WORLD TRADE  
ORGANIZATION  WT/REG275/1 
12 April 2011  
 (11-1868) 
Committee on Regional Trade Agreements  
 
 
 
 
  
 
 
FACTUAL PRESENTATION 
 
Economic Partnership Agreement 
between 
Japan and Viet Nam 
(Goods and Services) 
 
Report by the Secretariat 
 
 
 
 
This report, prepared for the consid eration of the Economic Partnership 
Agreement between Japan and the Socialist Republic of Viet Nam has 
been drawn up by the WTO Secretariat on its own responsibility and in 
full consultation with the Parties.  The report has been drawn up in 
accordance with the rules and proce dures contained in the Decision for a 
Transparency Mechanism for Regiona l Trade Agreements (WT/L/671).  
 
Any technical questions arising from this report may be addressed to 
Mr. Peter Milthorp  (tel.:  +4122 739 5016). 
 WT/REG275/1 
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  TABLE OF CONTENTS 
 
Page 
 
 
I. TRADE ENVIRONMENT 1  
A. MERCHANDISE TRADE  1  
B. TRADE IN SERVICES AND INVESTMENT  5  
II. CHARACTERISTIC ELEMENTS OF THE AGREEMENT 10  
A. BACKGROUND INFORMATION  10  
III. PROVISIONS ON TRADE IN GOODS 11  
A. IMPORT DUTIES AND CHARGES AND QUANTITATIVE RESTRICTIONS  11  
1. General provisions 11  
2. Liberalization of trade and tariff lines 12  
3. Japan's liberalization schedule 14  
4. Viet Nam's liberalization schedule 17  
5. Tariff-rate quotas 21  
(a) Japan 21  
(b) Viet Nam 21  
B. RULES OF ORIGIN  21  
C. EXPORT DUTIES AND CHARGES AND QUANTITATIVE RESTRICTIONS  23  
D. REGULATORY PROVISIONS ON TRADE IN GOODS  23  
1. Standards 23  
(a) Sanitary and phytosanitary measures 23  
(b) Technical Barriers to Trade 23  
2. Safeguard Mechanisms 24  
(a) Global safeguards 24  
(b) Bilateral safeguards 24  
(c) Special Safeguards 25  
3. Anti-dumping and coun tervailing measures 25  
4. Subsidies and State-aid 26  
5. Customs-related procedures 26  
IV. PROVISIONS ON TRADE IN SERVICES 26  
A. SCOPE AND DEFINITIONS  26  
B. DENIAL OF BENEFITS  27  
C. GENERAL PROVISIONS ON TRADE IN SERVICES  27  
1. Market access 27  
2. National treatment and MFN 27  
3. Movement of Natural Persons 28  
4. Modification of  Schedules 30  WT/REG275/1 
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  D. LIBERALIZATION COMMITMENTS  30  
1. Japan 30  
(a) Horizontal co mmitments 30  
(b) Sector specific commitments 30  
2. Viet Nam 34  
(a) Horizontal co mmitments 34  
(b) Sector specific provisions on trade in services 34  
E. REGULATORY PROVISIONS  35  
1. Domestic regulation 35  
2. Recognition 36  
3. Subsidies 36  
4. Safeguards 36  
5. Other 36  
(a) Transfers 36  
(b) Monopolies and Exclusive service providers 36  
V. GENERAL PROVISIONS OF THE AGREEMENT 37  
A. TRANSPARENCY  37  
B. CURRENT PAYMENTS AND CAPITAL MOVEMENTS  38  
C. EXCEPTIONS  38  
D. ACCESSION  38 
E. INSTITUTIONAL FRAMEWORK  38  
F. DISPUTE SETTLEMENT  39  
G. RELATIONSHIP WITH OTHER AGREEMENTS CONCLUDED BY THE PARTIES  41  
H. GOVERNMENT PROCUREMENT  41  
I. INTELLECTUAL PROPERTY RIGHTS  42  
1. Other 43  
(a) Competition 43  
(b) Improvement of the Business Environment 43  
(c) Co-operation 43  
ANNEX I 44 
ANNEX II 48 
 
 
 
  WT/REG275/1 
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  Key Facts 
 
 Parties to the Agreement:  Japan and Viet Nam 
 
 Date of Signature:   25 December 2008 
 
 Date of Entry into Force:  1 October 2009. 
  Date of Notification:   1 October 2009. 
 
  
I. TRADE ENVIRONMENT 
1. The Agreement between Japan and Viet Nam for an Economic Partnership (hereinafter 
referred to as "the Agreement") was notified to the WTO pursuant to Article XXIV(7)(a) of the 
GATT and Article V(7)(a) of the GATS.
1  It is Japan's 7th agreement with a member of the 
Association of South-East Asian Nations (A SEAN) (following Japan's FTAs with Singapore, 
Malaysia, Thailand, Indonesia, Brunei Darussalam and the Philippines) and Viet Nam's first bilateral 
agreement. 
2. The parties to the Agreement have very differe nt economies – in terms of size, profile and 
development.  In 2009 Japan's GDP was estim ated at US$5,067 billion, and Viet Nam's at 
US$91.8 billion.  Japan's total merchandise e xports and imports were US$581 billion and 
US$552 billion, making it the fourth largest exporter and importer in 2009.  Vi et Nam's merchandise 
exports were US$57 billion and imports US$70 billion, making it the 26th largest exporter and 
23rd largest importer (excluding intra-EU trade).  In commercial services Japan was ranked 4th in 
exports (at US$126 billion) and imports (at US$147 billion).  Viet Nam's commercial services exports 
were US$6 billion, and imports were US$7 billion, ranking it 60th in global terms.  Their trade to 
GDP ratios averaged over 2007-2009 were 32.2 for Japan and 161.3 for Viet Nam.2  
A. MERCHANDISE TRADE  
3. Viet Nam acceded to the WTO on 11 January 2 007.  In 2009, Viet Nam's exports to and 
imports from Japan totalled US$6.4 billion and $6 .8 billion respectively making Japan Viet Nam's 
3rd largest export market and source of imports.  In 2009 Japan's exports to Viet Nam totalled 
US$6.5 billion and US$6.9 billion ranking it Japan's 16th largest export market and 17th largest source 
of imports.   
4. Recent developments in global and intra-Party trade are presented in Charts I.1 and I.2.  Over 
the period surveyed (1998-2009) Japan ran a consiste nt trade surplus which has narrowed since 2007.  
With respect to Viet Nam it has had a small but cons tant trade deficit.  Viet Nam has seen its overall 
trade deficit widen during the period surveyed.  
                                                      
1 WT/REG275/N/1 of 2 October 2009 refers.   
2 WTO Statistics Database, Trade Profiles (March 2010).   WT/REG275/1 
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  0510152025
0100200300400500600700800
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009US$billion US$billionChart I.1 - Japan: Merchandise imports from and exports to world 
and Vietnam, 2000-2009
Source : UNSD, Comtrade database.Imports from Vietnam
Exports to VietnamTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
 
 
  WT/REG275/1 
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  051015202530
020406080100
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009US$billion US$billionChart I.2 - Vietnam: Merchandise imports from and exports to world 
and Japan, 2000-2009
Source : UNSD, Comtrade database.Imports from Japan
Exports to JapanTotal imports
Total exportsLeft hand scale: Right hand scale:
 
 
5. The commodity structure of trade between the Parties as well as their imports and exports to 
the world in the period 2006-2008 is shown in Chart I.3 on the basis of Harmonized System ("HS") 
sections.  Japan's four largest export product cate gories – machinery, vehicles, base metals and 
chemicals made up 78.6% of its total exports in  2006-2008 and accounted for 70.2% of Viet Nam's 
imports from Japan.  Viet Nam's imports of ve hicles from Japan only accounted for 5.2% of its 
imports, however.  Base metals account for 19.5% of Viet Nam's imports from Japan.  Viet Nam's 
four largest export categories to the world are mine rals, textiles, vegetables and machinery, and made 
up 59.2% of its total exports to the world in 2 006-2008, and accounted for 53.6 of Japan's imports 
from Viet Nam.  Other major imports from Viet Nam were live animals (8.4%) "miscellaneous" 
(4.8%) and prepared foods (3.5%). WT/REG275/1 
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  Chart I.3
Japan and Viet Nam: product composit ion of merchandise trade, annual 
average 2006-2008
Japan's imports from Viet Nam Viet Nam's imports from Japan
Source:  UNSD, Comtrade database.Per cent
Total:  US$6.8 billion Total:  US$6.4 billion
Total:  US$655 billion Total: US$63 billion
Total:  US$714 billion Total:  US$50 billionJapan's global exports Viet Nam's global exportsJapan's global imports Viet Nam's global imports 
Machinery
22.8
Machinery 
Textiles 16.7Chemicals 6.9Wood pulp 1.7
Machinery
38.2Other 
10.2Other 
7.7
Base metals 8.6Prepared foods 
3.5
Base metals 5.6
Plastics 4.5Minerals
21.9 Plastics 6.9
Vehicles 24.9Machinery 9.9OtherOther 
3.7
Base metals 3.5Other 
7.2Machinery 
41.0
Footwear 8.6Minerals 34.8
Vehicles 3.3Animals 3.1Vegetables 2.9
Precious stones 3.3Miscellaneous 2.1Other 
8.6
Optical 1.7
Prepared foods 2.3Minerals 15.4
Vehicles 1.5Machinery 24.7
Live animals 8.4Optical 4.5
Textiles 9.1 Base metals 14.4Wood pulp 1.8
Vehicles 4.1
Optical 5.0Base metals 2.3Optical 1.8
Minerals 2.9
Chemicals 5.5
Minerals 1.7Base metals 19.5
Vegetables 10.7Live animals 7.0Miscellaneous 5.1Plastics 5.1Vegetables 2.0
Chemicals 6.3Textiless 4.6Optical 3.8Prepared foods  3.0Plastics 2.3
Chemicals 8.7Minerals 24.2
Textiles 12.7Miscellaneous 4.8Footwear 2.9Articles of wood 2.8Plastics 2.4
Plastics 9.2Textiles 6.9Vehicles 5.2
Vegetables 1.6
Prepared foods 3.0
 
  WT/REG275/1 
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  B. TRADE IN SERVICES AND INVESTMENT  
6. For commercial services, in 2009 Viet Nam was Japan's 18th largest export market and 
source of imports (0.6% and 0.5% of Japan's exports and imports). 
7. Chart I.4 shows the breakdown of total commercia l services for trade for Japan in 2000-2009.  
During that period Japan ran a deficit in its globa l services trade, although both exports and imports 
grew in general.  The main services exports duri ng the period were transportation services, other 
business services and royalties and licence fees.  The ma in imports were transportation, travel and 
other business services.  Those sectors amounted to 75.4% of services exports and 75.7% of imports.   
050100150200
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
Export
Import
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Source: WTO Secretariat estimates based on national data, and IMF.Chart I.4
Japan, total commercial services trade, 2000-2009
US$ billion
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
Note:     Exports of insurance services were negative in the following years: 2001 (US$ -102million) and 2002 (US$-380 million) .
 
