the risk insurance 
fund of the companies providing banking or insurance services); (v) the profits of the enterprise, after 
being distributed to the funds mentioned in (i) to (iv), will be distributed in accordance with the ratio 
between the State capital invested in the enterprise and the average capital raised by the company in 
that year.  The profits distributed according to capit al raised by the company shall be given to the 
employees as bonuses and used for re-investment.  The profits distributed according to the capital 
invested by the State shall be used for re-investment  in addition to the existing capital of the State in 
the company.  Where the addition of State capital in the company is not necessary, the representative 
of the company owner shall decide to allocate the profits to invest in other enterprises. 
Question 55 
Paragraphs 45-46:  In paragraph 45 Viet Nam states that "The State had abolished direct 
monitoring and administration of enterprises by governmental agencies ."  In paragraph 46, 
Viet Nam noted that "State-owned shares were he ld by line ministries," but also that "Directors 
of small-scale enterprises were selected by the Ministers and Chairmen of provincial People's 
Committees."  Why is it necessary to have Ministers and Chairmen of provincial People's Committees select Directors for th ese enterprises? Why are Chairmen of provincial People's 
Committees selecting directors for ent erprises owned by the ministries? 
 
  WT/ACC/VNM/41 
 Page 23 
 
 
 Answer : 
There seems to exist a misunderstanding in this para graph.  Under the current law, the Minister and 
Chairman of the provincial people's committee sh all appoint directors of state owned companies 
(wholly state-owned enterprises) if the decisions  on establishment of which are issued by them 
respectively.  It is incorrect that the Chairman of the provincial people's committee appoints directors 
of state-owned companies under the ministries and vice versa. 
Question 56 
Paragraph 46:  We would appreciate further clarification of the following passage –
"State-owned enterprises were self-responsibl e for fulfilling their tax obligations, conduct 
business, and utilize the State invested ca pital efficiently. Government Decree 
No. 199/2004/ND-CP of 3 August 2004 provided for self-liability of State-owned enterprises for 
debts and other asset obligations within the ex tent of the State capital invested therein." 
- What does "self-responsible" mean? 
- What does "self-liability" mean? - What does "utilize the State invested capital efficiently" require? 
- What are the consequences for an SOE that does not fulfil its tax obligations or utilize 
the State invested capital efficiently? 
Answer
: 
- "Self-responsible" means state owned compan ies are granted autonomy in business activities 
in accordance with law and being self-responsib le for their business performance and results. 
- "Self-liability" means state owned companies w ith a legal status and liabilities for debts and 
assets like limited liability companies. 
- "Utilize the State invested capital efficiently" is ev aluated by the rate of the profits to the State 
invested capital. 
- Like other enterprises, a State owned company shall be obliged for payment of tax and if it 
does not fulfil this obligation, it may be subject to an administrative penalty or prosecution for 
criminal offence depending on the seriousness.  Where the State capital is not utilized 
efficiently, the Director and BOM members sha ll not be entitled to bonuses, pay rise or may 
be subject to compensation for lo sses if the company makes losses. 
Question 57 
Paragraph 46 also stated that the Governme nt conducted periodic reviews and unscheduled 
assessments of SOEs' business efficiency. 
- Are these reviews made public? 
- Could they be subpoenaed by the Competition Council (paragraph 92)? 
Answer : 
The evaluation of the business efficiency of a State company shall be publicized by different methods 
consisting of publications, posting at the company's office, representing in the conferences of 
employees or at the general meeting of sharehol ders.  Currently, no legislation of Viet Nam 
specifically deals with the relationship between the National Competition Council and the supervision 
and evaluation of the efficiency of state companies. WT/ACC/VNM/41 
Page 24  
 
 Question 58 
Paragraphs 46-47:  Different rules seem to be in  effect for "large" state-owned enterprises than 
for other ones.  What is a definition of a "large" state-owned enterprise, and how many are there in Viet Nam? 
Answer
: 
The 2003 Law on SOEs does not contain a definition of "large" SOEs.  There is no discriminatory 
policy according to the scale of the enterprises in Viet Nam. 
Question 59 
Paragraph 51:  Viet Nam states that private firms can compete to provide public goods and 
services, except those related to national security. Could Viet Nam confirm that although it calls 
these goods and services "public," it will treat them  as any other commercial goods or services 
within the meaning of the WTO Agreements? 
Answer : 
The enterprises participating in production and s upply of public good and services must maintain a 
cost accounting with respect to these products  and services like for other normal products and 
services. 
Question 60 
Paragraph 51:  Does Viet Nam intend that non-state-owned enterprises would be able to 
compete to provide electric power transmission  and distribution services to and from users 
ranging from large-scale comm ercial enterprises to single-fa mily residences and apartment 
buildings? 
Answer : 
Currently, the Electricity of Viet Nam still controls the national electric transmission system. 
However, Viet Nam has had a plan for equitization of the companies operating in power supply and in 
fact, the pilot equitization has been conducted w ith respect to Khanh Hoa Electricity Company. 
Question 61 
Paragraph 51:  Viet Nam states that the "Law on State-Owned Enterprises of 2003 had 
removed the concept of public interest State-owned enterprises so as to permit enterprises of all economic sectors to provide public goods and servi ces."  Please specify the specific provision of 
the law. 
Answer
: 
The 1995 Law on SOEs provides for the form of "Public Interest State Owned Enterprises".  
However, the 2003 Law on SOEs does not provide for this type of enterprises.  
Decree No. 31-2005-ND-CP of the Government da ted 11 March 2005 has expanded the scope of 
enterprises which can participate in production an d supply of public goods and services including 
State owned enterprises, domestic enterprises of  other economic sectors and cooperatives.  WT/ACC/VNM/41 
 Page 25 
 
 
 Question 62 
Paragraph 54:  Viet Nam needs to update its stat e trading enterprises notification to include all 
the companies listed in Table 4, state-trading ente rprises trading in cigars, cigarettes, and other 
tobacco products, and any state trading enterprises that have not yet been notified. 
Answer : 
Please refer to the Annex II on trading rights attached herewith for the revised list of goods subject to 
State-trading of Viet Nam.  Within this List, onl y State-trading enterprises in tobacco products that 
have not been notified.  Viet Nam is designing th e policies for the elimination of the import ban on 
cigars and cigarettes and will ma ke the notification accordingly. 
Question 63 
Paragraph 55: Please provide data on market sh are sales and imports in their respective sectors 
of VINACAFE, VINAMILK, and VINATEA. 
Answer : 
Viet Nam has provided a notification on the oper ation of these enterprises in the format of 
state-trading notification of the WTO (even thou gh these enterprises are not state-trading entities). 
Data other than those notified are not yet available. 
Question 64 
Paragraph 57:  Viet Nam states that VINAMILK, parts of the VINATEA, and several state salt 
companies have been equitized.  What percentage  of equity in these companies has the state 
disposed of? Are they still controlled by the st ate or is the state a minority shareholder? 
Answer : 
After a recent sale of shares, the State holds 50.1 per cent shares in VINAMILK.  In some salt 
companies, the figures are as follows:  57 per cent in Bac Lieu Salt Company, 65 per cent in Ha Tinh 
Salt Company, 51 per cent in Thanh Hoa Salt Comp any, 51 per cent in Hai Phong Salt Company. 
Question 65 
We thank Viet Nam for the information provided.  As a result, this section is substantially 
improved.  
Answer : 
Viet Nam would like to thank for the comment. 
Question 66 
Its separation from the SOE/STE section lends clarity to the Draft Report. 
Answer : 
We take note of the comment. WT/ACC/VNM/41 
Page 26  
 
 Question 67 
Paragraph 67:  Viet Nam lists three types of state-owned enterprises: (i) enterprises which 
would remain 100 per cent State-owned and would no t be equitized, (ii) en terprises in which the 
State would retain controlling shares and (iii) enterp rises in which the State would dispose of all 
its shares.  What about enterprises in whic h the state would retain a minority stake? 
Answer
: 
For SOEs that do not fall in category (i) and (ii) as mentioned, authorized state agencies will, on case 
by case basis, consider if the State should keep minority of shares or no shares at all.  
Please note the interpretation of Group 3.  This Gr oup consists of the enterprises in which the State 
does not hold controlling shares (less than 50 per cen t) or does not hold any shares after equitization. 
Question 68 Paragraph 70 notes that "from 2005 onwards, 1472 SOEs would be equitized, transferred, sold, 
closed, or subject to bankruptcy." 
How many SOEs will be subject to bankruptcy? U nder Viet Nam's bankruptcy law, what will 
happen to a bankrupt SOE? 
Answer
: 
In the plan for re-arrangement of SOEs, from 2005 on wards, Viet Nam allows bankruptcy of an SOE 
if it is insolvent.  According to Article 5 of the Law on Bankruptcy, an insolvent SOE must undergo all bankruptcy procedures like enterprises of all other economic sectors.  
During 2005 to 2007, under the current plan for restructuring of SOEs, there are approximately 
50 SOEs that would be subject to bankruptcy.  
Question 69 Paragraph 70: Statistics presented in this paragra ph suggest that since no enterprises have been 
moved to "Group 3" that Viet Nam has not relinquished control over a single state-owned equitized enterprise by 31 December 2004.  Is this correct?  
Answer
: 
The comment is not correct.  The figures in Para graph 70 just aim to indicate the results of 
equitization of SOEs up to 31 December 2004. 
Equitized SOEs could be classified as equitized  companies with State controlling shares; with 
minority of State shares and without State shares.  Statistics by end of August 2005 show that, out of 2,629 equitized companies, th e State keeps controlling shar es in 736 equitized companies 
(28 per cent), keeps minority of shares in 1,3 41 companies (51 per cent) and keeps no shares in 
552 companies (21 per cent). 
The State executes the rights of shareholders in joint stock companies which have State shares as 
specified by the Law on Enterprise.   WT/ACC/VNM/41 
 Page 27 
 
 
 Question 70 
Paragraph 70: Although Viet Nam states that the state retained a controlling stake in all 
equitized enterprises so far (since they all belonged to Group 2), it also presents a statistic that on average the state held 46.5 per cent of these firms, with the rest owned by employees and private shareholders.  How does Viet Nam reconc ile these numbers? Does this mean that the 
state counts employee holdings as state holdings? For example, the state holds less than a 
50 per cent stake in Hochiminh Insurance Company, yet it is included in Group 2 – enterprises which remain under state control.  How does th e state control Hochiminh Insurance Company 
with a minority stake?  
Answer
: 
According to the statistics of Viet Nam, the State is  currently holding an aver age of 46.5 per cent (less 
than 50 per cent) of the shares in the equitized SOEs .  These statistics are calculated from all equitized 
enterprises that part of the capital is held by the State, not just from the joint stock companies in 
which the State holds controlling shares. 
Statistically, on average, the State keeps 46.5 per cen t of shares of all equitized firms, which included 
but not limited to equitized firms in group 2.  
Ho Chi Minh Insurance Joint stock Company belongs to Group 2, in  which the State keeps exceeding 
50 per cent of shares.  To date, the portion of State' s shares in this Company is 63 per cent out of the 
total.  There is a typo in paragraph 70 of the WT/ACC/VNM5/Rev.1. 
Question 71 
Paragraph 72: Viet Nam states that at least 20 per cent of chartered capital of equitized firms 
was offered to private investors.   However, in paragraph 70, Vi et Nam states that shareholders 
other than the state and employees only held on  average 15.4 per cent share of the equitized 
firms.  How does Viet Nam reconcile these numbers?  
Answer : 
The requirement that an SOE must sell at least 20 pe r cent of its shares to the public is contained in 
Decree No. 187/2004/ND-CP dated 16 December 2004. Previously, the equitization of SOEs was 
conducted in accordance with Decree No. 64/2002/ND-CP .  This Decree did not require that an SOE 
must sell at least 20 per cent of its shares like the requirement in the Decree No. 187/2004/ND-CP.  It only "encouraged" enterprises to sell their shares to attract investors outside the enterprises.  This 
explains why the average percentage of holding shares by the employees and investors is only 15.4 per cent (less than 20 per cent) as mentioned in Paragragh 72. 
Out of the total number of equitized companies (a bout 2,629 SOEs), the number of SOEs followed the 
equitization process under Decree No. 187 is limited (a bout 300 SOEs).  The reason is this Decree 
was issued on 16 November and was in effect from ear ly 2005.  It means that less than one year of 
implementation in comparison with more than ten y ears of equitization to date.  Previous decrees 
other than Decree No. 187 on conversion of SOEs into  joint stock companies did not require but only 
encouraged selling shares to outsiders. In addition,  many equitized SOEs we re not attractive enough 
to outside investors so that the State has temporarily kept high proportion of State shares or sold those unsold shares to employees.  
Therefore, on average, proportion of shares kept by outside investors cannot reach the level of 
20 per cent as regulated in Decree No. 187. WT/ACC/VNM/41 
Page 28  
 
 Question 72 
Paragraph 74 notes that the total value of sh ares sold to foreigners should not exceed 
30 per cent of a joint-stock company's registered capital. 
Do all equitized companies b ecome joint-stock companies? 
Answer
: 
All SOEs upon being equitized are converted into joint stock companies. 
According to Decree No. 187/2004/ND-CP dated 16  November 2004 on conversion of SOEs into 
joint stock companies, the process of convertin g a SOE into a joint stock company is called 
equitization. As a result, after equitization, all e quitized SOEs will operate under the form of joint 
stock companies and subject to the Law on Enterprises. 
Question 73 Paragraph 74 also notes that the government is considering changes to the list of sectors in 
which foreign investors may purchase shares a nd the limitations to foreign investors. 
Please clarify that these changes apply to firms that are being equitized. 
Answer
: 
Viet Nam is considering to adjust the regulations limiting foreign investors to purchase of a maximum 
of 30 per cent of the charter capital of an enterpri se in compliance with its commitments with respect 
to services upon the WTO accession.  Therefore, we ar e unable to inform the Working Party of this 
issue when negotiations on specific commitment is still on-going.  This change (in terms of 
percentage and sectors) shall also apply to SOEs after equitization. 
Question 74 
When Viet Nam says that it reviewing the limita tions applicable to foreign investors, does this 
mean the  30 per cent equity limitation?  
Please advise when the Working Party w ill be able to review these changes. 
Answer : 
The 30 per cent equity limitation is the cap on foreign investors in purchase of shares at Vietnamese 
enterprises as specified in the Regulations a ttached to the Decision No. 36/2003/QD-TTg of 
11 March 2003.  The Government of Viet Nam instructed and assigned Ministry of Planning and Investment to study and issue the List of sectors a nd industries where foreign investors are subject to 
30 per cent limitation of equity in compliance with  the Law on Domestic Investment; to study and 
propose for increase of limitations on capital contribu tions and shares purchased by foreign investors 
exceeding the cap of 30 per cent of shares in some sectors and industries when drafting the Common 
Investment Law.  For the time being, equity cap on foreign investors is still subject to the Regulations 
attached to the Decision No. 36.   WT/ACC/VNM/41 
 Page 29 
 
 
 Question 75 
Referring to Question 45 in WT/ACC/VNM/39, we would appreciate further clarification on the 
timing of the proposed equitizations of the Bank for Foreign Trade of Viet Nam and Mekong 
Delta Housing Bank.  How will Viet Nam conduct the equitizations of both banks? 
Answer : 
On 21 September 2005, the Prime Minister issued Decision No. 230/2005/QD-TTg on pilot 
equitization of Vietcombank. Equitization procedur es of VCB will be carried out in pursuant to 
Decree No. 187 on conversion of state owned enterprises into joint stock companies. Since this is the 
first state owned commercial bank slated for equitizati on, the Prime Minister has agreed to recruit an 
international consulting firm to assist on valua tion and equitization process of VCB. The date for 
valuation is from 31 December 2005.  
Roadmap for selling shares is as follows:  In 2006 , shares will be sold in several phases, but not 
exceeding 10 per cent of chartered capital in each phase.  The purpose of selling shares is aimed at 
increasing equity participation but the State shares should not be less than 70 per cent.  From 2007 to 
2010, the State will continue to sell more shares fo r further increase of equity but the State shares 
must not be less than 51 per cent.  
On 27 October 2005, the Prime Minister issued Decision No. 266/2005/QD-TTg on pilot equitization 
of Mekong Delta Housing Development Bank.  The starting date for valuation is 31 December 2005. 
Shares sold will be phased similar to Vietcombank. 
Question 76 
Proposed Commitment Language: The representati ve of Viet Nam confirmed that from the 
date of accession, it would provide WTO Memb ers with annual reports on the status of 
privatization in Viet Nam.   
Answer : 
Viet Nam confirms that from the date of accession, Viet Nam will provide annual report on its 
equitization program as long as this program is in implementation. 
- Pricing Policies Question 77 We welcome Viet Nam's clarification in its response to Question 36 of WT/ACC/VNM//38 and 
in paragraph 82 of WT/ACC/SPEC/VNM/5/Rev.1 that  no form of minimum price is applied to 
imported or exported products. 
Answer:
 
We take note of the comment. 
Question 78 
We welcome Viet Nam's willingness to discuss co mmitment language on state price controls, 
and ask it to consider removal of the square br ackets from the language in paragraph 87 of 
WT/ACC/SPEC/VNM/5/Rev.1: WT/ACC/VNM/41 
Page 30  
 
 "The representative of Viet Nam confirmed that, from the date of accession, 
Viet Nam would apply price controls in a WTO-consistent fashion and take account 
of the interests of exporting WTO Members as provided for in Article III:9 of GATT 1994 and in Article VIII of the Ge neral Agreement on Trade in Services 
(GATS). He also confirmed that Viet Nam had published the list of goods and 
services subject to State price control and changes thereto in its Official Gazette and 
would continue to do so after accession. [He confirmed moreover that pricing policy 
in Viet Nam would be applied in compliance with the provisions of Article III:4 and XI:1 of GATT 1994 and Article 4 of the Agriculture Agreement.]  The Working Party took note of these commitments." 
Answer:
 
We agree with the commitment language as proposed. 
Question 79 
We also seek clarification on a response in WT/ACC/SPEC/VNM/38, in which Viet Nam 
suggests that there is no requirement for pro cessors to purchase sugar or cotton at minimum 
prices, but that firms are "encouraged" to agree to "pre-committed minimum prices 
determined by the state".   
We seek clarification as to how the Government "e ncourages" adoption of such price, and if it 
does not require firms to apply such prices how does it claim this as "product-specific price 
support" in its notification on domestic suppo rt (as it suggests its does on paragraph 82). 
Answer:  
It is not a requirement but a subsidization program where enterprises are subsidized to purchase at the 
minimum price. 
Question 80 
This section is nearly complete.  
Answer : 
We would like to thank for the comment. 
Question 81 
We are awaiting Viet Nam's report that it has implemented common electricity prices for 
Vietnamese and foreigners as indicated in paragraph 85. 
Answer : 
Viet Nam would like to reconfirm that according to Decision No. 215/2004/QD-TTg dated 
29 December 2004, common electricity prices for Vi etnamese and foreigners has been applied since 
the 1 January 2005.   Details of specific rates for pr oductions and household would be referred to in 
the attached Annex on Electricity Price of the Decision.  WT/ACC/VNM/41 
 Page 31 
 
 
 Question 82 
Paragraph 85: We would appreciate a more thorough description of the salary reform 
Viet Nam intends to institute. 
Answer : 
Salary policy reform was implemented in Octobe r 2004 and will be carried on in coming years. 
- Minimum rate: the minimum rate will be gradually upward adjusted corresponding to 
economic growth rate, and labour demand and supply. 
- Salary payment mechanism: salary continues to  be paid to workers on the basis of their 
productivity and efficiency and is determined  by the Agreement between employers and 
employees. 
We propose to remove the sentence "Price reform w ould be conducted in tandem with a reform of 
salaries aimed at raising people's income" as it is no longer relevant. 
Question 83 
We support removal of the br ackets in paragraph 87. 
Answer : 
We agree to remove the brackets in paragraph 87. 
- Competition Policy 
Question 84 We thank Viet Nam for the very thorough  summary of its new Competition Law. 
Answer
: 
We would like to thank for the comment. III. FRAMEWORK FOR MAKING AND ENFORCING POLICIES Question 85 We appreciate Viet Nam's indication in its response to Question 39 of WT/ACC/VNM/38 and in 
paragraph 108 of WT/ACC/SPEC/VNM/5/Rev.1 that it was revising its legal system to allow 
recourse to both administrative and legal appeals.   We look forward to further details of these 
reforms and their inclusion in the Working Party report. 
Answer:
 
Concerning the settlements of disputes through both ad ministrative and legal appeals, Viet Nam is 
revising and completing our legal system to allow parties to bring their administrative disputes to courts in case the administrative settlements are not sa tisfactory.  It is expected that the revision and 
amendment of relevant regulations, specifically  the Law on Complaint and Denunciations and the 
Ordinance on Procedures for Settlement of Administrative Disputes, will be passed in 2005.  
Viet Nam will update the Working Party on ce the Law and the Ordinance are passed.  WT/ACC/VNM/41 
Page 32  
 
 Question 86 
Further to Viet Nam's response to Question 40 of  WT/ACC/VNM/38, we reiterate our interest 
in Viet Nam making a further commitment by removal of the square brackets from the second 
last sentence of paragraph 117 WT/ACC/SPEC /VNM/5/Rev.1 i.e.: "He added that, when 
informed of a situation where WTO provision s were not being applied or applied in a 
non-uniform manner, national authorities would act to enforce WTO provisions without 
requiring affected parties to petition through the courts." 
Answer:
 
We agree to adopt the following text: 
117bis. The representative of Viet Nam confirmed that the provisions of the 
WTO Agreement would be applied uniformly throughout the customs territory of 
Viet Nam including in regions engaging in frontier traffic, special economic zones and 
other areas where special regimes for tariffs, taxes and regulations were established, and that, the Government of Viet Nam would ensure that laws, regulations and other 
measures, including those of local government s at the sub-national level conformed to 
Viet Nam's obligations undertaken in the WTO Agreement.  He added that, when 
informed of a situation where WTO provisions  were not being applied or applied in a 
non-uniform manner, national authorities woul d investigate such claims, and if the 
charges are found to be valid, would act to enforce WTO provisions without requiring the affected parties to petition through the cour ts.  The Working Party took note of this 
commitment. 
Question 87 We seek clarification in the Working Party report of the practical implications of the statement 
in paragraph 101 that the President and Government could decide on the direct applicability of whole or part of international treaties as appropriate.  
We are interested in practical meaning or effect of this. Does this imply that the President or 
Government could determine that part of its WTO treaty commitments would be relevant to 
enforce following adoption of its WTO package?  Or does this passage refer to Government 
consideration of whether treaties are appropriate in  whole or part, prior to ratification of such 
treaties? 
Answer:
 
Under the Law on the Conclusion, Accession and Impl ementation of International Treaties "Based on 
the requirements, content, characteristics of in ternational Treaties, the National Assembly, the 
President and the Government could decide on accep tance to be bound by and the direct applicability, 
in whole or in part, of international treaties, as appropriate, to agencies, organizations and individuals 
if the international Treaties are clear and detailed enough for implementation; and make decision, or 
proposals to amend, abrogate or promulgate legal normative documents to implement these 
international treaties".  This is the regulation to tr ansform international treaties into Viet Nam's legal 
documents.  It means that, upon joining the WTO, Viet Nam will complete internal procedures to 
accept to be bound by Viet Nam's commitment packag e in the WTO.  Based on the requirements, 
contents, characteristics of the co mmitment package, the ratifying body will also decide which parts 
of the package need transforming into Viet Nam's laws and regula tions by a legal document providing 
for detail implementation, and which parts do not need such transformation but can be applied 
directly.  WT/ACC/VNM/41 
 Page 33 
 
 
 Question 88 
There is nothing in the decision on procedures for dealing with complaints and appeals.  Could 
Viet Nam explain how this issue is regulated? 
Answer:  
The 2004 amended Law on Complaints and De nunciations has provisions on complaints, 
denunciations and appeals, which confirm the rights,  procedures and steps to settle denunciations and 
appeals. 
The National Assembly is currently examining a nd is expected to approve the draft Law on 
Complaints and Denunciation (amended) by the end of  2005, with the aim of making it consistent 
with WTO rules on complaints, denunciations and a ppeals.  This draft Law has been submitted to 
WTO Secretariat for circulation to WTO Members.  
Question 89 
This section has improved significantly.  
Answer : 
We would like to thank for the comment. Question 90 Paragraph 101 notes that in the event of a conf lict between the provisions of an international 
treaty to which Viet Nam is a party and domestic  legislation, the provisions of the international 
treaty would prevail. 
- Given this is the case, how will Viet Nam address conflicts between the two when they 
arise? 
- In the event this situation arises, would the Government of Viet Nam move quickly to 
amend its legislation to correct the conflict?  
Answer
: 
The Law on the Conclusion, Accession and Implementa tion of International Treaties approved by the 
National Assembly on 14 June 2005, provides for relationship between domestic laws and 
international treaties as follows: "In case a domestic normative le gal document conflict with an 
international treaty which the Socialist Republic of Vi et Nam is a participant, the international treaty 
shall prevails."  The Law also regulates that "Based on the requirements, content, characteristics of 
the international treaties, the National Assembly,  the President and the Government could decide on 
the acceptance to be bound by and the direct applic ability, in whole or in part, of international 
treaties, as appropriate, to agencies, organizations  and individuals if the international Treaties are 
clear and detailed enough for implementation; and make decision, or proposals to amend, abrogate 
or promulgate legal normative documents to  implement these international treaties" .  It means that in 
case there is a conflict between domestic legislation and a international treaty, based on the requirements, content, characteristics of the intern ational treaty, Viet Nam will directly apply the 
relevant provisions of the international treaty (if it is feasible) or amend the conflicting domestic laws 
and regulations in line with the international treaty. WT/ACC/VNM/41 
Page 34  
 
 Question 91 
We may have further comments or questions pending a final review of pertinent legislation. 
Answer
: 
We are looking forward to further detailed comments.  
Question 92 
We recommend the following changes to paragra ph 117 and we request that Viet Nam remove 
the brackets. 
117bis. The representative of Viet Nam confirmed that the provisions of the 
WTO Agreement would be applied uniformly  throughout the customs territory of 
Viet Nam including in regions engaging in frontier traffic, special economic zones and 
other areas where special regimes for tariffs , taxes and regulations were established, 
and that, the Government of Viet Nam woul d ensure that laws, regulations and other 
measures, including those of local governments at the sub-national level conformed to Viet Nam's obligations undertaken in the WTO Agreement.  [He added that, when informed of a situation where WTO provisions were not being applied or applied in a 
non-uniform manner, national authorities wo uld investigate such claims, and if the 
charges are found to be valid, would act to enforce WTO provisions without requiring the affected parties to petition  through the courts.]  The Working Party 
took note of this commitment. 
Answer
: 
We agree with the suggestion to remove the brackets: 
117bis. The representative of Viet Nam confirmed that the provisions of the 
WTO Agreement would be applied uniformly  throughout the customs territory of 
Viet  Nam including in regions engaging in frontier traffic, special economic zones and 
other areas where special regimes for tariffs, taxes and regulations were established, and that, the Government of Viet Nam would ensure  that laws, regulations and other measures, 
including those of local governments at the sub-national level conformed to Viet Nam's 
obligations undertaken in the WTO Agreemen t. He added that, when informed of a 
situation where WTO provisions were not be ing applied or applied in a non-uniform 
manner, national authorities would investigate su ch claims, and if th e charges are found to 
be valid, would act to enforce WTO provisions without requiring the affected parties to petition through the courts.  The Working Party took note of this commitment. 
IV. POLICIES AFFECTING TRADE IN GOODS - Trading Rights  
Question 93 There is still insufficient specific informatio n about business registration in this section. 
Inclusion of this information is important so that foreign business entities understand the 
process they need to follow to be author ized to conduct business in Viet Nam.   WT/ACC/VNM/41 
 Page 35 
 
 
 Answer:  
We are willing to address specific comments of Memb ers and will also provide more information on 
registration when the new Law on Enterpri ses is passed by the National Assembly. 
In addition, Viet Nam confirms that the registrati on procedures for enterprises  with foreign-invested 
capital to engage in import and export activities shall in no case be made more restrictive than those 
applied to domestic enterprises. 
Question 94 
We request that Viet Nam provide a summary of  the general registration process that foreign 
business entities must follow to be authorized to  begin operating in Viet Nam. The response 
should at the very least include the following elements:  
- Government agency or agencies authorized to register business entities; 
- Summary of the information that a business entity needs to provide to be duly 
registered; 
- List of the types of business entities that are au thorized to operate in Viet Nam, i.e. sole 
proprietorships; corporations, limited liab ility companies; limited partnerships, etc; 
- Description of the appeals process in case of denial of registration; and 
- Description of any differences in the registr ation process between domestic and foreign 
business entities. 
Answer:  
The forms of enterprises operating in Viet Nam c onsists of: (i) limited liability companies, joint 
stock companies, partnerships and private en terprises (established and operated in accordance 
with the Law on Enterprises); (ii) State owned companies (established and operated in accordance 
with the Law on SOEs); (iii) Joint venture ente rprises and enterprises with 100 per cent foreign 
owned capital (established and operated in accord ance with the Law on Foreign Investment in 
Viet Nam). 
Currently, domestic investors are subject to busin ess registration and foreign investors are subject 
to investment licenses.  The processes and procedures for business registration for domestic 
investors are principally provided for in the Law on Enterprises, Decree No. 109/2004/ND-CP of the Government dated 2 April 2004 on Busin ess Registration and Circular No. 03/2004/TT-BKH 
of the Ministry of Planning and Investment dated 29 June 2004 providing guidelines on the 
processes and procedures for business registrati on.  The procedures for issuing investment 
licenses to foreign investors are provided  for in the Law on Foreign Investment, 
Decree No. 24/2000/ND-CP dated 31 July 2000 maki ng detailed provisions for implementation of 
the Law on Foreign Investment in Viet Nam, Decree No. 27/2003/ND-CP dated 19 March 2003 
on amendments of and additions to a number  of articles of Decree No. 24/2000/ND-CP, 
Circular No. 12/2000-TT/BKH of the Ministry of  Planning and Investment dated 15 September 
2000 providing for guidelines on foreign investment activities in Viet Nam. 
All of the above legal instruments are made public  in the Official Gazette, the websites of the 
Ministry of Planning and Investment (http// www.mpi.gov.vn) and a number of other government 
bodies'.  WT/ACC/VNM/41 
Page 36  
 
 Question 95 
We see a direct linkage to some of the concerns  we raised on Viet Nam's investment regime, 
where it seems that FIEs under a certain investment licence are prohibited to import for example goods of the same kind for which they have received an investment licence to produce in the country at least they would apply for a new investment licence.  Yet, business has been 
told that they may not get this licence becaus e not generating enough value added in the 
country.  This picture reflects the content desc ribed in paragraph 121 of the Draft Report. 
Paragraph 123 of the Draft Report notes that pursuant to decree No. 45/2000/ND-CT of 6 September 2000, branches of FIEs were also a llowed to import certain goods for sale in the 
domestic market such as machinery, equipment, materials for the production or processing of 
agricultural products, fertilisers, etc. provided th ey use the foreign exchange from exports to 
finance the imports.  We have difficulties to s ee how such behaviour is in compliance with the 
relevant GATT Articles.  The system clearly gr ants preference to national companies over 
foreign ones and denies imported goods national  treatment as required by Article III of the 
GATT.  Moreover, we see this state of regulation as being a NTB to importation prohibited by 
GATT Article XI. We wish to remind that this issue is already reported in the Working Party  
draft report.  The representative of Viet Nam then proposed to phase in import and export 
rights gradually.  
In this view, we have examined the various lists  contained in the documents, which give details 
on the phase-in periods.  A part the fact that we  believe that some of the periods are excessively 
long, FIEs continue to face difficulties in seeing  their WTO rights enforced even for products 
for which no such prohibition, limitation or ph ase-in exist according to the list the Membership 
has been provided with.  We therefore urgently request Viet Nam to enhance transparency in 
the information provided regarding trading rights and reflect this in the next revision of the 
report.  For all other cases than those listed in the mentioned lists, we seek full compliance with 
the relevant WTO articles (namely Art. III, XI, TRIMs). 
Answer:
 
In order to implement the amended Commercial La w, decrees providing for detailed rules on trading 
rights are being drafted. These drafts have been ma de widely available to solicit public comments. 
These rules will be developed so as to envision Vi et Nam's commitments under the WTO.  These new 
rules, including those on branches of foreign enterpri ses, will be applied in a transparent, uniform and 
non-discriminatory manner and will comply with WTO's rules and Viet Nam's accession 
commitments. 
Question 96 
We welcome the improvement in Viet Nam's pr oposed commitments on trading rights in 
WT/ACC/VNM/38 and WT/ACC/SPEC/VNM/5/Rev.1  (paragraphs 119-130), however we note 
that trading rights for certain goods are still not to commence until 2009, and that it is still only 
from 1 January 2007 that all foreign direct inv ested enterprises will be allowed to engage in 
import and export activities.  The restrictions to the right to trade are inconsistent with WTO 
requirements, including Articles XI:1 and III:4 of GATT 1994. 
We urge Viet Nam to reconsider the timeframes proposed and make commitments so that, from 
the date of accession, any natural or legal person,  domestic or foreign, will have the right to be 
the importer or exporter of record in relation to  any product allowed to be imported into or 
exported from Viet Nam, and in the case of importation, will have the right to sell those 
products to any legal or natural person, domestic  or foreign, who has the right to distribute 
them.   WT/ACC/VNM/41 
 Page 37 
 
 
 Answer:  
Annex 1, document WT/ACC/VNM/38 has demonstrated Viet Nam's great efforts in making 
commitments on trading rights of FIEs.  We would like to include herewith our new commitments on 
trading rights (Annex II) where the list of products subject to state trading has been further reduced 
and new commitments on branching are proposed to facilitate the trading activities of enterprises. 
Viet Nam commits that foreign legal entities or FIEs  allowed to import goods shall be entitled to sell 
these goods to enterprises who have the right to distribute them. 
Question 97 
The List of Goods Subject to State Trading (page 181 of WT/ACC/SPEC/VNM/5/Rev.1) 
includes some tobacco products; petroleum; moti on picture film; printed books, newspapers, 
brochures and leaflets; records, tapes and ot her recorded media. We would appreciate 
clarification of whether this means that tradin g rights will only be available to State Trading 
Enterprises in these areas.  
Answer:  
Please refer to the Annex II attached with this doc ument on revised notification on products subject to 
Viet Nam's state trading.  Importing and exporting rights with respect to those goods is applied in 
accordance with Viet Nam's notification on State trading. 
Question 98 
Further to Viet Nam's response to Question 41 of WT/ACC/VNM/38, we seek clarification as to 
whether trading rights will only be available to State Trading Enterprises for products in Tables 1 and 2 of Annex 1. In particular, does Point 1 of Table 7 of 
WT/ACC/SPEC/VNM/5/Rev.1 not imply that "who lly Vietnamese-invested enterprises" that 
are also private (i.e. not STEs) also have export and import rights despite the existence of STEs. 
If this is the case, we seek justification for why foreign invested capital enterprises also do not 
enjoy similar treatment to wholly Vietnamese-i nvested enterprises in terms of trading rights. 
We seek clarification of this in the Working Part report and amendment to Table 7 as 
appropriate. 
Answer:
 
Concerning products in Table 7.1 and 7.2 (Sche dule of commitments on Import and Export Trading 
Rights), wholly Vietnamese invested enterprises also  have export and import ri ghts.  For products in 
Table 7.3 (List of Goods subject to State Trading) , import and export rights have been described in 
Viet Nam's Notification on State Trading.  
No amendment to Table 7 is needed as Point 5 of this Table has clearly stated that trading rights 
referred thereto shall not affect the rights of the G overnment of Viet Nam to enforce WTO's rules and 
Viet Nam's commitments relating to State Trading.  
We would like to include herewith our new commi tments on trading rights (Annex II) where the list 
of products subject to state trading have been further reduced and new commitments on branching are 
proposed to facilitate the trad ing activities of enterprises. WT/ACC/VNM/41 
Page 38  
 
