RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/42/Rev.1 
6 July 2006 
 (06-3258) 
Working Party on the  
Accession of Viet Nam Original:   English 
 
 
  
ACCESSION OF VIET NAM 
 
Draft Notification Pursuant to Article XVI:1 of the GATT 1994 and 
 
Article 25 of the Agreement on S ubsidies and Countervailing Measures  
 
Revision  
  
 The following submission, dated 23 June 2006, is  being circulated at the request of the 
Socialist Republic of Viet Nam.   
_______________ 
  
 The following notification provides details of  support programmes for the period 2003-2004.  
It serves as a full and updated notification for subsid ies effective during the notified period, inclusive 
of both new (if any) and previously notified progra mmes.  This notification may be supplemented, in 
due time, to incorporate further elements or clarifications. 
 In this notification, Viet Nam has incl uded certain measures which may not constitute 
"subsidies" under Article 1 of the Agreement on Subsidies and Countervailing measures ("the 
Agreement" hereinafter) and certain subsidies whic h may not be "specific" under Article 2 of the 
Agreement in order to achieve the maximum transp arency with respect to the relevant programmes 
and measures effective within its te rritory during the notified period.  WT/ACC/VNM/42/Rev.1 
 Page i 
 
 
 CONTENTS 
I. Preferential import tariff rates continge nt upon localization ratios with respect 
to products and parts of two-wheel motorbikes (part of Programme I of the document WT/ACC/VNM/13/Add.2) – terminated...............................................................1
 
II. Preferential import tariff rates continge nt upon localization ratios with respect 
to products and parts of mechanical-e lectric-electronic industries (part of 
Programme I of the docume nt WT/ACC/VNM/13/Add.2) ...................................................2  
III. Support for the implementation of proj ects manufacturing priority industrial 
products (updating Programme II of th e document WT/ACC/VNM/13/Add.2)................3  
IV. Investment incentives contingent upo n export performance for domestic 
businesses (part of Programme iii of th e document WT/ACC/VNM/13/Add.2).................4  
V. Other Investment Incentives For Domestic  Businesses (part of Programme III of 
the document WT/ACC/VNM/13/Add.2) ...............................................................................7  
VI. Investment incentives contingent upon ex port performance for foreign-invested 
enterprises (part of Programme IV of the document WT/ACC/VNM/13/Add.2).............10  
VII. Other investment incentives for fo reign-invested enterprises (part of 
Programme IV of the document WT/ACC/VNM/13/Add.2) ..............................................13  
VIII.  Preferential investment credit for development contingent upon export criteria (updating and consolidating the relevant parts of Programme V and Programme IX of the document WT/ACC/VNM/13/Add.2) ..............................................16
 
IX. Preferential development credit for in vestment contingent upon localisation 
ratios (updating and consolidating the relevant parts of Programme V and 
Programme XII of the docume nt WT/ACC/VNM/13/Add.2).............................................19  
X. Other preferential investment credit for development (part of Programme V of 
the document WT/ACC/VNM/13/Add.2) .............................................................................21  
XI. Support for development of textile and gar ment sector (updating Programme VI 
of the document WT/ACC/VNM/13/Add.2 ) ........................................................................26  
XII. Export Promotion (updating Programme VIII of the document 
WT/ACC/VNM/13/Add.2)......................................................................................................28  
XIII.  Trade Promotion (updating Programme X of the document WT/ACC/VNM/13/Add.2)......................................................................................................30
 
XIV.  Support for mechanical products (updating Programme XI of the document 
WT/ACC/VNM/13/Add.2)......................................................................................................32  
XV. Support for shipbuilding industry (updating Programme XIII of the document 
WT/ACC/VNM/13/Add.2)......................................................................................................34  
XVI.  Assistance for commercial development in mountainous, island and ethnic minority areas (updating Programme XIV of the document 
WT/ACC/VNM/13/Add.2)......................................................................................................36
 
XVII.  Assistance to enterprises facing difficult ies due to objective reasons (Programme 
XV of the document WT/ACC/VNM/13/Add.2) ..................................................................38  
XVIII.  Incentives for investment projects in  science and technology (updating 
Programme XVI of the document WT/ACC/VNM/13/Add.2) ...........................................41  
ANNEX I........................................................................................................................ .......................43  WT/ACC/VNM/42/Rev.1 
Page ii  
 
  ANNEX II ....................................................................................................................... ......................46
 
ANNEX III...................................................................................................................... ......................49  
ANNEX IV....................................................................................................................... .....................52  
ANNEX V ........................................................................................................................ .....................55  
ANNEX VI....................................................................................................................... .....................56  
ANNEX VII ...................................................................................................................... ....................57  
ANNEX VIII..................................................................................................................... ....................59  
ANNEX IX....................................................................................................................... .....................61  
ANNEX X ........................................................................................................................ .....................65  
ANNEX XI....................................................................................................................... .....................68   WT/ACC/VNM/42/Rev.1 
 Page 1 
 
 
  I. Preferential import tariff rates continge nt upon localization ratios with respect to 
products and parts of two-wheel motorbik es (part of Programme I of the document 
WT/ACC/VNM/13/Add.2) – terminated 
1. Title of the programme  
 Preferential import tariff rates contingent upon lo calization ratios with respect to products and 
parts of two-wheel motorbikes. 
2. Policy objective and/or purposes of the programme  
 To encourage domestic production and assembly  of products and parts of two-wheel 
motorbikes. 
3. Background and authority for the programme  
 As described in Programme I of the document WT/ACC/VNM/13/Add.2. 
4. Form of the subsidy  
 Preferential import tariff rates. 5. To whom and how the subsidy is provided
 
 As described in Programme I of the document WT/ACC/VNM/13/Add.2. 
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 As described in Programme I of the document WT/ACC/VNM/13/Add.2. 7. Duration of the subsidy and/or any other time-limit attached to it
 
 Eliminated as from 1 January 2003 (in acco rdance with the Decision No. 147/2002/QD-TTg 
dated 25 October 2002 of the Prime Minister on the mechanism for administration and 
management over the import, export, manufact ure and assembly of motorcycles and their 
accessories in the 2003-2005 period).  
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Not assessable. WT/ACC/VNM/42/Rev.1 
Page 2  
 
  II. Preferential import tariff rates continge nt upon localization ratios with respect to 
products and parts of mechanical-electric-el ectronic industries (part of Programme I of 
the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Preferential import tariff rates contingent upon lo calization ratios with respect to products and 
parts of mechanical-electri c-electronic industries.  
2. Policy objective and/or purposes of the programme  
 To encourage domestic production and assembly of products and parts of mechanical-electric-
electronic industries. 
3. Background and authority for the programme  
 (a) Background: 
 - Inter-Ministerial Circular No. 176/1998/TTLT-BTC-BCN-TCHQ dated 
25 December 1998 of Ministry of Finance, Ministry of Industry and General Department of Customs guiding the impl ementation of tariff imposition contingent 
upon localization ratios with respect to products and parts of 
mechanical-electric-electronic industries; and 
 - Decision No. 1944/1998/QD-TC da ted 25 December 1998 promulgating the 
regulation on preferential import tariff rat es contingent upon localization ratios with 
respect to parts of mechanical-electric-electronic industries.  
 (b) Authority:  - Ministry of Industry; and 
 - Ministry of Finance. 
4. Form of the subsidy
 
 Preferential import tariff rates. 5. To whom and how the subsidy is provided
 
 As described in Programme I of the document WT/ACC/VNM/13/Add.2. 
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 As described in Programme I of the document WT/ACC/VNM/13/Add.2. 7. Duration of the subsidy and/or any other time-limit attached to it
 
 From 1999-  
 Viet Nam commits to eliminate this me asure upon Viet Nam's accession to the WTO. 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Unfeasible.  WT/ACC/VNM/42/Rev.1 
 Page 3 
 
 
  III. Support for the implementation of projects manufacturing priority industrial products 
(updating Programme II of the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme  
 Support for the implementation of projects manufacturing priority industrial products. 
2. Policy objective and/or purposes of the programme  
 To support the manufacture of priority industrial products. 
3. Background and authority for the programme  
 (a) Background:  - Decision No.  37/2000/QD-TTg dated 24 March 2000 and Decision 
No. 19/2001/QD-TTg dated 20 February 2001 of the Prime Minister; and 
 - Circulars guiding the implementation of these Decisions. 
 (b) Authority:  - Ministry of Finance; 
 - Ministry of Industry;   - Ministry of Transport; and 
 - Development Assistance Fund. 
4. Form of the subsidy
 
 - Exemption from import duty; 
 - Preferential corporate income tax rates;  - Preferential loans; and  - Reduction of land rental. 
5. To whom and how the subsidy is provided
 
 As described in Programme II of the document WT/ACC/VNM/13/Add.2. 6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 As described in Programme II of the document WT/ACC/VNM/13/Add.2. 
7. Duration of the subsidy and/or any other time-limit attached to it  
 From 8 April 2000 to 31 December 2003 with respect to import duty incentives. 
 From 8 April 2000. 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Unfeasible. WT/ACC/VNM/42/Rev.1 
Page 4  
 
  IV. Investment incentives contingent upon ex port performance for domestic businesses 
(part of Programme iii of the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Investment incentives for domestic exporting enterprises. 2. Policy objective and/or purposes of the programme
 
 To encourage domestic investment.  
3. Background and authority for the programme  
 (a) Background:  - Law on Domestic Investment Prom otion (amended) No. 03/1998/QH10 dated 
20 May 1998 and legal documents guiding th e implementation of this Law (Decrees 
No.  51/1999/ND-CP dated 8 July 1999 and No. 35/2002/ND-CP dated 
29 March 2002); and 
 - Law on Corporate Income Tax No.  09/2003/QH11 dated 17 June 2003 (effective 
since 1 January 2004) and legal documents  guiding the implementation of this Law 
(Decrees No.  164/2003/ND-CP dated 22 D ecember 2003 and No. 152/2004/ND-CP 
dated 6 August 2004).  
 (b) Authority:  - Ministry of Planning and Investment; and 
 - Ministry of Finance. 
4. Form of the subsidy
 
 - Exemption from and reduction of land use payment; 
 - Exemption from and reduction of land rental; 
 - Exemption from and reduction of land use tax;  - Preferential corporate income tax treatment; and  - Exemption from import duties in respect of the equipment, machinery imported to 
form fixed assets of an enterprise. 
5. To whom and how the subsidy is provided
 
5.1 Projects having the export ratio of over 30 per cent of the total outputs  
 (a) Exemption from and reduction of land use payment1: 
  50 per cent reduction; full exemption in case the project is carried out in a region of 
especially difficult socio-economic conditions. 
 (b) Exemption from and reduction of land rental: 
  Exemption for the period from 3 to 15 years counting from the signing of the land 
lease contract; exemption for the whole life of  the project in case the project is carried 
out in a region of especially difficult socio-economic conditions. 
                                                      
1 Applicable to land allocated by the State.  WT/ACC/VNM/42/Rev.1 
 Page 5 
 
 
   (c) Exemption from and reduction of land use tax: 
  Exemption from 11 to 15 years; exemption for the whole life of the project in case the 
project is carried out in a region of especially difficult socio-economic conditions. 
 (d) Preferential treatment regarding co rporate income tax (applicable until 
31 December 2003): 
 - Corporate income tax rate of 25 per cent2; corporate income tax rate of 20 per cent in 
case the project is carried out in a region of difficult socio-economic conditions; corporate income tax rate of 15 per cent in case the project is carried out in a region 
of especially difficult socio-economic conditions; 
 - Exemption from corporate income tax for 2 to 4 years and 50 per cent reduction of 
corporate income tax for 2 to 9 subsequent years, subject to the number of workers 
employed by the project and the region where the project is carried out; 
 - Exemption from corporate income tax in  respect of the increased portion of income 
earned from further investment for the period from 1 to 4 years and 50 per cent reduction of corporate income tax for the period from 4 to 7 subsequent years, subject 
to the region where the project is carried out; 
 - From 20 per cent to 50 per cent reduction of corporate income tax in respect of the 
portion of income earned from export activities in the following cases: export turnover accounting for over 50 per cent of total turnover; having a stable export 
market for the three consecutive years;  having annual turnover from export higher 
than that in the previous year; exporting for the first time; exporting new products; 
exporting to a new market. In the case of the project carried out in a region of 
difficult socio-economic conditions, the invest or shall be entitled to an additional 
25 per cent reduction of corporate income ta x payable in respect of the portion of 
income earned from export activities in a fina ncial year. Full exemption in respect of 
the portion of income earned from export activities in case the project is carried out in 
a region of especially difficult socio-economic conditions; and 
 - Exemption from supplementary income tax
3. 
 (e) Exemption from import duties in respect of the equipment, machinery imported to 
form fixed assets: 
 - Exempted from import duties in respect of the following goods which are not yet 
produced domestically, or which are produ ced domestically but do not meet the 
requirements: 
 - Equipment, machinery, or specialized means of transportation of a 
technological line used to form fixed as sets of an enterprise or to expand the 
scale of investment and to  renovate technology; and 
 - Means of transportation used for transporting employees. 
5.2 Projects having the export ratio of over 50 per cent of the total outputs  
 (a) Exemption from and reduction of land use payment: same incentives as described in 
section 5.1.a. 
                                                      
2 Standard corporate income tax rate was 32 per ce nt pursuant to the Law on Corporate Income Tax 
No. 03/1997/QH9. 
3 Supplementary income tax is the tax imposed on the high income attributable to objective advantages  
stipulated in Article 10.1 of the Law on Corporate Income Tax No. 03/1997/QH9. WT/ACC/VNM/42/Rev.1 
Page 6  
 
   (b) Exemption from and reduction of land rental: same incentives as described in 
section 5.1.b. 
 (c) Exemption from and re duction of land use tax: same incentives as described in 
section 5.1.c. 
 (d) Preferential treatment regarding corporate income tax: 
 - Until 31 December 2003: same incen tives as described in section 5.1.d. 
 - As from 1 January 2004
4: 
 - Corporate income tax rate of 20 per cent for the period of ten years as from 
the date of commencement of business operations; 15 per cent for the period 
of 12 years in case the project is carried out in a region of difficult 
socio-economic conditions; 10 per cent for the period of 15 years in case the 
project is carried out in a region of especially difficult socio-economic conditions and for newly estab lished processing businesses; and 
 - Exemption for the period from 2 to 4 years and 50 per cent reduction for the 
period from 3 to 9 subsequent years, subject to the number of workers 
employed by the project and the region where the project is carried out. 
 (e) Exemption from import duties in respect of the equipment, machinery imported to 
form fixed assets: same incentives as described in section 5.1.e. 
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 Please refer to Annex VIII for the available information. 
7. Duration of the subsidy and/or any other time-limit attached to it  
 - With respect to corpor ate income tax incentives:  
  - Those mentioned in section 5.1: until 31 December 2003; and 
  - Those mentioned in section 5.2: from 1 January 2004. 
 - Investment incentives other than co rporate income tax incentives: from 
1 January 1999.  
 - This Programme shall be terminated upon Viet Nam's accession to the WTO. Those 
investment incentives which have been provide d for in the Certificate of Eligibility of 
Domestic Investment Incentives issued  prior to the WTO accession shall be 
terminated within five years as from the time of Viet Nam's accession to the WTO. 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Unfeasible. 
                                                      
4 Standard corporate income tax rate is 28 per cent as from 1 January 2004 pursuant to the Law on 
Corporate Income Tax No. 09/2003/QH11.  WT/ACC/VNM/42/Rev.1 
 Page 7 
 
 
  V. Other Investment Incentives For Domestic Businesses (part of Programme III of the 
document WT/ACC/VNM/13/Add.2) 
1. Title of the programme  
 Investment incentives for domestic enterpri ses operating in industries and business sectors 
and/or implementing projects in regions where investments are encouraged that are not 
contingent upon either export performance or the use of domestic over imported goods.  
2. Policy objective and/or purposes of the programme  
 To encourage domestic investment in industr ies and business sectors where investments are 
beneficial to the country.  
3. Background and authority for the programme  
 (a) Background: 
 - Law on Domestic Investment Prom otion (amended) No. 03/1998/QH10 dated 
20 May 1998 and legal documents guidi ng the implementation of this Law 
(Decrees No. 51/1999/ND-CP dated 8 July  1999 and No. 35/2002/ND-CP dated 
29 March 2002); and 
 - Law on Corporate Income Tax No. 09/2003/QH11 dated 17 June 2003 (effective 
since 1 January 2004) and legal documents  guiding the implementation of this Law 
(Decrees No. 164/2003/ND-CP dated 22 Dece mber 2003 and No. 152/2004/ND-CP 
dated 6 August 2004);  
 (b) Authority:  - Ministry of Planning and Investment; and 
 - Ministry of Finance. 
4. Form of the subsidy
 