 
8. Chart I.5 shows Japan's bilateral commercial services trade with Viet Nam for the period 
2006-2008.  During 2006 and 2007 Japan ran a surplus,  but in 2008 a deficit in its bilateral services 
trade with Viet Nam before moving back into surp lus in 2009.  The main export sectors in 2009 were 
construction and transportation (65. 6%) and on the import side travel and construction (65.1%).   WT/REG275/1 
Page 6 
 
 
  0100200300400500600700800900
Export Import Export Import Export Import Export Import
2006 2007 2008 2009
Source: Japan authorities and OECD (for 2009).Chart I.5
Japan, bilateral commercial servic es trade with Viet Nam, 2006-2009
US$ million
Transportation services
Travel
Communications services
ConstructionFinancial services
Computer and information services
Royalties and license feesOther business services
Personal, cultural and 
recreational servicesInsurance services
 
 
 9. Chart I.6, below, shows the breakdown for Vi et Nam's total commercial services trade for 
2006-2008.  Trade was approximately in balance in 2006, then in deficit for 2007 and 2008.  In 2008, 
Viet Nam's largest exports were travel, air and sea transport service and other services (94%).  Its 
largest imports were in the same sectors (89.8%).  WT/REG275/1 
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  0246810
Export Import Export Import Export Import
2006 2007 2008
Source: Viet Nam authorities.Chart I.6
Viet Nam, total commercial services trade, 2006-2008
US$ billion
Air and sea transport services
Postal and communications services
TravelFinance services Government services
Other services Insurance services
 
 
 
10. Japan's total global investment position is show n in Chart I.7, for the period 2000-2009.  
Japan was a net outward investor, with FDI of over US$700 billion during 2009.  Inward FDI was 
around three times less at under US$200 billion in 2009. WT/REG275/1 
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  050100150200250300350400450500550600650700750
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009050100150200250300350400450500550600650700750
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Chart I.7
Japan inward and outward foreign direct  investment stock with world, 2000-2009
Inward Outward
Source : WTO Secretariat estimates based on data at http://www.boj.or.jp/en.US$ billion US$ billion
 
 
 11. Viet Nam's total foreign direct investment stoc k is set out in Chart I.8 below, for the period 
2000-2009.  During that period Viet Nam's inward foreign investment greatly exceeded outward 
stock.    WT/REG275/1 
 Page 9 
 
 
  0510152025303540455055
2000 2001 2002 2003 2004 2005 2006 2007 2008 20090.00.51.01.52.02.53.03.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009Chart I.8
Viet Nam, inward and outward foreign  investment stock with world, 2000-2009
Inward OutwardUS$ billion US$ billion
Note: FDI outward figures: 2000 (US$ 7.2 million), 2001 (US$ 7.7 million) and 2004 (US$ 10.8 m illion).
Source: UNCTAD, Foreign Direct Investment database (inward) and Viet Nam's Ministry of Planning and Investment (outward).
 
 
 
12. Bilateral FDI relations for th e period 2007-2009 are shown below in Chart I.9. Japan's 
investment in Viet Nam greatly exceeds inwa rd investment from Viet Nam with around 
US$1.5 million in inward investment in Japan from Viet Nam in 2009 and around US$3.3 billion in 
investments to Viet Nam from Japan in 2009.   WT/REG275/1 
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  0100200300400500600
2007 2008 200902468
2007 2008 2009Chart I.9
Japan inward and outward foreign direct investment stock with Viet Nam, 2007-
2009
Inward Outward
Source : WTO Secretariat estimates based on data at http://www.boj.or.jp/en.US$ thousands US$ billion
 
 
 
II. CHARACTERISTIC ELEMEN TS OF THE AGREEMENT 
A. BACKGROUND INFORMATION  
13. The Agreement (hereinafter referred to as "the  Agreement") between Japan and Viet Nam for 
an Economic Partnership was signed on 25 December 2008 and entered into force on 1 October 2009.   
14. The goods and services aspects of the Agreement we re notified to the WTO by the parties on 
1 October 2009, under Article XXIV:7(a) of the GATT 1994 and Article V:7(a) of the GATS 
respectively (document WT/REG275/N/1 and S/C/N/513) .  The text of the Agreement, its Annexes 
and Implementing Agreement are available from the following internet site: 
 Japan:  http://www.mofa.go.jp/policy/ economy/fta/vietnam.html  
 Viet Nam: http://nciec.gov.vn/index.nciec?2276  
 
  WT/REG275/1 
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  15. The Agreement is comprised of 14 Chapters and 7 Annexes, as well as an Implementing 
Agreement, (done pursuant to Article 10 of the Ag reement) which contains subsidiary provisions on 
Customs procedures; Intellectual Property; and in ter-governmental cooperation on various aspects of 
the Agreement. 
16. There are also Implementing Regulations for implementation of the commitments contained 
in Annex 1 (tariff schedules of the par ties) and Chapter 3 of the Agreement. 
Box II.1:  Outline of the Agreement  
Chapters, Annexes  Title/description 
and Side Letters 
Preamble 
Chapter 1   General Provisions 
Chapter 2   Trade in Goods 
Chapter 3   Rules of Origin 
Chapter 4   Customs Procedures 
Chapter 5   Sanitary and Phytosanitary Measures 
Chapter 6   Technical Regulations, Standard s, and Conformity Assessment Procedures 
Chapter 7   Trad e in Services 
Chapter 8   Movement of Natural Persons 
Chapter 9   Intellectual Property 
Chapter 10   Competition 
Chapter 11   Improvement of the Business Environment 
Chapter 12   Cooperation 
Chapter 13   Dispute Settlement 
Chapter 14   Final Provisions 
Annex 1   Schedules in relation to Article 16 
Annex 2   Product Specific Rules 
Annex 3   Operational Certification Procedures 
Annex 4   Financial Services 
Annex 5   Schedules of Specific Commitments in relation to Article 62 
Annex 6   Lists of Most-Favoured-Nation Treatment Exemptions in relation to Article 63 
Annex 7   Specific Commitments for the Movement of Natural Persons 
 
Source: WTO Secretariat, based on the Agreement.  
 
 III. PROVISIONS ON TRADE IN GOODS 
A. I
MPORT DUTIES AND CHARGES AND QUANTITATIVE RESTRICTIONS  
1. General provisions  
17. Each party accords national treatment to the other per Article III of the GATT 1994 
(Article 15).   
18. Per the Scheduled commitments in Annex 1 to the Agreement, the parties have agreed to 
eliminate or reduce customs duties on the goods origina ting in the other party (Article 16).  Part 2 of 
Annex I contains the headnotes to Japan's Schedule a nd Part 3 the headnotes to Viet Nam's schedule.   
19. Annex 1 contains several categories relating to phased tariff liberalization between the 
parties: (i) goods in category "A", are subject to tariff elimination from the entry into force of the Agreement;  (ii) category  "B" goods are subject to  specified phased duty reductions in equal annual WT/REG275/1 
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  instalments;  three equal annual instalments for Category "B2" goods3;  four equal annual instalments 
for Category "B3" goods;  five equal instalme nts for Category "B4" goods six equal annual 
instalments for Category "B5" goods;  seven equa l annual instalments for Category "B6" goods;  
eight equal annual instalments for Category "B7" go ods;  nine equal annual instalments for Category 
"B8" goods;  11 equal instalments for Category "B10" goods;  13 equal instalments for Category 
"B12" goods; 16 equal instalments for Category "B15" goods;  and 17 equal instalments for 
Category "B16" goods;  (iii) goods in category "C" will  be subject to the base rates in the Schedule as 
from the date of entry into force of the Agreemen t;  (iv) Goods in category "P" will have customs 
duties reduced over four to ten year period in accordance with the notes under column 5 to Japan's 
Schedule (per the note 2(a)-(o) in Part 2, Section 1 of Annex 1):  for Category "P1" goods customs 
duties will be reduced to the base rate from the entr y into force of the Agreement, and from the first 
day of the 15th year shall be 5%;  for Category "P2" goods duty rates will be reduced to the base rate 
from the date of entry into force, and to 5% from the 18th year;  and for Category "P3" goods duty 
rates will be reduced to the base rate from the da te of entry into force, and to 50% from the 16th year;  
(v) One product in Category "Q" is exempted from further reduction commitments and subject to 
tariff-rate quotas4;  (vi) Goods in Category "R" are excluded from any tariff reduction commitment 
although they shall be subject to negotiation 5 years from the date of entry into force of the Agreement.  Tariffs on goods in category "R1" are a pplied at the base rate from the date of entry into 
force, and subject to renegotiation five years from the date of entry into force;  (vii) Goods in 
Category "X" are excluded from any tariff commitments at all.   
20. With the exception of categories "B10*", "B12*", "B15*"
5 goods will be subject to annual 
tariff elimination, commencing on the date of entry in to force of the Agreement, and subsequently on 
1 April each year thereafter (Annex 1, Part 1, paragr aphs (2) and (3).  "Year" is defined in Annex 1, 
Part 1, paragraph 3 as "the 12-month period which starts on April 1".   
2. Liberalization of trade and tariff lines  
21. Trade in goods under the Agreement is classifi ed under the Harmonized system.  (Article 14 
of the Agreement).  The overall tariff elimination sche dule is described below in Tables III.1 A and B.   
22. Table III.1A sets out customs duty elimination (t ariff lines and trade) as applied by Japan to 
imports from Viet Nam.6  Prior to the entry into force of th e Agreement, 3,657 tariff lines (41.4%), 
corresponding to 65.7% of Japan's imports from Viet Nam during 2006-08 were already duty-free on 
an MFN basis.  Upon entry into force of the Agr eement, an additional 3,567 lines became duty-free 
corresponding to 25.9% of imports by value from Viet Nam.  The remaining tariffs are to be 
progressively eliminated in stages, starting in April 2010 and ending in 2024.  By 2018, after ten years 
of implementation, a further 203 lines will have be come duty free (2.3% of tariff lines) amounting to 
2.6% of Japan's imports from Viet Nam.  By the end of implementation in 2024, 89.3% of tariff lines 
and 96.5 % of imports by value from Viet Nam will be duty-free.   
                                                      
3 Instalment schedules are part of the headnote to Annex 1 – for any equal annual instalments the first 
instalment takes place on the date of entry into force of the Agreement, and the second and further instalments 
on 1 April of each year. 
4 Per Article 11 of the Agreement, the Implementing regulations describe the modalities for issue of the 
certificates required for use of  the tariff rate quota system.  Part 2 (Japan) section 1(i)(i), page 78, establishes the 
annual volume growth, from 100 metric tonnes through to 150 metric tonnes after the 11th and subsequent years.  
Duty rates on the covered product will be 12.8% in-quota, and subject to the base rates for out of quota volumes. 
5 These categories of goods are found in Viet Nam's Sc hedule, column 5 and are subject to phased tariff 
elimination per section 2 (a)-(j) of Part 3 of Annex 1.   
6 Japan's applied MFN tariff in 2009 consisted of 8,836 lines at the HS 9-digit level.  Of these, 8,233 
are subject to ad valorem  rates of duty;  603 lines (6.8% of the tariff) had non ad valorem  rates, including 203 
specific, 322 mixed and 56 compound rates.  In addition 22 tariff lines carry other duties.   WT/REG275/1 
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  Table III.1A 
Tariff elimination commitments under the Agreement and corresponding average trade 
A. Japan 
Duty phase-out 
period Number of lines % of total lines in 
Japan's tariff schedule Value of Japan's imports 
from Viet Nam 
(2006-2008) 
in million US$ % of Japan's total 
imports from  
Viet Nam 
2006-2008 
MFN duty free (2009) 3,657 41.4 4,421.5 65.7 
2009 3,567 40.4 1,746.2 25.9 
2012 12 0.1 70.0 1.0 
2014 94 1.1 92.6 1.4 
2016 96 1.1 12.9 0.2 
2018 1 0.0 0.0 0.0 
2019 369 4.2 152.6 2.3 
2024 94 1.1 3.1 0.0 
Remain dutiable 946 10.7 234.0 3.5 
Total 8,836 100.0 6,732.9 100.0 
 
Note: Tariff lines subject to in-quota rates are excluded in the computation. 
 Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on da ta provided by Japan. 
 