 Question 99 
We note that in the recent Working Party m eeting, Viet Nam indicated in response to a 
member's question that all WTO members would be  guaranteed trading rights at the same 
time, irrespective of what arrangements had been agreed under Viet Nam's various bilateral 
trade Agreements (BTAs).  We seek reflection of this commitment in the Working Party report. 
Answer:
 
Viet Nam's WTO commitments on trading rights sh all be applied to all WTO Members on MFN basis 
upon Viet Nam's accession to the WTO. 
Question 100 
Paragraph 130 and Question 45 of WT/ACC/VNM/ 38, we welcome the Viet Nam proposal to 
grant all enterprises with foreign direct investment full trading rights no later than 
1 January 2007, except for products subject to Stat e Trading.  We also welcome the reduction of 
the list of products were trading right are gran ted only later, in 2009.  We consider these as 
important steps in the right direction. We howev er note that trading rights for pharmaceutical 
products, print machinery and TV and video cam era recorders will only be granted as of 2009. 
We would therefore urge Viet Nam to equalise trea tment 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.  We also agree with  the commitment language proposed by another 
member in Question 44 of WT/ACC/VNM/38. 
Answer:  
The phase-out period for trading rights in Table 7, Annex 2, WT/ACC/SPEC/VNM/5/Rev.1 has 
shown Viet Nam's great effort.  We take note of this comment and are committed to work with all 
WTO Members to seek a mutually accep table solution to this issue. 
We would like to include herewith our new commi tments on trading rights (Annex II) where the list 
of products subject to state trading have been further reduced and new commitments on branching are 
proposed to facilitate the trad ing activities of enterprises. 
Question 101 Can Viet Nam confirm that importers are free to choose their distributor in Viet Nam, meaning 
that they can sell the imported products to any legal or natural person who has a right to 
distribute them? 
Answer:
 
Yes.  Question 102 Paragraph 121:  Could Viet Nam please provide detailed justification on how "not encouraging 
foreign investment in pure trading without a lo cal production or manufacturing base" complies 
with the "National Treatment" principle under GATT Article III?  WT/ACC/VNM/41 
 Page 39 
 
 
 Answer:  
Paragraph 121 refers to a policy in the past.  Viet Nam's laws do not contain any provision that forbids 
foreign investment in trading.  Viet Nam maintain s no investment measures that are inconsistent with 
Article III of the GATT. 
Question 103 
Paragraph 126:  Does Viet Nam accept that restri cting importation to items specified in their 
investment licences or their Business Registration Certificates could amount to a non-tariff barrier to importation, prohibited by GATT Ar ticle XI? If not, could Viet Nam provide 
adequate evidence to refute that proposition? 
Answer:
 
Please see the discussion that has b een incorporated into the Working Party Report (paragraphs 127 
through 130).  
Question 104 
Paragraph 127:  Does Viet Nam accept that even though FDI enterprises are free to define their 
scope of business, the fact that they do not have the same rights to import, import for resale, or 
export as Vietnamese firms may amount to a breach of GATT Article III (with respect to 
National Treatment)? Does Viet Nam accept that  any potential breach of the fundamental 
GATT principle of National Treatment should be remedied prior to or by the time of its accession to the WTO? 
Answer:
 
Please see the discussion that has been incorporat ed in the Working Party Report (paragraphs 127 
through 130).  
Question 105 
Paragraph 129:  Could Viet Nam please provi de detailed background information on why 
previously "unbound" products are now subject to State trading? 
Answer:  
The only "unbound" products that are subject to State-trading are tobacco products.  These products 
are currently subject to import prohibition that will be abolished from the date of Viet Nam's 
accession.  In accordance with this commitment, a WTO-consistent state-trading regime (details will 
be notified in due course) will be applie d from the date of Viet Nam's accession. 
Question 106 
Paragraph 129:  Could Viet Nam please provide  detailed background information on why they 
intend to phase-in trading rights for some products by 2009 only? 
Answer:  
Please kindly find the rationale for the phasing-ins in  Table 7 of the Draft Report of the Working 
Party (document WT/ACC/SPEC/VNM/5/Rev.1). WT/ACC/VNM/41 
Page 40  
 
 Question 107 
Paragraph 130:  Grateful for an update on any progress made regarding Viet Nam's proposal to 
grant all FDI enterprises full trading rights no later than 1 January 2007.  Is there an Action 
Plan in place?  
Answer:
 
Viet Nam is drafting the Decrees guiding the implementation of the Commercial Law on rights to 
export and import, the Law stipulates that Viet Na m shall comply with international commitments to 
which Viet Nam is a signatory or a member.  On ce the commitments on trading rights are agreed.  
Question 108 
Table 7 (page 173):  We suggest that Viet Nam amend paragraph 3 by replacing "similar 
trading rights" with "no less favourable trading rights", to more clearly reflect the fundamental 
principle of National Treatment. 
Answer:  
We have taken note of the suggestion and ag ree to adjust the language accordingly.  
Question 109 
We appreciate Viet Nam's new offer on the extens ion of trading rights. Viet Nam's offer of full 
trading rights to foreign companies and individuals no later than 1 January 2007 appears to be an important development, as is the shortening of some of the transition periods.  We are also glad that Viet Nam has broken down its trading rights commitments to an 8-digit level. 
Answer:
 
We would like to thank for the comment. Question 110 Paragraph 121:  (Drafting Suggestion):  It woul d appear that this language may be overtaken 
by events and out of date, and could be stricken from the report. 
Answer:
 
We agree with the suggestion.  Question 111 Paragraph 127:  Viet Nam states in paragraph 127 that business entities are free to determine 
the goods they will be authorized to import based on its business registration.  To ensure that we 
understand how this works in practice, we would appreciate responses to the following 
questions:  
- Can business entities define the scope of th eir business in only one sector or across many 
sectors?  WT/ACC/VNM/41 
 Page 41 
 
 
 - Can a business entity simply state on its Cert ificate of Business Registration that it may 
imports goods across the entire HS tariff schedule, excludi ng those goods that are 
prohibited from importation or restricted by another law or regulation? 
- If a company can only register in one sector, ho w can it be ensured that it will be able to 
import all of the inputs that it needs fo r production, without having to amend its 
business registration certificate? 
Answer:  
Domestic enterprises are allowed under Vietnamese laws  to import goods in line with their business 
lines registered in the Certificate of Business Registration.  They will be subject to generally applied 
laws on importation, such as the provisions on im port prohibition.  Under the laws of Viet Nam, 
domestic enterprises are autonomous in registering any business lines, except those prohibited by the 
laws.  With respect to the conditional business lines  provided for by laws, ordinances or decrees, an 
enterprise may only register for and conduct such business if it satisfies all the prescribed conditions. 
With respect to business for which the relevant la ws, ordinances or decrees requires a minimum legal 
capital or certain practicing certificates, an enterprise may only register for the business if it has 
sufficient capital or practicing certificates. 
Foreign investors are issued with investment licen ses on the basis of the specific investment project 
they are applying for.  The objectives and scope of  operation of the projects are specified in the 
investment licenses.  The investment licence is also a business registration certificate. 
Question 112 
In paragraph 120, Viet Nam states that "wholly Vietnamese-owned enterprises were entitled to 
determine their scope of business at their own discretion." In paragraph 127, Viet Nam states 
that enterprises were free to define their scope of business (trading lines) and hence free to determine the list of imported goods indicated in  their Certificate of Business Registration, 
except for goods listed as prohibited imports and exports.  Article 61 of the Law on Foreign 
Investment, however, stipulated that any change in the business objective of an enterprise with 
foreign owned capital required approval by the competent authority. 
- Please clarify whether foreign-owned businesses are free to define their scope of 
business "at their own discretion" and therefore are also free to determine the list of 
goods they will import.  Do wholly Vietname se-owned enterprises also face the same 
requirement enumerated in Article 61 of the Investment Law?  
Answer:
 
Foreign investors are autonomous in doing bus iness in accordance with the objectives and scope 
specified in the investment licenses, which have b een issued on the basis of their own application.  
Question 113 
Paragraph 130:  Please confirm that the term "f ull trading rights" as used in this paragraph 
means that a foreign invested enterprise will be able to import as the importer of record any 
goods regardless of whether or not they are connected to their trading line. 
Answer:  
Yes, our commitments on trading rights have been adjusted to reflect this (see Annex II of this 
document). WT/ACC/VNM/41 
Page 42  
 
 Question 114 
Table 7, row 2:  What is Viet Nam's proposed  phase out period for trade in goods subject to 
state trading? State trading privileges within the meaning of GATT Article XVII are not necessarily meant to be permanent monopolies on  export and import of commercially important 
products and we would like to know Viet Nam's views. Is Viet Nam prepared to ensure that 
these enterprises observe commercial  considerations and the principles of non-discrimination in 
the purchase and sale of the state-traded goods,  as required by Article XVII of the GATT 1994? 
Answer:
 
Viet Nam will ensure that these enterprises observe  commercial considerations and the principles of 
non-discrimination in the purchase and sale of the state-traded goods. Viet Nam has made 
commitment that the operation of all STEs shall comply with Article XVII of the GATT. 
Question 115 
Viet Nam states in row 2 of Table 7 that foreign in vested "capital enterprises" will be allowed to 
be importers of record and be able to import  and export "all kinds of goods."  What are 
"capital enterprises?" Do they include trading co mpanies whose sole activi ty is import and/or 
export or are they only those firms which engage in manufacturing? If companies will be able to 
trade in any goods, except for a limited list of exceptions, why is the business line registration 
still necessary?  
Answer:  
"Foreign invested capital enterprises" were identifie d in Table 7 on trading rights to include both 
trading and manufacturing enterprises. 
Business registration requirements are necessary for the management and administration of the 
Government agencies.  Domestic enterprises are al so subject to the registration requirements.  
Question 116 
Can Viet Nam confirm that foreign individuals  and companies will be able, no later than 
1 January 2007, to do business in any corpor ate form, including fo reign majority-owned 
joint-ventures and wholly foreign -owned trading companies? 
Answer:  
No later than 1 January 2007, all foreign indivi duals and companies can establish foreign invested 
enterprises, including joint ventures with forei gn majority ownership and 100 per cent foreign 
invested enterprises or even branch es that are eligible to trading rights, subject to the commitments 
specified in Viet Nam's commitments on trading rights.  
Question 117 Row 3:  Viet Nam states that "foreign individuals shall be granted similar trading rights as 
Viet Nam's individuals."  Will this also happen no later than 1 January 2007?  Also, the term 
"similar" is unclear.  A better term would be "ide ntical," which would also be consistent with 
Viet Nam's national treatment obligations.  WT/ACC/VNM/41 
 Page 43 
 
 
 Answer:  
This provision will take effect  no later than 1 January 2007. 
We accept to replace the term "similar" with the te rm "no less favourable than" and have revised the 
commitments accordingly. 
Question 118 
In Table 7, Viet Nam lists HTS lines 8802 and 8803 in the state trading category, and it did not 
previously list these HTS lines as subject to state trading.  Please explain the reasons for this 
new proposed restriction on trade. 
Answer:  
Please refer to the Draft Report version November  2004, in Table 13, paragraph 225, HS lines 8802 
and 8803 were already in state trading category. 
Question 119 
Referring to the table listing the goods Viet Na m would like to restrict to State Trading, please 
provide an additional column explaining the ra tionale for restricting imports of listed products 
to state trading enterprises. 
Answer:  
Please see the Annex II of this document on revised commitments on trading rights. 
Question 120 
Concerning the table on state trading, we seek a commitment that Viet Nam will grant trading 
rights for all goods by a date certain.  
Answer:  
Viet Nam has committed to comply with WTO's rules on state trading enterprises, including 
Article XVII of the GATT. 
A. IMPORT REGULATIONS 
- Ordinary customs duties Question 121 
We welcome Viet Nam's response to Question 49 (WT/ACC/VNM/38) and its willingness to 
adopt the proposed commitment language on pub lishing tariff rate changes 15 days prior to 
their application (paragraph 135 of WT/ACC/SPEC/VNM/5/Rev.1). 
Answer:
 
We would like to thank for the comment. WT/ACC/VNM/41 
Page 44  
 
 Question 122 
We welcome Viet Nam's response to Question 51 (WT/ACC/VNM/38), and the inclusion of the 
proposed text on Viet Nam's Schedule of Concessions and Commitments on Goods as paragraph 139 of the revised draft Working Party report. 
Answer:
 
We would like to thank for the comment. 
Question 123 
Paragraph 137:  We request that Viet Nam provide the list of tariff lines that it is considering 
converting from ad valorem  rates to specific rates.  In light of  the fact that Viet Nam has already 
narrowed the list to approximately 100 tariff lines, it would seem appropriate to share this list to 
ensure transparency and allow intereste d Members to comment on the list. 
Answer:  
List of tariff lines subject to specific tariff has been  discussed in bilateral talk s and will be provided to 
the Working Party and the WTO Secretariat upon the conclusion of all bilateral negotiations for the 
incorporation into the accession documents. 
Question 124 We support the following commi tment language for this section and request that Viet Nam 
remove the brackets accordingly. 
140bis.  [The representative of Viet Nam confirmed that from the date of accession, 
Viet Nam would apply tariffs on an MFN basis to [all countries and separate customs territories with which it had a WTO relationship] and would apply its 
authority to increase tariffs in conformity with WTO provisions and its WTO 
commitments.  The Working Party took note of this commitment.] 
Answer:
 
We are seeking clarification for the concept of "WTO  relationship" to better understand and consider 
the commitment language as proposed. 
- Other duties and charges Question 125 We welcome the responses to Questions 52 and 53 (WT/ACC/VNM/38) and paragraphs 141-143 
of the revised draft Working Party report advisi ng that Viet Nam has eliminated all import 
surcharges and commits to bind its ODCs at  zero upon accession.  We suggest the second 
sentence of paragraph 144 of the draft Wo rking Party report be amended to read:  
"He further confirmed that Viet Nam had agreed to bind at zero other duties and 
charges in its Schedule of Concessions and Commitments, pursuant to Article II:1(b) of the GATT 1994."  WT/ACC/VNM/41 
 Page 45 
 
 
 Answer:  
We agree with the commitment language as proposed. 
Question 126 
Paragraph 144:  We appreciate acceptance of th e commitment language in this paragraph.  
Answer:  
We would like to thank for the comment. 
- Tariff rate quotas, tariff exemptions 
Question 127 We note our support of a number of concerns raised by members in relation to Viet Nam's 
administration of Tariff Rate Quotas (TRQS) in paragraphs 150-151 of the revised draft report. 
We note a number of aspects that are inconsistent with Articles XI and II of GATT.  We do not 
agree with Viet Nam's statement in paragraph 1 52 that its TRQ policies are consistent with 
WTO rules and ask Viet Nam to ta ke further steps to address them. 
Answer:
  
We note that many concerns by Members, includi ng concerns over auctioning as a method of TRQ 
allocation, have been addressed in Viet Nam's latest TRQ Offer (document 
WT/ACC/SPEC/VNM/1/Rev.3/Add.4 of July 2005).  
Viet Nam confirmed that from the date of accession it would apply, allocate and administer its tariff 
rate quotas in conformity with WTO applicable ru les and regulations, including the MFN and national 
treatment provisions of the GATT. 
Question 128 
We welcome Viet Nam's statement in response to Question 56 that it was willing to accept 
language proposed in paragraph 103.C under Question 110 of WT/ACC/VNM/36.  While Viet Nam is willing to commit that tariff rate quotas will be applied in conformity with WTO 
rules, we reiterate our request that it also ad opt proposed commitment language now in square 
brackets in paragraph 153 and 154 of the draft Working Party report. 
Answer:
 
Concerning paragraph 153, Viet Nam would adopt the following commitment: 
"153. The representative of Viet Nam confirme d that from the date of accession Viet Nam 
would apply, allocate and administer its ta riff rate quotas in conformity with WTO 
applicable rules and regulations, including th e MFN and national treatment provisions of 
the GATT.  The Working Party took note of these commitments."  WT/ACC/VNM/41 
Page 46  
 
 Concerning paragraph 154, Viet Nam has proposed a s light change in the language that better reflects 
reality (there is no change in the substance): 
"154. The representative of Viet Nam confirmed that it would replace any discretionary 
licensing measures currently applied pursuant to Prime Minister Decision No. 46/2001/QD-TTG of 4 April 2001 with a tariff rate quota mechanism as from the date 
of accession.  He further confirmed that Viet  Nam would apply and administer its tariff 
rate quotas in conformity with WTO applicab le rules and regulations, including the MFN 
and national treatment. The Working Part y took note of these commitments." 
The reason is that DecisionNo. 46/2001/QD-TTg of  4 April 2001 covered many issues relating to 
import-export management. Import licensing measures re ferred to in the paragraph is only one issue 
addressed by the Decision. 
Question 129 
We welcome that Viet Nam has confirmed (paragr aph 149 of the draft report) that it will apply 
and administer tariff rate quotas in conformity  with WTO applicable rules and regulations, 
including MFN and national treatment provision s of the GATT.  We seek further information 
on the allocation and administra tive arrangements that Viet Nam intends to apply to a TRQ on 
sugar.  
Answer:
 
The administration arrangements for TRQ on sugar sh all be in accordance with Viet Nam's Offer on 
TRQ and in full conformity with the WTO applicable  rules.  In its latest Offer on TRQ (document 
WT/ACC/SPEC/VNM/1/Rev.3/Add.4 of July 2005), Viet Nam proposes to allocate sugar quota to 
end-users. 
Question 130 
We note Viet Nam's response to Question 43 of WT/ACC/VNM/38, and the comment that "in 
principle" the allocation of TRQ on salt is through first-come first-served method.  We seek 
clarification as to why Viet Nam indicates this is only ‘in principle' and how this varies in actual 
practice.  
Answer:  
Viet Nam confirms that the allocation of TRQ on sal t, as regulated in the applicable legal documents 
and implemented in practice, is thr ough first-come first-served method. 
Question 131 
We thank Viet Nam for the information provided in paragraph 146 of the Draft Report.  We 
note the average imports of salt over the period 1999 – 2001.  Would Viet Nam please provide 
annual imports of salt up to 2004.  
Answer:  
In-quota import volume for salt in 2004 is 200,000 MT.  The actual import is around 130,000 MT.  WT/ACC/VNM/41 
 Page 47 
 
 
 Question 132 
Further to Viet Nam's response to Question 61 of WT/ACC/VNM/38, we seek clarification in 
the Draft Report as to whether imported material s that are imported under the tariff rate quota 
and then subsequently exported (with the dut y drawn back), such import volumes would not 
count towards fulfilment of the total volume of  quota provided for under general importation 
via the TRQ. 
Answer:  
The regulation has only administrative nature per se . Businesses may choose to simply proceed to 
import without seeking for an allocation of a TRQ quantity and still enjoy drawbacks as normal 
according to existing regulations. Import volumes then  would not count towards fulfilment of the total 
volume of quota provided for under ge neral importation via the TRQ. 
Question 133 
Paragraph 242:  Grateful if Viet Nam could provide specific details on how the duty drawback 
arrangement (for imported products used in the manufacturing of goods for export) and the 
TRQ arrangements are linked. 
Answer:  
Businesses may choose either to apply for the TRQ and then draw back the in-quota duties or to 
import directly and then drawback the out-of-quo ta duties according to the existing rules on duty 
drawbacks. 
Please also refer to Viet Nam's response on th is point at the end of paragraph 242 in 
WT/ACC/SPEC/VNM/5/Rev.1 dated 5 September 2005.  
Question 134 Addendum to Viet Nam's Offer on Tariff Rate Quot as (TRQs): "Importers are to be designated 
by the Government", as stated at Working Pa rty  meeting on 15 September, we recognize the 
great progress achieved by Viet Nam on TRQ admi nistration methods.   Nevertheless, we are 
not in a position to subscribe to the administration method identified as "Method B" in Item 4 
in the latest Addendum to Viet Nam's Offer on Tariff Rate Quotas 
(WT/ACC/SPEC/VNM/1/Rev.3/Add.4), namely "i mporters are to be designated by the 
Government".  In this regard, we wish to recall our submission of past June:  
"No matter how arbitrary the system is, the party that concedes the tariff cannot 
become the party that decides how many  or to whom tariff quotas should be 
assigned.  As the right corresponds to the rest of the contracting parties and not to 
the party offering the concession, if the syst em is administered and conditioned in a 
different way to the way in which the obliged  party does so in the market, the system 
diminishes or undermines the rights of the members." 
For these reasons we request to substitute th is administration method for another one, 
consistent with WTO rules, so as to: 
(i) Acceptance of the Draft Report; and 
(ii) Ensure consistency with the final schedul e of concessions on tariffs and other market 
access commitments with GATT 94 rules. WT/ACC/VNM/41 
Page 48  
 
 Answer:
 
The proposed Method B (i.e. Importers are to be d esignated by the Government) is applicable to only 
unmanufactured tobacco (HS 2401).  In fact, it means just State-trading or producer group administration method where imports are allocated to state trading entities or a group of producers 
which imports (or has direct control of imports unde rtaken by intermediaries) the product concerned. 
State trading/producer group is recognized as one of principal TRQ administration methods (please 
refer to documents G/AG/NG/S/8 and G/AG/NG/S/20 for more information).  We would welcome 
any comment on better language to reflect this allocation method. 
Question 135 
Paragraph 192:  Could Viet Nam provide a firm commitment to replace its import restrictions 
on sugar with a Tariff Rate Quota (TRQ) before or at the time of accession? Has Viet Nam 
made any progress in this regard? 
Answer:
 
Viet Nam confirms that the discretionary import-lic ensing regime applied to sugar shall be converted 
to TRQ upon Viet Nam's accession to th e WTO (See Viet Nam's offer on TRQ). 
Question 136 Paragraph 146:  We thank Viet Nam for providing more details on its salt TRQ and 
information about how it is implemented. Howe ver, we would still like more information about 
the system.  
- Please provide further details about why th ere are ranges for in-quo ta and out-of-quota 
tariff rates? 
- How are these ranges applied? How does an importer qualify for the lowest rate in the 
range? 
- Could Viet Nam please provide 2004 import statistics for salt?  - Why do importers of salt need to report on  a quarterly basis rather than just annually? 
This seems particularly burdensome when Vi et Nam is basing its TRQ allocations on 
1999-2001 import data. 
Answer:
 
- There are no ranges for application of TRQ in-quota and out-of-quota rates.  The range for 
tariff rates is the summary by the WTO Secretar iat. For the detailed rates for each line, please 
see Viet Nam's offer on TRQ. 
- Import of salt in 2004 was approximately 130,000 tons. 
- That importers of salt are required to report on import performance of TRQs to the Ministry 
of Trade not only on annual but also on quarterly  basis is intended to facilitate the monitoring 
of tariff quota fill during the respective period so that reallocation of unused licenses may 
occur in a timely manner. As previously expl ained, there are often some delays in the 
availability of statistics on imports. Consequently , the Ministry of Trade would also use the 
data from enterprises' reports to guarantee the up-to-date and accurate source of information.  WT/ACC/VNM/41 
 Page 49 
 
 
 Question 137 
We again request that Viet Nam eliminate the TRQ on salt and replace it with a tariff-only 
commitment, especially in light of the fact that  no other products classified by the WTO as 
non-agricultural goods, are subject to a TRQ in Viet Nam. 
Answer:  
In Viet Nam, salt production is considered as an agricultural activity as it involves farmers. 
We are looking forward to Members' understanding and flexibility in accepting Viet Nam's TRQ on 
salt, which is an important commodity in Viet Nam and generates the main source of income for 
hundreds of thousands of poor farmers.  Viet Nam applies tariff rate quota to salt with a view to securing employment and ensuring income stability for those farmers producing salt.  
Question 138 We renew our request that Viet Nam consider eliminating its TRQs on bird eggs, sugar, and 
tobacco by accession. 
Answer:
 
Viet Nam has limited its application of tariff rate  quotas to the minimum extent and demonstrated its 
goodwill by considerably narrowing the coverage of products subject to tariff rate quotas.  Viet Nam 
looks forward to the reciprocal approach from the Working Party's Members in the bilateral 
negotiations with Viet Nam, in particular in th e context that a large number of WTO Members still 
apply TRQ. 
Question 139 
We note the competing commitment language in  paragraphs 153 and 154.  We support the 
bracketed text in paragraph 153 as the sounder basis for a commitment for this section.  
Answer:  
We agree with the suggestion and agree to  adopt the language of paragraph 153.  
Question 140 
Paragraph 158:  We propose the following additi onal text for a commitment for this section: 
The representative of Viet Nam confirmed that upon accession, Viet Nam would adopt and 
apply tariff reductions and exemptions so as to  ensure MFN treatment for imported goods. He 
also confirmed that Viet Nam would not provide  tariff reductions and exemptions contingent 
upon export performance, export ratios, or local content requirements.  The Working Party 
took note of these commitments. 
Answer:  
Viet Nam agrees with the commitment language as proposed and will adjust accordingly. WT/ACC/VNM/41 
Page 50  
 
 - Fees and charges for services rendered 
Question 141 We welcome advice that Viet Nam is considering a reduction of customs fees, but the fact 
remains that the customs processing fee varies depending on the volume of the goods transferred and hence is inconsistent with Ar ticle VIII of GATT 1994.  We reiterate our 
expectation that by the date of accession Viet  Nam will adjust all of its fees and charges for 
services rendered so that they conform with Ar ticle VIII and that Viet Nam adopt commitment 
language along the lines of paragraph 166 of the Draft Report.  
Answer:
 
Viet Nam is reviewing its customs processing fees and would adjust them to conform to WTO 
provisions from the date of accession. 
We agree with the commitment language in pa ragraph 166 of WT/ACC/SPEC/VNM/5/Rev.1 and 
agree to remove the brackets of this paragraph. 
Question 142 
Paragraph 161 and Question 71 of WT/ACC/VNM/38, we note that the customs processing fees 
are based on the quantity of imports, by weight and the form of transportation.  Since these fees 
do not reflect the cost of services rendered, th ey are not compatible with Article VIII GATT. 
We therefore urge Viet Nam to revise the fees to the level that corresponds to the services 
rendered.  
Answer:  
Viet Nam is reviewing its customs processing fees and would adjust them to conform to WTO 
provision from the date of accession. 
Question 143 
Paragraph 161 and Question 70 of WT/ACC/VNM/38,  we note that Viet Nam applies a customs 
fee for the purchase or sale of foreign exchan ge which varies according to the value of the 
transfer.  Since this fee does not reflect the co st of services rendered, they are not compatible 
with Article VIII GATT.  We therefore urge Vi et Nam to revise the fee to the level that 
corresponds to the services rendered.  
Answer:  
Viet Nam would eliminate the fees for inspecti ng and counting foreign currencies remitted cross-
border upon accession. 
Question 144 
Paragraph 163 (and answer to Question 74 of  WT/ACC/WNM/39): In terms of Viet Nam's 
"minimum fee regimes" for importers of certain goods, could Viet Nam provide more specific 
evidence (for instance, a breakdown of costs) to illustrate why services rendered for the goods in 
question cost more than services ren dered to importers of other goods?  WT/ACC/VNM/41 
 Page 51 
 
 
 Answer:  
Regarding separate customs processing fees on auto mobiles and motorbikes, due to more procedures 
and customs services provided for checking each set of au to parts or motorbike parts, etc the relevant 
customs processing fees should be higher than others and be separated from other ordinary services. 
Question 145 
Paragraph 161:  We are concerned that Viet Nam's customs processing fees based on quantity 
and/or mode of transportation do not comply with the provisions of GATT Article VIII.  We 
request that Viet Nam consider amending its custom s clearance system so that it is tied directly 
to the cost of services rendered rather than based  on quantity and/or mode of transportation. 
Answer:  
Viet Nam is reviewing its customs processing fees and would adjust them to conform with WTO 
provision from the date of accession. 
Question 146 
Paragraph 164:  We reiterate our request that th e discussion of the fee Viet Nam applies to the 
purchase or sale of foreign exchange be move d to the section on foreign exchange controls. 
Answer:  
Viet Nam would eliminate the inspecting and count ing foreign currencies remitted cross-border upon 
accession. 
Question 147 
We note the competing commitment language in  paragraphs 165 and 166.  We support the 
bracketed text in paragraph 165 as the sounder basis for a commitment. 
Answer:  
We agree with the commitment language in pa ragraph 166 of WT/ACC/SPEC/VNM/5/Rev.1 dated 
5 September 2005 and agree to rem ove bracket of this paragraph. 
- Application of internal taxes to imports 
Question 148 
We continue to encourage Viet Nam to indicate the steps that it will take, and over what time 
period, to integrate producers of unprocessed and raw agricultural products into its VAT 
system (reply to Question 128 of WT/ACC/VNM/ 36 and paragraph 178 of the Draft Report 
refer).  Alternatively, will Viet Nam give a co mmitment to exempt imports of such products 
from the VAT from the date of accession so that it conforms with Article III of the GATT 1994? 
Answer:  
The National Assembly of Viet Nam has just passed  the Law on the Amendments of and Additions to 
some articles of the Law on Excise Tax and the Law on Value Added Tax in November 2005.  This WT/ACC/VNM/41 
Page 52  
 
 new law provides that unprocessed and raw agricultu ral products domestically produced or imported 
are not subject to value added tax. 
Question 149 
Paragraph 175 and Question 76 of WT/ACC/VNM/38:  We welcome Viet Nam statement that 
Viet Nam will apply uniform excise tax rates for imported and domestically produced 
automobiles upon accession.  
Answer:
 
The National Assembly of Viet Nam has just p assed the Law on the Amendments of and Additions 
some articles of the Law on Excise Tax in November  2005.  Pursuant to this new law, there is no 
discrimination in terms of excise tax rates on dom estically produced and imported automobiles upon 
accession.  This law will be in effect from 1 January 2006.  
Question 150 
Paragraph 174 and Question 77 of WT/ACC/VNM/38:  We welcome Viet Nam statement that 
Viet Nam will equalise excise tax rates fo r draught and draft beer upon accession. 
Answer:  
We would like to thank for the comment. 
Question 151 
Paragraph 172:  Grateful if Viet Nam could provi de an update on the amendments to be made 
to the draft Law on Excise Tax (due to be exam ined by Viet Nam's National Assembly at the 
end of 2005) in relation to the elimination of discriminatory excise taxes. 
Answer:  
The National Assembly of Viet Nam has just p assed the Law on the Amendments of and Additions 
some articles of the Law on Excise Tax and the Law on Value Added Tax in November 2005. 
Pursuant to this new law, there is no discrimina tion of excise tax rates on domestically produced and 
imported automobiles, beer and cigarettes upon acce ssion as Viet Nam has committed.  This law will 
be in effect from 1 January 2006.  
Question 152 Paragraph 175:   Could Viet Nam please elaborat e on the preferential excise tax rates granted 
to automobile manufacturing enterprises when investment licenses are issued (to support the 
domestic automobile manufacturing industry)? Can Viet Nam substantiate that this measure is 
WTO-compliant? Which products are affected? Are any car-parts affected, and if so can 
further details be provided? 
Answer:
 
The National Assembly of Viet Nam has just p assed the Law on the Amendments of and Additions 
some articles of the Law on Excise Tax and the Law on Value Added Tax in November 2005. 
Pursuant to this new law, there is no discrimina tion of excise tax rates on domestically produced and 
imported automobiles, beer and cigare ttes upon accession as Viet Nam has committed.  WT/ACC/VNM/41 
 Page 53 
 
 
 The excise tax is imposed on automobiles under three categories: 
- automobile of and less than five seats; 
- automobile of 6 to 15 seats; - automobiles of 16 to 25 seats; and - auto-parts are not subject to excise tax. 
Question 153 Paragraph 178:  Grateful if Viet Nam could clarify, in light of the National Treatment principle, 
the extent to which they have re-examined their provisions on Value-Added Tax (VAT) applied to unprocessed agricultural products and mach inery equipment imported for fixed asset 
purposes by FDI enterprises. 
Answer:
 
The National Assembly of Viet Nam has just p assed the Law on the Amendments of and Additions 
some articles of the Law on Excise Tax and the Law on Value Added Tax in November 2005.  This 
new law provides that unprocessed and raw agricultu ral products domestically produced or imported 
are not subject to value added tax. 
Regarding VAT provision on machinery equipment imported for fixed asset purposes by FDI 
enterprises, this is Viet Nam's policy on encour aging FDI enterprises to invest and set up production 
facilities in Viet Nam.  This provision favours FDI enterprises more than domestic enterprises and is 
not inconsistent the national treatment principle. 
Question 154 
We appreciate the answer to Question 83 in WT/ACC/VNM/39 with respect to Viet Nam's 
discriminatory excise tax rates on distilled spirits.   We also appreciate the inclusion of excise tax 
rates Viet Nam applies to distilled spirits in  Table 9 in WT/ACC/SPEC/VNM/5/Rev.1.   To 
clarify, we ask that Viet Nam confirm in the text (paragraph 174) that it applies an excise tax rate of 75 per cent ad valorem  to distilled spirits exceeding 80 proof (40 per cent alcohol content 
by volume) and that it applies an excise tax rate of 30 per cent ad valorem  to distilled spirits 
between 40 proof (20 per cent alcohol content by volume) and 80 proof (40 per cent alcohol 
content by volume) inclusive.  We also ask that  all wines be assessed the same excise tax rate. 
If this is the case, Table 9 should to refl ect accurately the statements in the text: 
2 Spirits:  
2204;  2205;  2206;  
2207; 
2208 a) Of alcoholic strength exceeding 40 per cent vol. 
b)  Of alcoholic strength 20-40 per cent vol. 
c)  Of alcoholic strength less than 20 per cent, of 
wine or fruit flavoured and Medicinal and 
herbal wines 75 
30 
20 
 
 
Answer:  
Table 9 is the current provisions of Viet Nam on excise tax rate pursuant to the Law on the 
Amendments of and Addition to some articles of the Law on Excise Tax of 2003. 
The National Assembly of Viet Nam has just p assed the Law on The Amendments of and Additions 
to some articles of the Law on Excise Tax a nd the Law on Value Added Tax in November 2005. 
Pursuant to these new laws, there is no discrimin ation of excise tax rates on domestically produced WT/ACC/VNM/41 
Page 54  
 
 and imported automobiles, beer and cigarettes upon accession as Viet Nam has committed.  This law 
will be in effect from 1 January 2006.  
Question 155 
Paragraph 174:  We welcome Viet Nam's commitme nt to equalize excise taxes on beer prior to 
accession. 
Answer:
 
We would like to thank for the comment. 
Question 156 
Paragraph 175:  We also welcome the commitmen t by Viet Nam to eliminate the discriminatory 
excise tax on imported automobiles in WT /ACC/VNM/5/Rev.1 and WT/ACC/VNM/33 to bring 
it into conformity with Article III of GATT 94. However, Table 9 (in between paragraphs 167 
and 168) lists the rate of the excise tax for H/S 8703, motor vehicles with 5 seats or less, at 80 per cent.  
What will the uniform excise tax rate for autos be upon accession? 
Answer:
 
The National Assembly of Viet Nam has just p assed the Law on The Amendments of and Additions 
to some articles of the Law on Excise Tax a nd the Law on Value Added Tax in November 2005. 
Pursuant to these new laws, there is no discrimin ation of excise tax rates on domestically produced 
and imported automobiles, beer and cigarettes upon accession as Viet Nam has committed.  This law will be in effect from 1 January 2006.  
Question 157 
Paragraph 178 deals with Viet Nam's VAT ex emption for domestic farm production.  
We note the request for technical assistance, but  remain concerned that, if the exemption is not 
extended to imports as well, it is a violation of Article III of the GATT 1994. 
Answer:
 
