RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VNM/3/Add.2 
21 July 2005 
 
 (05-3261) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
 
ACCESSION OF VIET NAM 
 
Domestic Support and Export Subsidies in Agricultural Sector  
 
Questions and Replies 
 
Addendum  
   The following submission, dated 15 July 2005, is being circulated at the request of the Delegation of the Socialist Republic of Viet Nam. 
 
 
_______________ 
 WT/ACC/SPEC/VNM/3/Add.2 
Page 2  
 
 Supporting Table DS:1 
- Public Stockholding for food security purposes  
 
Question 1 
Could Viet Nam explain how these programs meet  the criteria in Annex 2, particularly the 
criteria "Food purchases by the government shall be made at current market prices and the 
sales from food security stocks shall be made at  no less than the current domestic market price 
for the product and the quantity in question".  A reference to the law or regulations regarding 
this program would be helpful.  
Answer:  
These programs have been carried out in accordance w ith the criteria in Annex 2, because of the fact 
that food purchases for security stock and food sales from security stocks shall be publicly announced 
and made at the current domestic market prices.  
- Structural Adjustment Assistance provided through resource retirement programs  
Question 2 
We appreciate Viet Nam's willingness to move the aquaculture program from category 
"Structural Adjustment Assistance provided th rough investment aids" to this category. 
Answer:  
We thank you for the comment. - Structural Adjustment Assistance provided through investment aids
 
Question 3 
We appreciate the explanation of this program provided in 
WT/ACC/SPEC/VNM/3/Rev.2/Add.2 (October 2004).  In that document, Viet Nam states this 
program "does not mandate or in any way design ate the agricultural products to be produced 
by the recipient".   
However, in the WT/ACC/SPEC/VNM/3/Rev.4 docu ment, Viet Nam explains this program as 
support to move from the "low efficient and uns table productive crops to grow more efficient 
industrial crops".  How do producers know the "m ore efficient industrial crops" as opposed to 
the "low efficient and unstable productive cro ps"?  What is to prevent a producer from 
receiving the support and continuing to  grow the same crops as before? 
Answer:  
Structural Adjustment Assistance is implemented through Agricultural extension system.  Extension 
staffs would give comments and provide farmer s with guidelines of farm ing methods and plant 
seeds/animal breeding.  Therefore, there would be no case where farmers receive supports but 
continue to grow the same crops as before.  WT/ACC/SPEC/VNM/3/Add.2 
 Page 3 
 
 
 Defining a high efficient industrial crop/breed in a region is to be based on climate and soil conditions 
as well as production capacity.  Market demands for pl ant seeds/animal breeding to be grown are also 
taken into account.      
Supporting Table DS:2 
Question 4 
There appears to be some mathematical errors in  the table.  We would encourage Viet Nam to 
review the calculations and make appropriate adjustments. 
Answer:  
We thank you for the findings and will revise Table DS:2 accordingly.  
Supporting Table DS:5 
Question 5 
We appreciate Viet Nam's confirmation that al l the data for rice in the table are now on a 
milled basis.  It would be helpful if this fact was contained in a footnote to the table.  
Answer:  
We take note of the comment and will include in a footnote to the table DS:5.  Question 6 For sugar, it would be helpful to know how Viet  Nam converted the applied administered price 
of VND 240,000 per ton of sugar cane into the prices listed in column 4.  On what basis are the prices (applied administered and external ref erence) and eligible production expressed? 
Answer:  
 
The price of domestic sugar calculated in this ta ble was based on price of sugarcane, which was 
converted from minimum sugarcan e price of VND 240,000 per ton. 
The applied administered price of sugar is the mark et price at the time of applying minimum price to 
sugarcane.  External reference is the CIF price of imported sugar in Viet Nam's port.          
Question 7 
We appreciate Viet Nam's work to develop data on the price support it provides to cotton.   
Answer:   
We thank you for the comment. 
Supporting Table ES:1 
Question 8 We appreciate Viet Nam's attempt to provide a detailed description of the products, including 
tariff line references at least at the 6-digit level, particularly for rice and coffee.  If all 6-digit WT/ACC/SPEC/VNM/3/Add.2 
Page 4  
 
 lines included in 0203 for pork received export s ubsidies in the base period, every 6-digit line 
should be listed.  Could Viet Nam provide sim ilar data for the 6-digit categories included under 
"canned vegetables and fruits"? 
Answer: 
 
We takes note of the comments and would provide a detailed description of all 6-digit lines included 
in HS 0203.  Regarding similar data for the 6-di git categories included under "canned vegetables and 
fruits to export", an explanation has been given at th e end of the table ES:1:  "there is no compatible 
code for this group in Viet Nam's tariff nomenclature". 
Question 9 
Also, we continue to be unclear about some of the measures Viet Nam has listed in ES:1 and 
whether or not they meet the definition of an export subsidy as defined in Article 9.1 or the 
URAA.   
Answer:  
We has reviewed and eliminated the measures inc onsistent with Article 9.1 following comments and 
suggestions of Members over the previous meet ings. The remaining measures are completely 
appropriate.    
Question 10 
Perhaps it would be helpful if Viet Nam co uld provide more information (or legislation 
authorizing these programs) on how these programs operate and how they fit the definitions under Article 9.1. 
Answer: 
 
We look forward to more specific questions and shall make our best efforts to collect legal documents 
regarding these programs to submit to the Working Pa rty.  Other information on the program has been 
provided in the Notification. 
Question 11 
Again, we appreciate Viet Nam's commitment to  bind export subsidies at zero upon accession.   
Answer:  
Viet Nam commits to bind its agricultural export subs idies at zero in its Schedule of Concessions and 
Commitments on Goods.  Viet Nam has also committed previously that export subsidies applied to 
agricultural products would be eliminated upon accession.  These commitments, however, are without prejudice to Viet Nam's rights and obligations arising from WTO's existing and future rules. 
 
__________