23. Table III.1B shows tariff elimination commitments by Viet Nam under the Agreement and the 
corresponding average imports from Japan during 2006-08.7  Prior to the entry into force of the 
Agreement 2,776 tariff lines were duty free on an MFN basis corresponding to 47.8% of Viet Nam's 
imports from Japan.  At entry into force of the Ag reement, an additional 21 tariff lines (0.2% of the 
tariff) became duty free for imports from Japan am ounting to 0.3% of imports value from Japan.  
Tariffs are to be phased out progressively eliminated in annual stages with the bulk of liberalization to 
take place in 2019 and 2024.   
24. After ten years following the entry into force of the Agreement (2018), 4,046 tariff lines 
(43.2% of the tariff) are to be duty free for imports from Japan.  At the end of implementation of the 
Agreement in 2025 duties on all but 788 tariff lines are to be duty free as a result of which 91.6% of Viet Nam's tariff will be duty free corres ponding to 90.1% of imports value from Japan. 
Table III.1B 
Tariff elimination commitments under the Agreement and corresponding average trade 
B. Viet Nam 
Duty phase-out 
period Number of lines % of total lines in  
Viet Nam's tariff 
schedule Estimated value of 
Viet Nam's imports from 
Japan a 
(2006-2008) 
in million US$ % of Viet Nam's total 
imports from  
Japan 
2006-2008 
MFN duty free (2009) 2,776 29.6 3,043.0 47.8 
2009 21 0.2 19.2 0.3 
2010 5 0.1 10.8 0.2 
2011 47 0.5 18.7 0.3 
2012 26 0.3 8.6 0.1 
2013 64 0.7 220.5 3.5 
2014 111 1.2 102.4 1.6 
2015 162 1.7 46.2 0.7 
2016 295 3.1 118.3 1.9 
2017 125 1.3 77.6 1.2 
2018 414 4.4 216.9 3.4 
2019 3,055 32.6 1,539.1 24.2 
2021 9 0.1 54.4 0.9 
2022 1 0.0 1.0 0.0 
2023 6 0.1 2.8 0.0 
                                                      
7 Viet Nam's MFN tariff in 2009 was applied at the HS 12 digit level.  It contains 9,374 lines, 9,317 of 
which are subject to ad valorem  rates of duty, while 57 lines are CKD (completely knocked down) products 
without tariff rates.  The applicable tariffs for these 57 lines are applied to parts and components, by the time of 
importation.  WT/REG275/1 
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  Duty phase-out 
period Number of lines % of total lines in  
Viet Nam's tariff 
schedule Estimated value of 
Viet Nam's imports from 
Japan a 
(2006-2008) 
in million US$ % of Viet Nam's total 
imports from  
Japan 
2006-2008 
2024 1,408 15.0 240.9 3.8 
2025 61 0.7 23.7 0.4 
Remain dutiable 788 8.4 628.4 9.9 
Total 9,374 100.0 6,372.6 100.0 
 
a The value of imports was estimated due to the differences in th e HS digit between the import and the tariff data.  The data 
containing imports are originally at the HS 8-digit level which are now aligned to HS 12-digit le vel similar to the data contai ning 
the tariffs. 
 
 Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on data  provided by Viet Nam. 
 
3. Japan's liberalization schedule 
25. Chart III.1 gives further details about duty elimin ation by Japan under the Agreement.  Before 
the Agreement's entry into force, Japan's MFN dut y on 3,657 lines was zero.  Under the Agreement, 
most of the lines which became fr ee of duty for imports from Viet Nam at entry into force had MFN 
rates of up to 10% with some liberalizat ion of rates between 10 and 20% and non ad valorem  rates.  
Further liberalization, especially of tariff lines with  MFN rates of between 10 and 20% is concentrated 
towards the end of implementation in 2024.  
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,0002009201220142016201820192024Chart III.1
Japan's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Japan.Number of duty-free lines (cumulative)
Duty-free ≤10% ≤20% MFN is: non ad valorem ≤30% ≤50% ≥50% ≤40%
 
 
  WT/REG275/1 
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  26. Table III.2A shows Japan's tariff elimination commitments vis-a-vis Viet Nam by HS section 
product categories.  Of the 3,567 lines liberalized upon entry into force of the Agreement, 1,905 fall 
under HS section XI, (textiles and textiles articles) while the others are distributed across the other 
HS sections with 641 falling under HS Section VI , (chemicals and chemical products).  Of the 
946 lines retaining a duty at the end of the implementation period, the majority fall under HS sections 
I to IV with most lines in Sections IV (prepared foods) and I (live animals and animal products).  The 
overall average tariff in 2026 on the lines remaining dutiable will be 17.6% with the highest rates 
for prepared foods (22.4%) and vegetable products (20.4%).  
Table III.2A 
Japan: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  
HS section and 
description  MFN 
average
% Total 
No. of 
lines  
MFN  
2009  
2009 
2012 
2014 
2016 
2018 
2019 
2024 
Remain 
dutiable  
Avg. Final 
Tariff 
(Dutiable) 
% 
I Live animals and 
animal products 8.3 517 112 50 7 26 9  37 4 272 13.9 a 
II Vegetable products 6.1 529 166 140  10 13  79 22 99 20.4 a 
III Animal or 
vegetable fats and oils 3.8 86 20 22  1 1  5  37 14.5 a 
IV Prepared foods etc. 16.4 764 79 46 5 27 36  115 68 388 22.4 a 
V Minerals 0.5 216 163 34  18     1 - 
VI Chemicals and 
chemical products 2.3 1,050 398 641  1 1  1  8 14.2 a 
VII Plastics and rubber 2.5 296 103 170  9   14    
VIII Hides and skins 10.5 193 65 3   12 1 71  41 13.4 
IX Wood and articles 3.4 263 94 85  2 21  15  46 6.2 
X Pulp, paper etc. 0.0 169 169          
XI Textiles and 
textiles articles 6.5 1,989 78 1,905       6 - 
XII Footwear, 
headgear 16.4 104 6 23   1  26  48 16.4 
XIII Articles of stone 1.2 164 99 63   1  1    
XIV Precious stones, 
etc. 1.3 80 58 22         
XV Base metals and 
base metals products 0.9 852 614 238         
XVI Machinery 0.1 919 905 14         
XVII Transport 
equipment 0.1 146 145 1         
XVIII Precision 
equipment 0.2 279 270 6     3    
XIX Arms and 
ammunition 6.9 24  24         
XX Misc. 
manufactured articles 1.8 189 106 80   1  2    
XXI Works of art, etc. 0.0 7 7          
Total 4.8 8,836 3,657 3,567 12 94 96 1 369 94 946 17.6 
 
- Specific duty. a  Contains ad valorem  and alternate duties. 
 Note: Tariff lines subject to in-quota rates are excluded in the computation;  for the calculation of averages, specific rates are excluded 
and the ad valorem  part of alternate rates are included. 
Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on da ta provided by Japan. 
 
27. Chart III.2 shows a comparison of average du tiable rates in those HS Sections where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines subject to preferential duties only.  For those 
HS Sections where tariff peaks remain after im plementation of the Agreement is completed, the 
preferential duties are lower than the MFN duties fo r all except for HS Sections II, III and VI.  The 
most significant differences between applied preferential rates and MFN rates can be found WT/REG275/1 
Page 16 
 
 
  Section XII, where the preferential average on re maining tariffs is 16.4% compared to the MFN 
average of 25.5% on corresponding tariff lines and Sec tion VIII with a preferential average of 13.4%, 
compared to the MFN average of 21.6%. 
0.0 10.0 20.0 30.0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXII*XIXIXVIIIVIIVI*VIVIIIIIIChart III.2
Japan:  Average of dutiable rates, by HS Section
HS Section  
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation.
          *HS sections V and XI only contain specific duties.
Source :  WTO Secretariat estimates, based on data provided by Japan.Average rate of duty (%)
MFN Preferential
 
28. Chart III.3 compares the average dutiable rates for those HS chapters where preferential 
duties remain at the end of the implementation period with their corresponding MFN rates.  The 
comparison is between the average preferential and MFN rates for lines subject to preferential duties 
only.  For most HS chapters the average pref erential tariffs remaini ng are identical to the 
corresponding MFN rates.  However, preferential av erage tariffs are slightly lower than the MFN 
average tariffs in Chapters 3, 16, 19, 20, 21, a nd 44 while average preferential tariffs are to be 
considerably lower for HS Chapters 41 (8.6 % compared to an MFN average of 28.9%), 
42 (10.5% compared to an MFN rate of 12.7%) and 64 (16.4% compared to an MFN average of 
25.5%).    WT/REG275/1 
 Page 17 
 
 
  05101520253035404550
01
02
0304
07
0810
11
1213
15
1617
18
1920
21
2223
2405101520253035404550
*25
29
35
41
42
43
44
*50
64Chart III.3
Japan: Average of dutiable rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
Note: For tariff lines with non ad valorem  components, only the ad valorem  part of alternate rates are included in the calculation; 
          * HS Chapters 25 and 50 only contain specific duties.
Source :  WTO Secretariat estimates based on data provided by Japan. 
 