The National Assembly of Viet Na m has just passed the Law on the Amendments of and Addition to 
some articles to the Law on Excise Tax and the Law on Value Added Tax in November 2005.  This 
new law provides that unprocessed and raw agricultu ral products domestically produced or imported 
are not subject to value added tax. Therefore, the new law conforms with the national treatment 
principle. 
Question 158 
Paragraph 181:  We would like to suggest the following adjustment to the draft commitment 
language: 
The representative of Viet Nam confirmed that from the date of accession, Viet Nam would 
ensure that its laws, regulations and other measur es relating to internal taxes and charges levied 
on imports, including those discussed in paragr aphs […, and …], would be in full conformity  WT/ACC/VNM/41 
 Page 55 
 
 
 with its WTO obligations, in particular Article III of GATT 1994, and that it would implement 
such laws, regulations and other measures in full conformity with those obligations.  The 
Working Party took note of these commitments.  
We would support removal of the br acketed text in this paragraph. 
Answer:  
Viet Nam agrees with the proposed commitment langua ge of the Member and would like to have the 
specific commitment language as follows: 
"The representative of Viet Nam confirmed that from the date of accession, Viet Nam would ensure 
that its laws, regulations and othe r measures relating to internal taxes and charges levied on would be 
in full conformity with its WTO obligations, in pa rticular Article III of GATT 1994, and that it would 
implement such laws, regulations and other measures in full conform ity with those obligations.  The 
Working Party took note of these commitments." 
- Quantitative import restrictions, including  prohibitions, quotas and licensing systems 
Question 159 Paragraph 182: As referenced in paragraph 182, Viet Nam has provided lists of chemicals that 
are either banned or restricted from importation in Tables 11(a) and (b).  We thank Viet Nam 
for providing the lists, but we are still seeking more information.  
- Previously, Viet Nam has indicated that Tabl e 11(a) includes all chemical products that 
are prohibited from importation based on Vi et Nam being a signatory to the Chemicals 
Weapon Convention. However, Part 1 of Ta ble 11(a) seems to include some chemical 
products that are not covered by the Chem ical Weapons Convention.  Could Viet Nam 
please provide a further explanation as to the basis for prohibiting these other 
23 chemical products because they seem to fall outside of the Chemicals Weapon Convention? 
- Could Viet Nam please provide further info rmation as to the basis for the conditional 
nature of importation of chemical produc ts listed in Table 11(b)? Some of these 
products traditionally move in commerce in  large quantities such as chlorine and 
benzene and are not generally restricted. 
Answer:
 
The reasons that Viet Nam applied lists of chem icals that are either banned or restricted from 
importation are as follows: 
- Chemicals in Table 11a and b are toxic ones whic h are explosive, flammable or corrosive that 
have adverse effect to human and animal health , assets, environment and national security and 
defence of Viet Nam; and 
- In addition, Viet Nam is a participant in the Chemical Weapons Convention (OPCW). 
Therefore, current import-export regulations comply with the Convention. 
On 2 August 2005, Vietnamese Government issued Decree No. 100/2005/ND-CP on the 
implementation of the Chemicals Weapon Conven tion. The Decree completely prohibits the 
importation of chemicals under Table 1 and provid es for conditional import licensing to chemicals 
under Table 2 and 3. WT/ACC/VNM/41 
Page 56  
 
 Concerning HS coding: 
- In table 11(a), the first 23 chemicals are POP - Persistence Organic Pollutants whose HS 
codes are not available in Viet Nam; and 
- For other products, the list of chemicals with  HS codes are attached with this document 
(Annex III). 
Question 160 Paragraph 184:  We remain concerned about cert ain restrictions that have been placed on 
second-hand goods as summarized in Table 10.  We are particularly concerned about the 
restrictions on second-hand electronics and household electric goods.  
- We understand that Viet Nam has a legitima te right to ensure product safety for end 
users, but the breadth of this prohibition raises our concern.  For example, will 
companies be able to sell refurbished goods or  provide replacement parts that have been 
refurbished to service contracts?  
- We request that Viet Nam provide more detailed information on the prohibition of 
"second-hand" goods, especially electronics a nd household electrical goods and whether 
there are any exceptions to this prohibition. 
Answer:
 
Currently, second-hand consumer goods including el ectronics and household electric goods are still 
prohibited from importation. Refurb ished goods, therefore, are not allow to import due to the inability 
of Viet Nam management system to: 
- Distinguish between purely second-ha nd goods and refurbished ones; 
- Distinguish between refurbished goods with electronic waste. 
Question 161 
Paragraph 189:  We appreciate the clarificatio n provided regarding the 4-digit HS codes in 
which the "children's toys" and "depraved and reac tionary cultural products" prohibited  from 
importation can be found.  However, as these code s cover a multitude of products, we renew our 
request that Viet Nam provide a list of specific products that would fall into these two 
categories. 
Answer:  
Cultural products which are identified as "superstiti ous, depraved and reactionary cultural products" 
by state management authorities are all banned from production, exportation, importation, business 
and circulation in Viet Nam (regardless for trading purposes or not).  The same procedures are applied 
to children toys having adverse effect in moral education, public order and security. 
Question 162 
Paragraph 190:  We note that Viet Nam ha s committed to exclude goods equipped with 
encryption capability that are commonly traded fr om application of Viet Nam's prohibition on 
the importation of products with encryption capability.   WT/ACC/VNM/41 
 Page 57 
 
 
 This is a positive commitment that helps to ensu re the free-flow of high-tech trade into and out 
of Viet Nam.  However, despit e this commitment, we still request that Viet Nam provide more 
information about how its encryption prohibition works and how it is applied to imports.  
Answer:  
According to Decision No. 46/QD-TTg dated 4 Apr il 2001, only specialized encryption machines and 
software that are subject to state secret is s ubject to import prohibition.  Encryption machines and 
software that are found by the State management  authority as State secret will be banned from 
importation. 
Question 163 
Paragraph 194:  We note the commitment that  Viet Nam has made to apply fully with the 
WTO's Agreement on Import Licensing Pr ocedures. We commend Viet Nam for its 
commitment.  
Could Viet Nam provide a description in the draft Working Party Report of the difference 
between import licensing and line management in Viet Nam? 
Answer:  
Line-management refers to division of mana gement functions among the government agencies 
(i.e. the focal point for management).  They may or may not involve an import licensing measure. 
Question 164 
We look forward to reviewing Viet Nam's Import Licensing Questionnaire. 
Answer:  
Viet Nam's Import Licensing Questionnaire has al ready been submitted to the Working Party. 
Question 165 We note a new line-management mechanism for th e post-2005 period is in preparation.  Can 
Viet Nam please advise the Working Party of the measures that will be applied in the post-2005 
line management system and their WTO justif ication? Will Viet Nam please include this 
information in the draft report? 
Answer:
 
As indicated in paragraph 192 of Draft Report, line management measures, which are applied by 
Viet Nam, aim at national security, society moral, human and animal health, plant protection, labour 
safety, food safety, environment protection complyin g with Articles XX and XXI of the GATT.  Line 
management mechanism after 2005 will be establis hed upon such basis. Viet Nam will update 
information when such mechan ism for post 2005 is issued. 
Question 166 Paragraph 186 and Question 84, as regards import prohibition of motorcycles with engine 
capacity exceeding 175cm
3, we welcome Viet Nam proposal to consider non-automatic licensing WT/ACC/VNM/41 
Page 58  
 
 instead of import prohibition.  We would urge  Viet Nam to proceed in replacing the import 
prohibition with a licensing system. 
Answer:
 
Viet Nam confirms that import prohibition of motorcycles with engine capacity exceeding 175cm3 
shall be replaced by non-automatic licensing mechanism from the date of accession.  
Question 167 Paragraph 186 and Question 85, as regards the re placing the import prohibition of used motor 
vehicles with an import quota, we note Viet  Nam reply that the planned quota for used 
motor-vehicles is not too small and therefore proh ibitive, considering the size of Viet Nam 
current market for passenger cars. 
Could Viet Nam give the Working Party informatio n on the amount of domestic production of 
cars and trucks and also the amount of regis tration of them in the last two years? 
Answer:
 
During the 2003-2005 period, ther e were 51,500 cars registered on average each year, in which 
approximately 18,980 are trucks  and 24,200 are passenger's cars. 
During 2003-2004, total annual domestic production of cars and trucks were approximately 43,850.  
Question 168 
As regards Table 13 of the draft Working Party  report which describes the planned system for 
used motor vehicles, we note that the addition al import duty planned for used motor vehicles 
can only be used for products where a separate tariff line exist for used vehicles.  We therefore 
urge Viet Nam to check the situation as regards the products listed in table 13 in order not to 
introduce additional duties that are not compatible with the WTO rules. 
Answer:  
Viet Nam has committed to eliminate ban on used automobiles and offered to apply customs tariff 
instead.  
The current tariff nomenclature of Viet Nam co mpletely complies with the ASEAN Harmonized 
Tariff Nomenclature (AHTN), whic h was worked out by ASEAN countries.  This nomenclature does 
not have 8 digit HS for all used automobiles, only used ones under heading 8703 (automobile of less than nine seats) are provided for in HS 8 digits. 
Other used automobiles (consisting of trucks, auto mobile of and more than ten seats and other 
automobiles of and less than nine seats) have not specified in HS 8 digit and belong to the following 
subheadings: 870210; 870290; 870310; 870321; 870322; 870323; 870324; 8703.31, 8704.32; 
8703.34; 870390; 870410; 870421; 870422; 870423; 870431; 870432; 870490. 
Under current provision, all used automobiles, which have not specified in HS 8 digit are subject to 
150 per cent of tariff rates imposed on corresponding new automobiles. (This is provision in the context of maintaining a ban on used automobiles).  WT/ACC/VNM/41 
 Page 59 
 
 
 Viet Nam offered to the Workin g Party the combined tariffs ( ad valorem  and specific tariffs) on used 
automobiles as an appropriate measure for Viet Nam when eliminating the current ban on used 
automobiles. 
Question 169 
Paragraph 196, we welcome Viet Nam's anno uncement that it will fully comply with 
the Agreement on Import Licensing upon accession. 
Answer:  
We would like to thank for the comment. 
Question 170 
Decision No. 41/2005 and Question 86, we thank Vi et Nam for its replies and the clarifications 
given. We would however want to come back  to one of our previous comments given. 
Article 1.5 of the AILP requires that app lication forms should only require necessary 
information to be given. This requirement is not reflected in Article 3.2.b of the 
Prime Minister's decision. 
Article 3.2.b) of the Prime Minister's decision st ates that "The contents of the applications for 
import licences or for extension thereof shall be prescribed in a simple and clear manner". 
This sentence refers the manner in which informat ion is presented, but not to the substance, the 
contents of this information.  Article 1.5 of th e AILP refers to the contents of the information, 
which should be restricted to the necessary.  We would urge Viet Nam to transpose this 
provision into its national system and to ame nd the Prime Minister's decision accordingly.  
Answer:  
Art. 3.2b of the Regulation on the import licensing attached with Decision No. 41/QD-TTg of the 
Prime Minister regulates that both the form and contents of the requi red information in the application 
form for import licensing should be simple and clear.  It can be understood as only requiring necessary information as required by Article 1.5 of the AILP. 
Question 171 
Paragraph 192: Could Viet Nam elaborate on  how their measures to achieve health, 
environmental and safety objectives (particularl y regarding their use of import restrictions) 
meet the fundamental "least trade restrictive" test (especially on imports of used motor 
vehicles)? 
Answer:
 
Viet Nam has already committed to remove th e prohibition on second-hand automobiles upon WTO 
accession.  Other measures will also be applied in a WTO-consistent manner. 
Question 172 
Paragraph 192: Could Viet Nam please provide further details on how they intend to ensure 
that their new line-management mechanism for the post-2005 period is WTO-compliant? WT/ACC/VNM/41 
Page 60  
 
 Answer:
 
As indicated in paragraph 192 of the Draft Report,  line management measures which are applied by 
Viet Nam aim at national security, society moral, human and animal health, plant protection, labour 
safety, food safety, environment protection complying Articles XX and XXI of GATT. Line management mechanism for post-2005 peri od will be established upon such basis.  
Question 173 Paragraph 195: Could Viet Nam please provide  further details on the extent of the 
implementation of the WTO Agreement on Import  Licensing to date? Is there an Action Plan 
they could provide? 
Answer:
 
The Prime Minister issued Decision No. 41/QD-TTg dated 2 March 2005 on import licensing 
regulations to adjust Viet Nam's import licensing pr ocedure in line with the AILP of the WTO.  The 
Decision came into effect from 1 September 2005. 
- Customs Valuation 
Question 174 
According to Paragraph 199 of the Working Party Report WT/ACC/SPEC/VNM/5/Rev.1, the 
representative of Viet Nam noted that minimum customs values had been eliminated in September 2004 pursuant to Circular No. 87/2004/TT-BTC of 31 August 2004 and that Viet Nam had incorporated fully the provision s of the Customs Valuation Agreement and the 
interpretative Notes in its regulations, in pa rticular Decree No. 60/2002/ND-CP and Circular 
No. 118/2003/TT-BTC [except the implementation of  Articles 5.2 and 6 of the CV Agreement].  
We particularly note Viet Nam's acknowledgement  of full implementation of the provisions of 
the Customs Valuation Agreement (CV Agreement), which in Article 7.2 (f) says the following: 
"no customs value shall be determined under the provisions of this Article on the basis of minimum customs values". However, pursuant to Circular No. 87/2004/TT-BTC of 31 August 
and following explanatory notes, the elimination of minimum customs values seem to apply only 
to a list of countries (e.g. We are not part of this  list).  This list is decided by the Ministry of 
Finance
1. Our intent is not the inclusion of our country in this list, but Viet Nam's full 
compliance with the provisions of the Customs Valu ation Agreement.   We request Viet Nam to 
clarify this issue and explain how full WTO compli ance is possible, while applying Article 7 f in 
a discretionary manner and therefore excludi ng WTO Members from their rights. 
Answer:  
Viet Nam committed to fully implement the Cu stoms Valuation Agreement of WTO upon accession. 
Currently, Viet Nam is in the process of draftin g legal document on Customs Valuation Agreement 
full implementation which would replace current regula tions.  The current regulations were issued to 
                                                      
 1 Quote of Chapter I, Article 1, Paragraph 2, of Circ ular 118/2003/TT-BTC: Imported goods which originated in a 
country, territory or national alliance (as announced by the Ministry of Finance)  with which Viet Nam has agreed to 
determine dutiable value in accordance with the principles  in the Agreement on implementation of article 7 of the 
General Agreement on Tariffs and Trade; and other imported goo ds as decided by the Prime Minister of the Government.   
  WT/ACC/VNM/41 
 Page 61 
 
 
 partly implement CVA in the preliminary phase in which some reservations was maintained and are 
being phased out. 
This draft is worked out to ensure full impl ementation of Customs Valuation Agreement upon 
accession including transaction valuation to be applie d to all WTO members and current reservations 
to be phased out. 
Question 175 Commitment in paragraph 204:  We would like to have included in the commitment language: - Full compliance of WTO provisions concerning customs valuation, including 
the Agreement on Implementation of Article VII of the GATT 94 and Annex 1 (Interpretative Note);  
- Guarantee that any custom valuation method to be applied will be in accordance to 
these WTO rules; and 
- The sentence on the confirmation that mini mum prices or any system of reference prices 
or fixed valuation in lieu of transaction value  is irrevocably eliminated by the date of 
accession. 
Answer:
 
We propose the commitment language in paragraph 204 on Customs Valuation Agreement as follows: 
"The representative of Viet Nam confir med that upon accession Viet Nam would fully 
implement the Agreement on the implemen tation of Article VII of GATT 1994 and 
Annex 1 (Interpretative Notes on some articles of the Agreement).   Viet Nam ensures that any customs valuation method to be applied will be in accordance to these WTO 
rules. Upon accession, Viet Nam would elim inate minimum prices or reference prices 
instead of transaction value method. In additi on, Viet Nam would apply provisions of the 
Decision on the Valuation of Carrier Media Bearing Software for Data Processing Equipment, adopted by the WTO Committee on Customs Valuation (G/VAL/5), as soon 
as practicable, but in any event no later than two years from the date of accession." 
Question 176 Paragraph 197:  Grateful if Viet Nam could pr ovide an update on the progress of their Working 
Group set up to promote the implementation  of the WTO Customs Valuation Agreement. 
Answer:
 
This working group was set up in the prepar ation period of Custom s Valuation Agreement 
implementation two years ago and no longer exists. 
Currently, Viet Nam is making its best effort to prepare for full implementation of Customs 
Valuation Agreement in terms of guidelines or regul ation documents as well as the infrastructures for 
this process. 
Question 177 
We note the assurances in paragraph 143 of th e draft report "that the minimum customs values 
stipulated in accordance with Decisions Nos.  164/2000/QD-BTC of 10 October 2000, 
136/2001/QD-BTC of 18 December 2001 and 164/ 2002/QD-BTC of 27 December 2002, affecting WT/ACC/VNM/41 
Page 62  
 
 imports of goods enumerated in Table 7, had been eliminated and that the new customs 
valuation system would apply to all imports upon accession." 
- We are reviewing the information in WT/ACC/VNM/34 and WT/ACC/VNM/35 on 
Viet Nam's implementation of the Agreemen t on Customs Valuation.  We will have 
additional comments and questions when that review is completed. 
- We would like to see evidence of the actual  implementation of these assurances prior to 
the approval of Viet Nam's accession package by the Working Party.  We seek to review 
the provisions with a view to making useful comments, as necessary. 
- Earlier this year, we provided questions  on Viet Nam's customs valuation regime 
bilaterally.  We understand that based on  these comments, Viet Nam is preparing 
amendments to its legislation.  
- Viet Nam's responses to our comments were no t, however, totally satisfactory, as many 
of our objections to current provisions were dismissed with the response that Viet Nam did not consider the provision at issue to  be inconsistent with the Agreement.  
- We will be providing these comments and qu estions to the Working Party, hoping to 
spark more forthcoming responses on this critical issue.  
- Concerning the dueling commitment language in paragraph 144, the language in the 
second set of brackets is more acceptable, but  will need further revision to specifically 
address remaining deficiencies in Viet  Nam's customs valuation regime. 
Answer:
 
- We confirm that minimum customs values were eliminated.  All decisions on minimum 
customs values are no longer in effect. 
- Viet Nam has already committed to fully implement Customs Valuation Agreement upon 
accession. 
- Currently, Viet Nam is making its best efforts for the preparation of full implementation of 
this commitment. 
- Due to the highly technical aspect of Customs Valuation Agreement, Viet Nam would like to 
welcome direct discussion with the interested Members at the technical level in order to 
efficiently solve the technical concerns. 
- In the coming time, Viet Nam would adjust cu rrent regulations to fully implement Customs 
Valuation Agreement upon accession.  
- Regarding commitment language in paragr aph 204, Viet Nam would like to propose as 
follows:  
"The representative of Viet Nam confirmed that upon accession Viet Nam would fully 
implement the Agreement on the implementati on of Article VII of  GATT 1994 and Annex 1 
(Interpretative Notes on some articles of the Agre ement).  Viet Nam ensures that any customs 
valuation method to be applied will be in accordance to these WTO rules.  Upon accession, 
Viet Nam would eliminate minimum prices or reference prices instead of transaction value 
method. In addition, Viet Nam would apply pr ovisions of the Decision on the Valuation of 
Carrier Media Bearing Software for Data Processing Equipment, adopted by the WTO Committee on Customs Valuation (G/VAL/5), as  soon as practicable, but in any event no 
later than two years from the date of accession."  WT/ACC/VNM/41 
 Page 63 
 
 
 - Rules of origin 
Question 178 Paragraph 209: Grateful for an update on th e progress of Viet Nam's compliance with the 
WTO Agreement on Rules of Origin, particul arly in relation to updated provisions in 
Viet Nam's legal framework. 
Answer:
 
The Commercial Law (amended) was issued in 2005 and comes into effect on 1 January 2006, 
providing provisions on rule of or igin (Article 3 and Article 33). 
Currently, the Government is drafting a Decree providing guidelines for the amended Commercial 
Law on origin of goods in line with WTO rules and regulations. 
The Decree will be submitted to the Gove rnment for approval in the end of 2005. 
Question 179 
Paragraph 210: While we appreciate the assu rance that Viet Nam will fully implement 
the Agreement upon accession, there is clearly resi stance to doing so, and to acceptance of the 
need to provide legislation addressing both br oader implementation of the Agreement and the 
provisions of Article 2(h) and paragraph 3(d) of Annex II of the WTO Agreement on Rules of 
Origin, i.e. 
(a) that for both non-preferential and preferen tial trade, upon the request of an exporter, 
importer or any person with a justifiable cause,  assessments of the origin that would be 
accorded to a good are issued as soon as possible but no later than 150 days after the request; 
(b) that requests for such assessments shall be  accepted before trade in the good concerned 
begins and may be accepted at any later point in time; and 
(c) that such assessments shall remain valid for three years provided that the facts and 
conditions, including the rules of origin, under which they have been made remain 
comparable. 
Answer:
 
Viet Nam takes note of the comment and will ta ke it into consideration while drafting Decree 
providing guidelines for the Commercial La w (amended) on origin of products. 
Question 180 
We would appreciate an explanation of Viet Nam' s reluctance to comply with this portion of 
the Agreement, as it brings into question the broader commitment. 
- We would like to see the draft law that will establish a WTO-consistent rules of origin 
regime and confirm the existence of determinat ion of origin prior to importation before 
finalization of Viet Nam's accession documents. 
- We look forward to Viet Nam's enactmen t of its new Commercial Law and to an 
opportunity to review its provisions for co nformity with appropriate WTO rules and 
disciplines, including those found in the Agreement on Rules of Origin. WT/ACC/VNM/41 
Page 64  
 
 Answer:
 
We are committed to implement all the provisions of the Agreement on Rules of Origin from the date 
of accession. 
The Commercial Law (amended), was issued in 2005  and comes into effect on 1 January 2006, 
providing provisions on rules of or igin (Article 3 and Article 33). 
Currently, the Government is drafting Decree pr oviding guidelines for Commercial Law (amended) 
on origin of products in line with WTO rules and regulations. 
- Other customs formalities 
Question 181 Paragraph 212:  To what extent has Viet Na m implemented the Revised Kyoto Convention on 
Simplified and Harmonized Customs Procedures? Grateful if Viet Nam could provide more 
detailed information, particularly in relat ion to strengthening customs procedures and 
protection of intellectual property rights (including capability of border measures). 
Answer:
 
Viet Nam has joined the Kyoto Convention (1974) on Simplified and Harmonized Customs 
Procedures and is currently taking necessary step s to join the Revised Kyoto Convention (2000). 
Therefore, Viet Nam is not yet obliged to comp ly with standards provided for in the Revised 
Convention.  However, standards in both Conven tions were provided for in the 2000 Customs Law 
and Government Decree No. 101/2001/ND-CP of 31 December 2001 providing detailed customs 
procedures and customs control and supervision. 
The draft Intellectual Property Law of Viet Nam (Articles 219 through 223 Section 2 Chapter XVIII 
of the 9th draft that was provided to the Working Party and made public on the website of the 
National Office of Intellectual Property of Viet nam:  http://www.noip.gov.vn) also contains 
provisions on intellectual property control over e xported and imported goods in compliance with the 
current customs legislation of Viet Nam and the TRIPS. 
Regarding Kyoto Convention: 
- In terms of legal documents: the Kyoto C onvention provides for 148 norms/standards on 
simplification and harmonization of customs procedures. In this regards, Viet Nam has qualified for 81 norms, including norms on defin itions on customs inspection, procedures; 
norms on clearance, other customs procedures, norms on customs tariff and taxes; norms on customs inspections; and 
- In terms of infrastructure: Viet Nam Customs is carrying out its customs reform and 
modernization. The pilot e-customs clearance h as just been implemented in some big cities. 
The reform and modernization process is impl emented under a project funded by the World 
Bank and is projected to gradually remo ve the difficulties in infrastructures. 
Information on strengthening customs procedures and IPR protection: - The customs law provides that intellectual property owner who is protected under law and 
regulation is entitle in the long term or in speci fic case to make request to customs authority 
to temporarily stop the customs clearance of the goods of IPR violation;  WT/ACC/VNM/41 
 Page 65 
 
 
 - Provisions on order of relevant customs pr ocedure to cease IPR violated goods clearance, 
temporarily stop or prolong this period, guarantee provision, etc are in line with minimum standards of TRIPS and of the World Customs Organization; and 
- Viet Nam customs law provide IPR goods owner have the right in long term to request 
customs to cease clearance of suspected IPR violated goods. (Article 58-TRIPS). 
Question 182 Does Viet Nam intend to become a member of  the International Convention on the 
Simplification and Harmonization of Customs Procedures?  
Answer:
 
Viet Nam has already become a member of the In ternational Convention on the Simplification and 
Harmonization of Customs Procedures. 
- Pre-shipment Inspection 
Question 183 We renew our request that Viet Nam accept th e proposed commitment language contained in 
paragraph 216 of the draft report. 
Answer
: 
We agree with commitment language as follows: 
"The representative of Viet Nam stated that if pre-shipment inspection requirements were 
introduced, they would be temporary and in  conformity with the requirements of 
the Agreement on Pre-shipment Inspection and other WTO relevant Agreements.  Viet Nam 
would ensure that such enterprises operating on its behalf complied with the provisions of 
WTO Agreements including the Agreements on T echnical Barriers to Trade, Sanitary and 
Phytosanitary Measures, Import Licensing Procedures, the Implementation of Article VII, Rules of Origin, the Implementation of Article VI (Antidumping), Subsidies and Countervailing Measures, Safeguards, and Agricultu re. The establishment of charges and fees 
would be consistent with Article VIII of the GATT 1994 and Viet Nam would ensure that the 
due process and transparency requirements of the WTO Agreements, in particular Article X 
of the GATT 1994 would be applied. Decisions by  such firms could be appealed by importers 
in the same way as administrative decisions taken by the Government of Viet Nam.  The Working Party took note of these commitments." 
- Anti-dumping, countervailing duties, safeguard regimes  
Question 184 
We have conducted a preliminary examinatio n of Viet Nam's new anti-dumping and 
countervailing duty legislation and has prepared the following written questions and comments 
for Viet Nam's review and response.  
We look forward to Viet Nam's responses, and suggest that additional legislation may be 
necessary to address the deficien cies identified.  We also will need to look again at possible 
additional commitment language. WT/ACC/VNM/41 
Page 66  
 
 Answer:
 
We are willing to address the relevant comments and questions of Members. 
Question 185 
We would like to propose that the following a dditional paragraph be added to this section: 
219bis. Several members of the Working Party noted that Viet Nam was continuing 
the process of transition towards a full market economy.  Those members noted that 
under those circumstances, in the case of imports of Vietnamese origin into a WTO 
Member, special difficulties could exist in determining cost and price comparability in the context of anti-dumping investigat ions and countervailing duty investigations. 
Those members stated that in such cases, the importing WTO 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. 
Answer:
 
We cannot accept the suggestion, as we do not u nderstand which provisions of the Agreement on 
Anti-dumping the suggestion is referring to. 
Question 186 Concerning the implementation of a Counterva iling Duty Law (Draft Follow-Up Questions to 
Viet Nam on WT/ACC/VNM/39), Viet Nam answer to Question 114 (the following excerpt is 
only one part of the answer to Question 114): 
"Detail on the amount of time that ex porters or foreign producers will have to 
respond to the questionnaire is provided in Article 24 of the Decree.  According to 
the article, exporters or foreign producers shall be given 30 days as from the date of 
receiving the questionnaire to submit their response to the investigating authority. 
This time-limit may be extended up to  30 days upon written request made by 
exporters or foreign producers concerned." 
Please clarify whether the 30 days in which exporters or foreign producers have to respond is 
"business days" or "calendar days." 
Answer:
 
The 30 days in which exporters or foreign pr oducers have to respond under Article 24.2 of the 
Decree No. 89/2005/ND-CP dated 11 July 2005 of th e Government Detailing the Implementation of a 
Number of Provisions of the Anti-Subsidy Ordinance (hereinafter called "Decree No. 89/2005/ND-CP") is "calendar days", not "business days". 
Question 187 Viet Nam answer to Question 114 (the following excerpt is only one part of the answer to 
Question 114): 
"The issue of publication of relevant information, the Decree stipulates the 
obligation to publicize the major grounds for making decisions or conclusions in the 
course of investigation, including: preliminary conclusion (Article 29), decision on  WT/ACC/VNM/41 
 Page 67 
 
 
 imposition of provisional duty (Article 36), decision on termination of investigation 
(Article 30), final conclusion, ministerial decision on undertakings (Article 34), decision on imposition of anti-subsidy duty (Article 38).  The Decree also stipulates 
clearly the time-frame allowed for comp etent authority to make notice or 
publication of such information or decisions thereby." 
The Decree Detailing the Implementation of a Number of Provisions of the Ordinance on 
Measures Against Subsidized Goods Imported into Viet Nam (Subsidies Implementation 
Decree) notes, in Articles 29, 36, 34, and 38, that decisions "shall be notified publicly by 
appropriate means to the parties concerned..." 
We urge Viet Nam to establish an official gaze tte or other official publication in which such 
decisions will be notified, and to include that information in its Subsidies Implementation 
Decree. 
Article 30 does not stipulate that the Government  of Viet Nam will make public notice of its 
decision to terminate an investigation.  Does Viet Nam envision that it will do so? 
Article 34 does not specify a time frame for notifi cation of an undertaking.  Can you please tell 
us what the time frame will be for any actions concerning undertakings? 
Answer:
 
- In addition to "appropriate means" provided for under Articles 29, 34, 36 and 38 which are 
National Television, newspapers and other official communication channels, official postings 
on the Ministry of Trade's website, etc to pub licly notify all interested parties of those 
documents and decisions stipulated under these ar ticles, the Ministry of Trade will public an 
Official Bulletin on anti-dumping, anti-subsidy and safeguard petitions in which those related 
decisions will be published. 
- Pursuant to Article 30 of the Decree No. 89/2005/ND-CP, the decision on termination of 
investigation shall be notified in writing or in appropriate means to all related parties. 
Viet Nam believes that those related parties stipulated in Article 11 of the AS Ordinance are 
so broad that they include all people who need to know the information about the termination 
of investigation.  Therefore, it can be said to make "public notice" of this decision on 
termination of investigation.  
- Article 34.2 provides for the making public notice of the decision on undertakings but does 
not provide for the time-limit to make such public  notice.  This time-limit shall be included in 
the Working Process of the Investigation Agency .  We propose to make public notice of this 
decision within a time limit of 7 working da ys after the issuance of such decision.  
Question 188 
Viet Nam answer (to Question 178 in WT/ACC/VNM /36) 
"...the review as requested by exporters or  related parties and determinations may 
be issued based on the result of this review.  This issue would be stipulated in 
further details in the documents guiding the implementation of the Ordinance. " 
Viet Nam's Decree of the Government Setting  Forth Detailed Regulations and Guidance for 
Implementing a Number of Provisions of the Ordinance on Antidumping or Imports into Viet Nam (AD Implementing Decree) fails to di scuss how reviews should be requested and will 
be undertaken, including their time frame, in accordance with Article 11 of the Antidumping Agreement. Please clarify these omissions. WT/ACC/VNM/41 
Page 68  
 
 Answer:
 
When drafting the Decree No. 90/2005/ND-CP dated 11 July 2005 of the Government Detailing the 
Implementation of a Number of Provisions of the AD Ordinance (hereinafter referred to as 
"Decree No. 90/2005/ND-CP"), the issue of providing details to the provisions on review procedures upon the request of interested parties was given thor ough consideration.  However, Viet Nam believes 
that Article 24 of the AD Ordinance is sufficiently  clear that interested parties can request the 
Minister of Trade to make a decision on the in itiation of a review and the review process can be 
conducted normally.  In a ddition, the time-limit for this review which is no longer than one year is 
compatible with Article 11 of AD Agreement.  Therefore, the Decree No. 90/2005/ND-CP does not 
provide further details on this matter. 
Question 189 Viet Nam answer (to Question 178 in WT/ACC/VNM/36) 
"The regulation on when parties will recei ve the essential facts under consideration 
and opportunities for parties to submit information and make arguments to the 
competent administering authority." 
The AD Implementing Decree does not clearly comply with AD Agreement Article 6.2 that 
"authorities shall, on request, provide opportuni ties for all interested parties to meet those 
parties with adverse interests, so that opposing  views may be presented and rebuttal arguments 
offered." Instead, Article 29.1 of the AD Implemen ting Decree notes that consultations will be 
held "Upon the consultation session time-scheduled  specified in the decision to initiate the 
investigation..."  However, it does not appear th at Article 21.1(e) mandates that a consultation 
time-schedule be published in the decision to initiate the investigation. 
The problem with this is two-fold: firstly, that  the time-schedule for consultations is seemingly 
not mandatorily published, and secondly, it do es not appear that the authorities allow for 
additional opportunities for parties to request cons ultations, outside of those listed in the time-
schedule. 
Please clarify how Viet Nam will comply with Article 6.2 of the AD Agreement. 
Answer:
 
- Article 14 of the AD Ordinance stipulates that  investigation agencies are obliged to hold 
consultations.  This is a required procedure in an anti-dumping case. 
- Article 21.1(i) of the Decree No. 90/2005/ND-CP  provides for the content of the decision on 
initiation of investigation which includes "the  process on resolving the anti-dumping case", 
including the time-frame for the organization of  consultations, such as specific time frames 
for each consultation.  Therefore, the organiza tion and the time frame for such consultations 
are the mandatory contents of the decision on initiation of investigation. 
- Article 6.2 of the AD Agreement does not prov ide any provisions on further consultations. 
However, after participating a consultation, in terested parties have the rights to provide 
additional information to protect their own ri ghts and investigation agencies would continue 
the investigation procedures as stipul ated in the Ordinance and Decree. 
- Moreover, Article 29.4 of the Decree No. 90/ 2005/ND-CP gives interested parties a chance 
within seven working days after the date of hol ding the consultations to send their opinions on 
the anti-dumping case to the investigation agen cy.  Further request for consultation is 
necessary, the timeframe for consultation may be accordingly revised.  WT/ACC/VNM/41 
 Page 69 
 
 
 Question 190 
We noted in Question 178 of WT/ACC/VNM/36 that Articles 8 and 9 of Viet Nam's 
AD Ordinance omitted the requirement of AD Agreement Article 5.2(ii) to include a list of known persons importing the product to be investigated.  Article 18 of Viet Nam's AD Implementing Decree seemingly fails to rectify this omission. Please clarify that the dossier 
requesting the imposition of antidumping measures must include a list of known persons 
importing the product to be investigated. 
Furthermore, we highlighted in Question 178 with reference to Chapter I, Article 3, No. 3 of 
Viet Nam's AD Ordinance that Viet Nam should confirm whether it will have a preference for 
using third country export prices or constructed value if there was not a viable domestic market 
upon which to base normal value.  We also no ted that Viet Nam should confirm how the 
authorities will determine a product's country of  origin, particularly when the merchandise is 
shopped through third countries. These two issues were not answered in WT/ACC/VNM/39, nor addressed in Viet Nam's AD Implementing Decree.   Please provide a detailed responses to these 
concerns. 
Answer
:  
Article 11 of the AD Ordinance stipulates the relate d parties in the investigation process, (in which 
Point 3 particularly identifies organization or i ndividual importing goods are subject to AD measures. 
This illustrates the important role of organization or  individual in the investigation and the compliance 
with the AD Agreement. 
Article 3.3 of the AD Ordinance provides for two al ternative methods for calculating the normal value 
when there is no viable domestic market of like pr oducts. In the process of implementation, depending 
on specific circumstances, the inv estigation agency shall choose to apply one method out of those 
listed in Article 3.3 on the principle of fairness, transparency and impartiality. 
Question 191 
Based on the Decree Detailing the Implementation  of a Number of Provisions of the Ordinance 
on Measures Against Subsidized Goods Imported Into Viet Nam and the Decree of the 
Government Setting Forth Regulations and Guid ance for Implementing a Number of Provisions 
fo the Ordinance on Anti-dumping of Imports into Viet Nam, are the Subsidies Implementing 
Decree and the AD Implementing Decree intende d to be used to modify their respective 
Ordinances? 
Answer:  
Decree No. 89/2005/ND-CP and Decree No. 90/2005/ND- CP are promulgated to give details to the 
provisions of the respective Ordinances on the prin ciple of ensuring that the Decrees cannot be 
contrary to the provisions of the Ordinances.  Ther efore, those Decrees are not intended to be used to 
modify their respective Ordinances. 
Question 192 
Where there is a conflict between the Implementi ng Decree and the Ordinance, which document 
governs? WT/ACC/VNM/41 
Page 70  
 
 Answer:
 
