RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/37 
7 April 2005 
 (05-1433) 
Working Party on the  
Accession of Viet Nam Original:   English 
 
 
   
ACCESSION OF VIET NAM 
 
Additional Questions and Replies
 
 
Addendum  
  
 The following submission, dated 31 March 2005, is being circulated at the request of the 
Delegation of the Socialist Republic of Viet Nam. 
 
 
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  WT/ACC/VNM/37 
 Page i 
 
 
 TABLE OF CONTENTS 
II. ECONOMIC POLICIES..........................................................................................................1  
- Investment Regime.............................................................................................................. ......1  
A. IMPORT REGULATIONS......................................................................................................1  
- Ordinary cust oms duties ........................................................................................................ ..1 
V. TRADE-RELATED INTELLECTUAL  PROPERTY RIGHTS..........................................2   WT/ACC/VNM/37 
 Page 1 
 
 
 II. ECONOMIC POLICIES 
- Investment Regime Question 1  Vietnam has only partially responded to our quest ion on the new Law on Enterprises requesting 
to learn from the Vietnamese authorities, which are the prohibited sectors. 
Answer
: 
The list of prohibited sectors/lines of business as stipul ated in Article 6(2) of the Law on Enterprises 
of 1999 and Article 3 of the Government Decree No. 03/2000/ND-CP dated 3 February 2000, shall 
include: 
(a) Trading in weapons, ammunition, military equi pment, military items and specialist military 
technical equipment of the armed forces; 
(b) Trading in explosives, poisonous chem icals, and radioactive substances; 
(c) Trading in drugs of addiction; 
(d) Prostitution, organizing prostitution services and trading in women and children; 
(dd) Providing gambling services or operating gambling venues; 
(e) Trading in chemical substances of high toxicity; 
(g) Trading in any items which belong to th e historical, cultural or museum heritage; 
(h) Trading in reactionary cultural products, porno graphic or superstitious items, or items which 
have an adverse effect on personal development; 
(i) Trading in all types of firecrackers; 
(k) Trading in wild plants and animals which are lis ted in international treaties to which Vietnam is 
a signatory or a participant, and trading in ot her rare and precious sp ecies of flora and fauna 
which require protection; 
(l) Trading in toys which have an adverse effect  on personal development or health of children or 
which have an adverse effect on social order, security and safety. 
A. IMPORT REGULATIONS 
- Ordinary customs duties 
Question 2  In its response to Question 30 (WT/ACC/VNM/33) Viet Nam indicates that the three items are 
still under reservation.  Does the expression "b eing under reservation" mean something more 
than that specific duties will be applied in order to combat fraud?  We are still looking forward 
to being provided with information on the co nversion of the other tariff lines where specific 
duties where applied.  We therefore kindly ask Viet Nam to provide the Working Party with the 
conversion methodology. 
Answer
: 
The phrase "the three items are still under reservation"  indicates Viet Nam's intention to apply specific 
duties on certain products with an aim to combat  commercial frauds.  Products to which specific 
duties may be applied are those highly exposed to co mmercial fraud risks.  Hence, Viet Nam wishes 
to use specific duty as a tool for combating fraudulent risks.  HS 8-digit tariff lines of those products 
are explicitly listed in Viet Nam's fourth Tariff Offer submitted to the Working Party in April 2004. WT/ACC/VNM/37 
Page 2  
 