4. Viet Nam's liberalization schedule  
29. Chart III.4 gives further details about duty elim ination by Viet Nam under the Agreement.  
During the first ten years of implementation of the Agreement, most of the lines which are to be 
liberalized will carry rates of up to 10% with a fe w lines with MFN duties of between 10% and 20%.  
Most lines with MFN rates of above 30% are to be liberalized only towards the end of 
implementation, between 2019 and 2024. WT/REG275/1 
Page 18 
 
 
  0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000200920102011201220132014201520162017201820192021202220232024Chart III.4
Viet Nam's duty elimination under the Agreement
Year of duty free treatment   
Source: WTO Secretariat estimates, based on data provided by Viet Nam.Number of duty-free lines (cumulative)
Duty-free ≤10% ≤20% MFN is: non ad valorem ≤30% ≤50% ≥50% ≤40%
 
 
30. Table III.3 shows Viet Nam's tariff elimination commitment vis-à-vis  Japan by HS section 
product categories.  Most of Viet Nam's tariff liber alization under the Agreement is to take place after 
10 years of the Agreement's entry into force in  2018 when 4,954 lines will become duty free for 
imports from Japan.  The liberalization concerns all HS Sections.   
31. The tariff lines that will remain dutiable at th e end of the implementation period (2027) are 
found in particular in HS Sections XVIII (optical and photographic material and surgical instruments), 
XVI (machinery and mechanical appliances), IV (pre pared foods) and XV (base metals and articles of 
base metals).  
   WT/REG275/1
 Page 19Table III.3 
Viet Nam: Tariff elimination under the Agreement, by HS section 
Number of duty-free lines  HS section  
MFN average%  
Total No. of 
lines  
MFN 2009  
2009 
2010 
2011 
2012 2013 
2014 
2015 
2016 
2017 
2018 
2019 
2021 
2022 2023 
2024 
2025 
Remain dutiable  
Avg. Final Tariff 
(Dutiable) 
% 
I 15.5 350 31           133    181  5 20.8 
II 17.1 396 64 7      1   2 127    192  3 6.7 
III 15.0 151           7 77    67    
IV 31.4 399 13          5 94    208  79 48.0 
V 7.4 206 40       19 3 1 53 60    1  29 26.2 
VI 4.3 1,207 683 1     1 27 2 9 69 318   1 78 1 17 19.5 
VII 10.3 459 84      4  6 9 80 178    37 20 41 24.6 
VIII 14.6 87 27          1 28    31    
IX 9.7 140 54       3   6 40    37    
X 14.1 290 38      1 4 81 2  155    6  3 29.0 
XI 12.2 960 83       10 127 1 8 688 3    3 37 12.4 
XII 27.1 64        3    13    48    
XIII 18.3 205 22     1  2 2  22 67    70 2 17 35.2 
XIV 11.1 75 11  5     28   3 2    26    
XV 7.9 980 341 2   3  15 29 38 25 51 342 4   78  52 16.7 
XVI 7.5 2,178 931 7  46 23 59 69 28 34 72 79 459  1 5 169 35 161 17.8 
XVII 22.4 606 85 3     21  2 5 8 122 2   25  333 30.7 
XVIII 5.0 348 228   1    8  1 20 57    33    
XIX 6.8 30 23                 7 29.0 
XX 20.4 233 14 1    4      91    119  4 25.0 
XXI 6.0 10 4           4    2    
Total 11.4 9,374 2,776 21 5 47 26 64 111 162 295 125 414 3,055 9 1 6 1,408 61 788 26.9 
 
Note: Based on the HS 2007 nomenclature. 
 
Source : WTO estimates based on data  provided by Viet Nam. WT/REG275/1 
Page 20 
 
 
  32. Chart III.5 shows a comparison of average du tiable rates in those HS sections where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines subject to preferential duties only.  For those 
HS sections where tariffs remain after implementati on of the Agreement is completed, the preferential 
duties will be identical to the MFN duties for HS sec tions I, II, V, X, XIII, XIX and XX, whereas the 
preferential duties will be lower than the MFN du ties for HS sections IV, VI, VII, XI, and XV to 
XVII.  Significantly lower tariff rates are found in HS Sections XI and XVII, with the highest MFN 
and preferential rates in HS Section IV (prepared foods), (MFN 51.6% and preferential rate of 48%). 
0.0 10.0 20.0 30.0 40.0 50.0 60.0XXIXXXIXXVIIIXVIIXVIXVXIVXIIIXIIXIXIXVIIIVIIVIVIVIIIIIIChart III.5
Viet Nam:  Average of dutiable rates, by HS Section
HS Section  
Source :  WTO Secretariat estimates, based on data provided by Viet Nam.Average rate of duty (%)
MFN Preferential
 
 
 
33. Chart III.6 shows a comparison of average du tiable rates in those HS chapters where 
preferential duties remain at the end of the implem entation period.  The comparison is made between 
the average preferential and MFN rates for lines subject  to preferential duties only.  With regard to 
HS Chapters 1-24 for those Chapters where ta riff peaks remain after implementation of the 
Agreement is completed, the preferential duties will be identical to the MFN duties except for 
Chapter 22.  For Chapters 25-97 preferential duti es will be lower than their corresponding MFN rates 
for Chapters 29, 30, 40, 50-52, 54-60, 72-73, 84-85,  and 87.  The highest preferential and MFN tariffs 
are found in Chapters 63 (60% MFN and preferential)  and 22 (MFN 56.7% compared to a preferential 
average of 50%).  WT/REG275/1 
 Page 21 
 
 
  05101520253035404550556065
03
0412
13
1721
22
2405101520253035404550556065
25
2933
36
3948
51
54565860
70
7384
87
93Chart III.6
Viet Nam: Average of dutia ble rates, by HS Chapter
HS  01-24 HS 25-97Average rate of duty (%)  
Average rate of duty (%)  
HS Chapter HS Chapter
MFN Preferential
Source :  WTO Secretariat estimates based on data provided by Viet Nam. 
 
5. Tariff-rate quotas 
(a) Japan 
34. In addition to tariff-rate quotas (TRQs) provide d on an MFN basis, Japan provides one TRQ 
on honey (HS040900000) under the Agreement.  Annex 1, Part 2 Section 1(i) provides for the quota 
volume to rise from 100 metric tonnes in the first year through to 150 tonnes for the 11th and 
subsequent years.  The in-quota duty rate is fixed at 12.8%.  Imports above the quota quantity enter at 
the prevailing MFN rate (25.5% in 2009).  Renego tiation of the TRQ is not provided for under the 
Agreement.  The TRQ will remain in place after the 11th year.   
(b) Viet Nam 
35. Viet Nam maintains some TRQs on an MFN basis (s alt, bird eggs, sugar, and tobacco).  It has 
no additional TRQs under the Agreement.   
B. RULES OF ORIGIN  
36. Rules of origin are in Chapter 3 of the Ag reement (Articles 23-37).  Article 23 establishes 
definitions of key terms and Articles 24-36 set out the mechanism for determining the origin of a 
good.  Annex 2 sets out product specific rules for determining the origin of a good. WT/REG275/1 
Page 22 
 
 
  37. Article 24 defines three instances in which a good qua lifies as originating in the territory of a 
party – if it:  (a) is wholly produced or obtained in its territory8;  (b) meets defined local value content 
("LVC") of greater than 40% or change in tariff clas sification ("CTC") at four digit level described in 
Article 26 and Article 30 or (c) is locally pro duced in the territory of a party from materials 
originating in the party.  Article 27 est ablishes the formula for calculation of LVC.9  A good shall not 
be considered to satisfy the requirements of CTC or specific manufacturing or processing operations 
merely by reason of inter alia  operations to ensure preservation of  products in go od condition during 
transport and storage, changes of packaging, di sassembly, placing in bottles, case and boxes and other 
simple packaging operations, or mere making up of  sets of articles or any combinations of these 
(Article 30). 
38. Product specific rules are described in Annex 2 and the good shall be qualified as an 
originating good if it satisfies the applicable product sp ecific rules, such as a cha nge at the level of the 
chapter, heading or subheading (HS two, four and si x digit respectively) instead of the LVC contents 
of 40% or CTC at the four-digit level described in  Article 26.  With regard to some textiles and 
clothing articles, the general rule is a change at th e chapter or heading level, although in some cases, 
non-originating materials used must  accompany sp ecific processes.  In the case of fabrics, such 
processes as spinning, dyeing or printing should be done entirely in either Party or a non-party which 
is a member state of the ASEAN.10  
39. Article 28 sets out de minimis  rules.  A non-originating good shall be considered to originate 
in the parties if all non-originating materials used in its production that do not undergo an applicable 
CTC do not exceed specific percentages of the fr ee-on-board ("FOB") value of the good.  These 
percentages are: 10% of the value of goods in HS ch apters 16, 19, 20, 22, 23, 28 to 49 and 64-97, and 
7 or 10% of the FOB of particular goods  in HS ch apters 9, 18 and 21 and 10 % of the total weight of 
the good in the case of HS chapters 50-63.  Article 29 permits cumulation of materials originating in 
the other Party.   
40. Article 31 provides that preferential tariff treatment under the Agreement shall only be 
granted when goods are consigned directly from the territory of one party to the other.  Articles 32 
and 33 respectively provide that packing materials and incidentally included materials (e.g. spare 
parts) shall not be considered when determining the origin of a good.  The impact of "indirect" 
materials on the determination of origin of a good is  set out in Article 34.  Article 35 provides that 
generally accepted accounting principles shall be used in determining whether identical or 
interchangeable materials are orig inating materials.  Article 36 establishes that the certification 
procedures specified in Annex 3 of the Agreement govern procedures for certificates of origin and 
related matters.   
                                                      
8 Applicable to plant and plant products grown and harvested, picked or gathered in the Party;  live 
animals born and raised in the Party;  goods obtained from live animals in the Party;  goods obtained from 
hunting, trapping, fishing, gathering, or capturing in the Party;  minerals and other naturally occurring 
substances not included above, extracted or taken from soil, waters, seabed or beneath the seabed of the Party;  
goods of sea-fishing and other marine products taken by vessels of the Party from outside the territorial seas of 
the Parties and goods processed and/or made on board factory ships of the Party exclusively from such products;  
articles collected in the Party which can no longer perform their original purpose or be restored or repaired and 
are fit only for disposal, for the recovery of parts or raw materials, or for recycling purposes;  parts of raw 
materials recovered in the Party from articles which can no longer perform th eir original purpose nor are capable 
of being restored or repaired;  scrap and waste derived from manufacturing or processing operations, including 
mining, agriculture, construction, refining, incineration an d sewage treatment operations or from consumption in 
the Party, and fit only for disposal or for the recovery of raw materials;  and goods obtained or produced in the 
Party exclusively from goods referred to above (Article 25).  
9 Article 27.1:  LVC equals FOB minus VNM over FOB, times 100%.   
10 This applies in particular to Chapters 57-63 wher e the alternate rules applie s across almost the entire 
Chapter.  WT/REG275/1 
 Page 23 
 