The Implementing Decrees cannot be contrary to the provisions of the Ordinances. 
Question 193 
Regarding the Decree Detailing the Implementation  of a Number of Provisions of the Ordinance 
on Measures Against Subsidized Goods Imported Into Viet Nam, Article 5 Determination of 
major proportion of the total volume, quantity or value of like products produced by domestic 
industry:  
Article 5 seems to be an attempt to describe, in conjunction with Article 8 of the Ordinance On 
Measures Against Subsidized Products Into Vi et Nam (hereinafter referred to as the Anti-
subsidy Ordinance), the definition of the nec essary support of domestic industry needed to 
initiate a subsidies investigation. However, neither of these articles fully comply with SCM 
Article 11.4 which defines how domestic support will be measured.  Instead, Article 5 of the 
Implementing Decree defines how a majority of production will be determined in Viet Nam.  
The Article fails to relate the majority of pro duction of a product to the initiation of an 
investigation.  Article 8.1(a) of the Anti- Subsidies Ordinance sets a threshold for domestic 
support of 25 per cent instead of more than 50 per cent, as outlined in AD Agreement 
Article 11.4. 
Furthermore, neither the Ordinance nor the Impl ementing Decree state that no investigation 
will be undertaken if domestic support is less th an 25 per cent of the total production of the like 
product produced by the domestic industry. 
We encourage Viet Nam to ensure that it's pr ovisions for determining domestic support in 
order to initiate a countervailing duty inv estigation are compliant with AD Agreement 
Article 11. 
Answer : 
There may be a misunderstanding in the Article 5 of the Decree No. 89/2005/ND-CP and Article 8 of 
the AS Ordinance.  Article 5 of the Decree expl ains the meaning of "major proportion" in the 
definition of "Domestic industry" as stipulated under Article 2.2 of the AS Ordinance.  Accordingly, 
"The Domestic industry means groups of domestic  producers or their representatives that produce 
goods with volume, quantity or value accounting for a major proportion of …." Article 8.1 of the AS Ordinance defines the concept of "on behalf of the domestic industry".  Based on Article 8.1, two 
conclusions can be made as follows: 
- First, an anti-subsidy investigation shall not be initiated when volume, quantity or value of 
goods produced by or represented by the appli cants account for less than 25 per cent of the 
total volume, quantity or value of the like product produced by the domestic industry. 
- Second, the applicants are considered to be "on behalf of the domestic industry" only if the 
applicants also meet the requirement that th e volume, quantity or value of goods produced by 
the applicants and those supporting the appli cation requesting the im position of anti-subsidy 
measures must be more than the volume, quantity or value of the like product produced by 
those domestic producers objecting to the application requesting the imposition of 
anti-subsidy measures.  In other words,  the production of those domestic producers 
supporting the application (including those producer s filed the application) must account for 
over 50 per cent of the total production of like products produced by all the domestic 
producers supporting and those domestic producers objecting to the application.  WT/ACC/VNM/41 
 Page 71 
 
 
 Therefore, the AS Ordinance and the Decree No. 89/2005/ND-CP are fully compliant with 
Article 11.4 of SCM Agreement. 
Question 194 
How is Article 15, " Persons participating in th e process of handling anti-subsidy cases", of the 
Decree intended to be implemented vis-a-vis  Article 11 of the Anti-subsidy Ordinance which 
both describe parties interested in anti-subsidy cases? It seems that Article 15 of the Decree is 
much more limited in its explanation. 
Will parties interested in or participating in the investigation be made to register with the 
Government of Viet Nam? If so, what a re the time limits on such registration? 
Answer:  
Article 15 of the Decree No. 89/2005/ND-CP provides for who shall participate into the process of 
resolving the anti-subsidy case, including the applican ts, defendants, their la wyers and other related 
parties.  "Related parties" is  already defined in Article 2.1 of the Decree No. 89/2005/ND-CP to 
include all parties listed in Article 11 of AS Ordi nance.  Therefore, Article 15 of the Decree only 
classify those related parties listed in Article 11 of  AS Ordinance in order to provide for different 
rights and obligations of different groups of related parties respectively (See Article 16, 17, 18 of the 
Decree).  Therefore, Article 15 of the Decree does not limit the scope of Article 11 of the Ordinance. 
The AS Ordinance and the Decree No. 89/2005/ND-CP  do not provide that re lated parties listed in 
Article 11 of the AS Ordinance must register with Vietnamese Government. 
Question 195 
Article 16 Rights and obligations of applicants  and defendant and Article 27 Consultation in 
investigations. 
Articles 16 and 27 of the Subsidies Implementi ng Decree and Article 16 of the Anti-subsidy 
Ordinance both fail to comply with Article 13 .2 of the SCM Agreement that requires that 
"throughout the period of investigation, Members the products of which are the subject of the investigation shall be afforded a reasonable opportunity to continue consultations..." 
Please clarify that Viet Nam will allow for those parties interested in or participating in the 
investigation to request consultations, outside of  the consultations offered by the Government of 
Viet Nam. 
Answer:
 
The legal documents are issued when Viet Nam is not yet a WTO Member.  Therefore, legally 
speaking, this provision of the SCM cannot be applied.  However, as being confirmed at the outset, 
pursuant to Article 29 of the AS Ordinance, when  Viet Nam become a member of WTO, related 
parties shall be entitled to those rights provided by SCM Agreement, including those provided under 
Article 13.2 of the SCM Agreement. 
Question 196 
Article 20 Assessment of the files requesting app lication of anti-subsidy measures in cases where 
there is an applicant WT/ACC/VNM/41 
Page 72  
 
 Article 20 of the Subsidies Implementing Decr ee refers to Article 8.1 of the Anti-subsidy 
Ordinance in its definition of how support from the domestic industry for the investigation will 
be determined.  Please see Question 6 regarding Article 8.1 of the Anti-subsidy Ordinance as well as Article 5 of the Subsidies Implementing D ecree.  All three of these Articles fail to fully 
comply with SCM Article 11.4. 
We again urge Viet Nam to ensure that its provi sions for determining do mestic support for an 
investigation are in accordan ce with the SCM Agreement. 
Answer:
 
As answered under Section VI above relating to Article 5 of the Decree No. 89/2005/ND-CP and 
Article 8.1 of the AS Ordinance, there is a mis understanding about these Articles.   Accordingly, the 
provisions of these Articles are not contrary to Ar ticle 11.4 of the SCM Agreement.  Consequently, 
Article 20 of the Decree No. 89/2005/ND-CP is also compliant with the provisions of the SCM Agreement. 
Question 197 
Article 21 Preparation of files requesting applic ation of anti-subsidy measures in cases where 
there is no applicant: Article 21 notes that "Wh ere there is no applicant but there are signs that 
subsidized goods imported into Viet Nam cause or threaten to cause, material injury to a 
domestic industry..." 
However Article 11.6 of the SCM Agreement requi res that the authorities shall proceed "in 
special circumstances" and "only if they have sufficient evidence..."  
Please confirm that the Vietnamese authorities will  only proceed with an investigation in special 
circumstances and  once they have sufficient evidence that subsidized goods cause or threaten to 
cause material injury to a domestic industry. 
Please describe the general set of circumstanc es in which Viet Nam may consider such an 
action. 
Answer:
 
Article 21 of the Decree No. 89/2005/ND-CP only provi des for the preparation of files requesting the 
application of anti-subsidy measures, as apposed to  making a decision on initiation of investigation. 
Accordingly, when there are signs that subsidized  products causing or threatening to cause material 
injury to the domestic industry, the Minister of Trade only decides to assign the investigation agency 
to verify and examine whether or not there are sufficient evidences about the subsidized products 
causing or threatening to cause material injury to the domestic industry.  The results of such works 
can be a file requesting the application of anti- subsidy measures.  However, after collecting and 
verifying the information, the investigation agency can find that there are not sufficient evidences to 
establish a file to make a recommendation to the Mini ster of Trade to make a decision on initiation of 
investigation.  Based on such files, the Minister of Trade shall decide whether there are sufficient 
evidences to make a decision on initiation of inv estigation.  Moreover, Article 8.2 of the 
AS Ordinance also provides clearly that the Minister of Trade only make a decision on initiation of 
investigation in special circumstances "when th ere are clear evidences about the subsidized goods 
being imported into Viet Nam causing or threateni ng to cause a material in jury to the domestic 
industry."  WT/ACC/VNM/41 
 Page 73 
 
 
 The circumstances in which Article 21 can apply ar e that through different sources of information 
such as statistical data, etc., signs of subsidized  products causing or threatening to cause material 
injury to the domestic industry are detected and th at would cause adverse effect to the interests of 
Viet Nam. 
Question 198 
Article 24 Questionnaire: Please clarify whether the 30 days in which defendants have to 
respond is "business days" or "calendar days." 
Answer:  
As answered in Section I, the 30-day period under Article 24.2 of the Decree No. 89/2005/ND-CP 
shall be understood as "calendar days", not "business days". 
Question 199 Article 26 Verification of relationship between subsidized goods imported into Viet Nam and 
material injury or threat to cau se material injury to a domestic industry: Article 26.2 states that 
"Where necessary, in addition to the subsidizatio n of the goods imported into Viet Nam, the 
investigation body may review further other elemen ts causing or threatening to cause, material 
injury to a domestic industry." 
- What additional factors or elements do es the Decree envision beyond the information 
looked at in Article 15 of the Ordinance? 
- Will the results of these reviews be made public? 
Answer:
 
- Article 15 of the AS Ordinance lists criteria to determine "material injury or threat to cause 
material injury to a domestic industry" .  Meanwhile, Article 26 of the Decree 
No. 89/2005/ND-CP defines criteria to determin e the "causal relationship" between "the 
subsidization" and "material injury or threat to cause material injury to a domestic industry". 
Therefore, the content of those two Articles are different from each other.  Article 26.2 
provides for cases, when necessary, where "material injury or threat to cause material injury 
to a domestic industry" can be caused by not only the subsidization of the investigated goods" 
but also by other elements, the investigation ag ency shall review those elements to determine 
exactly the causal relationship.  The elements may include decreasing domestic capacity due to technology, manpower factors…  
- The review, in combination with other reviews, shall be a base for the preliminary conclusion 
and final conclusion in an anti-subsidy case.   These conclusions shall be made public.  
Question 200 Article 27 Consultation in investigations: Both Article 27 of the Subsidies Implementing Decree 
and Article 16 of the Anti-subsidy Ordinance do not appear to indicate how the authorities will notify interested parties and the public that cons ultations will be held.  Please clarify how public 
notice will be given that consultations will be held, in order for interested parties to provide the 
necessary information in a timely manner. WT/ACC/VNM/41 
Page 74  
 
 Answer:
 
As answered in the Section II, "Process for hand ling an anti-subsidy case", which includes process to 
open consultation meetings, is part of the decisi on on initiation of investigation stipulated by 
Article 22 of the Decree No. 89/2005/ND-CP.   The decision shall be made public.  Therefore, relevant parties shall be informed of when consul tations should be held right after the decision is 
made public.  
Question 201 
Article 28 Confidentiality of Information: Please confirm that Viet Nam will require that all 
non-confidential summaries of confidential info rmation will include sufficient enough detail "to 
permit a reasonable understanding of the substance of the information submitted in 
confidence" in accordance with SCM Agreement Article 12.4.1. 
Please confirm that information on all ex-parte m eetings will be part of the investigation record 
and will be available to the public on a timely basis. 
Answer:
 
Article 28.2 of the Decree No. 89/2005/ND-CP pr ovides for the obligations of any party providing 
confidential information to enclose to the inform ation … a summary of the confidential information 
that could be revealed to other relevant parties. "  The summary must include sufficient details to 
permit a reasonable understanding of  the substance of the information submitted in confidence in 
accordance with SCM Article 12.4.1. 
Article 28 only requires confidentiality for some typ es of information, i.e. only these should be kept 
confidential.  Other information including the inform ation on all ex-parte meetings shall be available 
to the public.  (See further Articles 16.1, 17.2 and 18.3 of the Decree No. 89/2005/ND-CP). 
Question 202 
Articles 32 - 35 of the Subsidies Implementing Decree and Article 23 of the Anti-subsidy 
Ordinance: Please clarify that, "if an undertaking is accepted, the investigation of subsidization 
and injury shall nevertheless be completed if th e exporting Member so desires of the importing 
Member so decides" in accordance with Article 18.4 of the SCM Agreement. 
Answer : 
As being confirmed at the outset, Article 18.4 of th e SCM Agreement shall be applied when Viet Nam 
becomes member of the WTO.  
Question 203 
Regarding the Decree of the Government Setting  Forth Detailed Regulations and Guidance for 
Implementing a Number of Provisions of the Ordinance on Antidumping or Imports into 
Viet Nam, Article 4 Determination of major proportion in volume, quantity or value of like 
product(s) produced by domestic industry and Article 19 Appraisement of the dossier 
requesting the imposition of antidumpi ng measures filed by Applicant(s). 
It's not clear how Articles 4 and 19.2(a) of Vi et Nam's AD Implementing Decree are to be 
implemented vis-a-vis  Articles 2.5 and 8.1 of Viet Nam's AD Ordinance.  Please clarify how  WT/ACC/VNM/41 
 Page 75 
 
 
 these Articles are compliant with Article 5. 4 of the WTO Antidumping Agreement which 
defines how domestic support for the initiation  of an investigation is to be determined. 
Answer:  
Article 4 of the Decree No. 90/2005/ND-CP only clarif y what is "major proportion" in the definition 
of "a domestic industry" provided in  Article 5.2 of the AD Ordinance.  When the investigation agency 
appraises the application requesting the imposition of anti-dumping measures under Article 19, it shall 
check the applicant's status of "on behalf of a domestic industry" in accordance with requirements 
provided by Article 8.1 of the AD Ordinance as following:  
- The investigation shall not be initiated if th e volume, quantity or value of goods produced or 
presented by the applicants is less than 25 per cen t of the total volume, quantity or value of 
the like goods of a domestic industry; 
- Organizations or individuals filing the app lication requesting the imposition of anti-dumping 
measures shall be regarded as be on behalf of a domestic industry only if they also meet the 
requirement that their volume, quantity or valu e of goods must exceed the volume, quantity or 
value of the like goods of domestic producer s who oppose the application requesting the 
imposition of anti-dumping measures. In other words, the production of producers who 
support the requests (including the applicant producers) must account for more than 50 per cent total production of the like goods of  all the domestic producers who support or 
oppose the application requesting the imposition of anti-dumping measures.  
Thus, those articles are fully compliant with  the Article 5.4 of the AD Agreement.  
Question 204 
Article 31 Preliminary conclusion and Article 28 Imposition of provisional Antidumping Duty: 
Article 31 states that "Within 90 days as from the date on which the decision to initiation the 
investigation decisions was made, the investi gating Authority shall publicize the preliminary 
conclusion..." 
Please clarify that no decision will be publishe d before 60 days after the initiation of the 
investigation in accordance with AD Agreement. 
Article 7.3. :  In addition, please clarify whet her there is a difference between the time-frame for 
the imposition of preliminary measures as outlined in Article 31 and Article 38.1 which notes that "After 60 days as from the date on which the decision to initiate the investigation decisions was made, upon the preliminary conclusion an d the recommendation by the investigation 
Authority, the Ministry of Trade may issue decision to impose provisional antidumping duty. 
Is the Decree intended to place an absolute deadline of 90 days to reach a preliminary 
determination? Please indicate how this pr ovides reasonable opport unities for parties to 
register, submit their information, receive  supplemental questionnaires and defend their 
interests, in addition to authorities having adequate time to analyze responses? 
Answer:
 
- Article 38.1 of the Decree No. 90/2005/ND-CP provides that only after 60 days as from the 
date on which the decision on initiation of inves tigation was made, the Minister of Trade may 
issue decision to impose provisional anti-dumping duty. This provision is fully compliant with the Article 7.3 of the AD Agreement.  WT/ACC/VNM/41 
Page 76  
 
 - The 90-day period stated in the Article 31 of the Decree No. 90/2005/ND-CP is the period 
required for the investigation agency to make a preliminary conclusion.  The investigation 
agency may make a preliminary conclusion in a shorter time than 90 days as from the date on 
which the decision on initiation of investigation was made. In any case, however, the Minister 
of Trade may issue decision to impose provisional antidumping duty only after 60 days as 
from the date on which the decision on in itiation of investigation was made.  
- In accordance with the Article 31 of the De cree No. 90/2005/ND-CP, within 90 days as from 
the date on which the decision on initiation of investigation was made, the investigation 
agency must make public the preliminary conclu sions. In special cases, the time limit for 
publicization of such conclusions may be extended, but not exceed 60 days. 
In addition, in the investigation process, relate d parties have all the rights and duties to supply 
information relating to the anti-dumping case.  They al so have the right to require the investigation 
agency to extend time limits for supplying information or answering questionnaires (Article 15 of the 
Decree No. 90/2005/ND-CP).  If valid reasons are s hown to support the extension requirement, in 
order to fully protect relevant parties, the inves tigation agency must wait for the parties to supply 
supplemental information and documents be fore it makes preliminary conclusions. 
Question 205 
Article 32 Termination of Investigation: Please describe the types of "appropriate manner" as 
outlined in Article 32.2 that will be used to notify parties of the termination of an investigation. 
If a company is found to have a de minimis  margin at the investigation, is the investigation 
against that company terminated and that company excluded from the AD measure and 
subsequent reviews? 
Answer:
 
Appropriate means provided in the Article 32.2 of the Decree No. 90/2005/ND-CP that shall be used 
to notify parties of the termination of an investigation may include mailing; faxing; sending through diplomatic agencies (i.e. Viet Nam embassies and consulates in foreign countries); posting in the 
official website of the Ministry of Trade of Viet Nam.  These appropriate means shall be used in 
combination to ensure the decision on termination of  investigation to be informed to all related 
parties.  
According to Article 19.2 of the AD Ordinance, if preliminary conclusions show that the company has 
a de minimis margin, the company shall be excluded from the investigation and therefore not be 
imposed with anti-dumping measures or subject to any later reviews. 
Question 206 Article 33 Definitive conclusion: Please clarify how the "time-frame for handling the case" as 
noted in Article 33.2 (g) will be different than the time-frame given to interested parties at the onset of the case. 
Answer:
 
"Process for resolving an anti- dumping case" described in Article 33.2 (g) of the Decree 
No. 90/2005/ND-CP is the process of following step s in resolving the anti-dumping case after final 
conclusions are made.   And the "Process for resolv ing an antidumping case" notif ied to parties in the 
decision on initiation of investigation at the beginning sh all be all the steps to handle the case after the 
decision on initiation of investigation is made.   WT/ACC/VNM/41 
 Page 77 
 
 
 Question 207 
Article 36 Ministerial decision on undertakings to eliminate dumping: Neither Article 36 of the 
AD Implementing Decree nor Article 21 of the AD Or dinance seem to comply with Article 8.4 of 
the WTO AD Agreement that "If an undertaking is  accepted, the investigation of dumping and 
injury shall nevertheless be completed if the expo rter so desires or the au thorities so decide..." 
Please clarify that Viet Nam will comply with Article 8.4 of the WTO AD Agreement, in its 
entirety. 
Answer:  
Under Article 21 of the AD Ordinance, Undertak ing will be determined upon voluntary basis of 
producers/exporters to whom anti-dumping measures are applicable.  After primary investigation 
decision confirm the existence of dumping, signi ficant injury and the casual link. Based on the 
acceptance of undertaking, the Ministry of Trad e will make a decision on the application of 
undertaking and suspend the investigation.  Further investigation after the decision on investigation 
suspension will be depend on the implementation of undertaking by producers/exporters in a certain 
period of time. 
In practice, investigation agencies will continue consider and assess undertaking as well as the content 
of investigation, even after undertaking has been decided.  Upon the request of producers/exporters, 
investigation agency will revise the implementation as regulated in Article 21 or Article 24 of the 
Ordinance.  This provision is not inconsistent with WTO AD Agreement.  
As being confirmed at the outset, if there is any difference between the Ordinance or the Decree and 
the AD Agreement, Viet Nam will apply the Ar ticle 8.4 when she becomes a WTO member.  
Question 208 Article 40 Imposition of the antidumping duty:  Article 40 states, "Where the imposition of 
antidumping duty causes impairment to public interests, the Minister of Trade may issue a decision rejecting on the imposition of antidumping duty." 
If such a decision is made, will the decision published by the Minister of Trade include details as 
to why the imposition of antidumping duty was rejected? 
Answer:
 
Article 22 of the AD Ordinance and Article 40 of the Decree No. 90/2005/ND-CP state that where the 
imposition of antidumping duty causes impairment to public interests, the Minister of Trade may issue a decision on rejecting the imposition of anti-dumping duty.  There is no requirement for the Minister to give specific reasons for his/her rejection in the decision.  Thus, the Minister is free to indicate or 
not the reasons in the decision.  The imposition of the anti-dumping duties will follow principles 
stated in Article 5 of the AD Ordinance. 
Question 209 
Article 41 Reimbursement of difference in levies with respect to provisional antidumping duty 
or amounts deposited to secure the payment of provisional antidumping duty: 
Will Viet Nam please clarify the time-frame in which levies will be reimbursed? WT/ACC/VNM/41 
Page 78  
 
 Answer:
 
According to draft Circular of the Ministry of Finance of Viet Nam guiding the receipt, payment and 
reimbursement of antidumping duty, anti-subsidy duty and amounts deposited to secure the payment, 
the time-frame in which levies will be reimbursed is expected to be 15 days as from the day Custom 
agency receives full application for reimbursement of a company. 
Question 210 Reviews of antidumping duties:  While the AD Implementing Decree does not address reviews 
of antidumping duties, please confirm that th e AD Ordinance will refer to the AD Implementing 
Decree to ensure complete transparency with regards to reviews. 
Will reviews be conducted along the same pro cedure as an antidumping investigation? 
Answer:
 
The Decree No. 90/2005/ND-CP addresses only unclear provisions of the AD Ordinance.  Articles 24 
and 25 of the Ordinance clearly describe reviews of anti-dumping measures.  The review must comply with all the provisions of the Ordinance and relevant provisions provided by the Decree. 
Article 24.3 of the AD Ordinance states that the inv estigation agency will review the imposition of 
antidumping measures in accordance with Articles 9, 10, 11, 12, 13, 14 and 15 of the Ordinance. 
Therefore, reviews shall be conducted along the same procedure as an anti-dumping investigation 
B. EXPORT REGULATION 
- Customs tariffs, fees, and charges for services rendered, application of internal taxes to 
export 
Question 211 
Paragraph 221:  Viet Nam's argument that expo rt taxes on ferrous and non-ferrous scrap have 
no effect on world scrap prices misses the point.   Export duties of 35 to 45 per cent lower the 
domestic price of scrap (in Viet Nam) by that percentage relative to the world price.  Such a 
price differential provides a huge benefit to scrap users in Viet Nam, relative to users outside 
Viet Nam.  Therefore, we remain concerned ab out the export duties imposed on ferrous and 
non-ferrous scrap exports.  We request that Vi et Nam eliminate the export duties imposed on 
ferrous and non-ferrous scrap expo rts by the date of accession.  
Answer:
 
In our view, export customs tariff is not inconsistent with WTO provision. 
We agree with the commitment language in pa ragraph 224 in WT/ACC/SPEC/VNM/5/Rev.1 dated 
5 September 2005 and agree to remove the brackets of this paragraph. 
Question 212 We note the competing commitment language in  paragraphs 223 and 224.  We support the 
bracketed text in paragraph 223 as the sounder basis for a commitment.  WT/ACC/VNM/41 
 Page 79 
 
 
 Answer:  
Regarding paragraph 223 in WT/ACC/SPEC/VNM/5/R ev.1 dated 5 September 2005, this proposed 
language is not appropriate given the fact that a large number of the WTO are still applying export 
duties.  Therefore, we propose that it be deleted from the Draft Report. 
- Export restrictions 
Question 213 
Paragraph 221 and Question 104 of WT/ACC/VNM /38: Export duties on scrap, we appreciate 
the explanations of Viet Nam on the rational e of the export duties imposed on ferrous and 
non-ferrous scrap.  However, we  remain concerned as regards the effect of these measures and 
request that Viet Nam eliminates the export duties imposed on ferrous and non-ferrous scrap 
upon accession.  
We agree with the commitment language propo sed for paragraph 223 and would like to see the 
brackets removed from it.  
Answer:  
In our view, export customs tariff is not incons istent with WTO provision. We agree with the 
commitment language in paragraph 224 in WT/A CC/SPEC/VNM/5/Rev.1 and agree to remove the 
brackets of this paragraph. 
Regarding paragraph 223 in WT/ACC/SPEC/VNM/5/R ev.1 dated 5 September 2005, this proposed 
language is not appropriate given the fact that a large number of the WTO are still applying export 
duties.  Therefore, propose that it be deleted from the Draft Report. 
- Export subsidies 
Question 214 
Paragraphs 243, 244 and Question 106 of WT/ ACC/VNM/38, we welcome the announcement of 
Viet Nam that it will eliminate upon accession subsidies in the form of direct payments contingent on export performance.  
Viet Nam now seeks a transitional period of seven years to eliminate remaining prohibited 
subsidies (mainly subsidies in the form of inv estment incentives).  Even if the request for a 
transitional period has been reduced for former 9 to 7 years, a transition period cannot be considered acceptable, since the exemptions in  the Agreement on Subsidies and Countervailing 
measures concerning prohibited subsidies do no t apply to Viet Nam.  We therefore urge 
Viet Nam to eliminate all prohibited subsid ies contingent on export performance upon 
accession. 
We urge Viet Nam to eliminate all prohibited subsidies contingent on export performance upon 
accession.  We would also request Viet Nam to pr ovide an updated list of all subsidies/subsidy 
programmes granted.  The list should take into account the draft Law on Investment, and possible other updated legal provisions, ands indicate the approximate value of incentives provided under each scheme per annum.  The la test document WT/ACC/VNM/13/Add.2 covers 
only period (2001-2002).  WT/ACC/VNM/41 
Page 80  
 
 Answer:
 
The notification of industrial subs idies is being updated for the 20 03-2004 period, taking into account 
of the recent changes with respect to the investment incentives of Vi et Nam, and will be submitted to 
the Working Party.  The new notification will incl ude all the available information on each subsidy 
program applied by Viet Nam.  
With respect to export subsidies that are prohib ited under the SCM Agreement, Viet Nam commits:  
(i) Subsidies contingent upon localization ra tios and the use of domestic over imported goods 
shall be eliminated upon accession to the WTO;  
(ii) Subsidies in the form of direct payment from the State budget contingent upon export 
performance shall be eliminated upon of accession to the WTO; and 
(iii) Concerning the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives), Viet Nam has revised its draft Law on Investment to eliminate the practice of 
granting these subsidies from the date when the new rules become effective (i.e. 1 July 2006 
if so approved by the National Assembly). Additionally, Viet Nam shall eliminate the 
prohibited subsidies in the form of investme nt incentives for the licensed projects no later 
than seven years from the date of Viet Nam's accession to the WTO in order to observe its 
commitments with the existing investors and st abilize the business environment.  The detailed 
information on the subsidies programs and the schedule for elimination of the prohibited 
subsidies shall be elaborated in the upda ted notification on industrial subsidies.  
C. INTERNAL POLICIES AFFECTING FOREIGN TRADE IN GOODS 
- Industrial policy, including subsidies  
Question 215 
Paragraphs 251 and 252, we welcome Viet Nam commitment to eliminate subsidies contingent 
on localisation ratios and the use of do mestic over imported goods upon accession. 
However, a number of programmes notified as i ndustrial subsidies appeared to be contingent 
on export performance.  Such prohibited subsidies should be eliminated upon accession. 
Answer:  
With respect to export subsidies that are prohib ited under the SCM Agreement, Viet Nam commits:  
(i) Subsidies contingent upon localization ra tios and the use of domestic over imported goods 
shall be eliminated upon accession to the WTO;  
(ii) Subsidies in the form of direct payment from the State budget contingent upon export 
performance shall be eliminated upon of accession to the WTO; and 
(iii) Concerning the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives), Viet Nam has revised its draft Law on Investment to eliminate the practice of 
granting these subsidies from the date when th e new rules become effective (i.e. 1 July 2006 
if so approved by the National Assembly).  Additionally, Viet Nam shall eliminate the 
prohibited subsidies in the form of investme nt incentives for the licensed projects no later 
than seven years from the date of Viet Nam's accession to the WTO in order to observe its 
commitments with the existing investors and st abilize the business environment.  The detailed 
information on the subsidies programs and the schedule for elimination of the prohibited 
subsidies shall be elaborated in the upda ted notification on industrial subsidies.   WT/ACC/VNM/41 
 Page 81 
 
 
 Question 216 
Prohibited subsidies (Article 3 of the Agreeme nt on Subsidies and Countervailing Measures), we 
renew our support expressed at the Working Pa rty in December 2004 to Viet Nam's inclusion 
under Annex VII of the Agreement on Subsidi es and Countervailing Measures (ASCM), due to 
its per capita GDP of less than 1,000 US$. 
Answer:  
We would like to thank for the comment and ask for the view to be reflected in the Draft Report. 
Question 217 
As we did in the Working Party  on 15 September, we wish to alert that there is an error in the 
second sentence of the commitment paragraph 245 in the phrase "…mainly subsidies in the 
form of investment incentives, …", because it co nfuses investment incentives as if they were also 
prohibited by Article 3 of the ASMC.  Accordingly,  if this sentence is to be accepted, this phrase 
must be eliminated.   The same request applies to paragraph 252 on subsidies. 
Answer:  
We thank for the comment.  The relevant commitm ent sentence should be read in full as follows: 
"Viet Nam commits to eliminate the remain ing export subsidies prohibited within the 
meaning of Article 3 of ASCM, which are main ly in the form of investment incentives, 
within seven years from the date of accession." 
Question 218 
As to clarify the situation in respect of agricul tural export subsidies in the second sentence of 
paragraph 245 following final phrase has to be added: 
 "…without prejudice to elimination commitm ents in agricultural export subsidies 
in paragraph 330." 
Answer:  
We thank for the comment and agree with this  change to the text of the Draft Report. 
Question 219 
Actionable subsidies (internal policy, including su bsidies, paragraphs 246-252), we wish to note 
that the commitment in paragraph 252, is not correct and needs redrafting, because it refers to 
prohibited subsidies, while the subsidies in this section are actionable.  
Answer:  
We thank for the comment and note th at the Working Party has agreed that some redrafting is needed 
in this section. WT/ACC/VNM/41 
Page 82  
 
 Question 220 
In the interest of greater clarity, we recommen d that sections entitled export subsidies and 
industrial policy, including subsidies be merged. 
Answer:
 
We do not oppose to the suggestion. Question 221 We look forward to Viet Nam's update of its subs idies notification.  This will help the Working 
Party's evaluation of Viet Nam's subsidy programs and its commitments regarding them.   
Answer:
 
The notification of industrial subsidies is being u pdated and will be submitted to the Working Party. 
Question 222 Referring to paragraph 34 of the draft Working Party Report, the government grants import 
duty exemptions and/or duty drawback on mach inery and equipment imports.  Annexes I and 
II of the WTO Agreement on Subsidie s and Countervailing Measures ("SCM  Agreement ") limit 
duty remission and rebate schemes to "inputs that  are consumed in the production of the 
exported product (making normal allowance for waste)."  Footnote 61 of the SCM Agreement 
provides an exhaustive list of those inputs.  
- Please explain how Viet Nam's duty exemptio ns or rebates on imports of machinery and 
equipment are consistent with Annex II of the SCM Agreement.  
- Please confirm that upon accession, Viet Na m's import duty exemption and drawback 
practices will fully conform to the requirements of Annexes I and II of the 
SCM Agreement. 
Answer:
 
Exempt and drawback customs duties on imported material for producing exports:  - Annex II allows applying these measures provide d that tariff exemption or drawback do not 
exceed the corresponding tax or tariff imposed on inputs for exports; and 
- Meanwhile Viet Nam's provisions on tariff exemption or drawback for machinery equipment 
imported is equal to the exact amount of tariff that should be submitted. Thus, this provision 
is not inconsistent with Annex II of the Subsidy and Countervailing Agreement. 
Exempt VAT and customs duties on machinery equipment imported for fixed asset purposes by FDI 
enterprises:  This is Viet Nam's policy on encour aging FDI enterprises to invest and make production 
in Viet Nam.  This provision favors FDI enterp rises more than domestic enterprises and is not 
inconsistent the national treatment principle. 
Under the Law on Import - Export Duties, exempti on of import duties with respect to machinery, 
equipment imported under Paragraph 34 is applied to all domestic and foreign investment projects 
that fall into the list of sectors in which investment is encouraged.  On the ot her hand, according to the 
16th draft Investment Law, projects producing expor ting goods are not included in the list of sectors 
in which investment is encouraged.  Therefore, machinery and equipment set out in paragraph 34 are  WT/ACC/VNM/41 
 Page 83 
 
 
 not "inputs that are consumed in the productio n of the exported product (making allowance for 
waste)" as set out in Annexes I and II of the SCM Agreement. 
Viet Nam confirm that upon accession, Viet Nam's import duty exemption and drawback will fully 
conform to the requirements of Annexes I and II of the SCM Agreement. 
Question 223 
Paragraph 245:  We appreciate Viet Nam's commit ment to eliminate prohibited subsidies in the 
form of direct payment contingent upon export  performance and export ratio requirements by 
accession. Viet Nam also states that incentives provided under Viet Nam's new investment law 
will be in full conformity with WTO rules and requirements. Our review of Viet Nam's draft 
Investment Law (No. 2005-QH11 Draft 13), indicat es that several provisions, e.g. Article 28, 
include incentives that are contingent on expo rt. (Please see the separate paper containing our 
comments on the draft investment law at the end of this document). 
Prior to accession, Viet Nam must modify all pr ovision of its draft Investment Law to make 
them consistent with Articles 3.1(a) and 3.1(b) of the SCM Agreement. 
Answer:  
The Member has commented on the 13th draft Invest ment Law, while the 16th draft has removed all 
prohibited subsidies under Articles 3.1 (a) and 3.1 (b) of the SCM Agreement.  
Viet Nam undertakes not to issue legal instruments containing prohibited subsidies under Articles 3.1 
(a) and 3.1 (b) of the SCM Agreement.  The elimin ation of the prohibited subsidies contingent export 
and local content under the above-men tioned Article has been reflected  in the 16th draft Investment 
Law and Corporate Income Tax Law (as amended), and will be guided/amended in the implementing 
decrees of these laws.  
With respect to export subsidies that are prohibite d under the SCM Agreement, Viet Nam commits:   
(i) Subsidies contingent upon localization ra tios and the use of domestic over imported goods 
shall be eliminated upon accession to the WTO;  
(ii) Subsidies in the form of direct payment from the State budget contingent upon export 
performance shall be eliminated upon of accession to the WTO; and 
(iii) Concerning the remaining prohibited subsidies (mainly subsidies in the form of investment 
incentives), Viet Nam has revised its draft Law on Investment to eliminate the practice of 
granting these subsidies from the date when th e new rules become effective (i.e. 1 July 2006 
if so approved by the National Assembly).  Additionally, Viet Nam shall eliminate the 
prohibited subsidies in the form of investme nt incentives for the licensed projects no later 
than seven years from the date of Viet Nam's accession to the WTO in order to observe its 
commitments with the existing investors and st abilize the business environment.  The detailed 
information on the subsidies programs and the schedule for elimination of the prohibited 
subsidies shall be elaborated in the update d notification on industrial subsidies.   
Question 224 
We remain interested in receiving informatio n about how subsidies contingent upon export 
performance will be eliminated, e.g. will the govern ment introduce legislation in the near term? 
Can these measures be eliminated by administrative decree? WT/ACC/VNM/41 
Page 84  
 
 Answer:
 