 Regarding the methodology employed to convert ad-val orem tariff into specific duty, the basis for the 
calculation includes per unit average sales price of th e product in domestic market (price inclusive of 
import duties, VAT, excise tax (if applicable), co sts of transport and ot her relevant expenses, 
importer's profit) and the current applied ad valorem  rate of the product.  The specific duty is then 
calculated to be equivalent to the per unit ad valorem  rate of the product.  This calculation method 
will not trigger significant fluctuations on the ma rket and will meet the requirement of WTO or 
foreign counterparts in case ad-valorem equivale nts (AVEs) conversion from specific duties are 
requested.  
On the basis of the above conversion methodology, that takes into account of sales price of the 
product in home market and guarantees the equivale nce of specific duty and the current applied ad-
valorem duty, the specific duty of the product is dete rmined to be equivalent to import duties payable 
per unit of quantity of the product.  The import duties payable per unit of quantity of the product is previously calculated on the basis of the current applied ad-valorem import duty rate and import unit 
price of the product inclusive of import duties.  Import unit price of the product inclusive of import 
duties (which is used as the basis for determining ta xable value per unit) is based on sales price of the 
imported product in home market subj ect to deductions for the following: costs of transport and other 
expenses, importer's profit, excise tax (if applicable) and VAT.  
V. TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS 
Question 3  We would like to thank Viet Nam for the respon ses received as well as for making available to 
the Working Party Circular No. 30/2003/TT-BKHCN of 5 November 2003 of the Ministry of 
Science and Technology guiding the implementati on of procedures for establishing industrial 
property rights to inventions/utility solutions.  Fur thermore, we took note with great pleasure of 
the accession of Viet Nam to the Berne Convention of 9 Sept ember 1886 for the protection of 
Literary and Artistic Works (Paris Act, 1971)  and to the International Convention of 26 
October 1961 for the Protection of Performers , Producers of Phonograms and Broadcasting 
Organisations (Rome Convention). 
In paragraph 276 it is mentioned that Viet Nam is considering issuing an Intellectual Property 
Code in an amendment to the Civil Code.  We would appreciate to be updated on the relevant legislative developments concerning this Code.  Mo reover, it would be very useful if Viet Nam 
could make available an English version of the Draft Code to the Working Party.   
Answer
: 
The Law on Intellectual Property, which is scheduled to be considered at the National Assembly's 7th 
Session in May 2005 and passed at its 8th Session in October 2005, is being drafted.  An unofficial 
English version of the Draft Law which is to be submitted to the National Assembly in May 2005 will 
be submitted to the Working Party as soon as the translation is comple ted (around May 2005). 
Question 4  
According to this paragraph, Section 51 of the Decree No. 63/CP of 24 October 1996 of the 
Government on detailed provisions concerning in dustrial property will be amended to include 
provisions on conditions for granting compulsory  licenses in compliance with Articles 31(f),(k) 
and(l) of the TRIPS Agreement.  It will be im portant for the Working Party to be updated on 
the relevant developments of this legislative process.  WT/ACC/VNM/37 
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 Answer : 
The provisions on the conditions for granting compul sory licenses in complia nce with Articles 31(f), 
(h) and (l) of the TRIPS Agreement have been in corporated into the Draft Decree replacing the 
Government Decree No.63/CP dated 24 October 19 96 on detailed provisions for industrial property.  
The Draft Decree has been submitted to the Govern ment on 8 December 2004 for consideration and is 
expected to be issued in the middle of 2005. 
Question 5  
According to this paragraph, a draft Circular guiding the implementation of Decree 
No. 54/2000/ND-CP of 3 October 2000, which provides for protection of undisclosed tests and data submitted for marketing approval of phar maceutical and agricultural chemical products 
and includes the principles of non-disclosure and non-reliance, was expected to be promulgated 
in late 2004.  
It would be useful if Viet Nam could make this Circular available to the Working Party. 
Moreover, it would be helpful if Viet Nam co uld inform the Working Party about the latest 
developments regarding the pr omulgation of this Circular. 
Answer
: 
The Law on Competition (No. 27/2004/QH11) passed by the National Assembly on 3 December 2004 
contains in its Chapter 5 - Unfair Competition Ac ts - provisions on the protection against industrial 
property-related unfair competition (Article 39) a nd the protection of undisclosed tests and data 
(Article 41.4).  Therefore, the plan to issue a Circular guiding the implementation of the Decree 
No.54/2000/ND-CP has been cancelled. 
 
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