 
  41. Article 37 establishes a Sub-Committee on Rules of Origin composed of representatives of 
the Governments of the Parties, together with repr esentative of any other relevant entities as agreed by 
the Parties.  The Sub-Committee has not met since th e entry into force of the Agreement on 1 October 
2009.  The Sub-Committee's functions include:  re viewing and making appropriate recommendations 
as needed to the Joint Committee on the impl ementation and operation of the Chapter, any 
amendments to the product specific rules of orig in and certification procedures proposed by either 
Party and the Implementation Regul ations;  considering any other matter related to the Chapter as 
agreed by the Parties;  reporting any findings to  the Joint Committee;  and carrying out any other 
functions as may be delegated by the Joint Comm ittee.  In the Implementing Regulations to the 
Agreement, Part Two (Rules 2-15) of the describe the modalities for issue of a certificate of Origin, 
and attach standard formats for applications and issue of certificates. 
C. EXPORT DUTIES AND CHARGES AND QUANTITATIVE RESTRICTIONS  
42. There are no specific provisions on export duties.  Article 19 provides that the parties shall 
not maintain or introduce non-tariff measures on the import of the goods of the other party or upon the 
export of goods to any other party which are incons istent with either Par ties obligations under the 
WTO Agreement (Article 19.1).  Quantitative rest rictions shall be transparent and as non-trade 
distortive as possible (Article 19.2).   
D. REGULATORY PROVISIONS ON TRADE IN GOODS  
1. Standards 
(a) Sanitary and phytosanitary measures 
43. Chapter 5 of the Agreement concerns Sanitary  and Phytosanitary Measures ("SPS") that may 
affect trade between the parties.   
44. Article 45 provides that Chapter 5 of the Agreem ent applies to all SPS measures of the parties 
as defined by the WTO Agreement on SPS.  The Parties reaffirm their rights a nd obligations under the 
WTO SPS Agreement (Article 46).  Article 47 requir es the establishment of enquiry points on SPS.  
Article 48.1 establishes a Sub-Committee on SPS, whose functions include the exchange of 
information on the occurrence of SPS incidents in th e Parties and non-parties, and any change in or 
introduction of SPS related regulations  and standards of the Parties which may directly or indirectly 
affect trade between them;  science-based consulta tions to identify and address issues that arise from 
the application of SPS measures with the objectiv e of achieving mutually acceptable solutions;  
consulting on cooperative efforts by  the Parties in international fora on SPS matters;  discussing 
technical cooperation on SPS matters;  reviewing th e implementation and operation of the Chapter;  
and reporting its findings to the Joint Committee and carrying out any other functions delegated to it 
by the Joint Committee (Article 48.2).  Article  48.3 provides that the sub-Committee shall be 
composed of government officials of the part y with responsibility for SPS measures.  The sub-
Committee has not met yet .  Article 48.4, provides that it shall meet as agreed between the Parties, 
while Article 48.5 permits the establishment of ad hoc subsidiary. 
45. Chapter 13 of the Agreement (Dispute Settlement) w ill not apply to the Chapter (Article 49).   
(b) Technical Barriers to Trade 
46. Chapter 6 of the Agreement concerns Techni cal Regulations, Standards and Conformity 
Assessment Procedures (hereinafter "covered measur es").  The objectives of the Chapter are:  to 
ensure that covered measures do not create unnecessary obstacles to trade;  to promote mutual 
understanding of covered measures of each Party;  and to strengthen transparency and cooperation 
between the Parties on covered measures (Article 50).  Article 51 defines the scope of covered WT/REG275/1 
Page 24 
 
 
  measures and incorporates by reference the definiti on set out in Annex 1A to the WTO Agreement on 
Technical Barriers to Trade (TBT) (Article 51.1).  Article 51.2 provides that Chapter 6 will not apply 
to purchasing specifications by governmental bodies for their production and consumption requirements and SPS measures as defined in Annex A to the SPS Agreement.  The Chapter does not 
limit the Parties' rights to impose covered meas ures to the extent necessary to fulfil defined 
"legitimate objectives".  The phrase "legitimate obj ectives" has the same meaning as defined in 
Article 2.2 of the TBT Agreement. 
47. Article 52 reaffirms the Partie s' rights and obligations under the Agreement on TBT.  To 
ensure that the covered measures do not create unnecessary obstacles to trade in goods between the 
Parties, Article 53.1 requires the Parties, when possible,  to cooperate in the field of covered measures.   
Such cooperation may include joint studies and semi nars, exchange of government officials for 
training purposes, exchange of information on the covered measures, joint contributions, where 
appropriate, in international and regional fora  on the covered measures, encouraging the bodies 
responsible for implementing the covered measures to  cooperate on matters of mutual interest and 
enhancing participation in the existing frame work for mutual recognition established under 
international agreements or  developed by internati onal and regional bodies.   
48. Article 54 requires the designation of enquiry poi nts and the exchange of information on these 
enquiry points between the Parties.  The enquiry poi nt for Japan is the Economic Partnership Division 
of the Economic Affairs Bureau in the Ministry of Foreign Affairs;  and for Viet Nam the TBT Office 
of the Directorate for Standards, Metrology and Qu ality in the Ministry of Science and Technology. 
49. Article 55 establishes a Sub-Committee on TBT whose functions will be:  coordinating 
cooperation pursuant to Article 53;  identifying mu tually agreed priority sectors for enhanced 
cooperation;  establishing work programmes and mon itoring progress in mutually agreed priority 
areas to facilitate the acceptance of conformity assess ment results of the other Party and equivalence 
of technical regulations;  reviewing the implemen tation and operation of the Chapter;  facilitating 
technical consultations;  and reporting, where a ppropriate its findings to the Joint Committee and 
carrying out other functions delegated to it by th e Joint Committee. The s ub-Committee is composed 
of representatives of the Parties (Article 55.4) and shall meet as agreed between the parties 
(Article 55.3).  The Sub-Committee has not yet met.   
50. As for the Chapter on SPS, Article 56 prov ides that Chapter 13 of the Agreement 
(Dispute Settlement) will not apply to the Chapter.   
2. Safeguard Mechanisms 
(a) Global safeguards 
51. Under Article 20 of the Agreement, the Par ties may apply safeguards in respect of one 
another per Article XIX of the GATT 1994 and th e WTO Agreement on Safeguards or Article 5 of 
the Agreement on Agriculture.  Any action taken pur suant to those provisions is not subject to 
Chapter 13 of the Agreement (Dispute Settlement).   
(b) Bilateral safeguards 
52. Article 20.2 permits the Parties to take bilatera l safeguards measures, if, as an effect of the 
obligations incurred by one Party under the Agreemen t, including tariff concessions, or if as a result 
of unforeseen developments and of the effects of the obligations incurred by that Party under the 
Agreement, a good originating in the other Party is imported in such increased quantities, in absolute 
terms or relative to domestic produc tion, and under such conditions as to cause or threaten to cause  
serious injury to the domestic industry of th e importing Party, the importing Party may apply a 
bilateral safeguard measure, to the minimum extent necessary to prevent or remedy the serious injury  WT/REG275/1 
 Page 25 
 
 
  and to facilitate adjustment.11 If invoking bilateral safeguards, e ach Party is required to ensure 
consistent, impartial and reasonable administratio n of their laws and regulations governing such 
measures (Article 20.9). 
53. After an investigation carried out by the comp etent authorities of a Party in accordance with 
the procedures in Articles 3 and 4(3) of the WTO Agreement on Safeguards, bilateral safeguards may 
take the form of i) suspension of the further re duction of customs duty on the originating good;  or 
ii) increased customs duty to the level not exceedi ng the lesser of the applied MFN duty when the 
safeguard is taken and on the day immediately precedi ng the date of entry into force of the Agreement 
(Article 20.4).  The investigation shall be comple ted within one year after its initiation (Article 
20.5(b) - compared to no specified period in the WTO Agreement on Safeguards).  Bilateral 
safeguards cannot be applied to imports within the tariff-rate quota quantities granted under Annex 1 
of the Agreement (Article 20.3). 
54. Ordinarily, bilateral safeguards can be imposed for a maximum period of three years 
(compared to four years in the WTO Agreement on Safeguards), although they may be extended to a 
maximum period of four years (Article 20.6.(d)).12  The measures must not be applied again to goods 
which have been subject to a bilateral safeguard m easure, for a period of time equal to the duration of 
the previous measure or one year, whic hever is longer (Article 20.6.(e)). 
55. Although provisional measures may be taken in critical circumstances where delay would 
cause damage difficult to repair (20.11(a)), the custom s duty imposed as a result of such measure shall 
be refunded if the subsequent investigation does not determine that increased imports caused or 
threatened to cause serious injury to a domestic i ndustry (Article 20.11(e)).  The time period within 
which the refund should take place is not mentione d in the Agreement.  The duration of provisional 
measure cannot exceed 200 days within the overa ll period of the safeguard (Article 20.11.(c)). 
56. Under Article 20.7(a)), a Party proposing to a pply or extend a bilateral safeguard measure 
shall provide to the exporting Party mutually agr eed adequate means of tr ade compensation in the 
form of substantially equivalent level of concessi ons or other obligations to that existing under the 
Agreement. If compensation cannot be agreed with in 30 days from the date on which the bilateral 
safeguard measure was applied, the exporting Part y can itself suspend the application of concessions 
on customs duties under the Agreement, except during the first two years in which  the conforming 
safeguards measure has been taken as a result of an absolute increase in imports (Article 20.7.(b) and 
(c)).   
57. The Parties shall review the bilateral safeguard provisions within ten years after the entry into 
force of the Agreement (Article 20.13). 
(c) Special Safeguards  
58. Under Article 21 of the Agreement, a Party in  serious balance of payments and external 
financial difficulties can take restrictive import measures in accordance with the GATT 1994 and the 
Understanding on the Balance-of-Payments of GA TT 1994 in Annex 1A to the WTO Agreement. 
3. Anti-dumping and countervailing measures 
59. There are no anti-dumping and countervailing provisions in the Agreement.   
                                                      
11 Serious injury is defined in Article 13(g) as "a  significant overall impairment in the position of a 
domestic industry" while threat of serious injury is defined as "serious injury that, on the basis of facts and not 
merely on allegation, conjecture or remo te possibility, is clearly imminent". 
12 Under the WTO Agreement on Safeguards, the maximum period of application of (global) safeguard 
measures is eight years (Article 7.3). WT/REG275/1 
Page 26 
 
 
  4. Subsidies and State-aid 
60. There are no specific provisions on subsidies in the Agreement apart from Article 18 which 
prohibits export subsidies, and reflects the pa rties obligations under the WTO Agreements.   
5. Customs-related procedures 
61. Customs Procedures are set out in Chapter 4 of the Agreement.  Article 38 establishes that the 
Chapter seeks to improve i) transparency, ii) si mplification and harmoniza tion and iii) co-operation 
and exchange of information.  Article 40, concerni ng transparency (compared with Article X of the 
GATT 1994) provides that information relevant to or  concerning changes to customs laws should be 
made available to interested persons, preferably in  advance of any changes.  Requests for information 
should be dealt with as quickly and accu rately as possible (Article 40.3).   
62. Article 41 requires that the Parties establish and administer their customs laws in a 
predictable, consistent and transparent manner.  To ensure prompt customs clearance of goods both 
Parties endeavour to use information technolog y, simplify procedures and harmonize co-operation 
with relevant bodies (Article 41.2) .  Transit (a restatement of ob ligations per Article V.3 of the 
GATT) is mentioned in Article 42.  Obligations to co-operate on and exchange of information is set 
out in Article 43.  A sub-Committee on Customs Procedures is established under Article 44 whose 
functions are to review the implementation and ope ration of the Chapter, report its findings to the 
Joint Committee, identify areas re lating to the Chapter to be impr oved for facilitating trade between 
the Parties, and carrying out other functions as may be delegated by the Joint Committee.  The 
sub Committee is to comprise an official from the Ministry of Finance of Japan and the 
General Department of Customs in the Ministry of Finance of Viet Nam.  Other officials with the 
necessary expertise may also be in cluded on an ad hoc basis.   
IV. PROVISIONS ON TRADE IN SERVICES 
A. SCOPE AND DEFINITIONS  
63. Chapter 7 of the Agreement is concerned with Trade in Servic es, while Chapter 8 contains 
provisions on the movement of natural persons .  The Schedules of Specific Commitments are 
"positive lists", contained in Annex 5, Part 1 for Jap an and Part 2 for Viet Nam.  Article 57 describes 
the scope of Chapter 7 and does not apply to:  i) certain measures in respect of air transport services13;  
ii) cabotage in maritime transport;  iii) measures pur suant to immigration laws and regulations;  iv) 
measures affecting natural persons of a Party seeking access  to the employment market of the other 
party; measure regarding nationality or residency or permanent employment;  v) and government 
procurement.   
64. Definitions of the terms used in Chapter 7 are set out in Article 58 of the Agreement.  As 
noted in Article 57.3, Annex 4 to the Agreement provides supplementary provisions on financial services, including scope and definitions. 
65. Article 9.4 of the Agreement provides that th e provisions of the Agreement between Japan 
and the Socialist Republic of Viet Nam for th e Liberalization, Promotion and Protection of 
Investment, signed at Tokyo on November 14 200 3, except Article 20, as may be amended, are 
incorporated into and form part of the Agreement, mutatis mutandis.   
 