Viet Nam committed to eliminate s ubsidies in the form of direct payments contingent upon export 
performance from the date of accession.  Viet Nam w ill repeal or revise the legislation providing for 
such subsidies. 
Question 225 
Each of the elements of certain subsidy programs notified by Viet Nam and described below is 
inconsistent with either Articles 3(a) or (b) of the SCM Agreement. [Note: Taken verbatim  from 
Viet Nam's Article 25 Subsidy Notification (WT/ACC/VNM/13/Add.2).] 
 Subsidy Program Elements that Appear Inconsistent with Article 3(a) 
III.  Investment Incentives For Domestic  Enterprises Operating In Viet Nam 
"Investors producing goods for export and/or exporting goods are granted 
corporate income tax exemption for the amo unt of income earned by export in the 
financial year for investment projects in  areas falling under the List of areas of 
specially difficult socio-economical conditions; 20 per cent - 50 per cent reduction of corporate income tax on the amount of inco me earned from export to new markets, 
new export products, and in the case of higher export volume as compared with the 
previous year, export turnover account ing for more than 50 per cent of total 
turnover." 
IV.  Investment Incentives For Foreign-Owned Etnerprises 
"Preferential corporate income tax rates of 20 per cent, 15 per cent, 10 per cent 
(normal tax rate is 25 per cent), an exemption of corporate income tax for the 
period from 1 to 4 years and a 50 per cent reduction for the period from 2 to 4 
subsequent years are applied to the following investors: 
Enterprises operating in service sector and located in export processing zones; 
Enterprises located in industrial zones ex porting more than 50 per cent of their 
products; 
Enterprises building and operating infrastr ucture facilities of industrial zones, 
export processing zones and high-tech zones; export processing enterprises." 
V.  Incentives In Development Investment Loan "Eligibility: Production and processing pr ojects in export oriented sectors; 
agricultural production such as planting of perennial trees, cattle and aqua-culture 
breeding, salt production, development of processing industry ." 
VI.  Support For Development Of Textile and Clothing Sectors 
"…are allowed to borrow development in vestment loan from the Development 
Assistance Fund, 50 per cent of the value of which is subject to the interest rate of 
3 per cent/year for the period of 12 ye ars with three years of grace period; the 
remaining 50 per cent is subject to the interest rate of 5.4 per cent/year." 
Note: It is our understanding that the Development Assistance Funds provides 
incentives contingent upon exportations such as short-term loans.  WT/ACC/VNM/41 
 Page 85 
 
 
 VIII. Export Promotion 
"Policy objectives and/or purposes of the s ubsidy: To promote exports, especially 
agricultural products and those produced in rural areas." 
X.  Trade Promotion Support "Policy objectives and/or purposes of the s ubsidy: To enhance market development 
and trade promotion activities for export." 
XV. Assistance To Enterprises Facing Difficulties Due To Objective Reasons 
"Policy objectives and/or purposes of the s ubsidy: To assist enterprises facing 
difficulties due to objective reasons to recover trade and production capacity." 
XVI. Investment Incentives For Science and Technology Projects 
"Import duty incentives: exemption of import duty on imported machinery, 
equipment, materials, scientific and tec hnological equipment with automatic control 
devices, experimental samples, measuremen t and experimental devices directly used 
in R&D projects and contracts." 
"Credit incentives: Enterprises operating under the Law on Domestic Investment 
Promotion (as amended) can borrow medium  and long-term loans which can satisfy 
up to 70 per cent of their projects' investment capital at preferential interest rate from the Development Assistance Fund, Export Promotion Fund and Science and 
Technology Development Assistance Fund." 
 Subsidy Program Elements that Appear Inconsistent with Article 3(b) 
I. Preferential Import Tariff Rates Contingent Upon Localization Ratios 
With Respect to Products and Parts of Two-Wheel Motorbike and 
Mechanical-Electric-Electronic Industries  
VII. Export Reward XII. Support For Investment project s In Manufacturing Engine Of 
Two-Wheel Motorbike 
We acknowledge and appreciate Viet Na m's willingness to discuss our concerns 
with the above listed subsidy program s. These programs provide subsidies 
contingent on export or the use of domestically produced goods over imports, which are prohibited under Articles 3.1 (a) and (b) of the SCM Agreement. Viet Nam must therefore bring these subsidy programs in conformity with Articles 3 (a) and (b) on or before the date of accession. Furth ermore, Viet Nam must undertake a 
commitment not to grandfather or reintroduce benefits granted under these 
programs and not establish new subsidy progr ams that are inconsistent with either 
Article 3(a) or (b) of the SCM Agreement. WT/ACC/VNM/41 
Page 86  
 
 Answer:
 
These programs will be reviewed in light of the ne w and updated industrial subsidies notification that 
Viet Nam will submit to the Working Party.  Viet  Nam is willing to discuss the contents of each 
program as well as commitments with respect to the prohibited subsidies. 
- Technical barriers to trade, standards and certification 
Question 226 
Table 12 of the revised draft Working Party report lists goods subject to line management 
measures.  The justification for certain of these measures includes "TBT requirement" and "TBT requirement/Technical Standards Conformity  Test".  We would appreciate advice on 
why it is necessary for government agencie s to be involved in the inspection for 
quality/conformity testing of imported goods.  
Answer:
 
Many government agencies have invested many resources to set and operate testing facilities to 
support enterprises, especially small and medium ones of which many do not have testing facilities, in 
testing and/or evaluation of their products for many  purposes, including qualit y/conformity testing of 
imported goods. Even though these testing facilities belong to government agencies, they are 
responsible for their works on basis of impar tiality and they are financially independent. 
Question 227 
We welcome Viet Nam's confirmation in th e recent Working Party  meeting that "line 
management" entailed management of TBT, SPS a nd licensing measures by "line" agencies 
within Viet Nam's system and not the application of any additional limitations above those 
TBT/SPS measures on terms and conditions or quantity of imports.  While we welcome 
Viet Nam's statement in the Working Party  rep ort that these measures do not "aim" to restrict 
quantities of imports or exports, we seek a clea r commitment language in this section to indicate 
that this is the case.  In particular we would suggest the inclusion of the following language for 
paragraph 195: 
"He confirmed that under Viet Nam's legislative system, "line management" was 
defined only as administrative oversight by  line Government agencies of measures 
consistent with Agreements on SPS, TBT a nd import licensing procedures.  He 
confirmed that under Viet Nam's regulations , in particular Decision No. 46/2001 …, 
line management measures could not constitu te quantitative import restrictions, or 
be administered in such a way to have any trade-restrictive or distortive effects." 
Answer:  
Viet Nam agrees with the above-mentioned recomme ndation with some small changes as follows: 
"He confirmed that under Viet Nam's legisla tive system, "line management" was defined 
only as administrative oversight by line Govern ment agencies of measures consistent with 
WTO's rules in particular those on SPS, TBT and import licensing procedures.  He 
confirmed that under Viet Nam's regulations, in particular Decision 
No. 46/2001/QD-TTg, line management measures could not constitute quantitative import 
restrictions, or be administered in such a wa y to have any trade-restrictive or distortive 
effects."  WT/ACC/VNM/41 
 Page 87 
 
 
 Question 228 
We look forward to receiving the list of goods s ubject to mandatory quality inspection, and the 
list of products subject to mandatory safety certification. 
Answer:  
The lists will be submitted after being amended and promulgated. 
Question 229 We thank Viet Nam for the information give n.  We would however have the following 
comments as regards different legislative instruments: 
- Circular 37/2001/TTLT customs procedures: As a general remark, we think that mandatory cert ification is not the right track to follow.  
- General provisions: 
As regards Point 2 paragraph 2 concerning the registration of "goods owners for inspection 
with the agency in charge of the State quality inspection", could Viet Nam clarify the situation regarding importers and imported goods? How this registration takes place? 
Point 5 paragraph 2:  could Viet Nam confirm whether the CE mark is a recognized "standards 
conformity stamp" and if not if it could become one? 
Point 7, last paragraph:  If we understand co rrectly, imported goods pr ocessed by Vietnamese 
enterprises for foreign traders do not require st ate quality inspection. Could you explain the 
situation as regards these goods? What is the si tuation as regards foreign enterprises processing 
imported goods 
Answer:
 
We would like to thank for the comments and questions on TBT issues. 
Relating to customs procedures described in Ci rcular No. 37/2001/TTLT, Viet Nam would like to 
clarify as follows: 
- Point 1 of General Provisions: registration of " goods owners for inspection with the agency in 
charge of the State quality inspection" means that  when goods is arriving at the port of entry, 
goods owners apply for quality inspection with  the State quality inspection agency.  After 
that, the goods owner presents inspection re gistration paper given by the State quality 
inspection agency to Customs for cl earance of goods on quality issue.  
- Point 5 of General Provisions: the CE mark may be a recognized as "standards conformity 
stamp" if Viet Nam and the importing country have signed a mutual recognition arrangement 
on conformity assessment results.  
- Point 7 of General Provisions: The senten ce mentioned "Goods processed by Vietnamese 
enterprises for foreign traders" means that fore ign traders outside of Viet Nam place an order 
to Vietnamese enterprises to process goods for re -exporting out of Viet Nam.  In that case, 
processed goods do not require state quality inspection. WT/ACC/VNM/41 
Page 88  
 
 Question 230 
Decision No. 114/2005 Network and enquiry point: - Article 3: We note that the delay betwee n adoption and implementation is too short 
(15 days), TBT rules provide a 6-month period. 
Regulation on Network and Enquiry point 
- Article 2 paragraph 1: We note that the notification should always be made before 
adoption of the technical regulation, conf ormity assessment procedure and standard. 
- Article 4 paragraph 1 c): We note that the time limit of 60 days before promulgation is 
not the current requirement under the TBT Co mmittee, where the notification should 
open a period of 3 months for comments, gi ve time to make possible changes and then 
adopt the regulation. The same comment app lies also to Article 5 paragraph 1 b) and 
Article 8 paragraph 1 b). 
- Article 10 paragraph 1: As regards the function of the TBT office, the wording should 
not state "notifying Viet Nam's Technical barri ers to trade", as this gives the impression 
that the office creates barriers on purpose. We would propose the following wording: 
"notifying technical regulations, conformity  assessment procedures and standards that 
will have an impact on trade for other WTO Members" 
Answer:
 
Article 3 of this Decision: the time of 15 days  between publication in the Official Gazette and 
implementation is set by the Law on Promulgation of Legal Normative Documents. For technical 
regulations, the proposed Ordinance on Standardi zation, available through WT/ACC/VNM/41/Add.1, 
has taken into account the delay of 6 mont hs between adoption and implementation. 
Article 4: the time-limit of 60 days before promulga tion of technical regulation is referred in a booklet 
by the WTO Secretariat April 2002 on Transparen cy Provisions of the TBT Agreement and the 
Report of the Fouth Special Meeting on Procedur es for Information Exchange, 2-3 November 2004. 
We understand this time is "at least" and TBT Committee encourages the Members to provide a time-
limit of more than 60 days, such as 90 days. We would appreciate any information relating to the 
latest requirements of TBT Committee on this issue. 
Article 10: Viet Nam would like to thank for the comment.  We will take this into account for the first 
revision of this Decision. 
Question 231 
Decision No. 444/2005 implementation of TBT Agreement: 
Article 1 point 2 - Specific tasks: Could Viet Nam clarify what are the tasks referred to in this 
provision and who should perform these tasks? 
Article 2 paragraph  1 a):  Could Viet Nam provide more information on meeting the deadline? Article 2 paragraph  1 b):  It is proposed to de lete the reference to reg ional standards and only 
keep the reference to international standards.   WT/ACC/VNM/41 
 Page 89 
 
 
 Could Viet Nam explain what are branch standard s?  Are they harmonised with international 
standards? 
Same Article c) paragraph 4, the TBT Agreemen t stipulates on mutual recognition of test 
results or conformity assessment results.   It does not state that Mutual recognition Agreements 
on standards should be taken over from international standards. 
Answer:  
Article 1 point 2: Special tasks mentioned in this article are performed by bodies mentioned in 
Article 2.  "Implementation measures and timetable " and also clarified in other articles of this 
Decision such as Articles 3, 4 and 5. 
Article 2 paragraph 1 a):  To revi ew technical regulations in order to meet the requirements of the 
TBT Agreement, ministries and local authorities ha ve actively carried out the task..  As a result, 
technical regulations have met or are scheduled to be revised to meet the requirements of TBT Agreements such as non-discrimination, not creating unnecessary obstacles to trade and 
transparency no later than the date of WTO accession. 
Article 2 paragraph 1 b):  Branch standards (TCN) are standards developed by other line ministries 
while national standards (TCVN) are those approve d by the Ministry of Science and Technology. 
Branch standards in many cases are based on forei gn, regional and interna tional standards, while 
TCVNs are are mostly based on international standards.   In some rare instances, they could also be 
regional (for example, EN) or foreign (for example, ASTM). 
Question 232 
Decision No. 2424/2000 Temporary regulations: 
Could Viet Nam explain why are temporary regulations needed? 
In the actual Text:  Article 1.3: Could Viet Nam submit a list of goods subject to mandatory 
certification? 
Article 3: Could Viet Nam clarify who are the authorities implementing this decision? Article 3.2.2 c):  Could Viet Nam explain what  is meant with "supervision and continuous 
conformity assurance plan after the declaration" 
Article 5.1:  What is the selection criteria of these agencies Article 5.3:  Could Viet Nam explain how do the Provincial Departments function?  How many 
are they and under which Authority are they functioning?  
Answer:
 
This Decision is temporary regulations because at that time a governmental decree guiding the 
Ordinance on Goods Quality had not been issued.  These temporary regulations will become formal 
Regulations after revision as already planned for in this year. 
Article 1.3:  A list of goods subject to mandatory  certification is under development.  It will be 
provided once promulgated. WT/ACC/VNM/41 
Page 90  
 
 Article 3:  Declaration of conformity with standard (s) is a responsibility of suppliers.  This is defined 
in ISO/IEC Guide 22.  Independent certification bo dies and testing laboratories support suppliers in 
confidence to make their declaration.  The author ities that are responsible for market surveillance 
carry out post-market surveillance over goods, including the goods declared. 
Article 3.2.2 c):  "supervision a nd continuous conformity assurance plan after the declaration" is a 
plan of supplier in order to assure goods manufactured  after the declaration will continue to be in 
conformity with standards as the declared ones. 
Article 5.1:  These agencies are those who have a r esponsibility to control, supervise goods circulating 
in the market.  This responsibilit y is indicated in their Charter. 
Article 5.3:  There is a Provincial Department in each province of Viet Nam. Their main 
responsibility is to supervise over goods quality in general in  province they belong to. 
The procedures for dealing with complaints and a ppeals on declaration are regulated by the Law on 
Complaints and Denunciations and the Ordinance on Procedures for Settlement of Administrative 
Disputes. 
Question 233 
(i) Technical Regulations, Paragraph 260:  Please clarify in the text the international 
standards applicable. 
(ii) Safety certification of products, paragra ph 261:   Please submit the list to be issued. 
(iii) Mandatory Quality Inspection, paragraph 262:    Please submit the list of products to be 
issued. 
Answer:
 
(i) Most Viet Nam's national standards mentione d in paragraph 260 of the Draft Report to which 
goods should be conformed are aligned with the relevant international standards. 
(ii) The list will be submitte d after being promulgated. 
(iii) The list will be submitte d after being promulgated. 
Question 234 
Paragraph 266:  We note and support Viet Nam's commitment to a pply the WTO Agreement 
on Technical Barriers to Trade from the date of accession without recourse to any transition 
period. 
Answer:  
We would like to thank for the comment. 
Question 235  
We again request that a copy of the Ordinance on Standardization be made available to the 
Working Party at the earliest possible date. 
Answer:  
We would like to attach herewith the latest draf t of the Ordinance on Standardization, available 
through WT/ACC/VNM/41/Add.1, (as of August 2005).  WT/ACC/VNM/41 
 Page 91 
 
 
 Relating to the Ordinance on Standardization, th e draft of the Ordinance was submitted by the 
Government to the National Assembly's Standi ng Committee in August 2005.   Taking into account 
the importance of promulgation and implementation of this legal document, the National Assembly 
has decided to upgrade this Ordinance to the Law on Standardization (by the Resolution in 
October 2005).  The content of this Law is main ly based on the content of the draft Ordinance 
submitted by the Government in August 2005.   As th e procedures to promulgate a law are much more 
complicated than those to promulgate an ordinance,  in particular regarding the collection of comments 
and voting at a formal session of the National Assemb ly, the adoption of this law is re-scheduled for 
the first half of 2006. 
Question 236 
Paragraph 260:  We would appreciate a fuller d escription of Viet Nam's conformity assurance 
processes.  In particular, we would appreciate receiving as soon as possible a copy of the proposed implementing decree to revise list of products subject to mandatory procedures and 
the anticipated Prime Minister's decision to create a National Accreditation Council . 
Answer:
 
Relating to a fuller description of Viet Nam's conf ormity assurance processes, Viet Nam would like to 
provide a copy of the Decree No. 179/2004/ND-CP dated 21 October 2004 guiding the Ordinance on Goods Quality 1999.   This Decree describes all sc hemes of conformity assurance in Viet Nam.  The 
revision list of products subject to mandatory procedures and the anticipated Prime Minister decision to create a National Accreditation Council were prepared by the Ministry of Science and Technology and submitted to the Prime Minister for considerati on and approval.  It will be provided right after 
being promulgated. 
Question 237 
In response to previous questions, Viet Nam has clarified that standards can become mandatory 
if they are specified in a regulation.   It has al so clarified various legal instruments, which guide 
the government in ensuring transparency.  It  remains unclear, however, whether Viet Nam 
publishes notice of its intention to make a st andard (previously approved by a technical 
committee), or elements of it, mandatory and al lows an opportunity for comment before it is 
adopted as a technical regulation.  If this is the practice, we seek confirmation of this in the draft Working Party Report text. 
Answer:
 
This will be undertaken through the implementation of electronic Official Gazette operated by the 
Government Office. Additional information concer ned will be appeared in  paragraph 259 of Draft 
Report of 5 September 2005.  In line 9 from the top of paragraph 259 the sentence "Notice of 
proposed technical regulations, for that purpose, publ ished in the Appendix of the Official Gazette by 
decision of the competent State bodies" will be replaced by: 
"Notice of proposed technical regulations, including those based on standard(s) or 
elements thereof, would be, for that purpose,  published in the Appendix of the Official 
Gazette and/or the Electronic Official Gazette by decision of the competent State bodies" WT/ACC/VNM/41 
Page 92  
 
 - Sanitary and phytosanitary measures 
Question 238 We appreciate information Viet Nam has suppl ied on line management measures within the 
purview of the SPS Agreement. We note the list of goods subject to SPS measures applied by the 
Ministry of Fisheries.  Can Viet Nam indicate  the principles it uses to assess whether items 
should be permitted for import or not, whether this undertaken on the basis of an appropriate 
scientific risk assessment, and whether SPS me asures are based on relevant international 
standards?  Pending Viet Nam's response we would look to draft additions to commitment 
language to ensure that SPS measures applied und er the purview of line management would be 
subject to all relevant disciplines of the SPS Agreement. 
Answer:
 
In the fishery sector, principles Viet Nam uses to  assess whether items should be permitted for import 
or not are based on international standards, details are as below: 
- The producing country permits to produce, domestically circulate and export the item; 
- Viet Nam applies the risk assessment principle when approving the import of an item. 
Therefore, for an item (example: veterinary dr ug, feeding stuffs, new products for aquaculture 
environment treatment; alien aquatic animals; aquatic animals and the products thereof from 
the region/ country where the disease is existi ng…) that has the possible of harming human, 
animal, plant health and the environment of Viet Nam, the importer must show the scientific evidence (may be through researches and e xperiments…) demonstrating that the item does 
not have the above-mentioned harm.  Viet Na m would build up SPS measures applied under 
the purview of line management based on re levant principles of the SPS Agreement. 
Question 239 
"273. Viet Nam was a Member of Codex, FAO and IOE and had become a 
contracting member of the International Plant Protection Convention (IPPC) in 
February 2005. Viet Nam's national sta ndards were based on those provided by 
Codex, IPPC, OIE and FAO/WHO, or based  on regional or developed countries' 
standards.  In his view, Viet Nam's veterina ry standards and inspection measures 
were consistent with regulations of int ernational organizations such as CODEX, 
OIE, and ASEAN. As of November 2004, 50 per cent of Viet Nam's national standards (TCVN) relating to food and foodstuffs conformed to ISO, CODEX, international or regional standards. He adde d that Viet Nam was planning to adjust 
its remaining standards to international a nd regional standards, with due regard to 
the conditions prevailing in Viet Nam. He noted that an Ordinance on Standardization providing detailed guidelin es for adopting standards, guidelines or 
recommendations set out by international or ganizations, including those in the SPS 
area, was being prepared. The Ordinance was expected to be adopted prior to 
Viet Nam's accession to the WTO. In the meantime, Viet Nam would make its best 
efforts to apply SPS measures based on standards, guidance and recommendations 
of international organizations. " 
Rationale: Only standards of the three standa rd setting organizations recognized by the 
SPS Agreement (Codex Alimentarius Comm ission, OIE and IPPC) are relevant.  WT/ACC/VNM/41 
 Page 93 
 
 
 Answer:  
We agree to delete accordingly. 
Question 240 
Paragraph 268:  Grateful for an update from Viet Nam on whether any progress has been made 
on performing risk assessments for SPS purpo ses (particularly regarding their search for 
technical assistance to address shortcomings of their current system).  
Answer:  
Paragraph 268: Viet Nam is now in the beginning  stage to perform risk assessment. In order to 
perform risk assessment, Viet Nam looks forwar d to receiving technical assistance from other WTO 
members and international organi zations for following activities: 
- Training staffs in risk assessment of biological  and chemical factors in food, animal disease 
and pest risk; 
- Elaborating guidelines for risk assessment procedures in Viet Nam; and - Setting up the necessary facilities (equipment,  database, methods of risk assessment). 
Question 241 
Paragraph 270:  Grateful if Viet Nam could cl arify what processes Viet Nam has or will put in 
place to enable the recognition of measures of other Members as equivalent when they meet the 
appropriate level of protection to that required by Viet Nam.  
Answer:
 
Paragraph 270: The process applied in order to rec ognize measures of other Members when they meet 
Viet Nam's appropriate level of protection, is based on the following steps:  
- Requiring other member to provide the complete  SPS measures and the references to basis for 
setting up these measures; 
- Evaluating these measures (Viet Nam may requi re other countries to provide additional 
explanations if necessary); 
- Conducting on-site investigation for verify ing these measures implementation in other 
country if necessary; and 
- Organizing bilateral negotiations to enable mutual recognition.  
Viet Nam will develop more concrete equivalent  recognition procedure for SPS measures of other 
Members in coming time and looks forward to receiving technical assistance from WTO Members. 
Question 242 
Paragraph 273:  Grateful if Viet Nam coul d provide an update on the progress of the 
"Ordinance on Standardization", intended to provide guidelines for adopting standards, 
guidelines or recommendations set out by intern ational organizations, including those in the 
SPS area.   When exactly is this going to be adopted?  WT/ACC/VNM/41 
Page 94  
 
 Answer:
 
Relating to the Ordinance on Standardization, th e draft of the Ordinance was submitted by the 
Government to the National Assembly's Standi ng Committee in August 2005.   Taking into account 
the importance of promulgation and implementation of this legal document, the National Assembly 
has decided to upgrade this Ordinance to the Law on Standardization (by the Resolution in 
October 2005).  The content of this Law is main ly based on the content of the draft Ordinance 
submitted by the Government in August 2005.  As the procedures to promulgate a law are much more 
complicated than those to promulgate an ordinance,  in particular regarding the collection of comments 
and voting at a formal session of the National Assemb ly, the adoption of this law is re-scheduled for 
the first half of 2006.  
Question 243 Paragraph 277:  Grateful for an update on Vi et Nam's commitment to amend Viet Nam's SPS 
requirements for poultry to ensure conformity with the SPS Agreement. 
Answer:
 
Paragraph 277:  Veterinary hygi ene requirements of poultry are based on the regulations of the 
Decree No. 33/2005/CP-ND (Articles 38, 39,40 and 41).  It is required that: 
- Animals intended for slaughter or preliminar y processing must satisfy veterinary hygiene 
standards, and have been quarantined by the competent professional State veterinary 
administration agency and a certificate has been granted; and 
- The slaughter or preliminary processing of animal s and/or products of animal origin shall be 
carried out at premises for slaughter and/or pr eliminary processing of animals and products of 
animal origin and inspection prior to, during the process and after slaughter or preliminary 
processing shall be applied by the competent professional State veterinary administration 
agency. 
The above requirements are applied to both domestic  and imported poultry. All slaughters of poultry 
in Viet Nam are subject to these requirements.  
Question 244 Paragraph 278:  Could Viet Nam provide greater pr ecision on how it intends to ensure that its 
phytosanitary measures are cons istent with the SPS Agreement, given the lack of product-
specific international standards, guidelines and recommendations in the plant health area, and 
the difficulty it faces with conducting pest risk analyses? 
Answer:
 
Paragraph 278:  Viet Nam is deve loping its national standards that are harmonized with ISPMs in 
order to meet appropriate level for protection of SPS Agreement.  Viet Nam is facing difficulties in 
conducting pest risk analysis such as lack of PR A consultants, phytosanitary data base, relevant 
information and budget for implementation and would appreciate assistance in this respect. 
Question 245 
Paragraphs 286-287:  We support these commit ments by Viet Nam and request that the 
brackets be removed from these paragraphs.  WT/ACC/VNM/41 
 Page 95 
 
 
 Answer:  
Paragraph 286-287: The two paragr aphs are overlapping. We agree to remove the brackets in 
paragraph 287.  Paragraph 286 can be dele ted as paragraph 287 has been adequate. 
Question 246 
Paragraph 338:  Grateful if Viet Nam could provide further details on their quarantine 
requirements and quarantine certificates applied for health protection purposes (to prevent the 
spread of infectious diseases in the aqua-culture industry). 
Answer:  
All regulations on Quarantine and Licence which ar e applied for human and animal health purposes 
are introduced in the Ordinance on Veterinary of 2004 and specified in the 
Decree No. 33/2005/ND-CP guiding the Ordinance and Quarantine Direction (2596/CLTY-TY) for 
NAFIQAVED.  The main contents are as follows: 
(i) Quarantine of imports:  - Be applied for the import of fresh fish , fresh fish products, frozen and chilled fish 
products, semi-dried fish products; 
 - Fish and fish products must be quarantin ed and certified by the competent authorities 
of the exporting countries to prove that  the exported products are free from diseases 
which are listed in OIE Concern as well as meet the requirements of Quarantine Certification Form of World Organization fo r Animal Health (OIE) in the line with 
Aquatic Animal Health Code; and 
 - When the goods reach the national port, the Quarantine Authority will consider the 
documents, the status of animal health as well as sanitary. If the documents are 
regular, and the animal is healthy, they w ill be separated in order to re-check for 
disease.  If there is no metamorphism, the prod ucts will be allowed into the market. In 
case of metamorphism because of diseased an imal, the products will be immediately 
separated. If the animal is infected with  any disease, it will be returned to exporting 
country or destroyed. 
(ii) Quarantine of exports: Conforming to the Re gulations of OIE and the requirements of the 
importing country. 
(iii) Quarantine Licensing: Viet Nam regulates the Quarantine Certification on Export and Import 
Aqua-products in accordance with the requirement s of the Quarantine Certification Form of 
OIE and in the line with the Aquatic Animal Health Code. 
Question 247 We are pleased to have the opportunity to pr ovide comments and questions on Viet Nam's 
implementing efforts related to its obligations under the WTO's SPS Agreement.  We are impressed with the progress that Viet Nam ha s made thus far, and with Viet Nam's 
determination to take the necessary steps needed to move forward.  One of the most important 
steps will be to ensure that the enquiry point est ablished has the authority to work effectively 
with both government ministries and the privat e sector to provide prompt responses to specific 
enquiries and to avoid the significant problems that  can occur if information is not provided on 
a timely basis.  Timely provision of informat ion is critical for a demonstration of a fully 
functioning and capable SPS Enquiry Point.  Viet Nam's Enquiry Point should begin submitting WT/ACC/VNM/41 
Page 96  
 
 notifications of SPS measures for comment to  the WTO Secretariat upon accession.  If 
Viet Nam's SPS Enquiry Point would like to submit  notifications beforehand, we will recognize 
such efforts and would be glad to work with Viet Nam's SPS Enquiry Point regarding notification preparation. 
Another key indicator of progress will be the near-term establishment of a transparent process 
for the development of SPS regulatory actions.  Cu rrently, there is still not sufficient clarity, 
and Viet Nam should put in place, on a priori ty basis, a demonstrably open process for the 
promulgation of new SPS measures  such as an official journal that publishes measures while 
they are in the draft stage.  This should allow fo r and take into consideration comments from all 
interested parties.  In this way, WTO Members can assess Viet Nam's sincerity in implementing 
its obligations.  In order to demonstrate that Viet Nam is prepared to fulfil its future WTO 
membership responsibilities, a transparent pr ocess for the development of SPS regulations 
should be in place and operating by mid-November 2005.  This process should include the announcement of proposed actions with a suitable timeframe (no less than 60 days) for accepting comments on those proposed actions in an  official journal.  We also look forward to 
Viet Nam's consistent and timely publication of dr aft measures in an official journal at a draft 
stage; timely notification to the WTO Secret ariat with due allowance for the review and 
response to comments; and, clarity regarding a pr oposed measure's expected dates of adoption 
and implementation.  As currently standing me asures are undergoing amendment to bring them 
into conformity with the SPS Agree ment, we expect that all proposed amendments be similarly 
notified to the WTO. 
A third critical action Viet Nam must take is the establishment of a transparent science-based 
process for the assessment of risk. In the absence of  a clearly defined process of risk assessment, 
it will be very difficult for Viet Nam to justif y the SPS measures it has in place or is currently 
contemplating.  This process should allow for the acceptance and review of scientific 
information from interested parties. This critic al first step in the development of SPS measures 
should be clearly articulated and available for review by no later than mid-November 2005.  
Answer:
 
As mentioned in paragraph 269 of the Draft Report, the Prime Minister has appointed the Ministry of 
agriculture and Rural development (MARD) togeth er with the concerned Ministries to build a 
Regulation on the coordination and operation of Viet Nam's National SPS Office (VNSO), the 
Inter-Ministerial Working Team and the operati on of SPS technical support points of VNSO with 
relevant Ministries in 2005.  A suitable timeframe (no less than 60) for public comments shall be 
stipulated in this Regulation and be posted on VNSO' s Internet portal at a draft stage as regulated in 
SPS Agreement.  The public and private sectors can  access the SPS notifications and measures on this 
website. 
Article 4 of Decision No. 99/2005QD-TTg also menti ons clearly the functions and tasks of concerned 
Ministries in implementing obligations w ith respect to notification and enquiry. 
Members' technical assistance to build up notificatio n procedures and SPS official journal in the year 
of 2005 is highly appreciated and welcome. 
Question 248 
We are reviewing Viet Nam's translation of the Ordinance for Plant Protection and Quarantine 
and its implementing decree.  Given that it will govern all of Viet Nam's SPS import 
requirements for plants and their derivative produc ts, we must evaluate its statutes with respect  WT/ACC/VNM/41 
 Page 97 
 
 
 to the SPS Agreement, and by extension, ma ke a determination on readiness for WTO 
accession.  
Answer:  
We are looking forward to the Member's  specific comments on the Ordinance. 
Question 249 
What is MARD's timetable for bringing othe r plant quarantine related regulations into 
consistency with the SPS Agreement? 
Answer:  
We confirm that Viet Nam's plant quarantine regula tions are, in principle, consistent with the 
SPS Agreement.  However, domestic regulations s till do not meet appropriate level for protection 
compared with the purview of the SPS Agreement and international standards for phytosanitary 
measures.  Therefore, Viet Nam has developed a tim etable for setting up new phytosanitary measures, 
amendment and supplement of current phytosanitary regulations to better meet its own requirements. 
Detailed timetable are as follows: 
- Amendment and supplement of the Plant Quarantine Regulation in 2007; 
- Development a national pest risk analysis procedure in 2006; 
- Setting up of equivalent rec ognition procedures for phytosanita ry measures of other countries 
in 2007; 
- Further development of national sta ndards based on ISPMs (24 ISPMs); and 
- Regarding the plant pest surveillance and monitoring, Viet Nam has already established 
provisions on this matter. 
Question 250 With reference to the Law on the Promulgatio n of Legal Normative Documents of 2002, we 
remain concerned that the solicitation of "opinions from all relevant bodies" may not be an open and transparent process.  
It is our understanding that in many cases the degree of specificity predetermines which of the 
four official journals where a measure is anno unced; the drafting ministry predetermines who 
should review a particular regulation and, that the regulation is published only when it has reached the stage to announce adoption.  We wo uld appreciate Viet Nam's assurances that these 
practices will be amended and a description of how that will be accomplished. 
Answer:
 
Viet Nam has been soliciting comments from all parties concerned early in the drafting process of its 
laws, including by submitting draft laws to the Working Party. 
Question 251 
We also note that in the working party report,  page 97, paragraph 269, Viet Nam states that 
MARD and other Ministries were developing reg ulations on coordination and operation for 
Viet Nam's national SPS Office and establishing SPS notification and enquiry point networks 
between Viet Nam's SPS office at MARD and foca l points at relevant ministries.  The report WT/ACC/VNM/41 
Page 98  
 
 states that Viet Nam expects its national SPS Office to be fully operational upon accession.  The 
report also says that there will be a 15-day period of notification before regulations are enacted.  
- What measures does Viet Nam have in place that specifically guarantee that any and all 
potentially trade restrictive SPS measures will be publicly announced in the draft stage 
and that any interested party may commen t, as required in the SPS Agreement?  
- Further, when will Viet Nam adopt measures that allow for more transparent 
regulatory steps, that is: promulgation of th e draft regulation; a 60-day public comment 
period; a final review process to incorporate comments; a proposed date of adoption; 
and, future date of enforcement? 
Answer:
 
- As mentioned in paragraph 269 of the Draft Report, the Prime Minister has appointed the 
Ministry of agriculture and Rural developm ent (MARD) together with the concerned 
Ministries to build a Regulation on the coordi nation and operation of Viet Nam's National 
SPS Office (VNSO), the Inter-Ministerial Work ing Team and the operation of SPS technical 
support points of VNSO with relevant Ministries in 2005.  A suitable timeframe (no less than 
60) for public comments shall be stipulated  in this Regulation and be posted on VNSO's 
Internet portal at a draft stage as regulated in  SPS Agreement.  The public and private sectors 
can access the SPS notifications and measures on this website. 
- Article 4 of Decision No.  99/2005QD-TTg also mentions clearly the functions and tasks of 
concerned Ministries in implementing obligations with respect to notification and enquiry. 
Question 252 
In paragraphs 271-3, page 98, of the Working Pa rty Report, Viet Nam acknowledges that it has 
not fully completed establishment of its food  safety inspection procedures and veterinary 
hygiene procedures, yet expects to see them in place by accession.  
What mechanisms or regulations will Viet Nam pu t in place to ensure that proposed changes in 
the food safety inspection system and other meas ures will be notified to private sector parties? 
Answer:  
- Paragraphs 271-273: As replie d before the 10th session of the Working Party that food safety 
inspection procedures and veterinary hygiene pro cedures of Viet Nam have been stipulated in 
details in Government's Decree No. 33, Decree  No. 163 and other Decisions No. 45, 46, 47 of 
Ministry of Agriculture and Rural Development.  
- As mentioned in paragraph 269 of the Draft Report, the Prime Minister has appointed the 
Ministry of agriculture and Rural developm ent (MARD) together with the concerned 
Ministries to build a Regulation on the coordi nation and operation of Viet Nam's National 
SPS Office (VNSO), the Inter-Ministerial Work ing Team and the operation of SPS technical 
support points of VNSO with relevant Ministries in 2005.  A suitable timeframe (no less than 
60) for public comments shall be stipulated  in this Regulation and be posted on VNSO's 
Internet portal at a draft stage as regulated in  SPS Agreement.  The public and private sectors 
can access the SPS notifications and measures on this website. 
Question 253 
We congratulate Viet Nam for its creation of  an SPS Enquiry Point before accession to the 
WTO.  In providing SPS training to 15 representatives of seven Ministries and agencies in  WT/ACC/VNM/41 
 Page 99 
 