 - Exemption from and reduction of land use payment; 
 - Exemption from and reduction of land rental;  - Exemption from and reduction of land use tax; 
 - Preferential corporate income tax treatment; and 
 - Exemption from import duties in respect of the equipment, machinery imported to 
form fixed assets of an enterprise. 
5. To whom and how the subsidy is provided
 
 Beneficiaries are domestic investors having pr ojects in the eligible industries or business 
sectors (listed in Annexes I and II) and/or projects in regions of difficult socio-economic 
conditions (listed in Annex III) or regions of especially difficult socio-economic conditions 
(listed in Annex IV).  How investment incentives are granted:  
 (a) Exemption from and reduction of land use payment:  - From 50 per cent to 70 per cent reduction of land use payment, depending on the 
categories of industries, business sectors or regions; full exemption in case the project 
is carried out in a region of especially difficult socio-economic conditions. WT/ACC/VNM/42/Rev.1 
Page 8  
 
   (b) Exemption from and reduction of land rental: 
 - Exemption from land rental for the pe riod from 3 to 15 years counting from the 
signing of the land lease contract, depending on the industries, business sectors, the number of workers employed and the regi on; exemption for the whole life of the 
project in case the project is carried out in a region of especially difficult 
socio-economic conditions. 
 (c) Exemption from and reduction of land use tax:  - Reduction of 50 per cent of land use tax for a period of seven years or exemption 
from land use tax for a period from 7 to 15 years, depending on the industries, business sectors, the number of workers em ployed and the region; exemption for the 
whole life of the project in case the project is carried out in a region of especially 
difficult socio-economic conditions. 
 (d) Preferential corporate income tax:  - Until 31 December 2003
5:   
 - Preferential corporate income tax rate: (i) 25 per cent if the investment is 
made in industries or business sectors listed in Annex II or the project is 
carried out in a region of difficult socio-economic conditions listed in 
Annex III; (ii) 20 per cent if the investme nt is made in industries or business 
sectors listed in Annex II and implem ented in a region of difficult 
socio-economic conditions listed in Annex III or the project is carried out in a 
region of especially difficult socio-ec onomic conditions listed in Annex IV; 
or (iii) 15 per cent if the investment is made in industries or business sectors 
listed in Annex II and implemented in  a region of especially difficult 
socio-economic conditions  listed in Annex IV; 
 - Exemption from corporate income tax for the period from 2 to 4 years and 
50 per cent reduction of corporate income tax for the period from 2 to 9 
subsequent years, subject to differe nt categories of industries, business 
sectors, the number of workers employed and the region where the project is carried out; 
 - Exemption from corporate income tax in respect of the increased portion of 
income earned from further scale-expanding and upgrading investments for the period from 1 to 4 years and 50 per cent reduction of corporate income 
tax for the period from 4 to 7 subseque nt years, depending on the industries, 
business sectors or regions; and 
 - Exemption from supplementary income tax stipulated in Article 10.1 of the 
Law on Corporate Income Tax No. 03/1997/QH9. 
 - As from 1 January 2004
6: 
 - Preferential corporate income tax rate of: (i) 20 per cent for the period of 
ten years if the investment is made in industries or business sectors listed in Annex I or the project is carried out in a region of difficult socio-economic 
                                                     
 
5 Standard corporate income tax rate was 32 per ce nt pursuant to the Law on Corporate Income Tax 
No. 03/1997/QH9. 
6 Standard corporate income tax rate is 28 per cent as from 1 January 2004 pursuant to the Law on 
Corporate Income Tax No. 09/2003/QH11.  WT/ACC/VNM/42/Rev.1 
 Page 9 
 
 
  conditions listed in Annex III; (ii) 15 pe r cent for the period of 12 years if the 
investment is made in industries or business sectors listed in Annex I and implemented in a region of difficult socio-economic conditions listed in 
Annex III or the project is carried out in a region of especially difficult socio-economic conditions lis ted in Annex IV; or (iii) 10 per cent for the 
period of years if the investment is made in industries or business sectors 
listed in Annex I and implemented in  a region of especially difficult 
socio-economic conditions  listed in Annex IV. 
 - Exemption from corporate income tax for the period from 2 to 4 years and 
50 per cent reduction of corporate income tax payable for the period from 
3 to 9 subsequent years, subject to di fferent categories of industries, business 
sectors where investments are encouraged, the number of workers employed by the project and the region where the project is carried out. 
 - Exemption from corporate income tax in respect of the increased portion of 
income earned from further scale-expanding and upgrading investments for 
the period from 1 to 4 years and 50 per cent reduction of corporate income 
tax for the period from 4 to 7 subseque nt years, depending on the industries, 
business sectors or regions. 
 (e) Exemption from import duties in respect of the equipment, machinery imported to 
form fixed assets: 
 - Exempted from import duties in respect of the following goods which are not yet 
produced domestically, or which are produced domestically but do not meet 
requirements if the investment is made in industries or business sectors listed in Annex II or the project is carried out in a region of difficult socio-economic conditions listed in Annex III or a regi on of especially difficult socio-economic 
conditions listed in Annex IV: 
 - Equipment, machinery, or specialized means of transportation of a 
technological line used to form fixed as sets of an enterprise or to expand the 
scale of investment and to  renovate technology; and 
 - Means of transportation used for transporting employees.  
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 Please refer to Annex VIII for some information. 
7. Duration of the subsidy and/or any other time-limit attached to it  
 From 1 January 1999. 8. Statistic data permitting an assessment  of the trade effects of the subsidy
 
 Unfeasible. WT/ACC/VNM/42/Rev.1 
Page 10  
 
  VI. Investment incentives contingent upon export performance for foreign-invested 
enterprises (part of Programme IV of the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Investment incentives for forei gn-invested enterprises contingent upon export performance. 
2. Policy objective and/or purposes of the programme  
 To encourage foreign direct investment. 
3. Background and authority for the programme  
 (a) Background:  - Law on Amendment of and Addition to a number of articles of the Law on Foreign 
Investment in Viet Nam No. 18/2000/QH 10 dated 9 June 2000 a nd legal documents 
guiding the implementation of this Law (Decrees No. 24/2000/ND-CP dated 
31 July 2000 and No. 27/2003/ND-CP da ted 19 March 2003 providing detailed 
regulations on the implementation of the Law on Foreign Investment in Viet Nam); 
and 
 - Law on Corporate Income Tax No. 09/2003/QH11 dated 17 June 2003 (effective 
since 1 January 2004) and legal documents  guiding the implementation of this Law 
(Decrees No. 164/2003/ND-CP dated 22 Dece mber 2003 and No. 152/2004/ND-CP 
dated 6 August 2004).  
 (b) Authority:  - Ministry of Planning and Investment; and 
 - Ministry of Finance. 
4. Form of the subsidy
 
 Preferential tax treatment. 5. To whom and how the subsidy is provided
 
 - Beneficiaries are foreign-invested projects in the following sectors:    (i) Producing, processing for export at least 80 per cent; 
 (ii) Processing agricultural, forestry (e xcept for wood) and aquaculture products 
for export of at least 50 per cent; 
 (iii) Producing, processing for export at least 50 per cent (for products other 
than (ii)); 
 (iv) Producing high-quality packages for exports; and  (v) Export processing zone enterprises in the field of production.  WT/ACC/VNM/42/Rev.1 
 Page 11 
 
 
   - How investment incentives are granted: 
 (a) Preferential corporate income tax:    Until 31 December 2003
7: 
 - Preferential corporate income tax rate: 15 per cent for 12 years as from the 
date of commencement of business operations if the investment is made in 
the sectors (iii), (iv); 10 per cent for 15 years as from the date of 
commencement of business operations if the investment is made in the sectors (iii), (iv) and implemented in a region of difficult socio-economic conditions listed in Anne x VII; 10 per cent for the whole duration of the 
project if the investment is made in the sectors (i), (ii), (v); 10 per cent for the 
whole duration of the project for special projects (e.g. projects meeting 
multiple requirements above); and 
 - Exemption from corporate income tax for the period from 2 to 8 years 
commencing from the first profit-making year and 50 per cent reduction of corporate income tax for the period from 3 to 4 subsequent years, depending 
on the industries, business sectors, the nature of the project and the region 
where the project is carried out. 
  As from 1 January 2004
8:  
 - Projects having the export ratio of over 50 per cent shall enjoy the following 
corporate income tax rates: (i) 20 per cent for ten years as from the date of commencement of business operations; (ii) 15 per cent for 12 years if the 
project is carried out in a region of difficult socio-economic conditions listed 
in Annex III; (iii) 10 per cent for 15 years if the project is carried out in a region of especially difficult socio-ec onomic conditions listed in Annex IV 
and for newly established export processing enterprises (both in and out of export processing zones); 
 - In the case the export ratio is over 50 per cent:  exemption from corporate 
income tax for the period from 2 to 4 years and 50 per cent reduction of corporate income tax for the period from 3 to 9 subsequent years, depending on the number of workers employed and the region where the project is carried out; exemption from corporate income tax for four years and 50 per cent reduction in the seven subsequent years for newly established 
export processing projects in the manufacturing sector, irrespective of 
whether they are inside or outside the export processing zones; 
 - Projects having the export ratio of over 50 per cent shall be entitled to 
exemption from corporate income tax in  respect of the increased portion of 
income earned from further scale-expanding and upgrading investments for 
the period from 1 to 4 years and 50 per cent reduction for the period from 
4 to 7 subsequent years, depending on the categories of industries, business sectors or regions; and 
 - In the case the export ratio is over 50 per cent: from 20 per cent to 50 per cent 
reduction of corporate income tax in respect of the portion of income earned from export activities in a fiscal year in the following cases: (i) exporting 
                                                     
 
7 Standard corporate income tax rate applicable to foreign-invested enterprises is 25 per cent pursuant 
to the Law on Foreign Investment. 
8 Standard corporate income tax rate is 28 per cent as from 1 January 2004 pursuant to the Law on 
Corporate Income Tax No.  09/2003/QH11. WT/ACC/VNM/42/Rev.1 
Page 12  
 
  over 50 per cent of the project's total turnover; (ii) having a stable export 
market for the previous three consecu tive years; (iii) having annual turnover 
from export higher than that in the previous year; (iv) exporting for the first time; (v) exporting new products; and (vi) exporting goods to a new market. 
In case the project is carried out in a region of difficult socio-economic 
conditions: an additional 25 per cent re duction of corporate income tax in 
respect of the portion of income earned from export activities.  In the case of the project carried out in a region of especially difficult socio-economic conditions: full exemption from corporat e income tax in respect of the 
portion of income earned from export activities. 
 (b) Preferential treatment regarding refund  of corporate income tax in the case of 
reinvestment (terminated on 31 December 2003):  
 - A foreign investor using profits and ot her lawful incomes earned from investment 
activities in Viet Nam to reinvest in proj ects under implementation or in new projects 
under the Law on Foreign Investment shall be entitled to a 75 per cent or total refund 
of any corporate income tax already paid in respect of the amount of profits 
reinvested in Viet Nam.  
 (c) Preferential import duty treatment:   - Projects in the sectors (i) and (ii) shall be exempted from import duties in respect of 
raw materials, components and parts for pr oduction for five years from the time when 
production commences.  
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 Please refer to Annex IX for some information. 7. Duration of the subsidy and/or any other time-limit attached to it
 
 From 2000. 
 This Programme shall be terminated upon Vi et Nam's accession to the WTO.  Those 
investment incentives which have been provided for in the Investment Licenses issued prior 
to the WTO accession shall be terminated within  five years as from the time of Viet Nam's 
accession to the WTO 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Unfeasible.  WT/ACC/VNM/42/Rev.1 
 Page 13 
 
 
  VII. Other investment incentives for foreign-i nvested enterprises (part of Programme IV of 
the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme  
 Investment incentives for foreign-invested en terprises operating in industries and business 
sectors and/or implementing projects in regions where foreign investments are encouraged 
other than those contingent upon either e xport performance or the use of domestic over 
imported goods.  
2. Policy objective and/or purposes of the programme  
 To encourage foreign investment in indus tries and business sectors where investments are 
beneficial to the country. 
3. Background and authority for the programme  
 (a) Background:  - Law on Amendment of and Addition to a number of articles of the Law on Foreign 
Investment in Viet Nam No. 18/2000/QH 10 dated 9 June 2000 a nd legal documents 
guiding the implementation of this Law (Decrees No.  24/2000/ND-CP dated 
31 July 2000 and No.  27/2003/ND-CP da ted 19 March 2003 providing detailed 
regulations on the implementation of the Law on Foreign Investment in Viet Nam); 
and 
 - Law on Corporate Income Tax No.  09/2003/QH11 dated 17 June 2003 (effective 
since 1 January 2004) and legal documents  guiding the implementation of this Law 
(Decrees No.  164/2003/ND-CP dated 22 D ecember 2003 and No. 152/2004/ND-CP 
dated 6 August 2004).  
 (b) Authority:  - Ministry of Planning and Investment; and 
 - Ministry of Finance. 
4. Form of the subsidy
 
 Preferential taxation treatment. 
5. To whom and how the subsidy is provided  
 Beneficiaries are foreign-invested projects which (i) operate in industries eligible to 
investment incentives (as listed in Annex I) or  in business sectors where foreign investments 
are specially encouraged (as listed in Anne x V) or in business sectors where foreign 
investments are encouraged (as listed in Annex V I); and/or (ii) are implemented in regions of 
difficult socio-economic conditions or regi ons of especially difficult socio-economic 
conditions (as listed in Annex III, IV and VII). WT/ACC/VNM/42/Rev.1 
Page 14  
 
   - How investment incentives are granted:  
 (a) Preferential corporate income tax:   Until 31 December 2003
9:  
 - Preferential corporate income tax rates of 20 per cent, 15 per cent and 
10 per cent for the period from ten years to the whole life of the project in 
business sectors listed in Annex V or VI or foreign-invested projects 
implemented in regions listed in A nnex VII (20 per cent in the case of 
investment encouraged projects; 15 per cent in the case the project is eligible 
to multiple criteria for investment incentives; 10 per cent for specially 
encouraged projects). 
 - Exemption from corporate income tax for the maximum period of four years 
commencing from the first profit-making year and 50 per cent reduction of corporate income tax for the maximum period of four subsequent years for investments in the business sectors listed in Annex V or VI or implemented in regions listed in Annex VII; the maximum period of exemption from 
corporate income tax is eight years for specially encouraged projects. 
 - Partial (50 per cent or 75 per cent ) or total refund of corporate income tax 
already paid in respect of the amount of profits reinvested in Viet Nam for projects in business sectors listed in Annex V or VI or implemented in regions listed in Annex VII.   
  As from 1 January 2004
10:  
 - Preferential corporate income tax rate: (i) 20 per cent for ten years as from 
the date of commencement of business ope rations if the investment is made 
in industries or business sectors listed in Annex I or the project is carried out in a region of difficult socio-econom ic conditions listed in Annex III; 
(ii) 15 per cent for 12 years if the investment is made in industries or business 
sectors listed in Annex I and implemented in a region of difficult 
socio-economic conditions listed in Annex III or the project is carried out in a 
region of especially difficult socio-ec onomic conditions listed in Annex IV; 
10 per cent for 15 years if the investment is made in industries or business sectors listed in Annex I and implemented in a region of especially difficult socio-economic conditions  listed in Annex IV. 
 - Exemption from corporate income tax for the period from 2 to 4 years and 
50 per cent reduction of corporate income tax for the period from 3 to 9 subsequent years depending on the industries, business sectors, the number of workers employed and the region where the project is carried out. 
 - Exemption from corporate income tax in respect of the increased portion of 
income earned from further scale-expanding and upgrading investments for 
the period from 1 to 4 years and 50 per cent reduction of corporate income tax for the period from 4 to 7 subseque nt years, depending on the industries, 
business sectors or regions. 
                                                     
 
9 Standard corporate income tax rate applicable to foreign-invested enterprises is 25 per cent pursuant 
to the Law on Foreign Investment. 
10 Standard corporate income tax rate is 28 per cent  as from 1 January 2004 pursuant to the Law on 
Corporate Income Tax No. 09/2003/QH11.  WT/ACC/VNM/42/Rev.1 
 Page 15 
 
 
   (b) Preferential import duty treatment:  
 - Exemption from import duties in respect of raw materials, components and parts for 
production for five years from the time wh en production commences for projects of 
specially encouraged business sectors listed in Annex V or implemented in regions of 
specially difficult socio-economic c onditions listed in Annex VII.  
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 Please refer to Annex IX for some information. 7. Duration of the subsidy and/or any other time-limit attached to it
 
 From 2000. 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Unfeasible. WT/ACC/VNM/42/Rev.1 
Page 16  
 