                                                     
 
13 Measures affecting traffic rights, however granted or  measures affecting services directly related to 
the exercise of traffic rights, except measures affecting aircraft repair an d maintenance services;  the selling and 
marketing of air transport services;  an d computer reservation system services.  WT/REG275/1 
 Page 27 
 
 
  B. DENIAL OF BENEFITS  
66. Article 70 of the Agreement permits the denial of  benefits conferred by the services chapter of 
the Agreement.  Paragraph 70(1) permits a Party to  deny benefits under the Agreement to a juridical 
person if it establishes that the juridical person is owned or controlled by persons of a non-party, 
subject to two alternative conditions:  (a) that the Party does not have diplomatic relations with the 
non-party, or (b) the denying Party takes measures with respect to the non-party that prohibit 
transactions with the juridical person or that would be  circumvented if the benefits of the chapter were 
accorded to the juridical person.   
67. Article 70.2 closely mirrors paragraph XXVII(c)  of the GATS, although it expressly requires 
prior notification and consultation prior to de nial of benefits to a juridical person.  
C. GENERAL PROVISIONS ON TRADE IN SERVICES  
1. Market access 
68. The market access provisions in Chapter 7 reflect Article XVI of the GATS.  Article 59.1 
provides that each party shall accord services an d services suppliers of the other party no less 
favourable treatment than that sp ecified in the Schedule of Specific Commitments in Annex 5 to the 
Agreement.  That paragraph also provides that if a market access commitment permitting cross-border 
supply has been undertaken by a party, and if the cr oss border supply of capital is an essential part of 
the service, the party undertaking the commitment must permit such a movement of capital.  If 
commercial presence is similarly permitted, related transfers of capital shall also be permitted.   
69. Article 59.2 lists limitations and measures the Par ties shall not maintain or adopt either on the 
basis of a regional sub-division or throughout th e area of a party when market access commitments 
have been undertaken.  Those lim itations and other measures are described in paragraphs 59.2(a)-(f).   
2. National treatment and MFN 
70. Article 60 of the Agreement mirrors Article XV II of the GATS.  It provides in Article 60.1 
that subject to the commitments made in their Sc hedules of Specific Commitments, each Party shall 
accord to services and suppliers from the other Party treatment no less favourable than it accords to its 
own services or suppliers.  This provision may be co mplied with if a Party accords the other Party's 
services or suppliers formally identical or formal ly different treatment to that it accords its own 
services or suppliers (Article 60.2).  Article 60. 3 deems that formally identical or non-identical 
treatment of the other Party shall be considered to  be less favourable if it modifies the conditions of 
competition in favour of the other Party.  Article 60.4 provides that the dispute settlement provisions 
of Chapter 13 shall not be invoked with respect to me asures that fall within the scope of an agreement 
between the Parties concerning the avoidance of double taxation.   
71. Article 63 requires that the Parties accord services and services suppliers MFN treatment, 
subject only to Annex 6 of the Agreement on MFN ex emptions.  Article 63.2 provides that treatment 
granted under other agreements notified under Article V and V bis of the GATS is not subject to 
paragraph 63.1.  Article 63.3 provides that when a Party enters a subsequent agreement of the kind 
referred to in 63.2 with a non-party, it shall give  the other Party an opportunity to consult on 
providing treatment no less favourable than that gran ted to services and services suppliers of the third 
party.   
72. Annex 6 to the Agreement provides a list of MFN ex emptions in relation to Article 63.  Part 1 
sets out Japan's list of exemptions for maritime freight forwarding services, international shipping 
services (including passenger transportation and frei ght transportation services);  energy services and 
fishery related services.  Part 2 sets out Viet Nam's list of exemptions in all sectors with regard to WT/REG275/1 
Page 28 
 
 
  commercial presence (measures taken under bilateral investment treaties);  audiovisual services 
(production and distribution of television program s and cinematographic works, production and 
distribution of audiovisual works through broadc asting transmission to the public);  maritime 
transport;  and sea transport services (internal road transport, transportation by lorry, cargo storage 
and warehousing, container yard).  These are the same as Viet Nam's WTO Scheduled MFN 
exemptions.  Japan has no MFN exemptions to its Uruguay Round Commitments on Services.   
3. Movement of Natural Persons 
73. Movement of natural persons is covered in Chap ter 8 of the Agreement.  In addition, Annex 7 
of the Agreement, entitled "Specific Commitments for the Movement of Natural Persons" provides 
detailed descriptions of the commit ments undertaken by the Parties.  The categories of natural persons 
covered by the Agreement and include commitments by  both Parties are:  (i) short term business 
visitors;  (ii) intra-corporate transferees;  and ( iii) natural persons who practice nursing.  In addition, 
Japan has made commitments with regard to natural persons from Viet Nam who engage in 
professional services and business activities which require  technology or knowledge at an advanced 
level on the basis of a personal contract with public  or private organizations;  Viet Nam has made 
commitments with regard to natural persons w ho engage in business activities on the basis of a 
contract with public or private organizations, and natural persons res ponsible for setting up a 
commercial presence.  
74. Part 1 of Annex 7 provides Japan's Specific Commitments for the Movement of Natural 
Persons.  Sub-Part A of Annex 7 concerns Specifi c Commitments under Article 76 of the Agreement.  
Part 2 of Annex 7 concerns Specific Commitmen ts for the Movement of Natural Persons by 
Viet Nam.  Japan reserves the right to require that  natural persons of Viet Nam obtain an appropriate 
visa or equivalent to enter Japan.   
75. With regard to short-term business visitors, Japan permits temporary stay for a maximum 
period of 90 days, with the possibility of extens ion, for the purposes of participating in business 
contacts, including negotiations for the sale of goods or services, or other similar activities including 
those to prepare for establishing a commercial presence in Japan.  Any such entrant must not engage 
in several listed activities.14  Japanese natural persons, who do not  receive remuneration from within 
Viet Nam, and who are engaged in activities representing a service supplier for indirect sales may 
remain in Viet Nam for a 90 day period.   
76. Entry and temporary stay in Japan for intra-co rporate transferees from Viet Nam is permitted 
for a maximum of one or three years, to pers ons meeting previous experience and qualification 
requirements and entering Japan to engage in work of  the kind described in sub paragraphs 1(a)-(c) of 
Section 2.  Intra-corporate transferees from Ja pan, including eligible managers, executives and 
specialists of a Japanese enterprise with commercia l presence in Viet Nam shall be granted entry and 
stay for three years (extendable).  At least 20% of such staff must be Vietnamese nationals.  Section 
2.2 and 3 contain definitions of "managers and executives" and "sp ecialists".  Section 2.4 provides 
that those employees will be granted entry in conform ity with their contract of employment or for 3 
years, whichever is shorter (extendable). 
77. For nursing services, a Viet Nam nurse qualified in Japan may practice nursing for one or 
three years (extendable) up to 7 years from the da te of qualification.  Japanese nationals qualified 
under Viet Nam laws and regulations may practice nursing in Viet Nam, for a maximum of 
three years (extendable).  Sub-Part B of Annex 7 provides that within the Sub Committee on 
Movement of Natural Persons, (established per Artic le 78 of the Agreement) Japan would enter into 
                                                      
14 Including acquiring remuneration from within Japan and engaging in making direct sales to the 
general public or supplying services him/herself.  WT/REG275/1 
 Page 29 
 
 
  negotiations with Viet Nam concerning the possi bility of acceptance of Vietnamese qualified nurses 
and certified caregivers.  Those negotiations are mandated to conclude by October 1 2011.   
78. With regard to further commitments by Japan, en try and temporary stay for natural persons of 
Viet Nam who engage in professional services can be for a period of one or three years (extendable) 
to a natural person of Viet Nam who is a legal,  accounting or taxation service supplier qualified under 
Japan's laws and regulations and who will engage in the provision of legal, accounting and taxation 
services as listed in Section 3(a)-(f) of Annex 7 to the Agreement.  Natural persons who engage in 
business activities requiring specialised technological or other knowledge from Viet Nam are granted entry and temporary stay if they have a personal cont ract for the activities listed in Section 4.1(a)-(b).  
Section 4.2, 3 and 4 describe how qualificati ons will be administered and notified.   
79. Viet Nam provides that employees of a Japan ese enterprise with no commercial presence in 
Viet Nam may enter and stay in Viet Nam for 90 days or the period of their contract provided that 
conditions (a)-(e) of Section 3 of Annex 7 are resp ected.  Section 4 provides that "managers and 
executives" (as defined in Section 2.2) may enter Viet Nam in order to establish a commercial presence, for a maximum 90 day period.  
80. The period that natural persons of a Party may stay in the other Party and conditions for an 
extension is summarized in Table IV.1 below.  
Table IV.1  
Duration of temporary stay by a natural person of a Party in other Party 
Japan Viet Nam  
Initial period 
of entry and 
stay Extension Initial period of 
entry and stay Extension 
Short-term business visitors 90 days  Yes – no indication 
of extension criteria. 90 days No. 
Intra-corporate transferees One or three 
years Yes – no indication 
of criteria. Three years or the 
length of the 
concerned 
employment contract, whichever is shorter (Section 2(4) Yes – depending on the 
employment contract and 
the commercial presence 
(Section 2(4)). 
Natural persons of a Party engaged in professional services One or three 
years Yes – no indication 
of criteria.  
 
 
Natural persons of a Party 
engaged in supplying services, 
requiring an advanced level of  technology or knowledge or requiring specialized skills in 
particular fields of industry on the 
basis of a contract with public or private organizations in the other Party One or three 
years Yes – no indication 
of criteria. 90 days, or the length 
of the contract, 
whichever is shorter  No. 
Qualified natural persons of a 
Party engaged in supplying services as nurses  one to three 
years can be extended 
within a 7 year period from date of obtaining a licence of "Kangoshi" Three years Yes, per Viet Nam's relevant 
laws and regulations. 
 