 
 Hanoi this past July, our Enquiry Point representa tives were highly impressed by their level of 
expertise and teamwork.  
However, it was noted that access to SPS Enquiry  Point work was tightly controlled and that 
approval to bring an expert from one ministry to  consult with another ministry on regulatory 
concerns required an Agreement between the heads of  those ministries prior to the initiation of 
the task.  
It is our hope that Viet Nam would consider a more open and flexible policy to allow inter-
agency consultation without such burdensome requi rements as this will only delay Viet Nam's 
ability to effectively respond to changes in SPS en try requirements or the health status of its 
trade partners.   
Answer:  
Article 4 of Decision No. 99/2005QD-TTg also menti ons clearly the functions and tasks of concerned 
Ministries in implementing obligations w ith respect to notification and enquiry. 
We would like to thank for the comment and will take that into account in the operation of the 
Enquiry Point. 
Question 254 We thank Viet Nam for supplying us with an  English translation of its new Veterinary 
Ordinance Number 33 of 2005.  The regulation is  clear and straightforward in its manner of 
execution. However, we remain concerned by a number of issues.  
- First, should terrestrial or aquatic animal s entering Viet Nam fall under scrutiny due to 
the potential presence of a disease or its vector  and thereby become subject to additional 
screening measures, there is no provision within the ordinance of how either the 
importer or the exporter is to be informed of this decision.  
- Second, there is no discussion of how costs would be borne for the additional 
quarantine, testing and/or destruction of the animal.  
- A third concern regards monitoring. Should ei ther an imported or domestic terrestrial 
or aquatic animal come under suspicion for in fection with an OIE-reportable disease or 
IPPC-monitored pest, there is no provision  as to how this disease event would be 
reported to the international standards body, border authorities, trade partners or to 
the supplying country (should the suspected an imal or fish be supplied from outside of 
Viet Nam).  
- What steps is Viet Nam prepared to take pr ior to accession to provide a clear channel of 
communication vis-a-vis all of these quarantine concerns to the impacted private sector 
parties? Also, how will Viet Nam convey, when relevant, to OIE, IPPC, and other concerned trade partners the possible p resence of a reportable disease or pest?  
- We remain highly concerned with Viet Nam's poultry entry requirements.  If we 
understand correctly, Veterinary Ordinance Number 33 replaces Viet Nam's previous 
legislation concerning poultry entry requirements.   Is this correct? If not, what is still in 
place?  
Answer:
 
The Veterinary Ordinance of 29 April 2004 promul gated by the President's order No. 06/2004/L/CTN 
(referred to as "the Veterinary Ordinance 2004" and the Decree No. 33/2005/ND-CP of WT/ACC/VNM/41 
Page 100  
 
 15 March 2005 regulating the implementation of a number of Articles of Veterinary Ordinance 
(referred to as "the Decree 33"). 
- Article 35.1 of the Decree No. 33/2005/ND-CP  regulates the procedure for quarantining 
imported animals, including the quarantine in formation, quarantine documents checking, 
quarantine isolation. The regulation on treatment of infected animals or animal products is 
being drafted and is expected to be issued in 2006.  
- Article 51.3 of the Decree No. 33/2005/ND-CP regulates that the owner must pay fees and 
charges for the quarantine accord ing to the laws on fees and charges.  The costs for the 
additional quarantine, testing and or d estruction of animals are based on the 
Decision No. 08/2005/QD-BTC, regulating on fees of veterinary services. 
- Viet Nam is a member of OI E. Therefore, should an importe d or domestic terrestrial or 
aquatic animal comes under suspicion for infec tion with an OIE-reportable disease, Viet Nam 
must notify to OIE and conform with the OIE re gulations.  The stakeholders are informed of 
this decision if there is a bilateral Agreement or request. 
- Viet Nam will post on the Website of the Department of Animal health 
(www.mard.gov.vn/dah
) quarantine concerns.  The possible presence of a reportable disease 
will be sent by Viet Nam to OIE in accordance with OIE's regulations, this information will 
also be sent to the other stakeholders as agreed  in bilateral Agreements or when requested.  
Question 255 
Article 6:  Why must product entry be restricted to no more than two-thirds of the expiration 
period? How does this further ensure food safety? What is the intent of this requirement? What 
risks are posed, have they been evaluated, and is  a copy of that evaluation/assessment available? 
Answer:  
Article 6:  This article is applied for material a nd food additives imported into Viet Nam, not for the 
final food product itself. As the imported material and additives will be used for 
manufacturing/producing food produc ts, it will take some time from the date of importation for 
customs clearance, warehouse, manufacturing/producing period, storage, distribution and 
consumption.  Therefore, if the expiry date of mate rial and additive runs close to the expiry, they may 
expire when it reaches the final consumption.  This  rule arises from real practices.  During inspection, 
Viet Nam have found some of food producers using expired food additives but when checking importation of these additives, we found that they we re not yet expired upon importation.  However, 
the post-importation inspection is very difficult in these cases. 
Question 256 Article 14: Can Viet Nam explain why all dairy, meat, egg, fish, micronutrients, additives, 
instant beverages, "congealed foods", and so y milk, and tubers are considered "high danger" 
products and must have a food safety certificate? 
Answer:
 
Article 14:  It was a translation error.  This Artic le regulates the list of high risk foods, it means that 
the food can easily cause food poisoning, is food born e diseases and is used frequently by Vietnamese 
people.  This Decree does not regulate that the high ri sk foods must be granted the Certificate of food 
hygiene and safety but the manufacturing/trading entities of these high risk food shall be inspected and granted the Certificate of Compliance with f ood hygiene and safety requirements (similar to the 
GMP certificate), including requirement on sanitation of facility, equipment, tools, health and 
knowledge of food hygiene and safety of workers.  WT/ACC/VNM/41 
 Page 101 
 
 
 Question 257 
Article 20:  While we support the use of food labelling guidelines should genetic engineering 
result in a significant change to the composition,  characteristics, and nutrient content from its 
traditional counterpart, we are concerned that  Viet Nam should require compulsory food 
labelling for all genetically engineered products.  Can Viet Nam explain why it is mandating 
mandatory labelling for agricultural biotech products  ("GMOs") in all foodstuffs when there is 
no food safety risk? 
Answer:  
Viet Nam is drafting its rules on food labelling (to replace Decision No.178/1999/QD-TTg).  GMOs 
will also be subject to these generally applied rules of this revised Decision. 
Question 258 Article 28:  What does Viet Nam mean by "pot entially hazardous food?" In other words, 
without a clear definition of risk and a scien ce-based assessment for appropriate mitigation of 
that risk, we do not have any standard by whic h to define or monitor or enforce compliance. We 
do not understand the intent of this requirement.  
Answer:
 
Article 28:  The term "potentially hazardous food" u sed in Food Hygiene and Safety Ordinance is not 
a close translation. It would be more appropriately translated as "high risk food".  The main purpose 
of Article 28 Part 2 is to make sure that ma nufacturing/trading establishments which produce/trade 
high risk food complying with requirements of f acility's sanitation, hygiene of equipment and tool, 
hygiene of personnel (health examination and knowledge  on food hygiene and safety).  In order to do 
this, the competent agencies have to periodically in spect the establishments and grant Certificate of 
Compliance with food hygiene and safety requirement s.  Standard for monitoring and enforcing 
compliance is Regulations on food hygiene and saf ety of high-risk food for manufacturing/trading 
establishments issued by Ministry of Health. 
Question 259 
Article 35:  Can Viet Nam explain why all pre-packaged food must contain shelf life 
requirements in addition to ex piration date information?  How does shelf life provide food 
safety that is not already identified by the expi ration period?  What risks are posed, have they 
been evaluated, and is a copy of that evaluation/assessment available? 
Article 38:  Without implementing a HACCP-ba sed program for tracing back how food-borne 
pests, diseases, pathogens, contaminants may be deliberately or accidentally introduced into 
plants, animals or food, how can Viet Nam eff ectively monitor, adjudicate, assess penalty and 
take corrective action for failures to comply with food safety requirements?  How will penalties 
be assigned and reported?  What avenues fo r appeal are allowed?  Currently as the 
requirement is stated, all costs for loss and tr eatment are the burden of every individual and 
organization within the food manufacturing process.   What is the intention of Article 38.2? 
Answer : 
- Article 35:  This Article regulates the labe lling for pre-package foods. "A food label shall 
have manufacture date, expiry date, shelf lif e".  It means that it should be labelled the 
manufacture date or the expiry date or the shelf life, not all of these above.  WT/ACC/VNM/41 
Page 102  
 
 - Article 38:  The purpose of this Article is to regulate the responsibilities of all stakeholders in 
prevention and remedies of food poisoning and food borne diseases.  Based on the epidemiological investigations, the cause of food poisoning and food borne diseases and 
individual/organization who are in responsible for the poisoning would be identified.  When 
the foods and the people in charge are clearly identified (processing units or trading 
enterprises or the consumers themselves), e xpenses for food poisoning recovery will be 
decided accordingly. 
Question 260 
Regarding the Decree of the Government Stipulating Detailed Implementation of Some Articles 
of Food Hygiene and Safety Ordinance of 7 Se ptember 2004, we are very concerned about the 
translation quality. We would suggest acquiring another translation. 
Answer:
 
 We will forward another version of translation for reference. 
Question 261 
The following issues are not adequately dealt with or are missing from the Ordinance:  
- Development of a process for approving scientifically justified measures stricter than 
international measures; 
- Updating terminology contained in the Vete rinary Ordinance List A and List B of 
diseases identified by the OIE; 
- Clarification in some specific areas of the document, possibly due to translation 
problems (e.g., in the section on prohibited acts, the passages on regionalization are 
weak);  
- Additional definitions of specific terms (e.g. the definition given of the term "buffer 
zone" should be amended to apply equally to  both domestic and foreign outbreaks of 
disease); and 
- Amendments to the Veterinary Ordinance to  establish a process for the recognition of 
equivalence in foreign establishments, and en suring that all our establishments will be 
recognized as equivalent prior to the establishment of this formal process.  
Answer:  
The Veterinary Ordinance promulgated by the Pr esident's order No. 06/2004/L/CTN called "the 
Veterinary Ordinance 2004" and the Decree No . 33/2005/ND-CP regulating the implementation 
number of Articles of Veterinary Ordinance called "the Decree 33". 
- The Decree No. 33 only replaces the Decree No. 93/CP dated on 27 November 1993, the 
other concerned legislation is still in place. 
- The measures stricter than international ones mayb e considered to be issued with the view to 
protecting human and animal health at the appr opriate level, paying attention to minimize the 
adverse effects to trade.  At present, the materi al and technical facilities of Viet Nam are still 
weak to apply the SPS measures that are stri cter than International ones. When it is 
appropriate, Viet Nam will develop a separ ate piece of legislation for this purpose. 
- The terminology List A and List B in the Veterinary Ordinance is built with reference to the 
definition of the OIE. OIE yearly re-checks,  amends, supplements the List of dangerous 
aquatic diseases which must be informed to the OIE. The updating of definitions and the List 
according to the guidance of OIE is necessary.  WT/ACC/VNM/41 
 Page 103 
 
 
 - Definition of "Buffer zone" was clearly given in  the Ordinance. In Viet Nam, "Buffer zones" 
are identified for either domestic outbreaks or foreign outbreaks of the neighbouring countries. Ministry of Agriculture and Rural Development has issued Decision No. 64/2005/QD-BNN dated 13 October 2005 promulgating the List of must-declared diseases, the List of dangerous animal diseases, the List of diseases subject to the application 
of compulsory disease prevention measures based on List A and List B diseases identified by 
OIE.  
Question 262  
Article 8: What is the list of animals banned for import and export? Why is soaking in chemical 
solution or using water injection prohibited in  products of animal origin? Can you please 
provide a description of how Viet Nam determined this is a food safety risk? 
Answer:
 
Article 8:  The list of animals banned for import and export is regulated to implement the CITES 
convention on protecting rare animals.  The lists of banned animals for export and the list of allowed 
animals for imported are issued at the MARD 's Decision No. 58/2001/QD/BNN-KNKL dated on 
23 May 2001 and Ministry of Fishery's Decision No. 344/2001/QD-BTS. 
Prohibiting soaking in harmful chemical solution or using water injection is to prevent using 
chemicals for long keeping of the products which ar e harmful for consumers or using water to cheat 
consumers. 
Question 263 
Veterinary Drugs: We have some serious concern s with the current legislation, most specifically 
that any new drugs being put forward for circulation in Viet Nam must be re-trialed in 
Viet Nam, essentially duplicating (at great expens e) trials which have already been performed 
by the producer.  The need for a review of quality based on "complaints or denunciations" is also problematic, and open to abuse for non-he alth and safety issues.  We would like to see a 
determination by Viet Nam on how to differentiate those types of complaints from real issues of 
quality.  
Answer:
 
Veterinary drugs: Ministry of Agriculture and Ru ral Development will promulgate the protocol of 
drug registration for circulation in Viet Nam soon.  The protocol includes the regulations on the kinds 
of drugs to be re-trailed. 
When veterinary drugs do not meet requirements on product quality and safety, users have the rights 
to complaint or denunciate to the competent author ities.  The classification of complaints whether 
they are originated from quality and safety requirem ents would be based on the inspection or testing 
results of the veterinary drug control agencies upon request of Government management body.  
- Free Zones, special Economic Areas 
Question 264 
We remain concerned that subsidies in the fo rm of incentives for domestic and foreign 
investments would only be eliminated with in seven years from the date of accession. WT/ACC/VNM/41 
Page 104  
 
 Answer:
 
With respect to export subsidies in the form of in vestment incentives, including those operating in 
export processing zones that are prohibited under the SCM Agreement, Viet Nam has revised its draft 
Law on Investment to eliminate the practice of gr anting these subsidies from the date when the new 
rules become effective (i.e. 1 July 2006 if so approved by the National Assembly).  Additionally, 
Viet Nam shall eliminate the prohibited subsidies in  the form of investment  incentives for the licensed 
projects no later than seven years from the date of Viet Nam's accession to the WTO in order to observe its commitments with the existing invest ors and stabilize the business environment.  The 
detailed information on the subsidies programs and the schedule for elimination of the prohibited 
subsidies shall be elaborated in the upda ted notification on industrial subsidies.  
Question 265 Paragraph 304 and Question 123 of WT/ACC/VNM/ 38; 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:
 
With respect to export subsidies in the form of in vestment incentives, including those operating in 
export processing zones that are prohibited under the SCM Agreement, Viet Nam has revised its draft 
Law on Investment to eliminate the practice of gr anting these subsidies from the date when the new 
rules become effective (i.e. 1 July 2006 if so approved by the National Assembly).  Additionally, 
Viet Nam shall eliminate the prohibited subsidies in  the form of investment  incentives for the licensed 
projects no later than seven years from the date of Viet Nam's accession to the WTO in order to 
observe its commitments with the existing invest ors and stabilize the business environment.  The 
detailed information on the subsidies programs and the schedule for elimination of the prohibited 
subsidies shall be elaborated in the upda ted notification on industrial subsidies. 
Question 266  
Viet Nam states in the draft Working Party re port that "Data on output and exports of 
enterprises located in industrial and expo rt processing zones were not available." 
- Unless the output of these firms is excluded from Viet Nam's national statistics, we 
believe that this information is available.  
- We seek the elimination of prohibited subsidies in the zones and legislation that ensures 
that sales inside the rest of Viet Nam are subject to the exempted taxes and tariffs. 
Answer:  
All the available data will be incorporated into the updated notification on industrial subsidies, that 
will be submitted to the Working Party. 
We would like to confirm that the exemption of e xport duties with respect to goods sold from export 
processing zones to the Vietnamese territory w ill be subject to normal customs formalities. 
Question 267 We propose the following revised draft commitment language for this section.  WT/ACC/VNM/41 
 Page 105 
 
 
 "The representative of Viet Nam confirmed that from the date of accession the 
Government of Viet Nam would ensure enforcement of its WTO obligations in its export processing zones and industrial zones and any other zones with similar incentives and objectives.  In this regard, the representative confirmed that, prior to 
accession, the laws on foreign investment  and domestic investment and related 
regulations would be amended to eliminate any provisions that condition the 
qualification for or receipt of tax or other any other incentives on export, export performance or the use of locally produ ced goods over imports.  The representative 
of Viet Nam confirmed that all industrial a nd export processing zone subsidies that 
fall within the meaning of Article 3 of the WTO Agreement on Subsidies and 
Countervailing Duties would be eliminated on  or before the date of accession, and 
that such subsidies would not be grandfathered or reintroduced.  Moreover, no new subsidies that are inconsistent with Articl e 3(a) or (b) would be introduced after 
accession.  In addition, from the date of accession, goods produced in export 
processing zones or industrial or other zones with similar benefits and objectives 
under tax and tariff provisions that exempt imports and imported inputs from 
tariffs and certain taxes would be subject  to normal customs formalities when 
entering the rest of Viet Nam, including th e application of tariffs and taxes.  The 
Working Party took note of these commitments." 
Answer:
 
We accept the proposal, except that (i) it is on ly applicable to export processing zones; 
(ii) commitments on prohibited export subsidies in  EPZs will be subject to the results of the 
discussion on export subsidies.  
- Government procurement 
Question 268  We appreciate Viet Nam's statement in paragraph 312 of the draft Working Party report on its 
willingness to consider joining the Agreement  on Government Procurement after WTO 
accession. We reiterate our request that Viet Nam become an observer to the Agreement upon 
accession. 
Answer:
 
We would like to consider acceding to the Governme nt Procurement Agreement after the accession to 
the WTO. 
- Trade in transit Question 269  Referring to paragraph 319, what is the average time it takes for cust oms to process transit 
shipments? 
Answer:
 
Viet Nam does not have provision on average time -limits of customs procedures towards goods in 
transit. WT/ACC/VNM/41 
Page 106  
 
 Goods in transit to Viet Nam should: 
- Be undergone customs procedures at the firs t importing port and final exporting port; and 
- Be subject to customs inspection if th ere is any signal of legal violation. 
- Agricultural policies 
Question 270 
This section of the Working Party report will need to be updated following further work in the 
plurilateral process on agriculture.  In section "( b) Exports" we encourage Viet Nam to adopt 
the second of the square bracketted commitments proposed under paragraph 330. 
Answer:
 
Concerning export subsidies in agricu lture, Viet Nam commits as follows: 
"The representative of Viet Nam agreed that, upon accession, Viet Nam would bind its agricultural 
export subsidies at zero in its Schedule of Con cessions and Commitments on Goods, and not maintain 
or apply any export subsidies for agricultural prod ucts, without prejudice to Viet Nam's rights and 
obligations arising from WTO's existing rules" 
Question 271 
Paragraphs 321 and 322 seem to be superseded by the progress achieved by Viet Nam (e.g. 
paragraph 322 "…Viet Nam would consider using tariffs instead of quantitative restrictions"). 
Thus they should be updated by adding following paragraph: 
323bis: "Viet Nam confirmed that, as from the date of accession, it would apply 
border protection in agricultural pro ducts in a consistent manner with 
WTO Agreements, in particular with Article 4 of the Agreement on Agriculture." 
Answer:  
We agree with the comment.  
Question 272 
Paragraph 330:  As stated in the meeting of th e Working Party on 15 September, we can accept 
the first option in paragraph 330, subject to the elimination to the reference to future 
negotiations: 
"330. [The representative of Viet Nam agreed that, upon accession, Viet Nam would 
bind its agricultural export subsidies at zero in its Schedule of Concessions and Commitments on Goods, and not maintain or apply any export subsidies for agricultural products, without prejudice to Viet Nam's rights and obligations arising from WTO existing and future
 rules.  The Working Party took note of this 
commitment.]  
Member cannot accept commitment language whic h refers to the "future" rules, which are 
unknown today. Such wording would deprive the Draft Report from the certainty that it is supposed to deliver.  Furthermore, the reference to such "future" rule s is not necessary for  WT/ACC/VNM/41 
 Page 107 
 
 
 Viet Nam, as it will enjoy all rights and be s ubject to all obligations any developing member 
may have in the future.  
Answer:  
We agree with the proposal and is willing to break the brackets for this commitment:  
"The representative of Viet Nam agreed that, upon accession, Viet Nam would bind its 
agricultural export subsidies at zero in its  Schedule of Concessions and Commitments on 
Goods, and not maintain or apply any export subsidies for agricultural products, without 
prejudice to Viet Nam's rights and obligations arising from WTO's existing rules." 
Question 273 
Agricultural supporting tables WT/ACC/SPEC/VNM/3/Rev.5:  Table ES:1 has to be amended 
in accordance to the previous elimination co mmitment by replacing the amounts of export 
subsidies it currently shows with "NIL".  
Answer:  
These figures were factual statistics in three y ears from 1999 to 2001.  Viet Nam's commitment is 
reflected in the Draft Report (i.e. paragraph 330) and the agricultural subsidies tables will also be 
revised to reflect the final results of the discussion. 
Question 274 
This section seems to be unfinished.  Fo llowing paragraph should be added:  
336bis): "Viet Nam confirmed that it would apply subsidies on agricultural products 
in a consistent manner with WTO rules, in particular with the Agreement on Agriculture, including its Schedule of Commitments in Domestic Support as 
exhibited in the supporting tables in document WT/ACC/SPEC/3/….)." 
Answer:
 
We agree to insert this suggestion. 
Question 275 
We would like to thank Viet Nam for the provi sion of WT/ACC/SPEC/VNM/3/Rev.5.  We thank 
Viet Nam for addressing some of our earlier comments in this latest domestic support 
notification revision.   We have a few points however that we would like Viet Nam to clarify.  
- During our last plurilateral meeting in Se ptember, Viet Nam indicated that it had 
removed freight subsidies on salt from Table DS:2.  
- We note, however, that the term "freight" continues to be included in the description of 
its programs under Article 6.2. Article 6.2 is designed to cover investment subsidies, 
agricultural input subsidies and diversific ation from growing illicit narcotic crops.  
 - Freight subsidies are not considered input subsidies, as freight assists the 
transport of final product to market (i.e. it is not an input to production such as fertilizer).  WT/ACC/VNM/41 
Page 108  
 
  - It is standard practice in accessions for freight subsidies to be scheduled under 
Non-Product Specific AMS in supporting table DS:9.  We ask that Viet Nam adjust its tables accordingly. 
Answer:
 
Freight subsidies in Table DS:2 are freight subs idies for fertilizer, rice and maize seeds under the 
programme for farmers living in highland and disa dvantaged areas.  These s ubsidies are agricultural 
input subsidies so they are in ac cordance with Article 6.2. Please al so refer to the explanation in 
previous Working Party sessions. 
Question 276 
- Could Viet Nam alter the table underneath DS:4 labelled " De minimis  (10 per cent or 
production value)."  All figures seem to be correct, except for sugar which appears to 
list the total value of production (6956.00, 6102.70, 6831.30) instead of 10 per cent of production (695.6, 610.2, 683.1 etc…).  
- In keeping with the ACC/4 methodology, we would prefer that Viet Nam described its 
AMS as "Base Total AMS" in the fourth colu mn of DS:4 and in the bottom far-left hand 
corner of its table.  
- In the last row in Table DS:4, Viet Na m has left the Total AMS figures as 0 from 
1999-2001.  This row should be updated to reflect  the addition of all the totals in the row 
above (i.e. so that Base Total AMS will be 337 9.1 in 1999, 3504.73 in  2000 and 1966.95 in 
2001, and an average of 2 950.26 over the three years. 
Answer:
 
- We will take note and correct accordingly. 
- We will take note and correct accordingly. - According to the WTO rules, if the Total AM S is lower than des minimis (i.e lower than 
10 per cent of total of agricultural products) th en AMS is 0. Viet Nam has done accordingly. 
Question 277 
Our analysis of DS:5 indicates that Viet Na m has scheduled an applied administered price 
based on Viet Nam's internal price of raw suga r and not on its support for sugarcane prices. 
This is shown in Column 4 of DS:5 by an a pplied price of 5,819,000 Dong/t in 1999 (or around 
US$ 417/t).  Viet Nam indicates in the footnote, ho wever, that its official applied administrative 
price for sugarcane was 240,000 Dong/t in 1999.  
- This implies that Viet Nam's internal price for raw sugar in 1999 (US$ 417/t) is more 
than twice the level of the world price (US$ 162/t in 1999).  We seek supporting data 
from Viet Nam (e.g. Official Statistical publicat ions) to verify that its internal raw sugar 
prices were this high. 
Notwithstanding this, we have concerns with th e methodology used by Viet Nam to calculate 
support for sugar.  Viet Nam acknowledges that it does apply an administered price in relation 
to sugarcane, but not on raw sugar.  Hence, its market price support is directed at sugarcane. 
As Viet Nam does not apply an applied admi nistered price for raw sugar, it is therefore 
inappropriate to calculate market  price support for sugar on the basis of raw sugar prices in 
DS:4 as it has done.   WT/ACC/VNM/41 
 Page 109 
 
 
 Instead, Viet Nam should calculate market pric e support on the basis of its official applied 
administered price on sugarcane and an extern al reference price for sugarcane (if this is 
possible to find).  If an external reference pri ce is not available for sugarcane, we encourage 
Viet Nam to utilise the provisions of the Ag reement on Agriculture concerning Equivalent 
Measures of Support (EMS).  
- Annex 4 of the Agreement indicates that EMS can be calculated where market price 
support exists, but for which the calculation of this component of AMS is not practicable.  
- Annex 4 also indicates that EMS shall be ca lculated on a product-specific basis as close 
as practicable to the point of first sale  receiving market price support.  EMS is 
calculated by using the applied administered price and the quantity of production 
eligible to receive that price or, where this is not practicable, on budgetary outlays used 
to maintain the producer price. 
- We encourage Viet Nam to utilise this me thodology in revising its tables to capture 
official market price support for sugarcane. 
We request that Viet Nam also indicate 1999-2001 average external reference prices for 
commodities receiving market pr ice support in Table DS:5, as the Agreement on Agriculture 
notes that the fixed external reference price would generally be the average c.i.f unit value for the basic commodity (in the case of a net importing nation) in the base period.  
Answer:
 
The purpose of the policy here is to support suga r, through different measures (subsidies, import 
licensing…).  To implement this policy, one measure that has been used was that the Government set 
the minimum price for sugar-cane (240,000 VND/T).  The price of raw sugar is calculated base on sugarcane's price and average cost of sugar production.  The convers ion method was actually 
proposed by all Members that participated  in the previous Plurilateral Meetings. 
The figures indicated by Statistics General Departme nt (Statistic year book) only show the retail price 
of refined sugar on the domestic market. 
Year Price (VND/T white-sugar) 
1999 6,975,000 (equal 500.2 USD/T) 
2000    5,049,000 (357USD/T) 
2001      6,458,000 (436 USD/T) 
 
As the final purpose of the policy is to support the sugar industry, the methodology of the policy is the 
most appropriate.  Therefore, it has been agreed by  Members participating in the previous Plurilateral 
Meetings on Agriculture.  
Question 278 
Supporting Table ES:1: We welcome Viet Nam's intention to bind its agricultural export 
subsidies at zero. 
We believe language in the Working Party report should reflect this commitment and state the 
following:  
The representative of Viet Nam confirmed that agricultural export subsidies would be bound at 
zero in Viet Nam's Schedule of Concessions and Commitments for Goods.  He also confirmed WT/ACC/VNM/41 
Page 110  
 
 that export subsidies applied to agricultural pr oducts would accordingly be eliminated by the 
date of accession.  The Working Pa rty took note of these commitments. 
Answer:
 
We agree the first bracketed commitments under paragraph 330 as follows: 
"The representative of Viet Nam agreed that, upon accession, Viet Nam would bind its 
agricultural export subsidies at zero in its  Schedule of Concessions and Commitments on 
Goods, and not maintain or apply any export subsidies for agricultural products, without 
prejudice to Viet Nam's rights and obligations arising from WTO existing rules" 
Question 279 
The factual basis for this section is under de velopment by the agricultural plurilateral. 
Answer:  
We would like to take note of the comment. 
- Fisheries 
Question 280 This section appears to need further developmen t.  Please provide an updated description of 
Viet Nam's fisheries industry including the number of firms, number of employed persons, its 
contribution to GDP, growth of the sector, FDI, export and import statistics, and export and 
import growth.  
We are likely to provide additional questions a nd comments for this section in the near future.  
Answer:
 
Follows are some updated description of Vi et Nam's fisheries industry as requested: 
- The number of enterprises (as of 31 December 2003): 1,468 with average capital of 
approximately 0.5 bil VND. 
- Labour force in fisheries industry (as of 1 July 2004): 5.4 milli on people (including 
related-service sectors). 
- Fishery GDP in 2004: 27 474 billion Dong. 
- The average annual growth rate of fisheries production: 8.99 per cent for period of 
2000-2004. 
- FDI in 2004: 5 projects with US$ 7.8 million. - Exporting turnover in 2004:  US$ 2.401 billion. - The export growth rate of average 13.02 per cent for period of 2000-2004. - Fisheries importing turnover in 2000 was US$ 30.65 million, in 2001: US$ 32.24 million, in 
2002: US$ 64.17 million. 
- The import growth rate of average 84.4 per cent annually. - The turnover of importing feeds and chemical to serve aquaculture was US$ 108.19 million in 
2000, US$ 105.54 million in 2001, US$ 116.77 million in the 9 early months of the 2002. 
- Growth rate of feeds and chemical imports: about 22.5 per cent annually.  WT/ACC/VNM/41 
 Page 111 
 
 
 - Trade in civil aircraft  
Question 281 We appreciate Viet Nam's position as expressed in paragraph 314 that it would consider joining 
the Agreement on Trade in Civil Aircraft after accession.  We reiterate our request that 
Viet Nam consider joining th e Agreement upon accession. 
Answer:
 
We would like to consider acceding to the Agreement on Trade in Civil Aircraft after the accession to 
the WTO. 
- Textiles regime 
Question 282 
We appreciate the updating and expanding of  this section.  It is much improved. 
Answer:  
We would like to note that the whole section is not necessary as the ATC has expired and Viet Nam is 
not applying quotas on textile  and clothing products. 
- Core Labour Standards 
Question 283 
We request that Viet Nam remove the brackets on a section that merely describes Viet Nam's 
labour laws and relations with the International Labour Organization. 
Answer:  
Viet Nam requests to remove the section.  It is not a practice in accession to include a section on 
labour in the Working Party Report. 
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME - GENERAL Question 284 Article 14 of the Draft defines who will benefit fr om copyright protection, and primarily grants 
copyright protection only to those authors who are Vietnamese citizens (paragraph 1).  
However, the principle of national treatment (Article 3 TRIPS) requires Members to accord 
nationals of other Members treatment no less f avourable than it accords its own nationals.  
Also, Article 3 of the Berne Convention is di rectly applicable in Viet Nam and it requires 
protection for authors who are nationals in any one of the countries of the Union.  
The way Article 14 of the draft law reads now,  even with paragraph 5, does not seem to 
guarantee that equal protection is granted to both Vietnamese authors and authors who are not 
Vietnamese citizens. WT/ACC/VNM/41 
Page 112  
 
 Can Viet Nam assure that Article 14 can be  interpreted in accordance with the Berne 
Convention and the TRIPS Agreement? 
Answer:
 
Draft Intellectual Property Law (the 9th draft) al ready guarantees the implementation of Article 3 of 
TRIPS as well as Article 3 of Berne Convention.  Particularly, Article 13 of the draft law specifies 
that "authors, owners having works eligible fo r copyrights protection shall include foreign 
organizations, individuals having works eligible for protection in  Viet Nam in accordance with 
international treaties to which Viet Nam is party".  This means that nationals of any Member of the 
Berne Union or of the World Trade Organization (upon Viet Nam's accession to WTO) shall be 
considered as entities eligible for copyright prot ection in Viet Nam.  The draft law includes no 
provisions on discrimination between Vietnamese  and foreign entities, therefore ensures equal 
protection for Vietnamese authors and authors w ho are not Vietnamese citizens, being in full 
compliance with TRIPS Agreement and Berne Convention. 
Question 285 
Article 16 exempts specific works from copyrigh t protection. Paragraph 1a), b) and d) are 
drafted in a very broad way, which makes it di fficult for authors to assess what kind of works 
will be denied protection.  Furthermore, these exemptions in the draft law appear to be 
inconsistent with the Berne Convention as they go beyond the exemptions provided for in 
Article 2 and Article 2 bis of the Berne Convention which are also incorporated in the 
TRIPS Agreement by Article 9 TRIPS. 
Please specify what kind of works will be denied protection in application of Article 16. 
Answer:  
Provisions on works that are not protected by the State were deleted from the draft Intellectual 
Property Law (the 9th draft has no such provisions). 
Question 286 
Articles 186 to 188 provide the framework for de tailed implementation of Article 31 TRIPS. 
While analysing the provisions therein, we had the impression that two points may be missing:  
- According to Article 31b, sentence 4 TRIPS the right holder must be promptly notified 
of the compulsory license, a requirement wh ich is not foreseen in the current draft.  
- Article 31i TRIPS requires that any decision relating to the use of inventions under 
compulsory licenses shall be subject to a judicial or other independent review by a distinct higher authority.  Provided that an  administrative appeal, as mentioned in 
Article 188 paragraph 3 of the draft law, gu arantees such an independent review by a 
higher authority, Article 31i TRIPS has been im plemented.  But, in addition, Article 31j 
TRIPS requires the right to an independent review also for decisions relating to the remuneration that must be paid for the u se of inventions under compulsory licenses. 
- This right to review is not expressly mentioned in Article 188 of the draft law in its 
version of July.  Can you specify if this righ t has been included in a later version of the 
draft law?  WT/ACC/VNM/41 
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 Answer:  
The provisions on the obligation of making notice to the right holder about the decision on 
compulsory licence in line with Article 31(b) of th e TRIPS has been included in the 9th draft of 
Intellectual Property in Article 149 paragraph 3 as follows: "The state authority having decided on 
compulsory licensing shall promptly inform the holder of exclusive right to use invention about the 
decision". 
An opportunity of review in a judicial or an independent administrative procedure by a higher 
authority in respect of any administrative decisi ons, including decisions on compulsory licenses for 
inventions as well as the remuneration to be paid under such licenses is guaranteed by the Law on 
Complaints and Denunciations and the Ordinance on Procedures for Settlement of Administrative 
Cases. Particularly, Article 149.2 of the draft Intellectual Property Law provides "A decision on 
compulsory licensing shall fix appropriate scope and conditions of use in accordance with Article 148 
of this Law", including the payment of an adequate  remuneration to the holder of exclusive right to 
use invention" (Article 148.1.d).  Consequently, th e decision relating to such remuneration is to be 
included in a compulsory licence decision.  On the other hand, Article 149.4 provided for "Decisions 
on grant or refusal of a compulsory licence shall be subject to an administrative appeal or a judicial 
litigation in accordance with the laws".  
Therefore, the review of decisions relating to the payment of remuneration as a part of the decision on 
invention licence can be carried out in accordance with procedures for appeal or denunciation 
provided for in Article 149.2. 
- Requirements on undisclosed information, including trade secrets and test data:  
Question 287 With regard to "Protection of pre-programme and encrypted signals in accordance with the 
TRIPS Agreement" in L.7-9, P. 126, please speci fy under which article of the TRIPS Agreement 
this protection is required. (It is our understandi ng that the protection of pre-programme and 
encrypted signals is not a requirement by the TRIPS Agreement, and that it is currently under 
discussion at WIPO for the Treaty for Protection of Broadcasting Organizations.). 
Answer:
 
Protection of pre-programmed and encrypted signals  is not required by the TRIPS.  Provisions on 
such protection that would be promulgated in th e Intellectual Property Law just have a connection 
with other treaties that Viet Nam has signed.  Ther efore, the last sentence in paragraph 362 of Draft 
Report of the Working Party (WT/ACC/SPEC /VNM/5/Rev.1) should be deleted. 
Question 288 We look forward to reviewing a final version of the intellectual property law, to be promulgated 
in November 2005, so we may determine whethe r Viet Nam's intellectual property regime is 
TRIPS compliant. 
Answer:
 
A free English translation of the 9th draft Intellectual Property Law, available through 
WT/ACC/VNM/41/Add.1,  (the draft submitted to the 8th Session of the National Assembly of 
Viet Nam in October 2005 for debating and consid eration of promulgation in November 2005) has WT/ACC/VNM/41 
Page 114  
 
 been furnished to the Working Party and made public on the website of the National Office of 
Intellectual Property of Viet nam: http://www.noip.gov.vn  
- Geographical indications, including appellations of origin 
Question 289 
A recent WTO dispute settlement Panel on geogr aphical indications confirmed that prior 
trademarks have the right to prevent the use of GIs where such use would likely confuse the 
consumer, which is provided for under Article 16.1 of TRIPS.  A regulation that fails to allow 
the owners of valid pre-existing trademarks the right to prevent confusing uses of GIs does not 
fit within the narrow permissible exception of TRIPS.  
We welcome further information from Viet Nam concerning any legislative developments to 
exclude the protection of geographical indications conflicting with trademark rights previously 
acquired through registration or broad use.  
Answer:
 