  VIII. Preferential investment credit for de velopment contingent upon export criteria 
(updating and consolidating the relevant parts of Programme V and Programme IX of the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Preferential investment credit for deve lopment contingent upon export criteria. 
2. Policy objective and/or purposes of the programme  
 To support businesses to implement investme nt and development projects that export. 
3. Background and authority for the programme  
 (a) Background:  - Decree No. 43/1999/ND-CP dated 29 June 1999 of the Government on the State's 
investment credit for development; 
 - Decree No. 106/2004/ND-CP dated 1 April 2004 of the Government on the State's 
investment credit for development (which repeals the Decree No. 43/1999/ND-CP); 
 - Decision No. 133/2001/QD-TTg dated 10 September 2001 of the Prime Minister on 
the promulgation of the Regula tion on Export supporting credit; and 
 - Decision No. 80/2002/QD-TTg dated 24 June  2002 of the Prime Minister on policies 
to encourage contractual sales of agricultural products. 
 (b) Authority:  - Development Assistance Fund. 4. Form of the subsidy
 
 - Investment loans;  
 - Post-investment interest rate support; 
 - Guarantee of investment credit;  - Short-term credit;  - Short-term export credit guarantee; and  - Bidding guarantee or contractual performance guarantee. 
5. To whom and how the subsidy is provided
 
5.1 Medium- and long-term credit support:  Before 27 April 2004:  Projects with projected export ratio of 30 per cent and higher would be considered for: 
 - Preferential credit borrowed directly fro m the Development Assistance Fund with the 
interest rate of 9 per cent/year for a lending term not exceeding ten years.  
 - For projects that have borrowed from commercial sources other than 
Development-Investment Fund:  
 (i) post-investment interest rate support from the Development Assistance Fund, 
the post-investment interest rate support is 50 per cent of the interest rate of  WT/ACC/VNM/42/Rev.1 
 Page 17 
 
 
  the development-investment credit (9 per cent per annum) or the differential 
between the commercial lending rate and th e interest rate of the development-
investment credit (9 per cent per annum); and 
 (ii) investment credit guarantee from the Development Assistance Fund (the 
guaranteed investor shall have to pay a guarantee fee of from 0.3 to 
0.5 per cent/year for the project's guaranteed amount). 
 Since 27 April 2004:   Projects with projected export ratio of 30 per cent and higher would be considered for: 
 - Post-investment interest rate suppor t from the Development Assistance Fund:  
 (i) the support is limited to the investment in fixed assets of the project; and 
 (ii) the term for post investment intere st-rate support: (i) in case of loans in 
Vietnamese Dong, the amount of support is 50 per cent of the development investment interest rate; (ii) in case of  loans in foreign currencies, the amount 
of support is 35 per cent of the interest rate of loans made in foreign currencies under the signed contract.  
 - Investment credit guarantee: the guarant eed amount should not exceed 70 per cent of 
the approved total investment capital for fi xed assets of the project; no guarantee fee 
is applied.  
 - The total support in all forms for a proj ect should not, in any case, exceed 85 per cent 
of the project's investment capital. 
5.2.  Short-term export credit: 
 - The following exporters having export cont racts would be eligible for short-term 
export credit:  
 - Producing, processing and/or trading in the priority products as stipulated by 
the Prime Minister annually. (For 2003, the list include: rice, ground nuts, coffee, tea, pepper, processed cashew nuts, fruits and vegetables, sugar, 
seafood, meat of livestock and poultr y, ceramics and porcelain, wooden 
handicraft articles, products made from rattan, bamboo and leaves, electric cables, priority mechanical products, computers and components). 
 - Having export contracts targeti ng new export markets or maintaining 
traditional export markets in accordance with the Prime Minister's regulation. 
 - Projecting to export at least 30 per cent of the annual turnover and having 
already been provided with investment loans from the Development 
Assistance Fund. 
 - The short-term lending interest rate is 80 per cent of the interest rate for 
development-investment credit at the signing time of the credit contract and be fixed 
throughout the whole lending term.  The le nding term for short-term loans depends 
on the export contract but should not exceed 12 months. 
 - Exporters eligible for short-term export credit may also be provided with bidding 
guarantee or contractual performance gua rantee.  The maximum guaranteed amount 
shall not exceed 3 per cent of the bidding price (in case of bidding guarantee) and WT/ACC/VNM/42/Rev.1 
Page 18  
 
  10 per cent of the contract value (in case of contractual performance guarantee).  No 
guarantee fee is applied.  
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
Table 1:  Export credit through the Development Assistance Fund  
 2003 2004 
Investment loans 
 Number of projects  325 394 
 Total disbursement 659,603.3 911,095.1 
 Average outstanding loans 1,062,864.1 1,687,663.6 
 Level of actual subsidy (by offsetting interest differentials) -2,159.0 11,726.6 
Short-term export supporting credit  
 Total disbursement 6,298,835 10,142,390 
 Outstanding loans 1,145,520 1,899,373 
 Level of actual subsidy (by offsetting interest differentials) 7,300 3,000 
Post-investment interest-rate support  5,300 10,100 
Unit: million VND 
7. Duration of the subsidy and/or any other time-limit attached to it  
 - From 1 January 2000. 
 - This Programme shall be terminated  upon Viet Nam's accession to the WTO by 
eliminating the export requirements from the relevant legal docum ents and the terms 
of the loans. 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Not assessable.  WT/ACC/VNM/42/Rev.1 
 Page 19 
 
 
  IX. Preferential development credit for inv estment contingent upon localisation ratios 
(updating and consolidating the relevant pa rts of Programme V and Programme XII of 
the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme  
 Preferential development-investment cred it contingent upon localisation ratios.   
2. Policy objective and/or purposes of the programme  
 To support individuals and orga nisations to increase added value. 
3. Background and authority for the programme  
 (a) Background:  - Decree No. 43/1999/ND-CP dated 29 June 1999 of the Government on the State's 
investment credit for development; and 
 - Decree No. 106/2004/ND-CP dated 1 April 2004 of the Government on the State's 
investment credit for development (which repeals the Decree No. 43/1999/ND-CP). 
 (b) Authority:  - Ministry of Finance; and 
 - Development Assistance Fund. 
4. Form of the subsidy:  - Investment loans;  
 - Post-investment interest rate support; and  - Guarantee of investment credit. 
5. To whom and how the subsidy is provided
 
5.1. Before 27 April 2004: 
5.1.1. Investment loans:  (a) Eligibility:  - Enterprises using domestically built 11,500-ton vessels; and 
 - Projects purchasing new seagoing vessels built by domestic shipbuilding 
enterprises. 
 (b) How the subsidy is provided:  - The projects of category (i) are eligible for the development-investment loans 
from the Development Assistance Fund with the maximum lending ceiling of 85 per cent of the purchase value of the vessel for a maximum lending term of ten years; and 
 - The projects of category (ii) are eligible for the development-investment 
loans from  the Development Assistan ce Fund with the maximum lending 
ceiling of 85 per cent of the total investment capital of each project for a WT/ACC/VNM/42/Rev.1 
Page 20  
 
  maximum lending term of 12 years (two  year grace period) and with the 
lending interest rate of 5 per cent/year.  
5.1.2. Post-investment interest rate support and investment credit guarantee:  (a) Eligibility:  - Domestic investment projects processing agricultural products from domestic 
materials: processing products from livestock and poultry; processing and 
preserving vegetables and fruits; produci ng cooking oil, essential oil or fat 
from vegetative materials; producing mi lk and dairy products; producing raw 
flour; producing feeds for livestock, poultry and aquatic creatures; producing 
bottled, canned or packaged drinks from fruits; 
 - Domestic investment projects of produc tion of pulp, paper, carton or artificial 
planks directly from domestic agricultural or forestry materials; and 
 - Domestic investment projects of processing and preservation of aquatic 
products from domestic material sources. 
 (b) How the subsidy is provided: 
  The above-mentioned projects may be considered for either:  
 - Post-investment interest rate suppor t from the Development Assistance Fund: 
the support is 50 per cent of the interest rate of the development investment credit; and 
 - Investment credit guarantee from the Development Assistance Fund: a 
guarantee fee of 0.5 per cent/year is applied. 
  These subsidies were terminated on 27 April 2004. 
5.2. Since 27 April 2004: 5.2.1. Investment loans:  (a) Eligibility:  - Projects to manufacture passenger cars of 25 seats or more with the minimum 
localisation ratio of 40 per cent . 
 (b) How the subsidy is provided:  - Until 31 December 2005, such projects may be  considered for inv estment loans from 
the Development Assistance Fund; the maximum lending amount for each project shall not exceed 70 per cent of its total i nvestment capital; the maximum lending term 
for a project shall not exceed 12 years; the lending interest rate shall be equivalent to 
70 per cent of the average middle- and long- term lending interest rate of domestic 
commercial banks applicable at the signing tim e of the first credit contract and fixed 
throughout the whole lending term.   WT/ACC/VNM/42/Rev.1 
 Page 21 
 
 
  5.2.2. Post-investment interest rate support and investment credit guarantee: 
 (a) Eligibility:   Projects to manufacture passenger cars of 25 seats or more with the minimum 
localisation ratio of 40 per cent .   
 (b) How the subsidy is provided: 
 - Post-investment interest rate support: 
 - the support is limited to the investment in fixed assets of the project; and 
 - the term for post investment interest -rate support: (i) in case of loans in 
Vietnamese Dong, the amount of support is 50 per cent of the development investment interest rate; (ii) in case of  loans in foreign currencies, the amount 
of support is 35 per cent of the interest rate of loans made in foreign 
currencies under the signed contract.  
 - Investment credit guarantee: the guarant eed amount should not exceed 70 per cent of 
the approved total investment capital for fi xed assets of the project; no guarantee fee 
is applied. 
  The total support in all forms for a proj ect should not, in any case, exceed 85 per cent 
of the project's investment capital. 
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
Table 2: Credit contingent on localisation through the Development Assistance Fund  
 2003 2004 
Investment loans  
 Number of projects  19 26 
 Average outstanding loans 833 1,397 
 Total disbursement 512 654 
 Level of actual subsidy (by offsetting interest differentials) 9.7 20.5 
Unit: billion VND 
7. Duration of the subsidy and/or any other time-limit attached to it  
 - From 1 January 2000. 
 - This Programme shall be terminated  upon Viet Nam's accession to the WTO by 
eliminating the localisation requirements fro m the relevant legal documents and the 
terms of the loans. 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Not assessable. 
X. Other preferential investment credit for development (part of Programme V of the 
document WT/ACC/VNM/13/Add.2) 
1. Title of the programme  WT/ACC/VNM/42/Rev.1 
Page 22  
 
   Other investment credit for development (tha t are not contingent on export or localisation 
requirements). 
2. Policy objective and/or purposes of the programme
 
 To support development investment projects of economic sectors in a number of important 
business sectors, fields of activities and regions  and key economic programs that have direct 
impacts on the transformation of economic st ructure and promote sustainable economic 
growth. 
3. Background and authority for the programme  
 (a) Background:  - Decree No. 43/1999/ND-CP dated 29 June 1999 of the Government on the State's 
development-investment credit; 
 - Decree No. 106/2004/ND-CP dated 1 April 2004 of the Government on the State's 
development-investment credit (which repeals the Decree No. 43/1999/ND-CP);  
 - Decisions No. 54/2004/QD-BTC dated 16 June 2004 and No. 80/2004/QD-BTC 
dated 12 October 2004 of Minister of Fina nce on the promulgation of a detailed List 
of programs and projects eligible for the State's development-investment credit; and 
 - Other relevant legal documents. 
 (b) Authority:  - Ministry of Finance; and 
 - Development Assistance Fund. 
4. Form of the subsidy
 
 - Investment loans; and 
 - Post-investment interest rate support; and  - Investment credit guarantee. 
5. To whom and how the subsidy is provided
 
5.1. Before 27 April 2004 
5.1.1. Investment loans 
 (a) Eligibility:    The following projects shall be eligible  to apply for investment loans from the 
Development Assistance Fund if the projects are commercially feasible:  
 - Investment projects in disadvantaged regions (as stipulated by the Government's 
regulations guiding the implementation of the Law on Domestic Investment 
Promotion) in the following industries and business sectors:  
 - Electricity; minerals exploitation (ex cept for oil and gas, mineral water, gold 
and gems); basic chemicals; fertilizers; micro-biological insecticides; 
 - Manufacture of agricultural machine tools and motor machines;   - Processing of agricultural, forestry, aquaculture products and making salt;  WT/ACC/VNM/42/Rev.1 
 Page 23 
 
 
   - Planting of concentrated forests; long-term industrial crops and fruit trees;  
 - Construction of infrastructures for communications, water supply and 
dwelling houses;  
 - Rearing aquatic animals and milking cows. 
 - Projects implementing the Government's policies on the medical, educational, 
cultural, physical training and the socialization of sports. 
 - Other priority investment projects and programmes approved by the Prime Minister.  (b) How the subsidy is provided:  -  Development-investment loans from the Development Assistance Fund with a 
maximum lending term of ten years and the lending interest rate of 9 per cent/year. 
5.1.2. Post-investment interest rate support
 
 (a) Eligibility:    Projects eligible for domestic invest ment incentives under the Law on Domestic 
Investment Promotion (amended) which have borrowed investment capital from 
credit institutions other than and fully  repaid their borrowed capital, having 
completed the investment stage and moved onto the operation stage shall be eligible 
for post-investment interest rate support  from the Development Assistance Fund if 
they have not been provided with investme nt loans or investment credit guarantee 
through the development-investment credit sources. 
 (b) How the subsidy is provided:   The support is 50 per cent of the stipulated interest rate of the development-
investment credit.  
5.1.3. Investment credit guarantee
 
 (a) Eligibility:  
   Projects eligible for domestic invest ment incentives under the Law on Domestic 
Investment Promotion (amended) that have  not been provided with post-investment 
interest rate support or have not bo rrowed or borrowed only a part of the 
development-investment loans.   
 (b) How the subsidy is provided: 
  The guaranteed amount and duration corres pond to the terms of the commercial loans 
for the total investment capital of a project. A guarantee fee of 0.5 per cent /year of the project's guaranteed amount is applied. WT/ACC/VNM/42/Rev.1 
Page 24  
 
  5.2. Since 27 April 2004
 
5.2.1. Investment loans  
 (a) Eligibility:   The following projects shall be eligible  to apply for investment loans from the 
Development Assistance Fund if the projects are commercially feasible: 
 - Afforestration projects to supply materials for the production of paper, pulp, artificial 
planks; 
 - Hi-tech projects to produce pure or new plant varieties/seeds, animal breeds;  - Household water supplying projects;  - Industrial salt producing projects; 
 - Antibiotics producing projects; 
 - Projects to invest in establishments for vocational training;  - Projects of production of high quality sp ecialized steel, steel billets from ores; 
 - Aluminium exploitation and production projects;  - Projects to invest in building new train carriages at domestic factories; 
 - Train locomotive manufacturing and assembly projects; 
 - Shipbuilding yards projects;  - Projects to manufacture diesel engines with capacity of 300 CV or more;  - Projects to produce heavy and new mechanical products;   - Large-scale casting projects;  - Projects to construct large hydroelectric power plants; 
 - Projects producing nitrogenous fertilizer, DAP; 
 - Projects to build the sample ships;  - Projects to manufacture diesel engines with capacity from 100 to 400 horsepower; 
and 
 - Projects to implement the Government's special social programs and schemes such as 
reinforcement of agricultural irrigation and drainage systems, etc. 
 (b) How the subsidy is provided:    The period for investors of the above pr ojects to apply for investment loans from the 
Development Assistance Fund is until 31 December 2005.  The maximum lending 
amount for a project shall not exceed 70 per cen t of its total investment capital.  The 
maximum lending term for a project shall not exceed 12 years.  The lending interest 
rate shall be equivalent to 70 per cen t of the average middle- and long-term 
commercial lending interest rate of domestic commercial banks at the signing time of 
the first credit contract and fixed throughout the whole lending term. 
5.2.2. Post-investment interest rate support and investment credit guarantee
 
 (a) Eligibility:  
 - The projects eligible for development-i nvestment loans as described in section 5.2.1 
that have just borrowed a part or none of  the development-investment loans; and 
 - Other projects in the List of industries, business sectors and regions eligible for 
investment incentives under the Government's regulations guiding the implementation of the Law on Domestic I nvestment Promotion (amended) that are 
not eligible for investment loans from the Development Assistance Fund.  WT/ACC/VNM/42/Rev.1 
 Page 25 
 
 
   (b) How the subsidy is provided:  
 - Post-investment interest rate support:   - the support is limited to the investment in fixed assets of the project;  
 - the term for post investment interest -rate support: (i) in case of loans in 
Vietnamese Dong, the amount of support is 50 per cent of the development 
investment interest rate; (ii) in case of  loans in foreign currencies, the amount 
of support is 35 per cent of the interest rate of loans made in foreign currencies under the signed contract. 
 - Investment credit guarantee: the guarant eed amount should not exceed 70 per cent of 
the approved total investment capital for fi xed assets of the project; no guarantee fee 
is applied.  
  The total support in all forms for a proj ect should not, in any case, exceed 85 per cent 
of the project's investment capital. 
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 Please refer to Annex X for further information. 
7. Duration of the subsidy and/or any other time-limit attached to it  
 From 1 January 2000. 8. Statistic data permitting an assessment  of the trade effects of the subsidy
 