Source: Annex 5. 
 
  
 
  
 
  WT/REG275/1 
Page 30 
 
 
  4. Modification of Schedules 
81. Article 64 establishes a mechanism for modification or withdrawal of specific commitments 
on trade in services.  Article 64.1 provides that such alterations to the Schedules of Specific 
Commitments shall be done pursuant to Article 127 of the Agreement.  As with subparagraph 2(a) of 
Article XXI of the GATS, the party seeking to withdraw or modify a specific commitment should 
endeavour to maintain a general level of mutually advantageous commitments not less favourable 
than provided in the party's Schedule.  Article 64.2 provides that if a modification to a 
GATS Schedule and compensatory adjustment has be en made pursuant to Article XXI of the GATS, 
the parties shall agree to incorporate such mo dification into the Agreement without further 
negotiation. 
82. Article 72 of the Agreement, is entitled "Review of Commitments".  Article 72.1 provides 
that parties shall review their commitments on trad e in services within 5 years from the date of entry 
into force of the Agreement, with a view to impr oving the overall level of commitments.  Article 72.2 
requires that when doing so parties must take in to account the principles of paragraphs IV.1 and 
XIX.2 of the GATS.   
D. LIBERALIZATION COMMITMENTS  
83. The Parties' Schedules of Specific Commitments with respect to Articles 59 (market access), 
60 (national treatment) and 61 (additional commitments ) are contained in Annex 5 and are based on a 
"positive list" approach.  Sub-paragraph 62.1(a)-(d ) provides that Schedules of Specific Commitments 
of the Parties must specify the limitations and conditions for market access, any limitations on 
national treatment, undertakings concerning add itional commitments and the time period within 
which commitments will be implemented (as applicable ).  Article 61 permits the Parties to negotiate 
additional commitments affecting trade in services (including qualifications, standards or licensing) 
that are not subject to scheduling under Articles 59 and 60, and provides that such commitments shall 
be inscribed in a party's Annex 5 Schedule of Commitments.  
84. Article 72 of the Agreement requires the Parties to review their commitments within 5 years 
with a view to improving the overall level of co mmitments undertaken (Article 72.1), taking into 
account the principles of  paragraphs 1 of Article IV (increasing participation of developing countries) 
and 2 of Article XIX (progressive liberalization) of the GATS.   
1. Japan 
85. Japan's Schedule of Commitments is Annex 5 to  the Agreement.  Note 6 to the Schedule 
recalls that (a) passenger transport services by air;  (b) freight transport services by air and (c) 
rental/leasing of aircraft with crew are not in cluded in the Schedule and that the provisions of 
Chapter 7 of the Agreement do not apply.   
(a) Horizontal commitments 
86. Horizontal national treatment limitations are maintained by Japan under modes 3 and 4 for 
research and development subsidies.   
(b) Sector specific commitments  
87. Japan's commitments under the GATS are d escribed in WTO document S/DCS/W/JPN.  
Japan's commitments on services under the Agre ement expand on its GATS commitments.   
88. For legal services, the additional commitmen ts undertaken by Japan concern qualified 
"Bengoshi", law of qualifying jurisdiction (in associa tion with Bengoshi), practising in international  WT/REG275/1 
 Page 31 
 
 
  (and not Japanese) law; practicing in third country  law;  Judicial Scrivener ("ShihoShoshi");  
"Gyousei-Shoshi" (Administrative Scrivener);  Shakai -Hoken-Romushi;  Patent attorney ("Benrishi");  
Maritime Procedure Agent ("Kaijidairishi");  real estate legal surveying services ("Tochi-Kaoku-Chosashi").  Legal services so described can be provi ded by a (qualified) corporation, in contrast to 
the GATS commitments limitation to natural pers ons.  Market access in legal services  requires 
approval under  national laws and regulations.  There are no limitati ons on national treatment for all 
modes of supply, compared to only modes 1 and 2 under the GATS.  Accounting auditing and 
bookkeeping services (CPC 862) commitments must be supplied by a qualified natural person or audit 
corporation.  The national treatment limitations ar e removed.  Taxation services can be provided by a 
Certified Tax Accountant Corporation.   
89. Architectural services can be provided by a supplier qualified as or using a service supplier 
using "Kenchikushi".  Architectural services supplied by a provider that is non-qualified as or not 
using a "Kenchikushi" are also permitted.   
90. Engineering services and integrated engineer ing services do not have the same definitional 
limitation as in Japan's GATS commitments ("excl uding services related to petroleum, petroleum 
products, gas and mineral", the only exclusion is "architectural services and civil engineering 
consulting services").  Civil engineering consulting services have no limitations on market access or 
national treatment across all modes of supply.   
91. Urban planning and landscape architectural services are additions to Japan's Specific 
Commitments under the GATS, with no limitations on market access or national treatment across all 
modes of supply.  Computer and related services (e xcluding computer reservation for air transport) 
research and development services in social scien ces and humanities have no restrictions on all modes 
of supply on market access or national treatment.   
92. For real estate services involving own or leased  property, for real estate services on a fee or 
contract basis (for property in Japan), market access requires commercial presence for modes 1, 2 and 
4.  For all real estate services concerning property outside Japan, there are no restrictions on market 
access or national treatment.   
93. In respect of rental and leasing services, without operators, Japan has undertaken 
commitments that have less individual limitations than its GATS commitments.  "Relating to ships" 
has a mode 3 national treatment limitation concerning prior notification.  All other sub sectors have no 
market access or national treatment limitations across all modes of supply.   
94. Under other business services, advertising, ma rket research and public opinion polling 
services, management consulting services, services re lated to management c onsulting have no market 
access or national treatment limitations across all m odes of supply. Additions to Japan's commitments 
concern Technical testing and analysis services for manufactured goods, excluding services covered 
by the Measurement law, have no market access or national treatment limitations across all modes of 
supply.   
95. In respect of the newly added technical testing and analysis services covered by the 
Measurement law (for defined activities) services, modes 1, 2 and 4 require commercial presence.  
Mode 3 has no market access limitations.  There are no limitations on national treatment.  The commitments on placement and supply services are defined by both a negative list (of excluded 
occupations and a positive list of included servi ces.  In respect of placement services the 
commitments taken overlay the positive list of  29 occupations described in Japan's GATS 
commitments.  There are no restrictions on market access under modes 1 and 4 provided there is 
commercial presence, mode 2 is unbound (technical feasibility) and there are no restrictions for mode 3.  There are no national treatment restrictions in modes 1, 3 and 4, and are unbound (technical 
feasibility) for mode 2.   WT/REG275/1 
Page 32 
 
 
  96. Investigation services, related scientific and technical consulting services (with specified 
exclusions) have no market access or national treatme nt restrictions.  Surveying services for land in 
Japan, has almost identical market access limitati ons compared to Japan's GATS limitations, although 
there are no national treatment limitations for all modes of supply.  Surveying services for land 
outside Japan now have no market access or national treatment limitations.  Maintenance and repair of 
equipment services (excluding for vessels, aircraft  and other transport e quipment) and building 
cleaning services are unbound (technical feasibility) in mode 1 for both market access and national 
treatment.   
97. Photographic, packaging, printing and pu blishing, and convention services have no 
limitations on market access or national treatment across all modes of supply.  New commitments are 
added for telephone answering, duplicating, and ma iling list compilation services, with no limitations 
on market access or national treatment across all modes of supply.   
98. Commitments by Japan in the new sub-sectors of  translation and interpretation and speciality 
design services have no limitations on market access or  national treatment across all modes of supply. 
99. In communication services, new commitments ha ve been taken by Japan on postal and 
courier services, subject to permission/registration re quirements in respect of courier delivery, with no 
limitations on market access or national treatment across all modes of supply.  On telecommunications, Japan has taken commitments acr oss basic and value added services.  There are 
no limitations on market access and national treatment in modes 1, 2 and 4.  Mode 3 is subject to a 
reduced direct and indirect foreign investme nt restriction in Nippon Telegraph and Telephone 
Corporation (one third in the Agreement, one fi fth in Japan's GATS commitments), compared with 
"none" for mode 3 and Japanese nationality requir ement in Japan's GATS schedule.  "Additional 
Commitments" include and expand on the referenc e paper from Japan's GATS/SC/46/Suppl.2, and 
describe types of anti competitive beha viour, with additional definitions. 
100. Audio visual concerns the same sub-sectors as  in the GATS schedule, but with no limitations 
on market access and national treatment on all mod es of supply.  Under co nstruction and related 
engineering services, the limitations on market access and national treatment are the same as in 
Japan's GATS schedule across modes 1 to 3, with  4 now only requiring commercial presence.  On 
distribution services the limitations under franchising services are reduced, with rice, tobacco, and salt 
no longer excluded.  There are no limitations on market access or on national treatment across all 
modes of supply.  The sub-sector of services relate d to petroleum and petr oleum products is a new 
commitment, with no limitations on market access for modes 1-3, 4 being unbound.  This is the same 
for national treatment, except mode 3 has a prior notification requirement under the Foreign Exchange 
and Foreign Trade law.  Also new are servic es supplied at public wholesale markets, unbound on 
modes 1 and 2, but subject to both right to impose limitations on the number of licences and the 
requirement that the services be supplied by a ju ridical person under the Public Wholesale Market 
Law.  On national treatment modes 1 and 2 are unbo und, with no limitations on modes 3 and 4.   
101. Under educational services, primary and secondary  education services have modes 1, 2 and 4 
unbound, and mode 3 subject to the requirement that  an educational institution be a school juridical 
person.  This contrasts with no restrictions on market access for modes 1-3 in Japan's GATS schedule, and mode 4 unbound except in the case of horizontal commitments.  On national treatment, Japan's 
commitments differ according to the sub-sector:  primary and secondary education are unbound in 
modes 1, 2 and 4, and there are no limitations for mode 3;  higher education has no limitations on 
national treatment for modes 1 to 4.  A new othe r education services commitment is added, with no 
limitations on market access or national tr eatment across all 4 modes of supply.   
 