The provisions on the exclusion of the protection of  geographical indications conflicting with a prior 
protected trademark in compliant with the TRIPS and the WTO dispute settlement has been included 
in the draft Intellectual Property Law, availa ble through WT/ACC/VNM/41/Add.1.  Particularly, 
Article 80.3 of the draft Law provided that geographical indications that are identical with or similar to a protected trademark shall not be registered, if the use of such geographical indications, when 
conducted, would cause confusion as to the source of products. 
- Requirements on undisclosed information, including trade secrets and test data:  
Question 290 With regard to "Protection of pre-programme and encrypted signals in accordance with the 
TRIPS Agreement" in L.7-9, P. 126, please speci fy under which article of the TRIPS Agreement 
this protection is required. (It is our understandi ng that the protection of pre-programme and 
encrypted signals is not a requirement by the TRIPS Agreement, and that it is currently under 
discussion at WIPO for the Treaty for Protection of Broadcasting Organizations.). 
Answer:
 
Protection of pre-programmed and encrypted signals  is not required by the TRIPS.  Provisions on 
such protection that would be promulgated in th e Intellectual Property Law just have a connection 
with other treaties that Viet Nam has signed.  Ther efore, the last sentence in paragraph 362 of Draft 
Report of the Working Party (WT/ACC/SPEC /VNM/5/Rev.1) should be deleted. 
- Enforcement 
Question 291 Article 249 defines the circumstances under which an infringement of intellectual property 
rights constitutes a crime.  Criminal law is of major importance in enforcing intellectual 
property rights because only the existence of  severe penalties can provide for an effective 
deterrent.  When analysing this provision, however, we had doubts whether it is fully 
compatible with Article 61 TRIPS, as the latter requires criminal procedures and penalties to be  WT/ACC/VNM/41 
 Page 115 
 
 
 applied at least in cases of wilful tradem ark counterfeiting and copyright piracy on a 
commercial scale. 
Can you please specify whether Article 249 of the draft law ensures this?  
Answer:  
Provisions on intellectual property crimes were deleted from the draft Intellectual Property Law 
because such provisions are already included in Cr iminal Code.  Articles 156, 157, and 158 of 
Criminal Code provide for crimes and penalties for production of and trading in counterfeits. 
Article 216 of the draft Intellectual Property Law de fines intellectual property counterfeit goods as to 
include counterfeit mark goods and pirated copyri ght goods.  According to the above-mentioned 
provisions, elements "wilful" and "c ommercial scale" is implied respectively by terms "counterfeit" 
and "production and trade".  Thus, act of  wilful trademark counterfeiting and copyrights and related 
rights piracy on a commercial scale shall be considered  as crimes.  This would be clarified in legal 
instruments guiding the implementation of the In tellectual Property Law and the Criminal Code. 
Question 292 
Enforcement measures, and specifically border co ntrol measures, are of paramount importance 
in the fight against counterfeiting and piracy.  The refore, it is very positive that Viet Nam wants 
to go beyond TRIPS and cover all infringement of intellectual property rights and not only 
counterfeited trademarks and pirated copyri ght goods as required by Article 51 TRIPS. 
Studying the provision in detail however, two issues caught our attention:  
First, the information required to be submitted with an application for suspension of customs 
procedures under Article 254 seems to be quite exte nsive.  While the right holder will usually be 
able to submit a detailed description of counterfei ted or pirated goods, which allows the customs 
authorities to identify such goods, he will usually not be able to provide the customs authority with the name and address of the importer and exporter, a photo of the goods or information on the predicted time and venue of arrival of the go ods.  Requiring such detailed information leads 
to the result that many right holders will not be ab le to file an application for suspension of 
customs procedures that complies with Article 254 of the draft law. 
Therefore, it is questionable whether Article 254 of  the draft law is consistent with Article 51 
TRIPS which only requires "a sufficiently deta iled description of the goods to make them 
readily recognizable by the customs authorities".  Could you please take position on this issue? 
Secondly, the time period for the right holder fo r responding to the detection of infringing goods 
under Article 257 (one day after receiving notice) is very short.  The right holder needs at least 
the time to contact a lawyer and to prepare the application for suspension of customs 
procedures. 
This seems not to be feasible in one working da y. Would you please explain your position on this 
issue? 
Answer:
 
Firstly, obligation to submit information imposed on the person who requests for the suspension of 
customs procedures are provided for in Article 220 of  the 9th draft, under which he must only provide 
information sufficient to identify the suspected intellectual property right infringing goods and shall provide with other information only if availabl e such as name and address of the importer and 
exporter; information on the predicted time a nd venue of the completion of import and export WT/ACC/VNM/41 
Page 116  
 
 procedures; detailed description or photo of the g oods suspected to be infringing goods; expert 
opinions of competent agencies in respect of the prima facie evidence.  Such provisions are fully 
compliant with Article 51 of the TRIPS. 
Secondly, the time period for the right holder to  submit a request for the suspension of customs 
procedures in the case goods bearing signs of infri ngement have been detected as provided for in 
Article 223 the 9th draft is three working days from the date the right holder notified about such 
goods by the custom office. 
Question 293 
Referring to paragraph 414 of the draft Working Party Report 
(WT/ACC/SPEC/VNM/5/Rev.1), what type of documentary evidence would a plaintiff be 
required to submit in order to establish ownership of an IP right? Would a certified copy of a 
patent or a trademark registration suffice? Would a plaintiff be required to submit to the court an affidavit of ownership? 
Answer:
 
Evidence to prove ownership of an IP right is understood as follows: 
- For registered subject matters, documentary evid ence is a legitimate copy of Protection Titles 
or extract of Register on patents, industrial designs, layout designs of integrated circuits, 
marks, geographical indications, plant varieti es; Certificate of copyright registration; 
Certificate of related right registration; 
- For unregistered subject matters, evidence is anything capable of proving the basis from 
which copyright, related rights, rights to trade names or rights to well-known mark arise; 
- Plaintiff has no obligations to submit an affidavit of ownership to the court.  
Such provisions as mentioned above have been included in the draft Intellectual Property Law, 
available through WT/ACC/VNM/41/Add.1 (Article 262.2 of the 9th Draft) which has been furnished 
to the Working Party and made public on the website  of National Office of Intellectual Property of 
Vietnam: http://www.noip.gov.vn . 
Question 294 What is the position and role of a "People's Prosecutor" in civil litigation? 
Answer:
 
As provided for in Article 21 of the 2004 Civil Procedures Code, the People's Prosecution Institute 
shall control and supervise the conf ormation to laws and regulations in civil proceedings, exercise the 
rights to request, propose and protest, in accordance with  laws and regulations, in order to ensure that 
civil cases and civil matters be settled timely and legally .  The People's Prosecution Institute shall take 
part in trials in respect of cases where the court co llects evidence that is complained by a party, or 
civil matters that fall within the jurisdiction of th e court, or civil cases, matters where the People's 
Prosecution Institute protests the judgment and/or decision of the court. 
Article 45 of the 2004 Civil Procedures Code provides for the duties, authorities of prosecutors as 
follows: 
- To control and supervise the conformation to la ws and regulations in the judgment of civil 
cases and the decision of civil matters by the court;  WT/ACC/VNM/41 
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 - To control and supervise the conformation to laws and regulations by those persons involving 
in the proceedings; 
- To control and supervise judgments and decisions of the court; - To attend trials for judgment of civil cases  and sessions for decision on civil matters in 
accordance with regulations of Civil Procedures Code, and make statement of the opinion of 
the People's Prosecution Institute on the judgment or decision of civil cases or matters; and 
- To carry out other tasks and authorities with in the competence of the People's Prosecution 
Institute as assigned by the Director of People's Prosecution Institute. 
Question 295 
The following questions refer to paragra ph 420 of the draft Working Party Report: 
- What is the scope of authority and competen cy of the "Economic Police" in intellectual 
property enforcement?  
- Do Economic Police have any specialized tr aining in intellectual property enforcement?  
- Are the Economic Police provided with any special resources or special police powers? 
Answer:
 
- According to Article 12 of Government Decree No. 12/1999/ND-CP of 6 March 1999 on 
handling administrative violations in the fiel ds of industrial property, the Economic Police 
(the head of the District Po lice, the head of Economic Police Division, the Director of 
Provincial Police, the Director General of Ec onomic Police Department) have the right to 
impose administrative remedies against acts of industrial property infringement in connection with business and production activities.  Accord ing to Article 31 of Government Decree 
No. 31/2001/ND-CP of 26 June 2001 on handling administrative violations in the field of 
culture and information, the Economic Police have the right to impose administrative remedies against acts of copyright infringement in connection with public  order and security.  
- The draft Intellectual Property Law, available through WT/ACC/VNM/41/Add.1,  
(Article 203 of the 9th draft) stipulates that the police are one of competent agencies to 
impose administrative measures against acts of intellectual property infringement. Jurisdiction 
of the police as well as other enforcement agenci es shall be provided in details in Government 
Decrees guiding the implementation of Intellectual Property Law.  In order to do away with 
current overlap of jurisdiction, it is expect ed that police shall be only empowered to 
investigate intellectual property infringement a nd inform relevant agencies competent of 
imposing administrative remedies (for such in fringements that are not serious enough to be 
subject to criminal prosecution) or furnish f iles to the competent agencies to prosecute and 
adjudicate crimes (for such infringements containing factors constituting crimes).  
- The Economic Police receive specialized traini ng in intellectual property enforcement through 
training courses on intellectual property legisl ation and enforcement professional skills 
organized regularly in Viet Nam and abroad for intellectual property enforcement agencies; 
- The Economic Police has jurisdiction and resource as other police forces. 
Question 296 
Please identify all agencies at the municipal, provincial and national levels that have 
competency to act in matters of intellectual property enforcement. 
Please clarify the lines of jurisdiction and authority for each of the above-named agencies, as 
well as their duties and responsibilities.  WT/ACC/VNM/41 
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 Answer:
 
The system of bodies having competency to act in matters of intellectual property enforcement and 
their jurisdiction and authority are as follows: 
(i) Bodies having competency to impose civil a nd criminal remedies (under Law of People's 
Court Organization 2002): 
-  The civil court of the People's courts at district level has jurisdiction over intellectual 
property cases other than cases between businesses and foreigner-related cases; 
-  The civil court of the People's courts  at provincial level has jurisdiction over 
intellectual property cases, including cases involving a foreign element, other than cases between businesses; 
-  The economic court of the People's courts  at provincial level has jurisdiction over 
intellectual property cases between businesses; and 
-  The criminal court of the People's courts at  district or provincial level has jurisdiction 
over crimes of infringing intellectual property rights. 
(ii) Bodies having competency to impose administ rative remedies (under the Ordinance on the 
handling of administrative violations of 2002 , Government Decree No. 12/1999/ND-CP dated 
6 March 1999 on handling administrative violati ons in the field of industrial property and 
Government Decree No. 31/2001/ND-CP dated 26 June 2001 on handling administrative 
violations in the field of culture and information): 
-  The People's Committees at district or provincial levels have competency to impose 
administrative remedies against administ rative violations regarding intellectual 
property that occur in the locality of their administration; 
-  Market control agencies (Market control Department; Market control branch offices) 
have competency to impose administrative remedies and other measures against violations of provisions on industrial prope rty right protection and violations of 
provisions on trade in cultural-informationa l products and services, which occur in 
any part of the country; 
-  Inspectorates specialized  in science and technology (Inspectorate of Ministry of 
Science and Technology and Inspectorates of  Provincial Departments of Science and 
Technology) have competency to impose administrative remedies against administrative violations regarding industrial property; 
-  Inspectorates specialized in culture a nd information (Inspectorate of Ministry of 
Culture and Information and Inspectorates of  Provincial Departments of Culture and 
Information) have competency to impose administrative remedies against administrative violations regarding copyright; 
-  Public security agencies (District Police;  Provincial Police; Division of Economic 
Police, Department of Economic Police) have competency to impose administrative 
remedies against administrative violations  regarding intellectual property in the 
course of production and trade; and 
-  Customs agencies (Customs Department; Customs Branch Offices; Anti-smuggling 
Inspection Office) have competency to impose administrative remedies against administrative violations regarding intellectual property in the course of exporting and importing goods. 
The principle of delimitation of compet ency among such agencies is as follows: 
- Competency is delimited between agencies of different branches according to their fields of 
administration;  WT/ACC/VNM/41 
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 - Competency is delimited between agencies of different locals according to their locality of 
administration.  People's Committees at each level handle violations of multiple fields; 
- Competency is delimited between different leve ls in the same field or in the same locality by 
different administrative remedies provided for in the Ordinance on the handling of administrative violations of 2002, whereby upper level have competency to impose any 
remedies that lower level have and extra certain stronger; and 
- The case falling under competency of  different agencies shall be de alt with by the agency that 
receives the case first. 
Question 297 
Should duties or jurisdiction overlap between agenc ies, how do such conflicts get resolved in a 
timely manner, and by whom are such potential conflicts resolved? 
Answer:
 
Under current laws and regulations, the administrativ e enforcement system in internal market includes 
four competent agencies (the People's Committees, the market control organizations, the inspectorates, the economic police), with their own di fferent levels.  The lines of jurisdiction of such 
agencies are not clarified and no agency assumes ma in responsibility for or coordinates activities of 
intellectual property enforcement.  Such situatio n shall be resolved with the promulgation of 
Intellectual Property Law and legal instruments guidi ng its implementation. Particularly, Article 203.1 
of the 9
th draft Intellectual Property Law specified that  in their scope of duties, responsibilities and 
jurisdiction, the courts, inspectorates, market cont rol organization, customs, the police, and People's 
Committees at different levels are competent to ha ndle infringements of intellectual property rights. 
The scope of duties, responsibilities and jurisdiction of each enforcement agency shall be clarified in 
the legal instruments guiding the implementation of Intellectual Property Law. 
Question 298 
What interagency communication channels a re established or contemplated in facilitate 
government-wide coordination and information- sharing on matters of intellectual property 
enforcement? 
Answer : 
With its determination in driving back evil of in tellectual property infringement, the Government of 
Viet Nam is currently building and preparing to implement "Project on enha ncement of intellectual 
property enforcement efficiency" including plans of establishing a system for ensuring intellectual 
property information and providing expertise as assis tance for agencies in carrying out the task of 
investigation, control and handling of violati ons; establishing intellectual property information 
channels in order to maintain a regular communi cation relationship between enforcement agencies; 
building forums to provide and exchange informatio n, experience in application of remedies, modes 
of infringement; supervising, making statistics a nd general assessment of the intellectual property 
infringement situation to ensure a close, combin ed and prompt coordination between enforcement 
agencies.  
Question 299 
Does the Government of Viet Nam have any quantifiable basis for determining that 
administrative agency enforcement of intellectual property disputes is an effective enforcement mechanism? WT/ACC/VNM/41 
Page 120  
 
 Answer:
 
Up to present, the inspectorates, market control organizations, economic police and customs offices 
have handled thousands of intell ectual property infringement cases. 
- From January 2001 to June 2003, the market control organizations in nation-wide handled 
around 1,500 cases of intellectual property infringing goods (mainly related to trademarks and 
industrial designs). In 2003 and 2004, those organizations in coor dination with other 
competent agencies handled hundreds of cases of trading and storage of pirated copyright 
products. 
- From 1999 to 2003, the Science and Technology Inspectorate in nation-wide handled 
administratively 252 business bases, of whic h 111 and 141 business bases were subject to 
monetary fines up to 750 million Dong and warn ings respectively. From 1996 to the first 
quarter of 2004, the Culture and Information In spectorate in nation-wide carried out 746,307 
times of inspection on culture and info rmation matters, discovered 166,887 cases of 
infringement, transferred 788 cases to criminal prosecution, seized 1,701,074 video tapes, 1,270,503 CDs, VCDs, DVDs, 751,616 cultural publications, 4,133 transceivers, television 
sets, suspended business activities of 7,970 estab lishments and fined up to 120 million Dong. 
- In the recent years, the economic police have strongly engaged in acti ons against smuggling, 
production and trading of counterfeits and in tellectual property infringement. The economic 
police have actively assisted other administrative offices in inspecting and discovering and combating infringement of trademarks, industr ial designs, and film or music piracy, etc. 
- From 1999 to 2003, the customs handled around 400 cases of intellectual property infringing 
imports and exports.  
In comparison with number of cases resolved in cour ts, administrative enforcement system has played 
an important role in preventing and ha ndling intellectual property infringement. 
Question 300 
If the Government of Viet Nam is now relying more on civil damages as a compensatory remedy 
in intellectual property infringement cases, what  measures have been implemented to make the 
civil judicial system more effective and accessi ble to the intellectual property rights holder?  
Answer:
 
In the recent years, Viet Nam has increasingly att ached much importance to strengthening the system 
of judicial agencies, especially civil courts, in or der to make civil procedures become the essential and 
most important measure in intellectual property en forcement system.  With assistance of the United 
States of America, Switzerland, EU, Japan, etc, Viet Nam has many judges received short-term 
intellectual property training courses,  making a considerable contributi on to its target at training 
judges specialized in the field of intellectual property. 
The draft Intellectual property Law has a separate chapter providing for the judgment of intellectual 
property infringement by civil procedures, incl uding provisions on burden of proof, remedies, 
principle for calculation of damage and compensation and provisional measures.  
Question 301 
The following questions refer to paragr aph 422 of the Working Party Report: 
- What was the rationale for abolishing administrative damages in 2002?  
- Is it only compensatory administrati ve damages that have been abolished?    WT/ACC/VNM/41 
 Page 121 
 
 
 Answer:  
The Ordinance on the handling of administrative vi olations of 2002 abolished the remedy of award 
damages (and no other remedy) stipulated in the 1994 Ordinance because award damage is a civil 
remedy, not covered by law on administrative violat ions handling. The remedy of award damages are 
provided for in the 2005 Civil Code and also included in draft Intellectual Property Law. 
Question 302 Are administrative fines still imposed by admi nistrative agencies in intellectual property 
infringement disputes?  
If so, are they sufficient to act as a deterrent to future infringements?  How are administrative fines calculated?  
Do different agencies calculate them differently or is there a government-wide standard for 
their calculation? 
Answer
: 
Pursuant to the 2002 Ordinance on the handling of ad ministrative violations, monetary fine is one of 
two main administrative measures against violatio ns.  Administrative measures in general are of a 
strong deterrent for intellectual property infringing or ganizations, individuals, as they shall be subject 
to criminal prosecution if repeat the infringement.  
Under Article 3.1 of Government Decree No. 12/1999/ND-CP of 6 March 1999 on handling 
administrative violations in the industrial property fields, the imposition of a fine shall depend on the 
essence and gravity of the violation and determined within the frame of  monetary fines.  Where there 
are extenuating elements, a lower fine upon the minimu m level shall be imposed.   As for a violation 
with aggravating elements, a higher fine up to the maximum level shall be imposed.  
Under Article 5.2 of Government Decree No . 31/2001/ND-CP of 26 June 2001 on handling 
administrative violations in the field of culture and information, specific monetary fine for an act of administrative violation is the average level in the frame of monetary fines for such act.  Where there 
are extenuating elements, a fine between the minimum and the average level shall be imposed.  As for 
a violation with aggravating elements, a fine be tween the average and the maximum level shall be 
imposed. 
The two Decrees specify only the principle that m onetary fines must correspond with the essence and 
gravity of the violations, therefore factual incons istency between administrative enforcement agencies 
while handling a same violation is unavoidable. In  order to overcome this disadvantage, draft 
Intellectual Property Law (Article 217.4 of the 9
th draft) provides for monetary fines: "The monetary 
fine rates shall be at least equal to, and not exceed five times of, the value of the discovered infringing 
goods".  Detailed provisions on intellectual property infringing acts subject to administrative remedies, 
modes and levels of remedies applicable to each of such acts shall be included in the legal instruments 
guiding the implementation of Intellectual Property Law.  
Question 303  
What is the role of administrative agenci es in intellectual property enforcement since 
administrative damages have been abolished? WT/ACC/VNM/41 
Page 122  
 
 Answer:
 
The role and capacity of administrative agenci es in intellectual property enforcement remain 
unchanged with the abolishment of award of dama ges.  According to the provisions in the 1994 
Ordinance on the handling of administrative violations, administrative agencies had only authority to award damages up to one million Dongs.   Such provision was just to help the damaged party to avoid 
initiating legal proceedings before the court in the case of unremarkable damages.  
Question 304  
How has the administrative system been "stren gthened" when administrative remedies have 
been removed? 
Answer:
 
The role and capacity of administrative agenci es in intellectual property enforcement remain 
unchanged with the abolishment of award of dama ges.  According to the provisions in the 1994 
Ordinance on the handling of administrative violations, administrative agencies had only authority to award damages up to 1 million Dongs.  Such provision was just to help the damaged party to avoid 
initiating legal proceedings before the court in the case of unremarkable damages. 
Question 305  Does the Government of Viet Nam intend to build  capacity of law enforcement personnel in the 
investigation and prosecution of intellectual property enforcement? 
Answer:
 
In the recent years, building capacity of intell ectual property enforcement personnel, including 
officials in charge of investigation (the economi c police and prosecutors) has been one of measures 
focused by the Vietnamese Government with a view to further improving the efficiency of intellectual 
property enforcement system.  This view has also been expressed in the draft Intellectual Property 
Law (Article 8.4 of the 9th Draft), under which the State shall undertake preferential policy for 
training, fostering personnel and others concer ned in the field of intellectual property. 
Question 306  
Referring to paragraph 432 of the Working Part y Report, is it legally permissible for an 
infringer to be prosecuted for both admini strative remedies and criminal penalties in 
connection with the same intellectual property infringement? 
Answer:  
Under the Government Decree No. 12/1999/ND-CP  of 6 March 1999 on handling administrative 
violations in the industrial property fields  (article 2.2) and the Government Decree 
No. 31/2001/ND-CP of 26 June 2001 on handling admini strative violations in the field of culture and 
information (Article 1.1), administrative measures ag ainst violations in the intellectual property field 
shall apply only to acts not serious enough to be subject to criminal prosecution.  Under the 1999 Criminal Code, any person who engaged in an act with factors constituting a crime or who repeated 
an act after having been dealt with administrativ ely shall be considered a crime and criminally 
prosecuted.  Thus, in connection with an act of  intellectual property infringement, depending on its 
nature and gravity, infringer could be subject to e ither administrative remedies or criminal penalties,  WT/ACC/VNM/41 
 Page 123 
 
 
 rather than to both remedies simultaneously.  This  principle has also been expressed in the draft 
Intellectual Property Law. 
VI. POLICIES AFFECTING TRADE IN SERVICES 
Question 307 We welcome Viet Nam's response to Question 21 of WT/ACC/VNM/38, and seek its full 
inclusion in this section of the revised draft Working Party report (paragraph 441 of the Draft 
Report does not include the reference to the pr ovisions being "designed to ensure the rights and 
obligations of telecommunications providers to access to and use of public telecommunication 
transport networks of each other").  
Answer:
 
Viet Nam agrees to include in the paragraph 441 of the revised Draft Report the recommended 
reference "designed to ensure the rights and obligat ions of telecommunications providers to access to 
and use of public telecommunication transport networks of each other". 
Question 308 
We also seek greater clarification in the dra ft Working Party report on how the Ordinance on 
Posts and Telecommunications (as well as measures implementing it) provides for 
non-discrimination of access and use of public  telecommunications transport networks. 
Answer:  
To ensure the non-discrimination access and use of telecommunication transport networks, 
Article 43.2 of the Ordinance on Posts and Telecommunications (the Ordinance) provides three main points: 
- a public telecommunication service provider has th e right to interconnect with the network of 
the public telecommunications service providers, and, vice versa, it has the obligation to allow other public telecommunications service providers  to interconnect with its own network with 
equitable and reasonable conditions; 
- the incumbent public telecommunication service pr ovider must not refuse the request by other 
public telecommunications service providers fo r interconnection with its networks; and 
- the process and procedures of negotiating, sign ing the Agreement, and dispute settlement on 
interconnection are defined by the regulator. 
In addition, the Decree detailing measures implemen ting the Ordinance provides further details on the 
process and interconnection dispute settlement (Article 60, Chapter X).  
Question 309 
Please provide further detail about the distinction between branch offices and representative 
offices as forms of commercial presence (note that this issue is not the subject of direct comment 
in the draft Working Party report). WT/ACC/VNM/41 
Page 124  
 
 Answer:
 
Representative office is a subordinate unit of the foreign enterprises, established under the 
Vietnamese law in order to seek, promote trade and tourism opportunities but is not allowed to engage 
in any direct profit-making activities. 
Article 13, Decree No. 45/2000/ND-CP on scope of operation of foreign representatives of foreign 
traders, and foreign tourism enterprises:  
(i)  To proceed with the formation of economic , commercial and tourism co-operation projects in 
Vietnam; 
(ii) To explore and promote opportunities for the purchase and sale of goods and the provision of 
commercial and tourist services in Vietnam; and 
(iii) To monitor and supervise the implementation of contracts executed by the foreign trader or 
foreign tourism enterprise which it represents. 
Branch is a dependent unit of a foreign enterprise, which is established under the laws of Viet Nam, in 
areas allowed by Viet Nam's laws, for the purpose of  engaging in activities in Viet Nam in order to 
directly generate profits. 
Article 13, Decree No. 45/2000/ND-CP also stipulates that the scope of operations of a branch shall 
be stipulated specifically in the Licence for the est ablishment of the branch, which shall be consistent 
with the scope of operations of the relevant foreign trader or forei gn tourism enterprise and be within 
the scope of Viet Nam's laws.  
Decree No. 45/2000/ND-CP also stipulates that a fore ign trader or foreign tourism enterprise which 
has a representative office [and/or] a branch in Viet Nam is responsible before the laws of Viet Nam 
for all activities of its representative offices [and/or] branches in Viet Nam. 
Question 310 
Paragraph 440 - In terms of qualifications recogn ition, please explain in detail how a foreign 
(i) architect (ii) planner would seek recognit ion of their qualifications in Viet Nam. 
Answer:  
According to the Decree No. 16/2005/ND-CP dated 7 February 2005 of the Government on 
Management of Construction Investment Proj ect and the Decision No. 15/2005/QD-BXD of the 
Minister of Construction on Promulgation of Regul ations on Granting Architect Practicing Certificate 
and Engineer Practicing Certificate, a foreign ar chitect can practice architectural design and/or 
planning design with a professional practicing cer tificate granted or recognized by relevant 
Vietnamese authorities. 
(i) A foreign architect who wants to have a Practicing Certificate granted by the Vietnamese 
authority is required to meet following requirements: 
 - being eligible for civil rights and havi ng mental capacity for civil behaviour in 
accordance with the Law; 
 - having completed a degree in planning or ar chitecture at the university level or higher 
given by a recognized Vietnamese/overseas university or other competent 
institutions;  WT/ACC/VNM/41 
 Page 125 
 
 
  - having acquired practical experience of not less than five years after graduation and 
having participated in planning and/or architectural design work of not less than five projects; and 
 - being of good conduct (having no record of professional negligence). 
(ii) If foreign architect has a Practicing Certificate granted by foreign competent 
body/organization, his/her Practicing Certificate shall be considered to be recognized by the 
Vietnamese authority. Upon the recognition, this  foreign architect is allowed to practice in 
Viet Nam in accordance with pr ofessional qualifications and requirements under Vietnamese 
laws and regulations. 
(iii) Foreign architect can also practice architect ural design and/or planning design in Viet Nam 
through bilateral/multilateral Mutual Recogn ition Agreements (MRAs) on professional 
qualifications in which the Vietnamese G overnment has signed to participate. 
Question 311 
Paragraph 446:  We would be grateful if Viet Nam could explain how service sectors come to be 
classified as (i) not available for foreign in vestment altogether; (ii) available for foreign 
investment subject to a Joint Venture require ment.  How does this classification change? 
Answer:
 
This issue has been clearly explained in our bilate ral market access negotiations.  Viet Nam shall fully 
comply with GATS as well as our Schedule of sp ecific commitments in services upon the accession to 
the WTO.  
Question 312  
On 25 August 2005, the Ministry of Posts and Te lematics introduced measures to set a price 
floor for international calls into Viet Nam and a system for allocating calls by quota among six 
Vietnamese carriers. Neither of these measures appears to be consistent with WTO commitments Viet Nam has offered to make.  The measures are Decision No. 8/2005/QD-BBCVT and Official Letter No. 1683/BBCVT-KHTC. 
- Can Viet Nam confirm that these measures will be eliminated prior to accession to the 
WTO? 
- We note that in paragraph 457 of the draft Working Party Report that Viet Nam 
advised the Working Party that "official letters" are not recognized as legal normative documents.  It that so, please explain how can Official Letter No. 1683/BBCVT-KHTC 
set a price floor or establish a system for allocating calls by quota? 
These measures were put into force without advance notice to and comment by affected 
commercial entities, and the measures were made retroactive to 1 August 2005.  
- Please confirm that any future measures of th is sort will be subject to advance notice 
and comment procedures as described to th e Working Party in paragraphs 456-458 of 
the draft Working Party Report? 
These measures also appear inconsistent with Vi et Nam's own competition policies as described 
in paragraphs 88-93 of the draft Working Party Report. 
- How does Viet Nam explain this inconsistency?  WT/ACC/VNM/41 
Page 126  
 
 Answer:
 
Viet Nam confirms that these measures will be eliminated prior to accession to the WTO. 
The Official Letter No. 1683/BBCVT-KHTC details the policy on quota set in the Article 2.1 of the 
Decision No. 29/2005/QDD-BBCVT: the Article 2.1 states that the Ministry of Post and Telecommunication shall decide the inbound VoIP traffic allocation for telecommunication service 
providers on the periodical basis.  Follo wing this decision, the Official Letter 
No. 1683/BBCVT-KHTC provides detailed traffic allocati on applied since August 2005.  This letter is 
also published in the Ministry of Post and Telecommunication (MPT) website. 
The traffic allocation provided in the Official  Letter No.1683/BBCVT-KHTC has been agreed upon 
and submitted to the MPT beforehand by six VoIP providers.  Since this allocation is applied on 
periodical basis, some providers can fall in to temporary unfavourable conditions as business 
environment changes too fast.  However, these provi ders can meet periodically to discuss and come 
up with new allocation. 
The measures set in the Official Letter No. 168 3/BBCVT-KHTC is one of the measures to facilitate 
competition in the initial stage of market development: by limiting the traffic of traditional service 
providers, new providers will gain more traffic to develop their business, thus fostering the 
competition of the whole market.  On the other hand,  this measure is taken on the basis of consensus 
of the providers. 
VII.  TRANSPARENCY 
Question 313 This section positively reflects recent hard work  on its contents.  We look forward to the 
responses to our questions in the previous sectio n that pertain to this section. We may have 
further comments or questions after thorough ly reviewing the new legislation provided. 
Answer:
 
We note the hard work of Members and have also be en working hard to incr ease the transparency of 
the information on trade. 
We in principle agree that Viet Nam shall make available to the public, including through a website, 
the drafts of legal normative docum ents of general application to trade in the areas covered by the 
WTO Agreement, except in cases of emergency or such publication is detrimental to the 
implementation of such legal normative documents.  
We have also committed to implement, as from th e date of accession, Article X of the GATT 1994, 
Article III of the GATS and other WTO transp arency requirements, including those requiring 
notification, prior comment and publication. 
We, however, have not fully comprehended the far-re aching suggestion and questions in the previous 
section.  For example, there has been no citation of  the WTO's appropriate rules where the suggestion 
was based.  Therefore, we would appreciate further clarification in the context of the Working Party on this section. 
Question 314 We request that Viet Nam remove the br ackets from the commitment language.  WT/ACC/VNM/41 
 Page 127 
 
 
 Answer:  
Viet Nam is committed to implement all WTO rules re lating to transparency and is willing to discuss 
a commitment language in that line. 
VIII. TRADE AGREEMENTS 
Question 315 
This section has improved considerably. Answer:
 
We would like to thank for the comment. 
Question 316 
We thank Viet Nam for accepti ng the commitment language. 
Answer:  
We would like to thank for the comment. 
Question 317 
In the interest of transparency, we would appreciate Viet Nam's description in the text of the 
Working Party report of the goods market access a nd services commitments it  has made as part 
of the ASEAN – China Free Trade Agreement. 
Answer:  
A description of Viet Nam's commitments under th e ASEAN-China FTA will be provided as soon as 
all the details are finalized and the Agreement comes into force.  
 WT/ACC/VNM/41 
Page 128 ANNEX I 
Illustrative List of Conditional Business Lines  
I. List of Conditional Business Lines and Respective Business Conditions  
No. Business lines Legisl ation Business conditions 
1 Conducting business in fresh, raw 
and processed food 
 - Decree No. 11/1999/ND-CP dated 
3 March 1999 of the Government. 
- Circular No. 16/1999/TT-BTM dated 
15 June 1999 of the Ministry of Trade 
providing guidance on conditions for 
buying, selling and transporting fresh, 
raw and processed foods. 
 1. Condition on subject of the business 
 
A trader is required to have the Certification of Business Registration which stipulates buying, selling 
or conducting the transport service of fresh, raw a nd processed food as one of the trader's business 
lines. 
 
2. Conditions on material and tech nical establishment and equipment: 
 
2.1 Requirements on plac e of doing business: 
  - The place of doing business must be stable and conform to the arrangement of the local 
common trading network; 
 - The buying and selling place must be at leas t 50 meters away from the public conveniences, 
garbage dumps, dusty places of production and hospitals. 
 
2.2 Minimum require ments on material establis hments and equipment: 
 
 - Traders dealing in food must have necessary instruments such as verified scales, tanks and 
trays, tables (stalls or stands), knives, c hopping blocs... The places for processing and selling 
food must have necessary instruments for pro cessing and maintenance and covers to ensure 
hygiene and quality of food after processing; 
 - Traders engaged in the transportation of food must have appropriate means of transport to 
ensure safety and quality of products during the transportation. 
 
3. Conditions on environment: 
 
 - A hygienic drainage system for wastewater is required; 
 - Covered pails and baskets for garbage and waste are required. 
 
4. Conditions on health: 
 
Processors and salesperson must be in appropriate he alth condition to the business as stipulated by the 
Ministry of Health, and free from infectious diseas es and must have a health check every 12 months.  
  WT/ACC/VNM/41
 Page 129No. Business lines Legisl ation Business conditions 
2 Conducting business in pawnage 
service - Decree No. 11/1999/ND-CP dated 
3 March 1999 of the Government. 
- Circular No. 18/1999/TT-BTM dated 
19 May 1999 of the Ministry of Trade 
guiding pawnage service business.  1. A trader must have the Certification of Busi ness Registration which stipulates pawnage service 
as one of his/her business lines. 
 
2. The trader must have a fixed pawnshop with de finite address; have warehouses for keeping and 
preserving the pawned goods and property safely against damage or loss thereof during the time 
of keeping.  
3 Conducting business in restaurant 
and popular food-and-drink stall 
 - Decree No. 11/1999/ND-CP dated 
3 March 1999 of the Government. 
- Circular No. 13/1999/TT-BTM dated 
19 May 1999 guiding conditions for 
restaurant and popular food-and-drink 
stall business. 
 Condition on subject of the business: 
 
A trader must have Certification of Business Re gistration, which stipulat es restaurant, and popular 
food-and-drink stall business as one of his/her business lines. 
 
Conditions on material and techni cal establishment and equipment: 
 
Requirements on place of doing business: 
 
- The place of doing business must be stable and be legitimately used; 
- The place of doing business must be at leas t 100 meters away from the public conveniences, 
garbage dumps, and dusty places of produc tion that may cause infectious diseases. 
 
Minimum requirements on material establishments and equipment: 
 
- Restaurants must conform to the requireme nts specified in Appendix 1 of Circular 
No. 18/1999/TT-BTM; 
- Popular food-and-drink stalls must conform to  the requirements specified in Appendix 2 of 
Circular No. 18/1999/TT-BTM. 
 