 Negligible. WT/ACC/VNM/42/Rev.1 
Page 26  
 
  XI. Support for development of textile and gar ment sector (updating Programme VI of the 
document WT/ACC/VNM/13/Add.2 ) 
1. Title of the programme
 
 Programme supporting the implementation of the Development Strategy of Viet Nam's textile 
and garment sectors until the year 2010. 
2. Policy objective and/or purposes of the programme  
 To develop textile and garment sectors to generate employment. 
3. Background and authority for the programme  
 (a) Background:  - Decision No. 55/2001/QD-TTg dated 23 Ap ril 2001 of the Prime Minister on the 
approval of the Development Strategy a nd certain supporting policies and measures 
to implement the Development Strategy of Vi et Nam' s textile and garment industries 
till the year 2010; and 
 - Decision No. 17/2002/QD-TTg dated 21 January 2002 of the Prime Minister on 
directions of development of cotton trees for the period 2001-2010.  
 (b) Authority: 
 - Ministry of Industry; and 
 - Development Assistance Fund. 
4. Form of the subsidy
 
 - Development-investment credit incentives; 
 - Investment incentives; and 
 - Trade promotion service. 
5. To whom and how the subsidy is provided  
 - Projects developing materials areas (e.g. planting cotton trees, mulberry trees, 
growing silkworms); investing in w aste water treatment works; building 
infrastructures for new industry clusters; training and research projects of clothing 
and textile institutes, colleges and research centers; 
 - Domestic investment projects in production of fibres, finished weaving, printing and 
dyeing, textile materials, garment auxiliary materials and textile and garment mechanical engineering are eligible for i nvestment incentives in accordance with the 
Law on Domestic Investment Promotion (refe r to Programme V of this Notification 
for further details). These projects are also eligible for the development-investment 
credit from the Development Assistance Fund (refer to Programme X for further 
details); and  WT/ACC/VNM/42/Rev.1 
 Page 27 
 
 
   - All the fees collected from granting textile and garment export quotas and quota 
bidding charges are reserved for trade promotion activities and development of human resource for textile and garment sectors (effective until Mid-2005)
11:   
 - Beneficiaries of trade promotion activities funded by the above source of fees 
and charges include enterprises of all economic sectors exporting textile and 
garment products, which have actually paid for textile and garment quotas 
and quota bidding and 
 - The fund allocated to each enterp rise should not exceed the actual total 
payment for textile and garment quotas and quota bidding of the relevant 
enterprise in any case.  
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 By the end of 2003, total fees collected fro m granting textile and garment export quotas was 
VND 113 billion, of which VND 45 billion was spent on training and VND 14 billion on trade promotion activities.  
7. Duration of the subsidy and/or any other time-limit attached to it
 
 From 2001-2010.   With respect to trade promotion activities f unded by fees collected from granting textile and 
garment export quotas and quota bidding char ges: from 2001-Mid-2005 (abolished by the 
virtue of the Decision No. 52/2005/QD-BTC da ted 25 July 2005 which abolished  the fee 
collection of textile and garment export quotas). 
8. Statistic data permitting an assessment  of the trade effects of the subsidy
 
 Negligible. 
                                                      
11 This provision is no longer effective by the virtue of the Decision No. 52/2005/QD-BTC dated 
25 July 2005 which abolished  the fee collection of textile and garment export quotas.  WT/ACC/VNM/42/Rev.1 
Page 28  
 
  XII. Export Promotion (updating Programme VIII of the document 
WT/ACC/VNM/13/Add.2) 
 
1. Title of the programme
 
Export promotion. 
2. Policy objective and/or purposes of the programme  
  To encourage Vietnamese exports, mainly agricultural products.  3. Background and authority for the programme
 
 (a) Background: 
Decisions No. 1116/2003/QD-BTM dated 9 September 2003 and No. 1462/2003/QD-BTM 
dated 7 November 2003 of Minister of Trad e promulgating the Regulation on export bonus 
for exporters who obtain higher export value in  2003 in comparison with that in 2002. 
 (b) Authority: 
- Ministry of Finance; and 
- Ministry of Trade. 
4. Form of the subsidy  
 Export bonus.  5. To whom and how the subsidy is provided
 
- Commodities to be considered for expor t bonus: rice; coffee; groundnut; pork; 
livestock and poultry meat; fruits  and vegetables; tea; pepper; processed cashew nuts; 
handicrafts; articles made from rattan, bam boo and leaves, plastic articles, mechanical 
products, tra and basa catfish;  
- Criteria:  Traders of all economic sectors operating legally under Vietnamese laws that 
directly export the above-mentioned comm odities with the export value of each 
commodity in 2003 exceeding that in 2002. For rice, coffee, pepper and processed cashew nuts, only exporters satisfying the following minimum export values in 2002 
of each commodity could be considered for export bonus: Export sale of rice, coffee, 
pepper and cashew nut must be at leas t US$1 million, US$500,000, US$100,000, 
US$100,000 respectively; and  
- Source of bonus funding: Export Promotion Fund. 
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
  WT/ACC/VNM/42/Rev.1 
 Page 29 
 
 
  Table 3:  Rate of bonus  
 
No.  Commodities Rate of bonus 
(VND per 1 US$ of the portion of the export value in 
2003 exceeding the 200 2 export value)* 
1 Pork 1000 
2 Fruits and vegetables 1000 
3 Tea 1000 
4 Livestock and poultry meat  1000 
5 Rice 300 
6 Handicrafts 300 
7 Articles made from rattan, bamboo and leaves 300 
8 Coffee 300 
9 Ground nuts 300 
10 Pepper 300 
11 Processed cashew nuts 300 
12 Plastic products 300 
13 Mechanical products 300 
14 Tra and basa catfish 300 
* Applicable to the positive difference between the export value of 2003 and that of 2002 in US$ on the basis of FOB 
price at Viet Nam ports or similar modes of transport. 
 
Table 4:  Spending from the Export Pr omotion Fund for export bonus (billion VND)  
Budget year 2003 Budget year 2004 
156.583 3.587 
7. Duration of the subsidy and/or any other time-limit attached to it  
- From  2003. 
- This programme shall be terminated upon Viet Nam's accession to the WTO. 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 As in Section 6 above. WT/ACC/VNM/42/Rev.1 
Page 30  
 
  XIII. Trade Promotion (updating Programme X of the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Support for market development and trade promotion activities.  2. Policy objective and/or purposes of the programme
 
 - To facilitate enterprises to access export markets; 
- To improve knowledge on how to  approach export markets; 
- To diversify lines of goods, improving goods  structures and penetrating and/or 
extending export markets; and 
- To publish information a bout Vietnam's export goods. 
3. Background and authority for the programme  
 (a) Background12: 
- Circular No. 86/2002/TT-BTC dated 27 Sept ember 2002 of the Ministry of Finance 
on guidelines of providing financial assi stance for trade promotion to enhance 
exports; 
- Decision No. 57/2003/QD-TTg dated 17 April 2003 of the Prime Minister on 
approving national key trade promotion programme; 
- Decision No. 104/2003/QD-BTM dated 24 January 2003 of Minister of Trade on 
promulgation of the Regulation on devel opment and management of national key 
trade promotion programme; 
- Decision No. 253/2003/QD-TTg dated 25 Nove mber 2003 of the Prime Minister on 
approving the Project for development of national brand names in the period 
until 2010; and 
- Other relevant legal documents. 
(b) Authority: - Ministry of Trade; 
- Ministry of Finance. 
4. Form of the subsidy
 
 Partial funding of the trade promotion activities.  5. To whom and how the subsidy is provided
 
- Principles for providing assistance: Enterpri ses participating in a key trade promotion 
programme shall contribute the funding, with the State paying a part via the agency in charge of the programme. 
                                                     
 
12 The Prime Minister has recently issued the Decision No. 279/2005/QD-TTg dated 3 November 2005 
on the promulgation of the Regulation of development and implementation of national trade promotion programmes for the period of 2006 – 2010. This Decision has repealed all previous provisions related to the 
trade promotion programmes which are inconsistent with the newly promulgated Regulation.  WT/ACC/VNM/42/Rev.1 
 Page 31 
 
 
  - Trade promotion activities eligible for the assistance include:  
 (i) Commercial information, dissemina tion of information about exports, and 
establishing a database for assisting enterprises; 
 (ii) Consultancy on export;  (iii) Training for enterprises on export business skills; 
 (iv) Trade exhibitions and fairs for export goods; 
 (v) Search for and survey of export markets;  (vi) Popularising national brand name s and the special/typical products of 
Vietnam; 
 (vii) Initial expenditures for establishmen t the infrastructures for trade promotion 
such as setting up bonded warehouses, tr ade promotion centers, introduction 
of export products both in Viet Nam and overseas markets; 
 (viii) Researching the application and development of e-commerce to service 
export; 
 (ix) Other trade promotion activities approved by the Prime Minister. 
- Beneficiaries: enterprises of all economic sectors which participate in a key trade 
promotion programme (i.e. pr ogramme participants).  
- Level of assistance: 
  - 50 per cent of the costs of activities (i)-(v); and 
  - 70 per cent of the costs of the remaining activities. 
- Sources of the funds to provide assistance: Every year the State Budget will reserve 
0.25 per cent of the total value of the previous year's export figures for the whole 
country (excluding petroleum) for use to assist national key trade promotion 
programs. 
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
Table 5:  Spending from the Export Promotion Fund for trade promotion  
Budgeting year 2003 Budgeting year 2004 
45.489 90.553 
Unit: VND billion 
7. Duration of the subsidy and/or any other time-limit attached to it  
 From 2002 to 2005, except for the Project for development of nationa l brand names which 
will continue until 2010. 
8. Statistic data permitting an assessment  of the trade effects of the subsidy  
 Negligible. WT/ACC/VNM/42/Rev.1 
Page 32  
 
  XIV. Support for mechanical products ( updating Programme XI of the document 
WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Support for mechanical products. 2. Policy objective and/or purposes of the programme
 
 To facilitate the development of mechanical industry. 
3. Background and authority for the programme  
 (a) Background: 
- Decision No. 67/2000/QD-BCN dated 20 Nove mber 2000 of Minister of Industry on 
promulgation of the List of mechanical pr oducts eligible for investment incentives as 
stipulated in Article 5.1 of the Resolution No. 11/2000/NQ-CP dated 31 July 2000 of 
the Government on some solutions to mana ge the socio-economic development plan 
for the last 6 month of the year 2000; and 
- Decision No. 186/2002/QD-TTg dated 26 December 2002 of the Prime Minister 
approving the Development strategy for Vietnam's mechanical industry until 2010 
with vision to 2020. 
 (b) Authority: 
- Ministry of Industry; and 
- Development Assistance Fund. 
4. Form of the subsidy  
- Development-investment credit; and 
- Other incentives. 
5. To whom and how the subsidy is provided  
 - Investors of projects to manufacture mech anical products of the following categories, 
who have signed contracts for borrowing th e development-investment loans from the 
Development Assistance Fund since 5 December 2000:  
 - Mechanical products for agriculture, forestry, fishery and processing 
industries; 
 - Mechanical products for engine manufactory and integrated equipments, 
construction equipments and mach ine-tool of different types; 
 - Investment projects for transportation;  - Mechanical products under equipment manufacturing and electrical 
materials; 
 - Mechanical parts and accessories fo r automobile and motor assembling; 
 - Fixative alloyed-aluminium; high quality soldering iron and welding rod 
serving for shipbuilding industry; high quality bolt with durable level from 8.8 upward, screw nut with durable level from 9.0 upward. 
  WT/ACC/VNM/42/Rev.1 
 Page 33 
 
 
   Incentives: 
  - Preferential interest rate of 3 per cent /year for those disbursed since 1 June 
2001; the lending term is 12 years with a two year grace period. 
 - Projects to manufacture the following key mechanical products:   - Complete equipment; 
 - Prime movers; 
 - Mechanical engineering in service of agriculture, forestry, fishery and 
processing industry; 
 - Machine tools;  - Construction engineering; 
 - Shipbuilding engineering; 
 - Electrical technical equipment; and  - Automobile engineering and transport engineering. 
  Incentives:   - Development-investment loans from Development Assistance Fund: lending 
interest rate of 3 per cent/year for a maximum lending term of 12 years 
including a two year grace period. In  cases where projects have borrowed 
capital from credit institutions, the diff erential between the lending interest 
rate of development-investment loans a nd that of credit institutions shall be 
offset by the Development Assistance Fund; 
 - Import duty exemption or reduction for materials and parts of key mechanical 
products in service of domestic production; and 
 - Tax exemption or reduction within a certain period for mechanical products 
that are newly produced in Viet Nam.  
6. Subsidy per unit, or in case where this is not  possible, the total amount or the annual amount 
budgeted for the subsidy  
 Data not available. 
7. Duration of the subsidy and/or any other time-limit attached to it  
- The period for investors of the projects as described in section 5 to apply for the 
development-investment credit from the De velopment Assistance Fund is from 2000 
until 27 April 2004.  After 27 April 2004, only projects to produce heavy and new mechanical products are eligible for investment loans from the Development 
Assistance Fund (refer to Programme X of this Notification for further details). 
8. Statistic data permitting an assessment of the trade effects of the subsidy
 
- Negligible. WT/ACC/VNM/42/Rev.1 
Page 34  
 
  XV. Support for shipbuilding industry (updating Programme XIII of the document 
WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Support for the shipbuilding industry. 2. Policy objective and/or purposes of the programme
 
 To develop the seagoing shipbuilding industry. 
3. Background and authority for the programme  
 (a) Background:   Decision No. 117/2000/QD-TTg dated 10 Oc tober 2000 of the Prime Minister on 
some policies and financial mechanism for shipbuilding projects of Viet Nam's 
shipbuilding industry. 
 (b) Authority:  - Ministry of Transport; and 
 - Development Assistance Fund. 
4. Form of the subsidy
 
- Development-investment credit; 
- Tax incentives. 
5. To whom and how the subsidy is provided  
5.1 Domestic shipbuilding enterprises  
 (a) Beneficiaries: shipbuilding enterprises of all economic sectors with the following 
projects: 
- Projects to build the following types of new seagoing vessels:  
 - Commercial seagoing vessels with deadweight ton of 3,000 or more; 
 - Dredger vessels with capacity of 1,000 cube metric per hour or more; 
 - Oil tankers vessels with dead weight ton of 1,000 or more; 
 - LPG vessels with capacity of 1,200 cube metric or more; 
 - Fishing vessels with capacity of 300 CV or more; and 
 - Passenger seagoing vessels with 100 seats or more. 
- Investment projects on upgrading, expanding and newly establishing shipbuilding 
factories. 
- Projects to build new 32 seagoing vessels for the Viet Nam National Shipping Lines 
(VINALINES). 
 (b) How the incentives are granted: 
- Exemption from export duty for seagoing vessels;  WT/ACC/VNM/42/Rev.1 
 Page 35 
 
 
  - Exemption from import duty for machinery, equipment, means of transportation (of 
the technological line) to establish the ente rprise's fixed assets and raw material, 
semi-products used in the shipbuildi ng process which cannot be produced 
domestically; 
- Exemption from and reduction of land rental in accordance with the Law on 
Domestic Investment Promotion (amended); 
- Exemption from corporate income tax for th e first two years as from the time when 
taxable income arises and 50 per cent reducti on of the tax payable for two subsequent 
years; and 
- Preferential interest rate of 3.5 per cent/ year for a maximum lending term of 12 years 
including a two year grace period (not applicable to new projects from 27 April 2004 
as after this date, only investment projects  on shipbuilding factories capable to build 
vessels with the capacity of 10,000 ton or more and projects building model ships are eligible to the development-investment cr edit as described in Programme X of this 
Notification).  
5.2.  Support provided to VINASHIN to implement priority mechanical products programme 
under Decision No. 37/2000/QD-TTg: As described  in Programme III of this Notification.  
5.3. Mechanical products of shipbuilding industry: As described in Programme XIV of this 
Notification for further details. 
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Table 6: Credit for shipbuilding industry through the Development Assistance Fund  
 Year 2003 Year 2004 
Number of projects 29 27 
Average outstanding loans 423 785 
Disbursement 318 574 
Level of actual subsidy (by offsetting interest differentials) 9.7 17.4 
Unit: VND billion  
7. Duration of the subsidy and/or any other time-limit attached to it  
From 25 October 2000. 
8. Statistic data permitting an assessment of the trade effects of the subsidy  
 Negligible. WT/ACC/VNM/42/Rev.1 
Page 36  
 
  XVI. Assistance for commercial development in mountainous, island and ethnic minority 
areas (updating Programme XIV of the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Supports provided for merchants in the mountainous, island and ethnic minority areas. 2. Policy objective and/or purposes of the programme
 
 To develop the mountainous, island and ethnic minority areas. 
3. Background and authority for the programme  
(a) Background: 
Decision No. 02/2002/ND-CP dated 3 January  2002 of the Government on amending 
and supplementing a number of articles of the Decree No. 20/1998/ND-CP dated 
31 March 1998 of the Government on trade development in the mountainous, island 
and ethnic minority areas; its implementing legal documents. 
 (b) Authority: 
- State Bank of Viet Nam; and 
- Ministry of Finance. 
4. Form of the subsidy  
- Preferential lending interest rate. 
5. To whom and how the subsidy is provided  
 (a) Beneficiaries 
Merchants doing business in the mountainous, island and ethnic minority areas to 
supply essential goods that have significant impact on living and production of ethnic 
communities in mountainous, island and ethnic minority areas. 
 (b) Method 
Preferential lending interest rate: 20 per cen t reduction of the normal lending interest 
rate for merchants who borrow from commerc ial banks for stock-holding, retail sale 
of essential goods and purchase of agro-forestry products in the mountainous, island 
and ethnic minority areas (the reduction made by commercial banks shall be 
compensated by the Government). 
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual amount 
budgeted for the subsidy:  
Data not available. 
7. Duration of the subsidy and/or any other time-limit attached to it  
From 2002.  WT/ACC/VNM/42/Rev.1 
 Page 37 
 
 
  8. Statistic data permitting an assessment of the trade effects of the subsidy  
 Negligible. WT/ACC/VNM/42/Rev.1 
Page 38  
 
  XVII. Assistance to enterprises facing difficult ies due to objective reasons (Programme XV of 
the document WT/ACC/VNM/13/Add.2) 
1. Title of the programme
 
 Tax and fees relief for enterprises facing difficulties due to objective reasons. 2. Policy objective and/or purposes of the programme
 
 To assist enterprises facing difficulties due to  objective reasons to recover their business 
activities. 
3. Background and authority for the programme  
 (a) Background:  
 - Decision No. 172/2001/QD-TTg dated 5 November 2001 of the Prime Minister; 
 - Circular No. 32/2002/TT-BTC dated 10 April 2002 guiding the implementation of 
Decision No. 172/2001/QD-TTg dated 5 October 2001 of the Prime Minister; and 
 - Decree No. 69/2002/ND-CP dated 12 July 2002 of the Government. 
 (b) Authority:  
 - Ministry of Finance. 
4. Form of the subsidy:  
 Disbursement, postponement, freezing and forg iveness of tax and other dues to the state 
budget.  
5. To whom and how the subsidy is provided  
 - Beneficiaries: enterprises of all forms,  including foreign invested enterprises, other 
organisations and individuals (excluding th e farmers subject to the regulations on 
agricultural land use tax) currently doing bu siness, who owe tax and other dues to the 
state budget because of objective reasons; and 
 - Outstanding tax and other dues to the stat e budget to be relieved: turnover tax, value 
added tax, excise tax, export and import tax,  land tax, income tax, corporate income 
tax, royalty, tax on agricultural land use, the value of land use right, land use rental, 
fees for using state budget capital, basic depreciation, fees and charges belonging to 
the state budget, fines on the above-mentioned amounts overdue to the state budget. 
 (a) Postponement of payable tax and other dues to the state budget:   
  Beneficiaries: enterprises owing tax and other dues to the state budget are not able to 
make that payment in time due to the following objective reasons: 
 - Policy change in terms of taxation and other dues to the state budget, for 
example: the Government increases tax rate and other dues to the state 
budget, therefore directly affects enterprises' business activity, and consequently causes debts to these enterprises;  WT/ACC/VNM/42/Rev.1 
 Page 39 
 
 
   - Relocation of enterprises upon request of competent authorities, which forces 
them to cease or reduce trade and production scale, to increase investment costs in new location, and consequently  causes tax debt to these enterprises; 
 - Restructure of trade and producti on activities, change in business sector, 
production of new products in replacem ent of old products, together with 
difficulties in the beginning stage, result in loss and tax debt; and 
 - Loss due to natural disaster, which directly affects enterprises' business 
activity and results in tax debt.  
  The duration of postponement in the above circumstances is determined as follows:    - Six months with respect to enterprises owing tax due to policy change in 
terms of taxation and other dues to the state budget; an extension of another 
six months may be considered; and 
 - 12 months with respect to enterprises owing tax due to relocation, restructure 
of trade and production activities and natural disaster. 
  Enterprises producing and trading goods and providing services which have not 
received the capital that should have been granted from the state budget, consequently 
are not able to pay tax and other dues to the state budget. 
  Enterprises exporting goods for foreign debt payment
13 as instructed by the 
Government, which have not received the pa yment that should have been provided by 
the Government, consequently are not able  to pay tax and other dues to the state 
budget. 
 (b) Freezing of outstanding tax and other dues to the state budget: 
  Eligibility: enterprises having outstanding tax and other dues to the state budget, 
which are not able to make that payment due to their nearly bankrupt or dissolvent situation, are considered to be frozen from these outstanding tax and other dues. The duration of freezing is determined between th e date of debt confirmation and the date 
of bankruptcy or dissolution.  
 (c) Forgiveness of outstanding tax and other dues to the state budget:   Outstanding tax and other dues to the state budget with respect to enterprises under 
the process of transfer, equitization or merg ing into another enterprise are forgiven.  
  Outstanding tax and other dues to the state budget with respect to enterprises which 
suffer loss due to objective reasons and are not able to pay that debt. 
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Data not available. 
7. Duration of the subsidy and/or any other time-limit attached to it  
From 21 January 2001. 
                                                      
13 Tax repayment for the old government's debts to the former COMECON countries were made in 
kind.  
 WT/ACC/VNM/42/Rev.1 
Page 40  
 
  8. Statistic data permitting an assessment of the trade effects of the subsidy
 
 Negligible.  WT/ACC/VNM/42/Rev.1 
 Page 41 
 
 
  XVIII. Incentives for investment projects in sc ience and technology (Updating Programme XVI 
of the document WT/ACC/VNM/13/Add.2)  
1. Title of the programme  
 Incentives for investment projects in science and technology. 2. Policy objective and/or purposes of the programme
 
 To encourage enterprises to invest in sci entific and technological operations aimed at 
reforming and improving technology and enha ncing the quality of products and the 
effectiveness of production and business. 
3. Background and authority for the programme  
 (a) Background: 
- Decree No. 119/1999/ND-CP dated 18 September 1999 of the Government on a 
number of financial policies and measures to encourage enterprises to invest in science and technology projects; 
- Decree No. 99/2003/ND-CP dated 28 August 2003 of the Government on issuing the 
Regulation for high-tech zones; and 
- Decision No. 53/2004/QD-TTg dated 5 April 2004 by the Prime Minister on a 
number of policies to encourage investment projects in high-tech zones. 
 (b) Authority: 
- Ministry of Science and Technology; and 
- Ministry of Finance. 
4. Form of the subsidy
 
- Tax incentives; 
- Land-related incentives; and 
- Development-investment credit. 
5. To whom and how the subsidy is provided  
 (a) Enterprises of all economic sectors investing in scientific and technological 
operations  
 - Refer to Programme XVI of the doc ument WT/ACC/VNM/13/Add.2 for detailed 
information of all forms of incentives gr anted to enterprises investing in the 
below-mentioned scientific and technological  operations.  The corporate income tax 
incentives described therein are only applicable to tax periods until 
31 December 2003. For tax periods as from 1 January 2004 onwards, the corporate 
income tax incentives are only applicab le to the Vietnamese businesses and 
foreign-invested businesses having projects in scientific research and technology development, science and technology services; consultancy in terms of legislation, 
investment, business, corporate governance, intellectual property rights and technology transfer (refer to Programme V and VII of this Notification for further 
details). WT/ACC/VNM/42/Rev.1 
Page 42  
 
   - Scientific and technological opera tions to be encouraged include: 
 - Research and development (including basic study, applied study and 
experimental introduction) conducted by enterprises by themselves or on the basis of contracts with domestic and foreign organizations and individuals; 
 - Application of results of science and technology, reform of technology and 
production of new products; 
 - Scientific and technological services: 
 (a)   High-tech services, such as guidance for installation and operation of 
technological processes; restoration, repair and adjustment of machinery, equipment, experimental tools, measu ring tools and scientific and technical 
equipment with automatic control functions; 
 (b)  Data processing, calculation and analyses directly serving research and 
development, inspection and tests; 
 (c)  Preparation of pre-feasibility studies and feasibility studies;  (d)  Operations relating to protection of industrial property rights and transfer of 
technology and application of ne w technology to production; and 
 (e)  Services relating to information, scientific and technological consultancy, 
training of technicians, developmen t and improvement of knowledge of 
business management. 
 (c) Incentives for investment pr ojects in high-tech zones:  
  Foreign and domestic organizations, enterp rises and individuals having an investment 
project in a high-tech zone shall be eligible: 
 - For investors having an investment project in a high-tech zone: corporate 
income tax of 10 per cent for the whol e duration of project implementation; 
exemption from corporate income tax for four years; reduction of 50 per cent of corporate income tax for nine subsequent years; 
 - For investors in research and deve lopment of technology or on high-level 
skills training in science and technology in a high-tech zone: exemption from land rental in accordance with regulations of the Government; and 
 - For investors in manufacturing in a high-tech zone operating in accordance 
with the Law on Promotion of Domestic  Investment: preferential medium- or 
long-term investment loans, post- investment support and investment 
guarantee from the Development Assist ance Fund in accordance with current 
regulations (refer to Programme X for further details). 
6. Subsidy per unit, or in case where this is not possible, the total amount or the annual amount 
budgeted for the subsidy  
Data not available. 
7. Duration of the subsidy and/or any other time-limit attached to it  
 From 1999. 8. Statistic data permitting an assessment of the trade effects of the subsidy
 
 Data not available.  WT/ACC/VNM/42/Rev.1 
 Page 43 
 
 
  ANNEX I 
Industries and Business Sectors Eligible  for Corporate Income Tax Incentives14 
(Issued with the Government Decree No. 164/2003/ND-CP dated 22/12/2003 providing details for the 
implementation of the Law on Corporate Income Tax and amended by the Government Decree 
No. 152/2004/ND-CP dated 6/8/2004) 
I. Afforestation and sectioning areas for forest  regeneration; planting perennial trees on 
uncultivated land and bare hills and mountains; land reclamation; salt production; aquaculture in unexploited waters: 
1.  Afforestation, taking care of forests. 
2.  Planting long-term industrial trees and fru it trees on uncultivated land and bare hills and 
mountains. 
3. Reclaiming land for agricultural, forestry and fishery production. 4.  Production, exploitation and refining of salt. 5.  Aquaculture in unexploited water. 
II.  Construction of infrastructure, deve lopment of public transportation systems; 
development of education, training, health care and national culture: 
1.  Investment in new construction or modern ization of power plants, power distribution and 
transmission. Construction of facilities to use solar energy, wind energy and bio-gas energy. 
2.  Investment in construction of water plants and water supply systems for civil and industrial 
use; investment in construction of water drainage systems. 
3.  Investment in new construction or modern ization of bridges, roads, domestic waterway, 
railways, airports, seaports, railway sta tions, bus stations and parking areas. 
4.  Construction of technical infrastructure of  concentrated population areas in the regions in 
Lists B and C issued with the Decree No. 164/2003/ND-CP. 
5.  Development of public transportation: inv estment in means of railway transportation, sea 
transportation, road transportation of p assengers by buses of 17 seats and over, and 
transportation of passengers on waterways by motorized means. 
6.  Investment in providing Internet connec tion services, Internet access services, Internet 
application services in areas in Lists B a nd C issued with the Decree No. 164/2003/ND-CP; 
and investment in mail and parcel services. 
7.  Establishment of semi-public and private school s at the levels of preschool education; general 
education, vocational high-school education, college education and university education. 
8.  Establishment of vocational training facilities to improve skills of workers. 
9.  Investment in construction of museums, libraries, cultural houses and national dance, music 
and song groups; production, ma nufacture and repair of na tional musical instruments; 
preservation of museums, libraries and cultural houses. 
10.  Establishment of private or people-funde d hospitals for examination and treatment of 
diseases, establishment of facilities for epidemic  control; establishment of centers for rescue 
and caring of the disabled and orphans, and geriatric centers. 
                                                     
 
14 Related to Programmes V and VII of this Notification. WT/ACC/VNM/42/Rev.1 
Page 44  
 
  III.  Fishery in offshore waters; processing of  agricultural, forestry and aquatic products; 
provision of direct technical services for agricultural, forestry and fishery:  
1.  Fishery in offshore waters. 
2.  Services to support the planting of agricultura l, industrial and forestry trees; activities to 
support husbandry; activities to support; fishery services; protection services for domestic 
animals; propagation and hybridization; services to preserve agricultural, forestry and fishery 
products; and construction of warehouses for preserva tion of agricultural, forestry and aquatic 
products. 
IV.  Scientific research and technological de velopment, scientific and technological services; 
consultancy on law, investment, business, corporate management, protection of 
intellectual property rights and technology transfer: 
1.  Investment in construction of technical facilities and works: laboratories and experiment 
stations to apply new technologies in production; production of new materials and rare and precious materials. 
2.  Investment in production of computers and software products. 
3.  Provision of services such as research on t echnology information, training human resources 
on technology information. 
4.  Investment in production of semiconducto rs and electronic components; production of 
telecommunication and Internet equipment; application of new technology to produce 
telecommunication and communication equipment. 
5.  Application of advanced technology; appli cation of new technology in biology: for medical 
purpose, seeding production (plants and animals), biological fertilizers, biological insecticide 
and veterinarian vaccines; collection of garbage, treatment of wastes and environmental pollution, and recycling of wastes and scrap materials. 
6.  Application of technology to use or pr oduce machinery and equipment using biological 
energy, wind energy, solar energy, tidal energy and geothermic energy. 
7.  Consultancy on law, investment, business,  corporate management, science and technology; 
and protection of intellectual property rights and technology transfer. 
V.  Other industries and business sectors: 
1.  Growing of sugar cane, cotton and tea serving the processing industry; growing of plants for 
pharmaceutical purposes; and production of seeding plants and animals. 
2.  Production of toys for children; making tex tile fabric; production of s ilk and fibers of all 
types; tanning and processing of leather. 
3.  Husbandry of cattle and poultry and aquacultu re under programs to transfer the agricultural 
economic structure to a farm or larger scale. 
4.  Production of basic chemicals, pure chem icals, chemicals for special use and dyes. 
5.  Investment in production of: medicines fo r human; medical equipment, orthopedic devices, 
vehicles and tools specifically used for the disabled; construction of warehouses for 
protection of pharmaceutical products; reserves of medicine for humans for use in case of storms, floods, natural disasters, and dangerous  epidemics; crop protective agents; medicine 
for prevention and treatment of animals and aquatic creatures. 
6.  Investment in production of: high-voltage and medium-voltage electrical equipment; diesel 
engines; equipment, machinery and components for transportation and fishing ships; machine 
tools, machinery, equipment and components for agricultural and forestry production; 
machinery for food production; machinery for te xtile and garment industries; machinery for 
the leather industry; mining machinery; machinery for construction; industrial robots; locomotives and railway compartments; autom obiles of all types and their components; 
generators; precise mechanical devices; equipm ent and machinery for safety examination and  WT/ACC/VNM/42/Rev.1 
 Page 45 
 
 
  supervision in industrial produc tion; production of moulds and prototypes for metal and non-
metal products; building and repa ir of boats and ships; production of waste treatment 
equipment and key industrial products as decided by the Prime Minister from time to time. 
7.  Production of high quality steel, alloy, non-fe rrous metals, rare and precious metals, foam 
iron for industrial use; production of special-u se cement, soundproof, insulated and high heat 
insulated materials, synthetic materials used as a replacement for wood, construction plastics, 
fibreglass and fire-proof materials; coke coal  and active coal; and production of fertilizers. 
8.  Production of traditional handicrafts and fi ne arts: carving; mother-of pearl encrusting, 
lacquer; stone-engraving; bamboo and ratta n products; carpet-weaving, silk-weaving, 
brocade-weaving, embroidery; production of pottery and porcelain products, production of 
fine-art copper products and "do" paper. 
9.  Investment in construction of class 1 mark ets, exhibition areas; trade promotion; securities 
business activities; activities in mobilizing capital and lending capital of people's credit funds. 
10.  Services of marine, aviation, railway, road and domestic waterway transportation. 
11.  Investment in construction of national touris m sites, ecological tourism sites; national parks; 
investment in construction of cultural park complexes including all activities of sports, 
entertainment and recreation. 
12.  Investment in high-tech production, processi ng and services in small and medium industrial 
zones and concentrated industrial areas. 
13.  Investment under the forms of build-operate-t ransfer contracts (BOT),  build-transfer-operate 
contracts (BTO) and build-transfer contracts (BT). WT/ACC/VNM/42/Rev.1 
Page 46  
 