Conditions on environmental protecti on and fire prevention and fighting: 
 
- There must be a hygienic drainage system for wastewater; 
- There must be covered pails and baskets for garbage and waste; 
- They must have minimum equipments to ensure  the safety in terms of fire prevention and 
fighting. 
 
Conditions on health: 
 
Those who work in restaurants and popular food-and-dr ink stalls must have the health condition suited 
to the business as stipulated by the Ministry of Health. Before being recruited, they must have a health 
check, and then do it again every 12 months to ensure being free from infectious diseases. 
Note: 1. Traders who deal in business lines of above-mentioned lis t must not have the Certificate of Competence in Doing Busine ss. 
 2. Traders must fully meet the above-mentioned business conditio ns before and during their business operation. If there is any  violation, the trader shall be 
penalized as regulated by law.  
 WT/ACC/VNM/41 
Page 130 II. List of Business Lines Whic h Are Required Business License  
No. Business lines Legal framework Conditions to be considered and granted 
Business license Authorized bodies 
issuing Business license Procedure 
I. Restricted business lines 
1 Liquor trading - Decree No. 11/1999/ND-CP 
dated 3 March 1999 of the 
Government. 
- Circular 
No. 12/1999/TT-BTM dated 
19 May 1999 guiding the 
liquor trading. Traders who fully meet the following conditions 
shall be considered and granted liquor trading 
licenses: 
 
1. They must have Ce rtification of Business 
Registration (clearly  stating goods range 
and business lines and trades that cover 
liquor items); 
2. They must have fixed trading places and 
identified addresses; 
3. They must ensure the environmental 
hygiene at the liquor  trading places. The provincial or 
municipal Trade 
Services/Trade 
Departments. 1. The dossier comprises:  
 
- An application for liquor trading licence 
(complying with the sample in Circular 
No. 12/1999/TT-BTM); 
- The valid copy of the Certification of 
Business Registration - The documents on 
liquor trading places and environmental hygiene; 
- The list of liquors to be traded and sources 
from which such liquors can be purchased. 
 
Within 15 days after receiving complete and 
valid dossiers, the provincial/municipal Trade 
Services/ Trade Departments shall decide the 
granting or non-granting of liquor trading 
licenses to such traders.  
2 Cigarette trading - Decree No. 11/1999/ND-CP 
dated 3 March 1999 of the 
Government. 
- Decree No. 76/1999/ND-CP 
dated 22 October 2003 of the 
Government. 
- Circular 
No. 30/1999/TT-BTM 
guiding the trading in home-
made cigarettes. 
 1. Requirements concerning traders who 
purchase cigarettes from cigarette business 
and production enterprises for organizing 
the cigarette circulation and consumption 
on the market: 
 
- They must be enterprises established 
according to the provisions of law and have 
the Certification of Business Registration 
stating that cigarette is a goods included in 
their business lines; 
- They are financially capable of trading in 
cigarettes; 
- They own stable cigarette distribution and 
consumption outlets in their business 
localities. 1. Ministry of Trade 
has authority to 
grant Business 
Licence to traders 
who deal in 
cigarettes in two or 
more provinces 
and/or cities. 
 
2. The provincial 
/municipal Trade 
Services/Trade 
Departments has authority to grant 
Business licence to 
traders who deal in 
cigarettes in only 
one province or 
city. The dossier comprises: 
 
- An application for permission to purchase 
cigarettes from cigarette business and 
production enterprises. 
- A valid copy of the Certification of 
Business Registration. 
- The clearly and fully cigarette trading plan 
specified in Circular 
No. 30/1999/TT-BTM.   
  WT/ACC/VNM/41
 Page 131No. Business lines Legal framework Conditions to be considered and granted 
Business license Authorized bodies 
issuing Business license Procedure 
   2. Provisions on cigarette retail/wholesale and 
retail/wholesale agency. 
 2.1 Wholesale businesses of cigarette: 
  
- They must be enterprises established 
according to the provisions of law and have 
the Certification of Business Registration 
stating that cigare tte is a goods item 
included in their business lines; 
- They must have a fixed trading place with 
a clear address; 
- They must have a cigarette distribution and 
consumption outlets; 
- They must comply with regulations on 
environmental protection and fire 
prevention and fighting. 
 
2.2 Retail businesses of cigarette: 
 - Traders must have the Certification of 
Business Registration which state that 
cigarette is a goods item included in their business lines; 
- They must have separate and fixed 
business places or stalls with clear addresses for retailing cigarettes to 
consumers for cigarett e retail or retail 
agency according to the provisions of this Circular. The provincial/municipal 
Trade Services/Trade 
Departments grant 
Business licenses to 
wholesale/ retail 
cigarettes. The dossier comprises: 
- An application cigarette trading licence 
(complying with the sample in Circular 
No. 30/1999/TT-BTM); 
- A valid copy of the Certification of 
Business Registration; 
- A cigarette trading plan with some 
principal contents (In case of wholesale 
businesses of cigarette); 
- Within 15 days after receiving complete 
and valid dossiers, the 
provincial/municipal Trade Services/ Trade Departments shall decide the 
granting or non-granting of cigarette 
trading licenses to such traders. 
  
 WT/ACC/VNM/41 
Page 132 No. Business lines Legal framework Conditions to be considered and granted 
Business license Authorized bodies 
issuing Business license Procedure 
II. Conditional business lines 
1 Trading in oil and 
petrol - Decree No. 11/1999/ND-CP 
dated 3 March 1999 of the 
Government. 
- Circular 
No. 14/1999/TT-BTM dated 
7 July 1999. 
- Decision 187/2003/QD-Ttg. 
 1. Subject of the business: 
 
- He/she must be a trader with the 
Certification of Business Registration 
which stipulates trading in oil and petrol as 
one of his/her business lines; 
- As to traders who deal in oil and petrol 
wholesale, warehouses, ports, parking 
place, they must be enterprises established 
according to the provisions of law. 
 
2. Conditions on mate rial and technical 
establishment and equipments and other 
related conditions must comply with the 
requirements stipulated in Circular 
No. 14/1999/TT-BTM. 
 The provincial/municipal 
Trade Services/Trade 
Departments 1.  The dossier comprises: 
 
- An application for the Certificate of 
competence in oil and petrol trading (complying with the sample in Circular 
No. 14/1999/TT-BTM); 
- A valid copy of the Certification of 
Business Registration which stipulates 
trading in oil and petrol as one of his/her 
business lines; 
- Certificate of oil and petrol trading 
locations (including retail stores, 
warehouses; ports, park ing place..) issued 
by authorized bodies; 
- A valid copy of Certificate of fire security issued by city police 
-  A valid copy of Certificate of environment 
sanitation issued by Science, Technology and Environment Office. 
 
2. Within 15 days after receiving complete 
and valid dossiers, the 
provincial/municipal Trade Services/ 
Trade Departments shall decide the 
granting or non-granting of Certificate of 
competence in oil and petrol business to 
such traders.  
  WT/ACC/VNM/41
 Page 133No. Business lines Legal framework Conditions to be considered and granted 
Business license Authorized bodies 
issuing Business license Procedure 
2 Gas trading  - Decree No. 11/1999/ND-CP 
dated 3 March 1999 of the 
Government. 
- Circular 
No. 15/1999/TT-BTM 
19 May 1999. 1. Conditions on gas storehouses:  
 
Gas storehouses must comply with the 
specific requirements stipulated in 
Circular 
No. 15/1999/TT-BTM: 
 
- Conditions on subject of the business; 
- Conditions on material and technical 
establishment and equipment; 
- Condition on educational level of 
employees; 
- Condition on health; 
- Condition on fire prevention and fighting. 
 
2. Conditions for warehouse service 
maintaining gas-tank:  
 
- As 5 above-mentioned conditions in 
Item 1.  
- As to conditions on ma terial and technical 
establishment and equipment, they must 
comply with the requirements stipulated in 
Section 5.6, Items 5, Viet Nam Standard – 
TCVN 6223:1996 (Appendix 2 of Circular 
No. 15/1999/TT-BTM) The provincial/municipal 
Trade Services/Trade 
Departments. 1. The dossier comprises: 
 
- An application for the Certificate of 
competence in gas trading (complying 
with the sample in Circular 
No. 15/1999/TT-BTM); 
- A valid copy of the Certification of 
Business Registration; 
- A valid copy of Certificate of fire security.  
2. 2 Within 15 days after receiving complete 
and valid dossiers, the 
provincial/municipal Trade Services/ 
Trade Departments shall decide the 
granting or non-granting of Certificate of 
competence in gas trading to such traders. 
Note:  Valid time-limit of Business license, Certificate of competence in doing business of 4-above-mentioned fields shall be expired  within three years from the issuing day. 
(As stipulated in Announcement No. 5603/TM-CSTNTN, dated 9 November 1999). WT/ACC/VNM/41 
Page 134  
 
 ANNEX II 
Commitments On Trading Rights
 
(Attached to the Questions and Answers ) 
1. Viet Nam confirms that wholly Vietnamese-i nvested enterprises have been granted full right 
to trade since 1 January 2002. 
2.  Not later than 1 January 2007, enterprises with foreign-invested capital shall be allowed to be 
importers/exporters of record and shall: 
 - be entitled to import and export all kinds of  goods, except for those subject to  state 
trading enterprises (as listed in the attached Table 3) and the restrictions listed in the 
attached Tables 1 and 2; and 
 - register their business lines with the relevant State's registration agencies. 
3. The registration procedures for enterprises with  foreign-invested capital to engage in import 
and export activities shall in no case be made more  restrictive than those applied to domestic 
enterprises. 
4. Not later than 1 January 2007, subject to Viet nam's applicable laws and regulations, foreign 
enterprises shall be allowed to establish branches in Viet Nam to engage in import and export 
activities as importers/exporters of record. Th ese branches shall also be subject to the 
provisions specified in paragraphs 2 and 3 above.  
5. Not later than 1 January 2007, foreign indivi duals shall be granted trading rights no less 
favourable than those applied to Vietnamese individuals. 
6. The trading rights referred herein shall only accord the right to be the importer/exporter of 
record and, in the case of importation, shall only accord the right to import and sell the imported products to enterprises who have the right  to distribute such products in Viet Nam. 
Commitments on trading rights shall not, in any case, automatically grant the importers the 
right to distribute goods in Viet Nam. The distribution of goods and the provision of distribution services shall be subject to Viet Nam's Specific Schedule of Commitments in Services. 
7. The trading rights referred herein shall in no case affect the rights of the Government of 
Viet Nam to: 
 - adopt or enforce requirements fo r customs and fiscal purposes; and  
 - adopt or enforce regulations with r espect to the importation, exportation, re-
importation, re-exportation, and transit of  goods in consistence with relevant 
provisions of the WTO Agreements and with Viet Nam's commitments upon 
accession to the WTO, such as those relating to import licensing, state trading, TBT 
and SPS.    WT/ACC/VNM/41 
 Page 135 
 
 
 TABLE 1:  
SCHEDULE OF COMMITMENTS ON IMPORT TRADING RIGHTS 
(Attached to Annex on Commitments on Trading Rights) 
Notes : For the purpose of this Table, schedule st arts from January 1st of the specified year 
HS Description Schedule Rationale 
  Pharmaceutical products   
3003 Medicaments nesoi of mixtures, not do sage 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 containing antihistamines   
3003.90. 40 - - Antimalarial    
3003.90. 90 - - Other    
3004 Medicaments nesoi, mixed or not, in dosage etc fm... 2009 ditto 
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     WT/ACC/VNM/41 
Page 136  
 
 HS Description Schedule Rationale 
3004.20. 90 - - Other      
3004.31. 00 - - Containing insulin   
3004.32. 10 - - - Containing hydrocortisone 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   
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 vitamins 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 medici nes 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 acetyl salicylic 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 artemisinin, artesunate or chloroquine 
(INN)   
3004.90. 62 - - - Containing primaquine    
3004.90. 69 - - - Other     
3004.90. 71 - - - Containing piperazine or mebendazole (INN)    WT/ACC/VNM/41 
 Page 137 
 
 
 HS Description Schedule Rationale 
3004.90. 72 - - - Containing dichlorophen (INN)    
3004.90. 79 - - - Other   
3004.90. 80 - - Transdermal therap eutic 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 water for inhalation, pharmaceutical 
grade   
3004.90. 96 - - - Containing o-methoxyphenyl glyceryl ether 
(Guaifenesin)    
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 ditto 
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 reconstruction cements    
3006.50. 00 - First-aid boxes and kits   
3006.60. 00 - Chemical contracep tive preparations based on 
hormones, on other products of heading 29.37 or on 
spermicides   
3006.70. 00 - Gel preparations designed to be used in human or 
veterinary medicine as a lubricant for parts of the body for surgical operations or physical 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, technical 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, technical 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, stock, etc... 2009 ditto 
4907.00. 10 - Banknotes, being legal tender    
4907.00. 20 - Unused postage stamps    WT/ACC/VNM/41 
Page 138  
 
 HS Description Schedule Rationale 
4907.00. 30 - Revenue or similar stamps    
4907.00. 40 - Stock, share or bond certificates and similar documents 
of title; cheque forms    
4907.00. 90 - Other    
4909 Printed or illustrated post cards, greeting cards, etc.... 2009  ditto 
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  ditto 
4910.00. 00 Calendars of any kind, printed, including calendar 
blocks.   
4911 Printed matter nesoi, incl prin t pictures & photo s... 2009  ditto 
4911.10. 00 - Trade advertising material, commercial catalogues and 
the like    
4911.91. 10 - - - Anatomical or botanical 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    
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 flongs and matrices    
8442.30. 12 - - - Machinery for type founding machines    
8442.30. 19 - - - Other    
8442.30. 21 - - - Impressed flongs 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 ditto 
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     WT/ACC/VNM/41 
 Page 139 
 
 
 HS Description Schedule Rationale 
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 electrically operated machines   
8443.90. 90 - - Other    
  Other machinery   
8525 Transmission apparatus for radio-telephony etc; TV 
camera & other video cam era 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    
8525.10. 30 - - Data compression tools    
8525.10. 40 - - Set top boxes which have a communication function 
[ITA1/B-203]    
8525.10. 50 - - For radio telephony or radio-telegraphy 
[ITA1/A-048]    
8525.30. 90 - - Other    
8525.40. 20 - - Other still image video cameras    
8525.40. 30 - - Digital cameras    
8525.40. 40 - - Other vi deo camera recorders   
8526 Radar apparatus, radio navigational aid apparatus & 
radio remote control apparatus 2009 ditto 
8526.10. 10 - - Radar apparatus, ground base, or of a kind for 
incorporation in civil aircraft, or of a kind used solely on 
sea-going vessels [ITA/2]    
8526.10. 90 - - Other    
8526.91. 10 - - - Radio navigational aid apparatus, of a kind for used 
in civil aircraft, or of a ki nd used solely on sea-going 
vessels [ITA/2]    
8526.91. 90 - - - Other    
8526.92. 00 - - Radio remote control apparatus   
 WT/ACC/VNM/41 
Page 140  
 
 TABLE 2 
SCHEDULE OF COMMITMENTS ON EXPORT TRADING RIGHTS 
(Attached to Annex on Commitments on Trading Rights) 
Notes:
 For the purpose of this Table, schedule starts from 1 January of the specified year.  
HS Description Schedule Rationale 
  Cereals   
1006 Rice 2011 Food security 
1006.10.10  - - Suitable for sowing     
1006.10.90  - - Other     
1006.20.10  - - Thai Hom Mali rice     
1006.20.90  - - Other    
1006.30.11  - - - Whole   
1006.30.12  - - - Not more than 5% broken    
1006.30.13  - - - More than 5% but not more than 10% broken    
1006.30.14  - - - More than 10% but not more than 25% broken     
1006.30.19  - - - Other    
1006.30.20  - - Parboiled rice   
1006.30.30  - - Glutinous rice (pulot)   
1006.30.40  - - Basmati rice   
1006.30.50  - - Thai Hom Mali rice                 
1006.30.61  - - - Whole   
1006.30.62  - - - Not more than 5% broken    
1006.30.63  - - - More than 5% but not more than 10% broken   
1006.30.64  - - - More than 10% but not more than 25% broken    
1006.30.69  - - - Other    
1006.40.00  - Broken rice    
  WT/ACC/VNM/41 
 Page 141 
 
 
 TABLE 3:  
List of Goods Subject to State Trading Enterprises  
No HS Description Rationale 
2402 Cigars, cheroots, cigarillos and cigarettes... Both domestic 
production and 
consumption are 
restricted. 
2402.10.00  - Cigars, cheroots and cigarillos, containing tobacco  
2402.20.10  - - Beedies  
2402.20.90  - - Other  
2402.90.10  - - Cigars, cheroots and cigarillos of tobacco substitutes   
2402.90.20  - - Cigarettes of tobacco substitutes   
2403 Other manufactured tobacco and manufactured tobacco ...  
2403.10.11  - - - Blended tobacco  
2403.10.19  - - - Other              
2403.10.21  - - - Blended tobacco  
2403.10.29  - - - Other  
2403.10.90  - - Other  
2403.91.00  - - "Homogenised" or "reconstituted" tobacco  
2403.99.10  - - - Tobacc o extracts and essences  
2403.99.30  - - - Manufactured tobacco substitutes  
2403.99.40  - - - Snuff  
2403.99.50  - - - Smokeless tobacco, including chewing and sucking 
tobacco  
2403.99.60  - - - Ang Hoon    1. 
2403.99.90  - - - Other  
2709 Crude oil from petroleum and bituminous minerals... Natural monopoly 
2709.00. 10 - Crude petroleum oil   
2709.00. 20 - Condensate    
2709.00. 90 - Other    
2710 Oil (not crude) from petrol & bitum mineral etc....  
2710. 11. 11 - - - Motor spirit, premium leaded   
2710. 11. 12  - - - Motor spirit, premium unleaded   
2710. 11. 13  - - - Motor spirit, regular leaded   
2710. 11. 14  - - - Motor spirit, regular unleaded   
2710. 11. 15  - - - Other motor spirit, leaded   
2710. 11. 16  - - - Other motor spirit, unleaded   
2710. 11. 17  - - - Aviation spirit   
2710. 11. 18  - - - Tetrapropylene   
2710. 11. 21  - - - White spirit   
2710. 11. 22  - - - Low aromatic solvents containing by weight less than 
1% aromatic content   
2710. 11. 23  - - - Other solvent spirits   
2710. 11. 24  - - - Naphtha, reformate or preparations for preparing spirits  
2710. 11. 25  - - - Other light oil   
2710. 11. 29  - - - Other   
2710. 19. 11  - - - - Lamp kerosene   
2710. 19. 12  - - - - Other kerosene, including vaporising oil   
2710. 19. 13  - - - - Aviation turbine fuel (jet fuel) having a flash point of 
not less than 23o C   
2710. 19. 14  - - - - Aviation turbine fuel (jet fuel) having a flash point of 
less than 23oC   
2710. 19. 15  - - - - Normal paraffin   2. 
2710. 19. 19  - - - - Other medium oils and preparations   WT/ACC/VNM/41 
Page 142  
 
 No HS Description Rationale 
2710. 19. 21  - - - - Topped crudes   
2710. 19. 22  - - - - Carbon black feedstock oil   
2710. 19. 23  - - - - Lubricating oil basestock   
2710. 19. 24  - - - - Lubricating oils for aircraft engines   
2710. 19. 25  - - - - Other lubricating oil   
2710. 19. 26  - - - - Lubricating greases   
2710. 19. 27  - - - - Hydraulic brake fluid   
2710. 19. 28  - - - - Oil for transformer or circuit breakers   
2710. 19. 31  - - - - High speed diesel fuel   
2710. 19. 32  - - - - Other diesel fuel   
2710. 19. 33  - - - - Other fuel oils   
2710. 19. 39  - - - - Other   
2710. 91. 00  - - Containing polychlorinated biphenyls (PCBs), 
polychlorinated terphenyls (PCTs) or 
polybrominated biphenyls (PBBs)   
2710. 99. 00  - - Other  
4902 Newspapers, journals & periodicals... Cultural products 
affecting to society morals  
4902. 10. 00 - Appearing at least four times a week   
4902. 90. 11  - - - Scientific, technical or economic   
4902. 90. 19  - - - Other   
4902. 90. 21  - - - Scientific, technical or economic  
4902. 90. 29  - - - Other   
4902. 90. 91  - - - Scientific, technical or economic  3. 
4902. 90. 99   - - - Other  
8524 Records, tapes and other recorded media for sound or ... 
excluding 852410, 852431, 852432, 85243910, 85244000, 852491, 85249920 Cultural products 
affecting to society morals  
8524. 39. 20  - - - For cinematographic film   
8524. 39. 90  - - - Other   
8524. 51. 10  - - - Videotape   
8524. 51. 20  - - - Computer tape   
8524. 51. 30  - - - For cinematographic film   
8524. 51. 90  - - - Other   
8524. 52. 10  - - - Videotape   
8524. 52. 20  - - - Computer tape  
8524. 52. 30  - - - For cinematographic film   
8524. 52. 90  - - - Other   
8524. 53. 10  - - - Videotape   
8524. 53. 20  - - - Computer tape   
8524. 53. 30  - - - For cinematographic film   
8524. 53. 90  - - - Other   
8524. 60. 00  - Cards incorporating a magnetic stripe   
8524. 99. 10  - - - For video   
8524. 99. 30  - - - For cinematographic film   4. 
8524. 99. 90  - - - Other  
8802 Other aircraft (for exam ple, helicopters, aeroplanes); 
spacecraft (including satellites) and suborbital and spacecraft launch vehicles.  Natural monopoly 
8802. 11. 00  - - Of an unladen weight no t exceeding 2,000 kg   
8802. 12. 00  - - Of an unladen weight exceeding 2,000 kg   
8802. 20. 10  - - Aeroplanes   
8802. 20. 90  - - Other   
8802. 30. 10  - - Aeroplanes   5. 
8802. 30. 90  - - Other    WT/ACC/VNM/41 
 Page 143 
 
 
 No HS Description Rationale 
8802. 40. 10 - - Aeroplanes   
8802. 40. 90  - - Other   
8802. 60. 00  - Spacecraft (inclu ding satellites) and suborbital and 
spacecraft launch vehicles   
8803  Parts of goods of heading 88.01 or 88.02  
8803. 10. 10  - - Of helicopters or aeroplanes   
8803. 10. 90  - - Other   
8803. 20. 10 - - Of helicopters, aeroplanes, balloons, gliders or kites   
8803. 20. 90  - - Other   
8803. 30. 00  - Other parts of aeroplanes or helicopters   
8803. 90. 10  - - Parts of telecommunication satellites [ITA/2]   
8803. 90. 20  - - Of ballons, gliders or kites    
8803. 90. 90  - - Other  
 WT/ACC/VNM/41 
Page 144  
 
 ANNEX III 
Table 11(b) 
11(b.1) SCHEDULED CHEMICALS 
SCHEDULE 1 
No. Name of Chemical CAS Registry 
number  HS 
Toxic Chemicals  
1 O-Alkyl (< C10, incl. cycloalkyl) alkyl 
 (Me, Et, n-Pr or i-Pr)-phosphonofluoridates 
 E.g. Sarin: O-Isopropylmethylphosphonofluoridate     
Soman: O-Pinacolyl methylphosphonofluoridate  
 
107-44-8  
96-64-0   
  
2931.00 
2 O-Alkyl (< C10, incl. cycloalkyl) N,N-dialkyl 
 (Me, Et, n-Pr hoÆc i-Pr) phosphoramidocyanidates 
e.g. Tabun:O-Ethyl N,N-dimethyl phosphoramidocyanidate                
 
77-81-6   
 
2931.00 
3 O-Alkyl (H or < C10, incl. cycloalkyl) S-2-dialkyl 
 (Me, Et, n-Pr or i- Pr)-aminoethyl alkyl 
(Me, Et, n-Pr or i-Pr) phosphonothiolates and salt   corresponding alkylated or protonated salts 
 e.g. VX: O-Ethyl S-2-diisopropylaminoethyl 
            methyl phosphonothiolate                     
 
  
50782-69-9 
  
 
  
2930.90 
4  Sulfur mustards: 
 2-Chloroethylchloromethylsulfide                      
 Mustard gas: Bis(2-chloro ethyl)sulfide       
 Bis(2-chloroethylthio)methane                 
 Sesquimustard:  1,2-Bis(2-chloroethylthio)ethane      
 1,3-Bis(2-chloroethylthio)-n-propane                 1,4-Bis(2-chloroethylthio)-n-butane                
 1,5-Bis(2-chloroethylthio)-n-pentane              
 Bis(2-chloroethylthiomethyl)ether                      O-Mustard: Bis(2-chloroethylthioethyl) ether       
2625-76-5 
505-60-2 
63869-13-6 
3563-36-8 
63905-10-2 
142868-93-7 
142868-94-8 
63918-90-1 63918-89-8  
 
  
 
  
 
 
2930.90 
5  Lewisites: 
 Lewisite 1:  2-Chlorovinyldichloroarsine              
 Lewisite 2:  Bis(2-chlorovinyl)chloroarsine         Lewisite 3:  Tris(2-chlorovinyl)arsine               
541-25-3 
40334-69-8 40334-70-1   
 
 
2931.00 
6 Nitrogen mustards: 
 HN1:  Bis(2-chloroethyl)ethylamine              
 HN2:  Bis(2-chloroethyl)methylamine           HN3:  Tris(2-chloroethyl)amine                   
538-07-8 
51-75-2 
555-77-1   2921.19 
 
 
2921.19 
2930.90 
7 Saxitoxin                                              35523-89-8 3002.90 
8 Ricin 9009-86-3 3002.90 
Precursors  
9 Alkyl (Me, Et, n-Pr or i-Pr) phosphonyldifluorides 
e.g. DF:   Methylphosphonyldifluoride               
676-99-3  
10 O-Alkyl (H or < C10, incl. cycloalkyl) O-2-dialkyl 
 (Me, Et, n-Pr or i- Pr)-aminoethyl alkyl 
 (Me, Et, n-Pr or i-Pr) phosphonites and   corresponding alkylated or protonated salts 
 e.g. QL:   O-Ethyl O-2-diisopropylaminoethyl methylphosphonite             
 
  
57856-11-8  
 
  
2931.00 
11 Chlorosarin:   O-Isopropyl methylphosphonochloridate   1445-76-7 2931.00 
12 Chlorosoman: O-Pinacolyl methylphosphonochloridate  7040-57-5 2931.00 
  WT/ACC/VNM/41 
 Page 145 
 
 
 SCHEDULE 2 
 
Toxic chemicals 
1 Amiton:  O,O-Diethyl S-[2-(diethylamino)ethyl]phosphorothiolate   
           and corresponding   alkylated or protonated salts 78-53-5 2930.90 
2 PFIB:  1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-1-propene     382-21-8 
 2903.30 
3 BZ:  3-Quinuclidinyl benzilate (*)                   6581-06-2 2933.90 
Precursors  
4 Chemicals, except for those listed in Schedule 1, containing a phosphorus 
atorn to which is bonded one methyl, etyl or propyl ( normal or iso) group 
but not further carbon atoms 
e.g. Methylphosphonyl dichloride                 Dimethyl methylphosphonate         
Exemption:  O-Ethyl S-phenyl  ethylphosphonothioloth ionate                          
 
 
676-97-1 756-79-6 
944-22-9  
 
 
  
 
2931.00 
5 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) phosphoramidic dihalides  2929.90 
6 Dialkyl (Me, Et, n-Pr or i-Pr) N,N-dialkyl  
 (Me, Et, n-Pr hoÆc i-Pr)-phosphoramidates   
2929.90 
7 Arsenic trichloride                                     7784-34-1 2812.10 
8 2,2-Diphenyl-2-hydroxyacetic acid                        76-93-7 2918.19 
9 Quinuclidin-3-ol                            1619-34-7 2933.39 
10 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethyl-2-chlorides 
 and corresponding  protonated salts   
2921.19 
11 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-ols 
 and corresponding  protonated salts  Exemptions:   N,N-Dimethylaminoethanol                    
                 and corresponding protonated salts 
                                       N,N-Diethylaminoethanol                
  and corresponding  protonated salts  
 108-01-0 
 
100-37-8  
2922.19 
12 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-thiols 
 and corresponding protonated salts   
2930.90 
13 Thiodiglycol:  Bis(2-hydroxyethyl)sulfide               111-48-8 2930.90 
14 Pinacolyl alcohol:  3,3-Dimethylbutan-2-ol        464-07-3 2905.14 
 WT/ACC/VNM/41 
Page 146  
 
 SCHEDULE 3 
 Toxic chemicals   
1 Phosgene:  Carbonyl dichloride                           75-44-5 2812.10 
2 Cyanogen chloride                               506-77-4 2851.00 
3 Hydrogen cyanide                                            74-90-8 2811.19 
4 Chloropicrin:  Trichloronitromethane                      76-06-2 2904.90 
Precursors  
5 Phosphorus oxychloride                               10025-87-3 2812.10 
6 Phosphorus trichloride       7719-12-2 2812.10 
7 Phosphorus pentachloride                             10026-13-8 2812.10 
8 Trimethyl phosphite                        121-45-9 2920.90 
9 Triethyl phosphite                                         122-52-1 2920.90 
10 Dimethyl phosphite                                         868-85-9 2921.19 
11 Diethyl phosphite                                     762-04-9 2920.90 
12 Sulfur monochloride                                 10025-67-9 2812.10 
13 Sulfur dichloride                               10545-99-0 2812.10 
14 Thionyl chloride                               7719-09-7 2812.10 
15 Ethyldiethanolamine 139-87-7 2922.19 
16 Methyldiethanolamine 105-59-9 2922.19 
17 Triethanolamine 102-71-6 2922.13  WT/ACC/VNM/41 
 Page 147 
 
 
 11(b.2):  Import allowed conditionally –   
Toxic Chemicals and Products Containing Toxic Chemicals  
No. Name of chemicals Formula Concentration 
1 Acetonitril CH 5-CN  
2* Anilin C 6H7-N  
3* Benzene C 6H6  
4 Choloroform CHCl 3  
5* Furfurol C 5H4O2  
6 n-Hexan CH 3(CH 2)4CH 3  
7 Piridin C 5H5N  
8 Carbon tetra chloro CCl 4  
9* Tuluen C 7H8  
10* Ethylen Glycol CH 2OH-CH 2OH  
11* n-Butanol CH 3(CH 2) 2CH 2OH  
12* Aldehyd acetic CH 3CHO  
13* IsoPropanol CH 3CHOHCH 3  
14* Asbestos raw material   
15* Selen and selen compounds Se  
16* Cadmium and cadmium compounds Cd  
17 Thallium Tl  
18* Xylen C 6H4(CH 3) 2  
19* Acid Pechloric HClO 4  
20 Acrolein CH 2=CH-CHO +0.002 
21* Amoniac NH 3NH 4OH +0.002 
22 Anhydric acsenio and anhydrit acsenic  
(asen pentoxide) As2O3 
As2O5 +0.0003 
23 Acsenua hydrogen AsH 3 +0.0003 
24* Anhydrit carbonic CO 2 0.1 per cent mg/l 
25* Anhydrit cromic CrO 3 0.0001 mg/l 
26* Anilin C 6H5-NH 2 0.005 
27* Antimony Sb 0.0005 
28* Hydrochloric acid and hydrochlorua  
(calculated as hydrochlorua) HCl 0.010 
29* Acid nitric (calculated as N 2O5) HNO 3 0.005 
30* Acid acetic CH 3COOH 0.005 
31 Cyanhydric calculated as HCN   
32* Acid sulfuric and anhydrit sulfuric H 2SO 4 0.002 
33* Acid phosphoric H 3PO 4  
34* Acid picric C 6H3K8O7  
35* Bary oxide containing 10 per cent free SiO2 BaO 0.005 
36* Bary + dissolvable compound  (Ba)  
37* Benzidin C 12H22N2 0.001 
38* Brom Br 2 1 ml/m3 
39* Bromua metyl Br-CH 3 10 ml/m3 
40* Bromofoc CHBr 3  
41* Bicromat alkali Cr 2O7-(NaK) 0.0001 
42* Lead and inorganic compounds of lead  Pb 0.00001 
0.0001 
43* Chlorine Cl 2 0.050 
44* Chlorinebenzene C 6H5Cl 0.001 
45 Chlorinediphenyl  0.0005 
46 Chlorine oxydiphonyl  0.001 
47 Chlorinenaphtaline (trichlorinenaphtalin) C 10H7Cl 0.005 
48 High level tetra and pentanaphtalin mixture    WT/ACC/VNM/41 
Page 148  
 
 No. Name of chemicals Formula Concentration 
49 Chlorineropren CH 2=CH-CCl=OH 2 0.002 
50 Chlorinepycrin CC 3NO 2 20 mg/m3 60 mg/m3 
51* Limestone chlorinerua (calculating as Cl) CaCl 2 0.001 
52* Metylic spirit CH 3OH 0.050 
53* Dimetyl amin (CH 3) 2NH 0.001 
54 Dimetyl focmanit  CH 3 HCO-N < CH 3 0.001 
55 Dichlorinebenzene C 6H4C12  
56 Dinitrochlorinebenzene (NO 2) 2 C6H3  < Cl 0.001 
57 Dinitrotoluen (NO 2) 2C6H3-CH 3 0.001 
58 Dinitrobenzene and identicals   
59 Dioxide Chlorine ClO 2 0.0001 
60* Copper (salt)  0.00005 
61 Etyl mercury phosphate  0.00005 
62* Focmaldehyt HCHO 0.005 
63 Etyl mercury chlorinerua   
64* Florua hydrogen FH 0.0005 
65 Salt of acid flohydric (calculating as HF) FH 0.0005 
66 Salt of acid flohydric (calculating as HF)  0.001 
67 Florosilicat metal dissolved and undissolved   
68 Hexachlorinero cychlorinehexan  0.00005 
69* Isome (gamma)   
70 Hydrazin and derivatives  0.0001 
71 Isopropylnitrat C 3H7NO 2 0.005 
72* NaOH gas, KOH gas   
73* Mangan and mangan compounds (calculating 
as MnO 2) MnO 2 0.0003 
74* Metaldehyl   
75 Nitrobenzene and its compounds C 6H5NO 2 0.005 
76 Nitrochlorinebenzene Cl C 6H4 < NO 2 0.001 
77 Nicotin  0.0005 
78 Metal nitrit NO 2  
79 Ozon O 3 0.0001 
80* Oxide carbon CO 0.030 
81* Oxide etylen  0.001 
82* Oxide zinc ZnO 0.005 
83* Oxide nito, calculating as N2O5 N 2O, NO, NO 2, N 2O3, 
N2O5 0.005 
84* Oxide niken NiO 0.005 
85 Oxide iron including fluo and mangan 
compound  0.004 
86 Photpho white (sesquisulfur phesphore) P 4 0.0003 
87 Photphotrichlorinerua compound  0.00005 
88 Photphua hydrogen PH 3 0.0003 
89 Photphua metal  0.15-0.30g 
90* Photphorit (ore of under 10 per cent free SiO2)  0.0005 
91 Photgen COCl 2 0.0005 
92* Phenol C 6H5OH 0.005 
93 Photphat dietyl C 10H14NO 5PS 0.00005 
94 Paranitropheny  5mg/kg 
95 (Pration, thiophot)  (insecticide) 
96 Sunfur lead PbS 0.0005 
97 Sunfua carbon SC 2 0.010 
98 Sunfua hydrogen H 2S 0.010 
99* Tetrachlorinerua carbon CCl 4 0.050 
100 Tetrachlorineheptan  0.001 
101 Tetra etyl lead Pb(C 2H5) 4 0.000005  WT/ACC/VNM/41 
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 No. Name of chemicals Formula Concentration 
102 Tetra nitrometan CH 3(NO 2) 4 0.00003 
103 Metal mercury and mercury inorganic 
compound, excluding HgC12 (sublime) Hg 0.00001 
104 Mercury (II)   
105 Chlorinerua (sublime) HgCl 2 0.0001 
106 Trinitro chlorinebenzene  0.001 
107 Trichlorineetylen  0.001 
108 Trichlorineetylen C 2H3Cl3 0.050 
109 Trinitrobenzene and its compounds C 6H3(NO 2) 3 0.001 
110 Toluen dihydrogenxyanat  0.0005 
111 Nitro Toluen CH 3-C6H4-NO 2 0.003 
112 Tetraetyl C 10H20N2S4  
 
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