  ANNEX II 
Industries and Business Sectors Eligible  for Domestic Investment Incentives
15 
(issued with the Government Decree No.  35/2002/ND-CP dated 29/3/2002) 
Investment projects in the following industries a nd business sectors shall be granted incentives:  
I.  Afforestation or forest regeneration zones; planting of perennial trees on unused land or 
barren hills; land reclamation, salt-making,  cultivation of marine products in 
unexploited waters:  
1. Planting of and caring for forests;  
2. Planting of long-term industrial crops and fruit trees on fallow land or barren hills;  
3. Land reclamation for the purpose of producti on of agriculture, forestry and fishery;  
4. Making, exploiting and refining salt;  
5. Cultivation of marine products in  unexploited natural waters.  
II. Construction of infrastructure; developm ent of public transportation; development of 
education, training, health care and traditional cultures:  
1. Investment in new construction of power pl ants, power distribution and transmission, 
construction of facilities using power gene rated by sun, wind or bio-gases.  
2. Investment in new construction of water mill s and water supply systems for industrial and 
living purposes; investment in construc tion of water drainage systems.  
3. Investment in new construction or modernization of road bridges, airports, harbours, stations, 
bus stops, parking spaces; constructi on of additional railway routes.  
4. Construction of infrastructure for concentrated residential areas in the regions included in 
List B or List C issued with this Decree.  
5. Development of public transportation: investme nt in means of railway transportation, road 
transportation of passengers by automobiles of seventeen (17) seats or over, waterway transportation of passengers by motored vehicles.  
6. Investment in provision of internet connection services, provision of internet access services, 
provision of internet application services in the regions included in List B or List C issued 
with this Decree; mail services and parcel services.  
7. Establishment of semi-private, people-f ounded and private schools at the pre-school, 
pre-tertiary, specialized secondary , college and university levels.  
8. Establishments for vocational training and im provement of skill levels of workers.  
9. Establishment of traditional cultural houses, tr aditional dance, song and music ensembles; 
manufacture, production and repair of traditi onal musical instruments; maintenance and 
preservation of traditional cultural houses and museums.  
10. Establishment of people-founded hospitals and private clinics for medical examination and 
treatment, establishment of facilities for epid emic prevention and control and sanitation; 
establishment of centres for aid activities in in tensive care of orphans and invalids, and 
geriatric centres.  
                                                     
 
15 Related to Programme V of this Notification.  WT/ACC/VNM/42/Rev.1 
 Page 47 
 
 
  III.  Offshore fishing of marine products; pro cessing of agricultural, forestry, and marine 
products; provision of technical services wh ich directly cater for agriculture, forestry 
and fishing activities:  
1. Offshore fishing of marine products;  
2. Support services for cultivation of agricultura l crops, industrial crops and forestry crops; 
support activities for animal husbandry; forestry support activities; marine product services; 
services for protection of livestock; multiplication and cross-breeding for new varieties; services for preservation of agricultural, forest ry and marine products; and construction of 
storehouses for preservation of agricultural, forestry and marine products.  
IV.  Scientific and technology research and development; scientific and technology services; 
legal consultancy, consultancy in respect of investment, business, corporate 
management, protection of intellectual property rights and technology transfer:  
1. Investment in construction of technical works and establishments; laboratories and 
experimental stations for the purpose of appl ying new technology to production; production 
of new materials and rare and precious materials.  
2. Investment in production of computers and software products.  
3. Provision of services of information technology research and training of information 
technology human resources.  
4. Investment in production of semi-conducto rs and electronic components; production of 
internet and telecommunications equipment; app lication of new technologies in production of 
information and telecommunications equipment.  
5. Hi-tech industrial application; application of new biological technology for health care 
purposes, in the production of seedlings, animals for breeding, bio-fertilizers, bio-insecticides 
and veterinary vaccines; in waste treatment, in environment pollution treatment, and in re-processing of scrap materials and refuse.  
6. Application of technology to use or to produ ce machinery or equipment using bio-energy, 
wind energy, solar energy, geo-thermal energy or tidal energy.  
7. Consultancy in respect of legal matters, i nvestment, business management; consultancy 
services in respect of  science and technology, transfer of intellectual property rights and 
technology transfer.  
V.  Investment in construction of production lines, in expansion of scale and in technology 
renovation; in environmental and ecologi cal improvement and urban sanitation 
improvement; relocation of production establishments to non-urban areas; 
diversification of industries, trades and products:  
1. Investment in new production lines, investment in expansion of scale and investment in 
technology renovation in the industries and trades stipulated in this List.  
2. Investment in waste treatment facilities for environment protection; and collection of waste.  
3. Investment in relocation of production establis hments to non-urban areas, industrial zones, 
export-processing zones, hi-tech zones or industrial complexes.  
VI.  Other industries and trades:  
1. Planting sugarcane, planting cotton, planting t ea for industrial processing; planting medicinal 
herbs; and production of seedlings and animals for breeding.  
2. Production of children's toys; weaving fabric or  completion of textile  products; production of 
all types of silk threads and fibres; tanni ng and preliminary treatment of leather.  
3. Rearing of livestock or poultry and aquacultu re under the programme for transition in the 
agricultural economic structure on a farm or larger scale.  WT/ACC/VNM/42/Rev.1 
Page 48  
 
  4. Production of basic chemicals, pure chemi cals, specialized chemicals and dyes.  
5. Investment in production of pharmaceutical medi cines for human beings; medical equipment, 
orthopaedic equipment, specialized vehicles or  equipment for the disabled; construction of 
storehouses for preservation of pharmaceutical products; storage of treatment medicines for human beings in cases of floods, storms, na tural calamities or dangerous epidemics; 
vegetation protection medicines; prevention and treatment medicines for animals and aquatic 
creatures. 
6. Investment in manufacture of medium- and high-voltage electric instruments; diesel engines; 
equipment and spare parts for transportation an d fishing ships; machin e tools, machinery, 
equipment, spare parts and other machines for agricultural and forestry production; food 
processing machinery; machinery for textile and garment industries; machinery for the leather 
industry; mining machinery; construction machinery; industrial robots; locomotives and carriages; automobiles of all types and automob ile spare parts; electric generators; precision 
mechanical equipment; equipment and machinery for safety testing and control of industrial 
production processes; manufacture of moulds fo r metal and non-metal products; building and 
repair of ships and boats; and manufact ure of waste treatment equipment.  
7. Production of high quality steel, alloy, non-ferrous metals, rare and precious metals, soft iron 
used for industrial purposes; production of sp ecialized cement, highly thermal insulating 
materials, electric insulating materials, soundproofing materials; synthesized materials to replace wood, plastic for construction, glass fibres,  fireproof materials; coke coal, activated 
charcoal; and manufacture of fertilizers.  
8. Traditional industries and trades, such as carvi ng, mother-of-pearl inlay, lacquer ware, stone 
carving; rattan and bamboo articles, carpets, silk  weaving, brocade weaving, embroidery and 
lace making; production of ceramics and china;  production of copper fine art articles; 
production of rhamnoneuron paper.  
9. Investment in class-1 markets and exhibition centres; trade promotion, capital raising and loan 
activities of people's credit funds.  
10. Pilot and salvage operations at sea.  
11. Investment in construction of national tourist sites, ecological tourists sites, and national 
parks; investment in construction of cultural park complexes with sport, recreational and 
entertainment activities.  
12. Investment in construction and operation of infrastructure in industrial zones, export 
processing zones and high-tech zones. Investment in production and processing in industrial 
zones, export processing zones, high-tech zon es, small- and medium-scale industrial zones 
and in industrial complexes.   WT/ACC/VNM/42/Rev.1 
 Page 49 
 
 
  ANNEX III 
Regions with Difficult Socio-Economic Conditions16  
(for consideration of eligibility of corporate income tax incentives as from 1 January 2004 and 
eligibility of domestic investment incentives) 
I. Districts in high mountain provinces:  
1. Bac Kan Province:  
 1. Bac Kan Township  
2. Cao Bang Province:  
 1. Cao Bang Township  
3. Ha Giang Province:   1. Bac Quang District  
 2. Ha Giang Township  
4. Lai Chau Province:   1. Dien Bien Phu Township  
 2. Dien Bien District  
 3. Lai Chau Township  5. Lao Cai Province  
 1. Bao Thang District  
 2. Cam Duong Township  
 3. Lao Cai Township  
6. Son La Province   1. Mai Son District  
 2. Son La Township  
 3. Yen Chau District  
II. Districts in mountainous and plain provinces: 
7. Bac Giang Province:   1. Luc Ngan District  
 2. Luc Nam District  
 3. Yen The District  8. Hoa Binh Province:  
 1. Kim Boi District  
 2. Ky Son District   3. Lac Son District  
 4. Luong Son District  
 5. Lac Thuy District  
 6. Tan Lac District  
 7. Yen Thuy District   8. Cao Phong District  
9. Lang Son Province:  
 1. Bac Son District   2. Cao Loc District  
 3. Chi Lang District  
 4. Huu Lung District   5. Loc Binh District  
 6. Trang Dinh District  
 7. Van Lang District   8. Van Quan District  
10. Phu Tho Province:  
 1. Doan Hung District   2. Ha Hoa District  
 3. Song Thao District  
 4. Thanh Ba District   5. Tam Thanh District  
 6. Phu Ninh District  11. Quang Ninh Province:  
 1. Hoanh Bo District  
 2. Hai Ninh District  
 3. Tien Yen District   4. Van Don District  
 5. Hai Ha District  
 6. Dam Ha District  12. Tuyen Quang Province:  
 1. Ham Yen District  
 2. Son Duong District  
 3. Yen Son District  
 4. Tuyen Quang Township  13. Thai Nguyen Province:  
 1. Dong Hy District  
 2. Dai Tu District   3. Dinh Hoa District  
 4. Phu Luong District  
14. Yen Bai Province:   1. Tran Yen District  
 2. Van Yen District  
 3. Van Chan District   4. Yen Binh District  
 5. Nghia Lo Township  
15. Binh Phuoc Province:   1. Dong Phu District  
 2. Phuoc Long District  
 3. Binh Long District  4. Chon Thanh District 
 
                                                      
16 Related to Programmes IV, V, VI, VII of this Notification.  WT/ACC/VNM/42/Rev.1 
Page 50  
 
  16. Dak Lak Province:  
 1. Cu Jut District   2. Cu M'gar District  
 3. Dak R'Lap District  
 4. Dak Mil District   5. Ea H'Leo District  
 6. Ea Kar District  
 7. Krong Pac District  
 8. Krong Buk District  
 9. Krong Ana District   10. Krong Nang District.  
17. Gia Lai Province:  
 1. An Khe District   2. Ayun Pa District  
 3. Chu Se District  
18. Kon Tum Province:   1. Kon Tum Township  
19. Lam Dong Province:  
 1. Bao Lam District   2. Cat Tien District  
 3. Di Linh District  
 4. Da Teh District   5. Don Duong District  
 6. Duc Trong District  
 7. Da Huoai District   8. Lam Ha District 
20. Binh Thuan Province:  
 1. Bac Binh District  
 2. Duc Linh District  
 3. Ham Thuan Bac District   4. Tanh Linh District  
 5. Ham Thuan Nam District  
21. Binh Dinh Province:   1. Hoai An District  
 2. Phu My District  
 3. Phu Cat District   4. Tay Son District.  
22. Hai Duong Province:  
 1. Chi Linh District   2. Kinh Mon District  
23. Ha Tinh Province:  
 1. Huong Khe District   2. Huong Son District  
 3. Ky Anh District  
 4. Nghi Xuan District   5. Vu Quang District 
24. Ninh Binh Province:  
 1. Tam Diep Township  
 2. Nho Quan District  
 3. Yen Mo District  25. Nghe An Province:  
 1. Anh Son District   2. Nghia Dan District  
 3. Tan Ky District  
 4. Thanh Chuong District  26. Ninh Thuan Province:  
 1. Ninh Hai District  
 2. Ninh Phuoc District  
27. Phu Yen Province:  
 1. Song Cau District   2. Tuy Hoa District  
 3. Tuy An District  
28. Quang Tri Province:   1. Dak Rong District  
 2. Vinh Linh District  
 3. Gio Linh District   4. Cam Lo District  
 5. Trieu Phong District  
 6. Hai Lang District   29. Quang Nam Province:  
 1. Dai Loc District  
 2. Que Son District 30. Quang Ngai Province:  
 1. Nghia Hanh District  
 2. Son Tinh District  31. Thanh Hoa Province:  
 1. Thach Thanh District.  
32. Thua Thien Hue Province:  
 1. Nam Dong District  
 2. Quang Dien District   3. Phong Dien District  
 4. Huong Tra District  
 5. Phu Loc District   6. Phu Vang District  
33. An Giang Province:  
 1. An Phu District   2. Tri Ton District  
 3. Tinh Bien District  
 4. Thoai Son District  34. Bac Lieu Province:  
 1. Bac Lieu Township  
 2. Vinh Loi District  35. Ca Mau Province:  
 1. Thoi Binh District  
 2. Tran Van Thoi District   3. Cai Nuoc District  
 4. Dam Doi District  
 5. Ngoc Hien District  
  WT/ACC/VNM/42/Rev.1 
 Page 51 
 
 
  36. Dong Nai Province:  
 1. Dinh Quan District   2. Tan Phu District  
 3. Xuan Loc District  
 4. Long Khanh District  37. Kien Giang Province:  
 1. Chau Thanh District  
 2. Hon Dat District  
 3. Giong Rieng District  
 4. An Minh District   5. Tan Hiep District  
 6. Ha Tien Township  
 7. Kien Luong District  38. Khanh Hoa Province:  
 1. Van Ninh District  
 2. Cam Ranh District   3. Dien Khanh District  
39. Soc Trang Province:  
 1. Long Phu District   2. My Xuyen District  
 3. Soc Trang Township  
 4. Cu Lao Dung District 40. Tra Vinh Province:  
 1. Cau Ngang District  
 2. Cau Ke District   3. Tieu Can District  
41. Vinh Phuc Province:  
 1. Lap Thach District  
 2. Tam Duong District  
 3. Binh Xuyen District  42. Can Tho Province:  
 1. Long My District  
 2. Vi Thuy District   3. O Mon District  
43. Tay Ninh Province:  
 1. Tan Bien District   2. Tan Chau District  
 3. Tan Thanh District  
 4. Ben Cau District  44. Thai Binh Province:  
 1. Thai Thuy District  
45. Long An Province:   1. Duc Hue District  
 2. Tan Hung District  
 3. Vinh Hung District   4. Moc Hoa District  
 5. Tan Thanh District  
 6. Duc Hoa District  46. Dong Thap Province:  
 1. Hong Ngu District   2. Tan Hong District  
 3. Tam Nong District  
 4. Thap Muoi District  47. Tien Giang Province:  
 1. Tan Phuoc District  
48. Quang Binh Province:  
 1. Quang Ninh District  
 2. Le Thuy District   3. Bo Trach District  
 4. Quang Trach District  
49. Ba Ria - Vung Tau Province:   1. Chau Duc District  
 2. Xuyen Moc District  
50. Vinh Long Province:   1. Tra On District  
 2. Tam Binh District  
 3. Binh Minh District  51. Ha Noi City:  
 1. Soc Son District  
52. Ho Chi Minh City:   1. Can Gio District  
 2. Nha Be District  
53. Ben Tre Province:   1. Thanh Phu District  
 2. Ba Tri District  
 3. Binh Dai District  
54. Bac Ninh Province:  
 1. Gia Binh District   2. Que Vo District  
55. Ha Tay Province:  
 1. Ba Vi District  56. Da Nang City:  
 1. Hoa Vang District  
57. Ha Nam Province:   1. Thanh Liem District  
58. Hung Yen Province:  
 1. An Thi District   2. Phu Cu District  
 3. Tien Lu District  
59. Binh Duong Province   1. Phu Giao District 
 
 WT/ACC/VNM/42/Rev.1 
Page 52  
 
  ANNEX IV 
Regions with Especially Difficult Socio-economic Conditions
17  
(for consideration of eligibility of corporate income tax incentives as from 1 January 2004 and 
eligibility of domestic investment incentives) 
I.  Districts in high mountain provinces and on islands: 
1. Bac Kan Province: 
 1. Ba Be District 
 2. Bach Thong District 
 3. Cho Moi District 
 4. Cho Don District  5. Ngan Son District 
 6. Na Ri District 
 7. Pac Nam District 2. Cao Bang Province: 
 1. Bao Lac District 
 2. Ha Lang District  3. Ha Quang District 
 4. Hoa An District 
 5. Nguyen Binh District  6. Quang Uyen District 
 7. Thong Nong District 
 8. Tra Linh District  9. Thach An District 
 10. Trung Khanh District 
 11. Phuc Hoa District 3. Ha Giang Province: 
 1. Bac Me District 
 2. Dong Van District 
 3. Hoang Su Phi District 
 4. Meo Vac District  5. Quan Ba District 
 6. Vi Xuyen District 
 7. Xin Man District  8. Yen Minh District 
4. Lai Chau Province: 
 1. Muong Lay District  2. Muong Te District 
 3. Phong Tho District 
 4. Tua Chua District  5. Tuan Giao District 
 6. Sin Ho District 
 7. Dien Bien Dong District  8. Muong Nhe District 
 9. Tam Duong District  5. Lao Cai Province: 
 1. Bac Ha District 
 2. Bat Sat District 
 3. Muong Khuong District 
 4. Than Uyen District  5. Van Ban District 
 6. Sa Pa District 
 7. Bao Yen District 6. Son La Province: 
 1. Bac Yen District 
 2. Moc Chau District  3. Muong La District 
 4. Quynh Nhai District 
 5. Thuan Chau District  6. Song Ma District 
 7. Phu Yen District 
7. Binh Thuan Province:  1. Phu Quy District 
8. Ba Ria - Vung Tau Province: 
 1. Con Dao District 9. Da Nang City: 
 1. Hoang Sa Island District 
10. Hai Phong City: 
 1. Bach Long Vi District 
 2. Cat Hai District 11. Khanh Hoa Province: 
 1. Truong Sa District 
12. Kien Giang Province:  1. Kien Hai District 
 2. Phu Quoc District 
13. Quang Ninh Province:  1. Co To District 
14. Quang Ngai Province: 
 1. Ly Son District  
 
                                                      
17 Related to Programmes IV, V, VI, VII of this Notification.  WT/ACC/VNM/42/Rev.1 
 Page 53 
 
 
  II. Districts in mountainous provinces and plain regions: 
15. Bac Giang Province: 
 1. Son Dong District 16. Hoa Binh Province: 
 1. Da Bac District 
 2. Mai Chau District 
17. Lang Son Province: 
 1. Binh Gia District  2. Dinh Lap District 
18. Phu Tho Province: 
 1. Thanh Son District  2. Yen Lap District 
19. Quang Ninh Province: 
 1. Ba Che District  2. Binh Lieu District 
20. Tuyen Quang Province: 
 1. Chiem Hoa District  2. Na Hang District 
21. Thai Nguyen Province: 
 1. Vo Nhai District 22. Yen Bai Province: 
 1. Luc Yen District 
 2. Mu Cang Chai District  3. Tram Tau District 
23. Dak Lak Province: 
 1. Dak Nong District  2. Krong No District 
 3. Krong Bong District 
 4. Lak District 
 5. Buon Don District 
 6. M'Drak District  7. Ea Sup District 
 8. Dak Song District 
24. Gia Lai Province:  1. Duc Co District 
 2. K'Bang District 
 3. Krong Pa District  4. Kon Ch'ro District 
 5. Mang Yang District 
 6. Ia Grai District  7. Chu Prong District 
 8. Chu Pah District 
25. Kon Tum Province:  1. Dak To District 
 2. Dak Glei District 
 3. Kon Plong District  4. Sa Thay District 
 5. Dak Ha District 
 6. Ngoc Hoi District 
 7. Kon Ray District 
26. Lam Dong Province:  1. Lac Duong District 
 27. Kien Giang Province: 
 1. An Bien District  2. Go Quao District 
 3. Vinh Thuan District 
28. Soc Trang Province: 
 1. My Tu District 
 2. Thanh Tri District  3. Vinh Chau District 
 4. Cu Lao Dung District 
29. Tra Vinh Province:  1. Chau Thanh District 
 2. Tra Cu District 
30. Binh Dinh Province:  1. An Lao District 
 2. Vinh Thanh District 
 3. Van Canh District 31. Khanh Hoa Province: 
 1. Khanh Vinh District 
 2. Khanh Son District 32. Ninh Thuan Province: 
 1. Ninh Son District 
33. Ba Ria - Vung Tau Province:  1. Tan Thanh District 
34. Bac Lieu Province: 
 1. Hong Dan District 35. Binh Phuoc Province: 
 1. Bu Dang District 
 2. Loc Ninh District 
 3. Bu Dop District 
36. Ca Mau Province:  1. U Minh District 
37. Thanh Hoa Province: 
 1. Quan Hoa District  2. Ba Thuoc District 
 3. Lang Chanh District 
 4. Thuong Xuan District  5. Quan Son District 
 6. Muong Lat District 
 7. Nhu Xuan District  8. Ngoc Lac District 
 9. Cam Thuy District 
 10. Nhu Thanh District 38. Nghe An Province: 
 1. Ky Son District 
 2. Tuong Duong District  3. Con Cuong District 
 4. Que Phong District 
 5. Quy Hop District 
 6. Quy Chau District 
39. Quang Binh Province:  1. Minh Hoa District 
 2. Tuyen Hoa District WT/ACC/VNM/42/Rev.1 
Page 54  
 
  40. Quang Tri Province: 
 1. Huong Hoa District 41. Thua Thien Hue Province: 
 1. A Luoi District 
42. Quang Nam Province:  1. Hien District 
 2. Giang District 
 3. Phuoc Son District 
 4. Tra My District 
 5. Hiep Duc District  6. Tien Phuoc District 
 7. Nui Thanh District 
 8. Dong Giang District  9. Tay Giang District 43. Quang Ngai Province: 
 1. Ba To District  2. Tra Bong District 
 3. Son Tay District 
 4. Son Ha District  5. Minh Long District 
 6. Binh Son District 
44. Phu Yen Province: 
 1. Son Hoa District 
 2. Song Hinh District  3. Dong Xuan District 
  WT/ACC/VNM/42/Rev.1 
 Page 55 
 
 
  ANNEX V 
List of Business Sectors Where Foreign Investment is Specially Encouraged18  
(Issued with the Government Decree No.  27/2003/ND-CP dated 19/3/2003) 
- Producing various kinds of new strains w ith high quality and high economic efficiency; 
- Cultivation of agricultural, forestry and aquaculture products; 
- Production of high-quality steel, alloy, non-ferrous  metal, special metal,  steel billet, sponge 
iron; iron metallurgy; 
- Manufacturing of machinery, equipment and co mponent packs for oil and gas exploitation, 
mining, and energy fields; manufacturing of large-scale lifting equipment; manufacturing machine tools for metal processing, metallurgy equipment; 
- Producing medical equipment for analytical and extractive technologies in medical sector; 
- Manufacturing equipment for testing toxicity in foodstuffs; - Manufacturing new materials and precious and rare materials; applying new bio-technology 
and new technology for manufacturing communicat ions and telecommunications equipment; 
- Manufacturing information technology products; 
- High-tech industry; 
- Investment in research and development (R&D) of 25 per cent of turnover; - Producing equipment for waste treatment; 
- Treatment of pollution and protection of environment, treatment of waste; - Producing materials for antibiotic drugs; and - Investment under BOT, BTO and BT contracts. 
                                                     
 
18 Related to Programme VII of this Notification. WT/ACC/VNM/42/Rev.1 
Page 56  
 
  ANNEX VI 
List of Business Sectors Where Foreign Investment is Encouraged
19  
(Issued with the Government Decree No. 27/2003/ND-CP dated 19/3/2003) 
- Exploration, mining and down-stream processing of minerals; 
- Regular employment of five hundred (500) or more employees; 
- Preserving foodstuffs; post-harvest prese rvation of agricultural products; 
- Development of petro-chemical industry; cons truction and operation of oil and gas pipelines, 
oil storage and ports; 
- Manufacturing precision mechanical equipment, equipment for safety examination and 
control; manufacturing jig and dies for metal and non-metal products; 
- Manufacturing high and medium voltage electric devices; 
- Manufacturing diesel engines with advanced  techniques and technology; manufacturing 
dynamic and hydraulic machinery, parts and compressing machines; 
- Manufacturing automobile and motorcycle part s; manufacturing and assembly of equipment, 
vehicles and machinery for construction; manufacturing technical equipment for 
transportation industry; 
- Building ships; manufacturing marine engines,  equipment and parts for transportation ships 
and fishing ships; 
- Manufacturing communications and telecommunications equipment; - Manufacturing electronic equipment and components; - Manufacturing agricultural and forestry equipm ent, parts and machines, irrigation equipment; 
- Manufacturing equipment for the textiles and garment industry; 
- Producing various types of materials for pesticides; - Producing basic chemicals of various kinds , purified chemicals and dyes; specialized 
chemicals; 
- Producing materials for cleansing chemi cals and additives for chemical industry; 
- Producing special cement, composite materials,  and sound, electricity and heat insulating 
materials, and wood-substitute synthetic material s, fire-proof materials, construction plastic 
and fibreglass; 
- Manufacturing light constructi on materials of various kinds; 
- Producing paper pulp; - Producing special silk, fibres and fabric for industry; 
- Producing medicine materials; medicine produc ts for treating humans with international GMP 
standard; 
- Upgrading and developing energy sources; - Public passenger transportation; - Construction and upgrading of bridges, roads, railways, airports, ports, railway stations; 
- Construction of water plants and water supply and drainage systems; 
- Construction and operation of infrastructure fac ilities of industrial zones, export processing 
zones and high-tech zones; and 
- Technical services for agriculture, forestry and fisheries. 
                                                     
 
19 Related to Programme VII of this Notification.  WT/ACC/VNM/42/Rev.1 
 Page 57 
 
 
  ANNEX VII 
List of Regions Where Foreign Investment is Encouraged20 
(Issued with the Government Decree No. 27/2003/ND-CP dated 19/3/2003) 
No.  Province/City Section A: 
Regions with special difficult socio-
economic conditions Section B: 
Regions with difficult socio-
economic conditions 
1 Ha Giang All districts and towns  
2 Cao Bang All districts and towns  
3 Lai Chau All districts and towns  
4 Lao Cai All districts and towns  
5 Son La All districts and towns  
6 Bac Kan All districts and towns  
7 Tuyen Quang All districts and towns  
8 Lang Son All districts and towns  
9 Yen Bai All districts and towns  
10 Thai Nguyen All districts and towns and Thai 
Nguyen City  
11 Bac Giang All districts and towns  
12 Vinh Phuc Lap Thach, Tam Duong, Binh Xuyen 
Districts Districts not in Section A 
13 Phu Tho All districts and towns and Viet Tri 
City  
14 Hoa Binh All districts and towns  
15 Bac Ninh  Que Vo, Yen Phong, Gia Binh, 
Luong Tai, Thuan Thanh Districts 
16 Ha Noi  Soc Son District 
17 Ha Tay  Ba Vi, My Duc, Phuc Tho, Quoc 
Oai, Thach That, Ung Hoa Districts 
18 Quang Ninh Ba Che, Binh Lieu, Dam Ha, Hai Ha, 
Hoanh Bo, Tien Yen, Dong Trieu 
Districts and Mong Cai Town Yen Hung District and Cam Pha and 
Uong Bi Towns 
19 Hai Phong  Vinh Bao, Tien Lang Districts 
20 Hai Duong Chi Linh District All districts not in Section A 
21 Hung Yen  All districts and towns 
22 Thai Binh  All districts and towns 
23 Ha Nam  All districts and towns 
24 Nam Dinh  All districts and Nam Dinh City 
25 Ninh Binh Nho Quan, Yen Mo, Gia Vien 
Districts Tam Diep Town and all districts not 
in Section A 
26 Thanh Hoa Lang Chanh, Thuong Xuan, Quan 
Hoa, Ba Thuoc, Ngoc Lac, Nhu 
Xuan, Cam Thuy, Thach Thanh, Quan Son, Muong Lat Districts All districts not in Section A 
27 Nghe  An Ky Son, Tuong Duong, Con Cuong, 
Quy Chau, Que Phong, Quy Hop, 
Nghia Dan, Anh Son, Tan Ky, Thanh Chuong, Do Luong Districts Cua Lo Town and all districts not in 
Section A 
28 Ha Tinh All districts Ha Tinh Town 
29 Quang Binh All districts Dong Hoi Town 
30 Quang Tri Quang Tri Town and all districts  Dong Ha Town 
31 Thua Thien Hue All districts Hue City 
                                                      
20 Related to Programmes VI and VII of this Notification WT/ACC/VNM/42/Rev.1 
Page 58  
 
  No.  Province/City Section A: 
Regions with special difficult socio-
economic conditions Section B: 
Regions with difficult socio-
economic conditions 
32 Da Nang  Hoa Vang, Thanh Khe, Ngu Hanh 
Son, Lien Chieu Districts 
33 Quang Nam All districts and Hoi An Town Tam Ky Town 
34 Quang Ngai All districts Quang Ngai Town 
35 Binh Dinh All districts Quy Nhon City 
36 Phu Yen All districts Tuy Hoa Town 
37 Khanh Hoa Khanh Son, Vinh Trinh Districts All districts not in Section A 
38 Binh Thuan  All districts Phan Thiet City 
39 Ninh Thuan All districts Phan Rang Town 
40 Kon Tum All districts and towns  
41 Gia Lai All districts and towns  
42 Dak Lak All districts and Buon Ma Thuot 
Town  
43 Lam Dong All districts, towns and Da Lat City  
44 Dong Nai Dinh Quan, Tan Phu, Xuan Loc 
Districts  
45 Binh Phuoc All districts and towns  
46 Binh Duong  Ben Cat, Phu Giao, Tan Uyen, Dau 
Tieng Districts 
47 Tay Ninh All districts Tay Ninh Town 
48 Ho Chi Minh City  Can Gio, Cu Chi Districts 
 
49 Ba Ria - Vung Tau  Long Dat, Xuyen Moc Districts 
50 Long An All districts Tan An Town 
51 Dong Thap  All districts and towns  
52 Tien Giang All districts and towns My Tho City 
53 Ben Tre All districts and towns  
54 Vinh Long All districts and towns  
55 Tra Vinh All districts and towns  
56 An Giang All districts and Long Xuyen City  
57 Can Th ơ All districts and towns Can Tho City 
58 Soc Trang All districts and towns  
59 Bac Lieu All districts and towns  
60 Ca Mau All districts and towns  
61 Kien Giang All districts and towns  
  WT/ACC/VNM/42/Rev.1 
 Page 59 
 
 
  ANNEX VIII 
Statistics Concerning Domestic Investment Incentives  
(In accordance with the Law on Domestic Investment Promotion (amended) 
Structure of domestic investment incentives granted by local authorities  
from 1996-2003, by types of enterprises  
Number of projects Implementation capital Number of Workers  
Types of Enterprises Number Percentage 
( % ) Total 
(bil.VND) Percentage 
(%) Number 
(person) Percentage 
(%) 
State-owned Enterprises 2584 22.8% 45239 37.7% 322151 22.9% 
Limited Liabilities Companies  
(Co., Ltd) 3992 35.2% 51798 43.1% 621330 44.1% 
Joint-stock Companies 903 8.0% 14636 12.2% 202077 14.3% 
Sole proprietor Enterprise 2776 24.4% 6181 5.1% 133001 9.4% 
Co-operatives 481 4.2% 735 0.6% 115532 8.2% 
Private Individuals, Househol ds 598 5.3% 395 0.3% 14978 1.06% 
Overseas Vietnamese  23 0.2% 1096 0.9% 503 0.04% 
Total 11357 100% 120080 100% 1409572 100% 
Structure of investment sectors in accordance w ith the list of industries eligible for domestic 
investment incentives during the period of 2001-2003  
Investment fields Number of 
projects Investment 
capital (bil.VND) Number of 
Workers 
(person) 
I. Afforestation or forest regeneration zones; planting of 
perennial trees on unused land or barren hills; land 
reclamation, salt-making, cultivation of marine products 
in unexploited waters 188 728 34,809 
II. Construction of infrastructure; development of public 
transportation; development of education, training, 
healthcare and ethnic cultures 371 6,456 30,918 
III. Production and trading of exported goods 862 7,390 223,273 
IV. Offshore fishing of marine wildlife; processing of 
agricultural, forestry, and marine products; provision of technical services which directly cater for agriculture, 
forestry and fishing activities 1,050 4,625 99,623 
V. Scientific and technology research and development; 
scientific and  technology services; legal consultancy, investment consultancy; business consultancy, 
management consultancy, protection of intellectual 
property rights and technology transfer 161 1,990 7,683 
VI. Investment in construction of new production lines, 
investment in expansion of scale, investment in 
technology renovation, investment in environmental and ecological improvement and urban sanitation 
improvement; relocation of production establishments to 
non-urban areas; diversification of industries, trades and products 2,415 25,890 254,043 
VII. Other industries  1,449 16,056 138,720 
Total 6,496 63,135 789,069 
 WT/ACC/VNM/42/Rev.1 
Page 60  
 
  Number of investment projects by regions eligible for
 
domestic investment incentives during the period of 2001-2003  
Regions eligible for domestic investment incentives Number of 
projects Investment 
capital 
(bil.VND) Number of 
Workers 
(person) 
Regions with difficult socio-economic conditions  1,863 8,350 165,080 
Regions with specially socio-economic conditions  550 1,720 76,540 
Total 2,413 10,070 241,620 
 
Number of investment projects eligible for preferential treatment with respect to land use tax and land 
rental in the Certificate of Eligibility of Domest ic investment incentives in  accordance with the Law 
on Domestic Investment Promotion (amended)  
Year No.  of projects 
1996-1997 1,389 
1998 954 
1999 637 
2000 1,641 
2001 2,425 
2002 2,823 
2003 2,769 
2004 3,602  
   WT/ACC/VNM/42/Rev.1
 Page 61ANNEX IX 
Statistics of Corporate Income Tax Incentives for Foreign-Invested Export Projects During 2001-2004  
by Business Sector  
 Enterprises registered with export ratio from 50-80% No Sector Total licensed projects No.  of projects eligib le for incentives Percentage of (4)/(3) (%) 
(1) (2) (3) (4) (5) 
1  Processing   2,209 720 33% 
2  Mining 17 3 18% 
3  Fisheries 39 10 26% 
4  Agriculture and forestry  57 23 40% 
5  Construction 45 2 4% 
6  Finance and credit  11     
7  Commerce and repairing  40 1 3% 
8  Transport, warehouse and information  52     
9  Health  13     
10  Hotels and restaurants  53     
11  Property trading and consultancy  326 49 15% 
12  Education and training 46     
13  Production and distribution of electricity, gas and water  4     
14  Culture and sports  28 2 7% 
15  Serving individuals and public  9 1 11% 
  Total 2,949 811 28% 
Note:  Number of licensed projects granted with  investment incentives  during the year.  
  WT/ACC/VNM/42/Rev.1 
Page 62 By Country and Territory of Investors  
2001 2002 2003 2004 
No.  Registered investors No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (3)/(4) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (6)/(7) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (9)/(10) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of 
(12)/(13) 
(%) 
 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 
1 Singapore  8 25 32% 8 29 28% 5 29 17% 9 55 16% 
2 Taiwan  50 146 34% 71 206 34% 76 195 39% 79 173 46% 
3 Japan  19 47 40% 27 52 52% 27 57 47% 32 72 44% 
4 Korea  35 90 39% 47 167 28% 76 191 40% 81 175 46% 
5 Hong Kong  6 21 29% 13 58 22% 19 47 40% 16 40 40% 
6 British Virgin Islands  12 31 39% 16 38 42% 9 29 31% 9 27 33% 
7 France  1 11 9% 2 15 13% 3 10 30% 3 9 33% 
8 Netherlands  0 5 0% 1 2 50% 1 8 13% 2 4 50% 
9 Kingdom of Britain  0 5 0% 4 12 33% 2 9 22% 1 8 13% 
10 Russia  3 6 50% 1 7 14% 0 3 0% 1 5 20% 
11 US  13 28 46% 15 40 38% 12 27 44% 14 30 47% 
12 Malaysia  6 16 38% 10 29 34% 9 20 45% 13 30 43% 
13 Thailand  3 13 23% 2 14 14% 4 13 31% 2 6 33% 
14 Australia  3 11 27% 2 8 25% 7 16 44% 5 15 33% 
15 Switzerland 0 4 0% 0 0   1 3 33% 0 2 0% 
16 Panama  0 0   0 0   0 1 0% 0 2 0% 
17 Cayman Islands  1 1 100% 0 0   1 1 100% 0 0   
18 Sweden  0 0   0 1 0% 1 2 50% 0 0   
19 Germany  1 6 17% 0 10 0% 5 8 63% 3 9 33% 
20 China  9 55 16% 13 70 19% 20 68 29% 20 75 27% 
21 Bermuda  0 0   0 0   0 0   0 0   
22 Philippines  3 4 75% 0 1 0% 0 2 0% 0 1 0% 
23 Indonesia  0 0   0 0   1 4 25% 1 2 50% 
24 Bahamas  0 0   0 0   0 2 0% 0 1 0% 
25 British West Indies  0 0   0 1 0% 0 0   1 1 100% 
26 Canada  0 2 0% 2 12 17% 1 7 14% 2 12 17% 
27 Channel Islands  0 1 0% 1 1 100% 0 0   0 0   
28 Denmark 0 1 0% 1 2 50% 0 8 0% 3 6 50% 
29 Italia  0 1 0% 1 3 33% 0 5 0% 2 4 50% 
30 New Zealand  1 2 50% 0 2 0% 2 2 100% 1 1 100% 
31 Belgium  3 7 43% 0 1 0% 1 2 50% 1 3 33% 
32 Turkey  1 2 50% 0 1 0% 0 0   0 1 0% 
33 Luxembourg  0 0   1 1 100% 1 2 50% 0 1 0%  
   WT/ACC/VNM/42/Rev.1
 Page 632001 2002 2003 2004 
No.  Registered investors No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (3)/(4) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (6)/(7) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (9)/(10) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of 
(12)/(13) 
(%) 
 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 
34 India  1 2 50% 0 1 0% 0 1 0% 1 1 100% 
35 Liberia  0 0   0 0   0 0   0 0   
36 Czech Republic 0 2 0% 0 0   0 0   0 0   
37 Norway  2 3 67% 2 4 50% 0 1 0% 0 1 0% 
38 Republic of Slovakia  0 0   0 0   0 0   0 0   
39 Poland  0 0   1 2 50% 1 1 100% 0 0   
40 Belarus  0 0   0 1 0% 0 0   0 0   
41 Iraq  0 0   1 1 100% 0 0   0 0   
42 Ukraine  0 0   0 0   0 1 0% 0 0   
43 Liechtenstein  0 0   0 0   0 0   0 0   
44 Austria 0 1 0% 0 2 0% 0 0   1 2 50% 
45 Mauritius  0 0   2 3 67% 0 0   4 7 57% 
46 Republic of Korea  0 0   0 0   0 1 0% 0 0   
47 Hungary  1 1 100% 0 0   0 0   0 0   
48 Cuba  0 0   0 0   0 0   0 0   
49 Isle of Man  0 0   0 0   0 0   0 0   
50 Laos 0 0   0 0   0 1 0% 0 0   
51 Samoa  0 0   0 1 0% 0 1 0% 2 9 22% 
52 Bulgaria 0 1 0% 0 0   0 0   0 0   
53 Western Samoa  0 0   0 0   0 0   0 0   
54 Macao  0 0   0 2 0% 0 1 0% 0 0   
55 Israel  0 0   0 0   0 0   0 0   
56 Cambodia 0 0   0 1 0% 0 0   0 1 0% 
57 Vanuatu  0 0   0 0   0 0   0 0   
58 Belize  0 0   0 0   0 0   2 2 100% 
59 Sri Lanka 0 1 0% 1 1 100% 0 0   1 1 100% 
60 Marshall Islands  0 0   0 0   0 0   0 0   
61 Republic of Latvia  0 0   0 0   0 0   0 0   
62 Yugoslavia 0 0   0 0   0 0   0 0   
63 Guatemala  0 0   1 1 100% 0 0   0 0   
64 United Arab Emirates 0 0   0 0   0 0   0 0   
65 Turks&Caicos Islands  0 1 0% 0 0   0 0   0 0   
66 Republic of Cyprus  0 0   0 0   0 0   0 0   
67 Guam  0 0   0 1 0% 0 0   0 0   
68 Spain  0 1 0% 0 0   0 1 0% 1 2 50%  
  WT/ACC/VNM/42/Rev.1 
Page 64 2001 2002 2003 2004 
No.  Registered investors No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (3)/(4) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (6)/(7) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of (9)/(10) 
(%) No.  of 
projects 
eligible 
for 
incentives Total 
licensed 
projects Percentage 
of 
(12)/(13) 
(%) 
 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 
69 Argentina  0 0   0 0   0 0   0 0   
70 Finland 0 0   0 0   0 0   1 2 50% 
71 Syria  0 0   1 1 100% 0 2 0% 0 0   
72 Brunei  0 0   1 1 100% 0 2 0% 1 2 50% 
73 Dominica  0 0   0 0   0 0   1 1 100% 
74 Saint Vincent  0 0   0 0   0 0   1 1 100% 
75 St Vincent & The Grenadines  0 0   0 0   0 0   0 0   
76 Guinea Bissau  0 0   0 1 0% 0 0   0 0   
77 Cook Islands  0 0   0 0   0 0   0 1 0% 
78 Saint Kitts & Nevis  0 0   0 0   0     0 0   
79 Grand Cayman  0 0   0 0   0 0   0 1 0% 
  Total 182  554 33% 248 807 31% 285 784 36% 317 804 39% 
Note:  Number of licensed projects granted with  investment incentives  during the year.  
   WT/ACC/VNM/42/Rev.1
 Page 65ANNEX X 
Statistics of Investment Incentives Contingent Upon Export Performance21 
 
Table 1: Aggregate Data of Investment Incentives Contingent up on Export Performance by Industry for Both Domestic Businesses an d Foreign-Invested 
Enterprises for the Period of 2002-200422 
 
Value Of Investment Incentives 
Beneficiaries by Industry No. of 
Beneficiaries 
2002 2003 2004 Average Annual Value 
(2002-2004) Percentage By Industry (%) 
Inclusive Of Domestic Businesses 
And Foreign-Invested Enterprises 1,291 197.22 380.82 503.45 360.52 100.00 
1.  Textile and garment industry 143 38.78 100.82 109.12 82.90 22.99 
2.  Other industries 1,148 158.45 280.00 394.33 277.62 77.01 
Unit: VND billion 
 
Note:   1) Values of investment incentives referred herein are the sum of monetary amount of tax exemption and/or reduction (inclusiv e of corporate income tax and 
import duties) and monetary amount of land-related payment exemption and/or reduction. One beneficiary may not be eligible for all the three forms of subsidy. 
 2) Average exchange rate for the period is approximately VND15.600 per US$. 
                                                      
21 Related to Programmes IV an d VI of this Notification. 
22 Related to Programmes IV an d VI of this Notification.  
  WT/ACC/VNM/42/Rev.1 
Page 66 Table 2: Data of Investment Incentives Contingent upon  Export Performance by Industry for Domestic Businesses  
for the Period of 2002-200423 
 
Value of investment incentives Beneficiaries by economic sector 
and industry No. of 
beneficiaries 
2002 2003 2004 Average annual value 
(2002-2004) Percentage by industry in 
each economic sector (%) Percentage by economic 
sector in each industry (%) 
Total of domestic businesses 1,006 54.18 227.88 294.29 192.15  100.00 
I.  State-owned enterprises: 68 22.32 29.60 59.20 37.04 100.00 19.28 
1. Textile and garment industry 14 1.61 1.31 5.38 2.77 7.47 11.48 
2.  Other industries 54 20.71 28.29 53.82 34.27 92.53 20.39 
II.  Enterprises of other 
economic sectors: 938 31.86 198.28 235.09 155.11 100.00 80.72 
1. Textile and garment industry 71 0.54 35.68 27.73 21.32 13.74 88.52 
2.  Other industries 867 31.32 162.60 207.36 133.79 86.26 79.61 
Unit: VND billion 
 
Note:   1) Values of investment incentives referred herein are the sum of monetary amount of tax exemption and/or reduction (inclusiv e of corporate income tax and 
import duties) and monetary amount of land-related payment exemption and/or reduction. One beneficiary may not be eligible for all the three forms of subsidy. 
 2) Average exchange rate for the period is approximately VND15.600 per US$. 
                                                      
23 Related to Progamme IV of this Notification.  
   WT/ACC/VNM/42/Rev.1
 Page 67Table 3  
 
Data of Investment Incentives Contingent upon Export Pe rformance by Industry for Foreign-Invested Enterprises  
for the Period of 2002-200424 
 
Value of investment incentives 
Beneficiaries by industry No. of 
beneficiaries 2002 2003 2004 Average annual value 
(2002-2004) Percentage by industry (%) 
Total of FDI enterprises 285 143.04 152.94 209.16 168.38 100.00 
1. Textile and garment industry 58 36.62 63.83 76.01 58.82 34.93 
2.  Other industries 227 106.41 89.11 133.15 109.56 65.07 
Unit: VND billion 
 
Note:   1) Values of investment incentives referred herein are the sum of monetary amount of tax exemption and/or reduction (inclusiv e of corporate income tax and 
import duties) and monetary amount of land-related payment exemption and/or reduction. One beneficiary may not be eligible for all the three forms of subsidy. 
 2) Average exchange rate for the period is approximately VND15.600 per US$. 
 
 
                                                      
24 Related to Programme VI of this Notification.  
  WT/ACC/VNM/42/Rev.1 
Page 68 ANNEX XI 
Table 1  
Credit Support Effected Via the Development A ssistance Fund (DAF) Statistics of Disbursement  
No.
  Form of subsidy Year 2003 Year 2004 Note 
I Investment loans (i.e. medium - and long-term loan)                     13,510                   10,573      
1 Total disbursement                  13,510.0                10,573.0      
  - Infrastructure (roads, public transport, re inforcement of agricultural irrigation and drai nage system, etc.)                    4,526.7                  2,657.9      
  - Basic social services (electric ity, water, public healthcare, education, housing, etc.)                    4,307.1                  2,290.7      
  - Agriculture and forestry (including processing, except for processing of aquacultural products)                    1,532.8                  1,315.9      
  - Other                    3,143.4                  4,308.6      
2 Average outstanding loans                  25,075.8                33,820.4      
  - Infrastructure (roads, public transport, re inforcement of agricultural irrigation and drai nage system, etc.)                    8,369.0                10,249.7      
  - Basic social services (electric ity, water, public healthcare, education, housing, etc.)                    4,280.4                  6,836.0      
  - Agriculture and forestry (including processing, except for processing of aquacultural products)                    4,025.7                  5,108.3      
  - Other                    8,400.7                11,626.3      
3 Bad debts                       989.4                  1,232.5    
  - Infrastructure (roads, public transport, re inforcement of agricultural irrigation and drai nage system, etc.)                         56.8                       74.4    
  - Basic social services (electricity , water, public healthcare, e ducation, housing, etc.)                         32.6                       40.1    
  - Agriculture and forestry (including processing, except for processing of  aquacultural products)                       277.9                      355.3    
  - Other                       622.1                     762.7    As of 31 December of the year 
4 Level of actual subsidy (by offsetting interest differentials)                       324.6                     504.3    
  - Infrastructure (roads, public transport, re inforcement of agricultural irrigation and drai nage system, etc.)                       181.8                     274.9    
  - Basic social services (electricity , water, public healthcare, e ducation, housing, etc.)                           5.8           19.7    
  - Agriculture and forestry (including processing, except for processing of aquacultural products)                         58. 7                       91.9    
  - Other                         78.4                     157.1    Equivalent to the differential 
between the borrowing interest 
incurred and the lending interest 
charged by DAF 
II Short-term loans for export promotion       
1 Total disbursement 6,298.80 10,142.40   
2 Average outstanding loans 1,313.40 2,232.50   
3 Bad debts 8.7 50.7 As of 31 December of the year 
4 Level of actual subsidy (by offs etting interest differentials) 7.3 3 Equivalent to the differential 
between the borrowing interest 
incurred and the  lending interest charged by DAF 
III Post-investment interest supports 101.3 109.9   
IV The total amount of supports from the State effected via DAF (I+II+III) 433.2 617.1   
Unit: Billion VND 
Note:  Data presented in this Table have included all incentives of th e development investment credit (regardless of being contingent  upon export criteria or the use of domestic goods over 
imported goods)  
   WT/ACC/VNM/42/Rev.1
 Page 69Table 2  
Development-Investment Credit Incentives Effected through Development Assistance Fund (DAF)  
for Textile and Garment Sector25 
Unit: VND million 
2003 2004 
 
  
No. of 
projects Disbursement Average 
outstanding 
loans Level of actual 
subsidy (by 
offsetting interest 
differentials) Disbursement Average 
outstanding 
loans Level of actual 
subsidy (by 
offsetting interest 
differentials) 
I.  Investment loans 91 778,069.20 1,195,222.76 1,284.50 557,323.40 1,714,927.80 14,103.70 
  Textile 50 629,554.20 1,032,206.12 2,53 6.07 485,841.85 1,467,394.19 14,720.88 
  Garment 41 148,515.00 163,016.64 -1,251.57 71,481.55 247,533.61 -617.18 
II.  Post-investment interest 
supports 46   1,588.00   3,965.00 
  Textile 25   1,184.00   2,598.00 
  Garment 21   404.00   1,367.00 
III.  Total (I + II) 137 778,069.20 1,195,222.76 2,872.50 557,323.40 1,714,927.80 18,068.70 
  Textile 75 629,554.20 1,032,206.12 3,72 0.07 485,841.85 1,467,394.19 17,318.88 
  Garment 62 148,515.00 163,016.64 -847.57 71,481.55 247,533.61 749.82 
 
Note:   Level of actual subsidy (by offsetting interest differentials) = Average outstanding loans x (borrowing interest rate – lendi ng interest rate) 
 
 
__________ 
                                                      
25 Related to Programme XI of this Notification.