  WT/REG275/1 
 Page 33 
 
 
  102. On environmental services both market access and national treatment are unbound in mode 1 
and there are no limitations in modes 2-4.  Mode 3 on market access is improved – dropping a GATS 
numerical limitation on licences for waste oil disposal at sea.  Mode 4 across all sub sectors is also an improvement. 
103. For financial services, Japan has expressly in corporated the Understanding on Financial 
Services into its Schedule under the Agreement, cons istent with the note to its GATS Schedule.  For 
modes 1 and 2 on market access, Japan has remove d the 60% reinsurance requirement.  Modes 1 and 
2 permit insurance intermediation, subject to comm ercial presence.  For mode 3 on market access, 
intermediation services can only be provided for insu rance contracts permitted in Japan.  Mode 4, as 
for national treatment, is unbound.  Modes 1 to 3 ha ve no restrictions on national treatment.  In 
banking and other financial services, Japan has re moved limitations on modes 2 and 3 on market 
access.   
104. Under health related and social services, hospital services, Japan's commitments are 
unchanged.  On tourism and travel related services,  hotels and restaurants (excluding catering) and 
travel agencies and tour operators, Japan has co mmitted to no limitations on market access and 
national treatment.   
105. For recreation, cultural and sporting services, entertainment services add commitments on 
mode 1 on market access and national treatment.  On news agency services, commitments are added 
in mode 4 on market access and national treatment.  For libraries and archives, commitments are 
added in modes 1 and 4 on market access and nati onal treatment.  Sporting and recreation park and 
beach services add commitments to mode 4 on market access and national treatment.   
106. Under maritime transport services Japan has unde rtaken new commitments in international 
maritime transport services (including services of p assenger transportation and freight transportation), 
as well as maintenance and repair of vessels, mar itime cargo handling, container station, depot 
services, maritime agency services and maritime freight forwarding services.
15     
107. On internal waterways transport, Japan h as undertaken new commitments on maintenance 
and repair of vessels in modes 2, 3 and 4 on market access and national treatment.   
108. Air transport services, selling and marketing of transportation services16 and computer 
reservations system services17 are improved in mode 4 on market access and national treatment.   
109. Rail transport services add commitments in mode 4 of market access and national treatment.  
The commitment on freight transportation servi ces under mode 3 on market access has been 
re-expressed and added to mode 4.  A new co mmitment has been added on national treatment.  
Maintenance and repair services of road transport equipment gains commitments in mode 4 on market 
access and national treatment.   
110. Japan has made a commitment in pipeline transpor t (other than fuels) for mode 4 on market 
access and national treatment.  It has added commitments in mode 4 on market access and national 
treatment in respect of services auxiliary to all mod es of transport.  Customs clearance agent services 
have new commitments in modes 1, 2 and 4 on market access and national treatment.   
 
 
                                                      
15 Both are defined by reference to the Note to th e specific commitments in the Sectors of Maritime 
Transport Services and Maritime Au xiliary Transport Services.   
16 per paragraph (t) of Article 58. 
17 per paragraph (c) of Article 58. WT/REG275/1 
Page 34 
 
 
  Table IV.2 
Japan:  Comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ Same 
B. Computer and related services  √ Same 
C. Research and development √ Same 
D. Real estate √ Same 
E. Rental/Leasing services without operators √ Same 
F. Other √ Same 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier - New 
C. Telecommunication  √ Same 
D. Audiovisual √ Same 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Same 
4. DISTRIBUTION SERVICES √ Same 
5. EDUCATION SERVICES √ Same 
6. ENVIRONMENTAL SERVICES √ Same 
7. FINANCIAL SERVICES a   
A. All insurance and insurance-related services √ Same 
B. Banking and other financial services √ Same 
8. HEALTH RELATED AND SOCIAL SERVICES √ Same 
9. TOURISM AND TRAVEL RELATED SERVICES  Improved 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES √ Same 
11. TRANSPORT SERVICES   
A. Maritime √ Same 
B. Internal waterways √ Same 
C. Air  √ Same 
D. Space - New 
E. Rail  √ Same 
F. Road √ Same 
G. Pipeline √ Same 
H. Services auxiliary to all modes of transport √ Same 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - New 
Note: 
 a See also Annex 4 "Financial Servi ces" to the Agreement, containing defi nitions (Section 1) and other matters 
concerning the implementation of Chapter 7 of th e Agreement in relation to Financial Services. 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. 
Improved: Improved commitments made under the Agreement compared to those under the GATS. 
New: New commitments made under the Agreement. 
 
Source :  Japan's Schedule of Specific Co mmitments under the GATS (S/DCS/W/JPN ) and Annex under the Agreement.  
The comparison only concerns market access and na tional treatment for mode s 1-3 and not mode 4. 
 
2. Viet Nam 
(a) Horizontal commitments 
111. Viet Nam's horizontal commitments, and limitations on market access and national treatment 
on both modes 3 and 4 are extracted from its GATS Schedule18 but are fewer in number (descriptions 
contained in the GATS Schedule (but absent from th e commitments under the Agreement) include on 
intra-corporate transferees, other personnel, service  sales persons, persons r esponsible for setting up a 
commercial presence, and contractual service suppliers).   
(b) Sector specific provisions on trade in services 
112. Viet Nam's specific commitments in the Agreement reproduces its GATS Schedule, including 
transitional limitations in mode 3 market access on its sub-sectoral commitments.   
                                                      
18 WT/ACC/VNM/48/Add.2.  WT/REG275/1 
 Page 35 
 
 
  113. Under maritime transport services, mode 3, a new limitation is added under market access, 
clarifying that the limit on the number of joint ventures by shipping companies shall be applied on a 
global basis.  This limitation on the numbers of su ch joint ventures will expire on 11 January 2012.  
The Telecoms Reference paper is attached to and forms part of the Schedule (as in Viet Nam's GATS 
schedule).   
Table IV.3 
Viet Nam:  Comparison between the GATS and the Agreement specific commitments in trade in services (excluding mode 4) 
Sectors GATS FTA 
1. BUSINESS SERVICES   
A. Professional services √ same 
B. Computer and related services  √ Same 
C. Research and development √ Same 
D. Real estate √ Same 
E. Rental/Leasing services without operators √ Same 
F. Other √ Same 
2. COMMUNICATION SERVICES   
A. Postal - - 
B. Courier √ Same 
C. Telecommunication  √ Same 
D. Audiovisual √ Same 
E. Other - - 
3. CONSTRUCTION AND RELATED ENGINEERING SERVICES √ Same 
4. DISTRIBUTION SERVICES √ Same 
5. EDUCATION SERVICES √ Same 
6. ENVIRONMENTAL SERVICES √ Same 
7. FINANCIAL SERVICES a   
A. All insurance and insurance-related services √ Same 
B. Banking and other financial services √ Same 
8. HEALTH RELATED AND SOCIAL SERVICES √ Same 
9. TOURISM AND TRAVEL RELATED SERVICES   
A. Hotels and restaurants √ Same 
B. Travel agencies and tour operators √ Same 
C. Tourist guides - - 
D. Other - - 
10. RECREATIONAL, CULTURAL AND SPORTING SERVICES √ Same 
11. TRANSPORT SERVICES   
A. Maritime √ Same 
B. Internal waterways √ Same 
C. Air  √ Same 
D. Space - - 
E. Rail  √ Same 
F. Road √ Same 
G. Pipeline - - 
H. Services auxiliary to all modes of transport √ Same 
I. Other - - 
12. OTHER SERVICES NOT INCLUDED ELSEWHERE - - 
Note: 
 a See also Annex 4 "Financial Servi ces" to the Agreement, containing defi nitions (Section 1) and other matters 
concerning the implementation of Chapter 7 of th e Agreement in relation to Financial Services. 
√: Commitments in the GATS schedule. 
-: No commitments either under the GATS or the Agreement. Improved: Improved commitments made under the Agreement compared to those under the GATS. 
New: New commitments made under the Agreement. 
 
Source : Viet Nam's Schedule of Specific Commitments under the GATS (ST/ACC/VNM /48/Add.2) and the Annex to the 
 Agreement.  The comparison only concerns market acce ss and national treatment for modes 1-3 and not mode 4. 
 
E. REGULATORY PROVISIONS  
1. Domestic regulation 
114. Each Party shall endeavour to ensure that its measures relating to authorization, licensing or 
qualification of service suppliers of the other Party are: based on objective and transparent criteria;  WT/REG275/1 
Page 36 
 
 
  not more burdensome than necessary to ensure th e quality of the service;  and not constituting a 
disguised restriction on the supply of the services (Article 65). 
115. Article 77.1 provides that each party shall pr ovide information on all requirements and 
procedures with respect to natural persons cove red by specific commitments related to the 
implementation of commitments undertaken.  Artic les 77.2 and 3 require the Parties to provide 
transparency on any new or additional requirements that affect the implementation of the specific 
commitments.   
2. Recognition 
116. Article 66, mirroring Article VII.1 of the GATS,  requires that qualification, standards and 
licensing requirements for service providers should be based on objective, transparent criteria, be not 
more burdensome than necessary and, if a licensing re quirement, not operate to restrict the supply of a 
service.  Article 66.1 permits a Party to recognise the qualifications or experience obtained in the 
other Party for the purposes of satisfying the fi rst Party's requirements for service suppliers.  
Recognition may take place unilaterally or on the basi s of an agreement or ot her arrangement between 
the Parties.  Sub-paragraph 66.3(a), provides that if recognition of service providers in a non-party has 
taken place, the Party shall not be obliged to acco rd recognition per Article 63 (MFN treatment).  
However, under 66.3(b) the Party providing such a recognition to a non party shall accord the other 
Party an opportunity to accede to any agreement that has resulted in recognition by virtue of 
Article 66.3.  Where such recognition has been gr anted autonomously, Article 66.3(c) requires that 
the Party having done so afford the other Party an  opportunity to demonstrate it should also receive 
recognition. 
3. Subsidies 
117. The Agreement contains no specific provisions on subsidies in the services sector.   
4. Safeguards 
118. Article 69 mirrors Article XII-1-4 of the GATS a nd provides that a Party may take Balance of 
Payments Measures in relation to trade in services, in certain specific circumstances. 
119. Article 73 permits the parties to request consu ltations with the other Party for the purposes of 
applying emergency safeguard measures if impl ementation of the Agreement causes "substantial 
adverse impact" to a Party.  Article 73 requires that the consultations take into account both the 
circumstances of the case as well as the results, if any, of the multilateral negotiations pursuant to 
Article X of the GATS.  
5. Other 
(a) Transfers 
120. Like Article XI of the GATS, Article 68 of the Agreement provides that (except as permitted 
per Article 69) a Party shall not apply restrictions on  international transfers.  Article 68.2 states the 
Parties rights and obligations under the Articles of Ag reement of the International Monetary Fund are 
not affected by the provisions of Chapter 7. 
(b) Monopolies and Exclusive service providers 
121. Article 67 resembles closely Article VIII of th e GATS.  Article 67.1  obliges each Party to 
ensure that monopolist suppliers of a service within its territory do not act inconsistently with its 
specific commitments in services.  Article 67.2 refl ects Article VIII.2 of the GATS and requires that  WT/REG275/1 
 Page 37 
 
 
  when such a monopolist is competing for the supply of a service outside its monopoly rights, but 
within the specific commitments of a Party, the Pa rty shall ensure that the monopolist does not abuse 
its monopoly position to act in a manner that is in consistent with these commitments.  Article 67.3 
closely mirrors Article VIII.3 of GATS, but instead  of the Council for Trade in Services it requires 
one Party to directly request the other to provi de specific information when it believes that the 
obligations in Article 67(1) and (2) have not b een complied with.  Article 67.4 closely resembles 
VIII.5 of GATS in relation to "exclusive" service providers.   
V. GENERAL PROVISIONS OF THE AGREEMENT 
A. TRANSPARENCY  
122. Article 3 of the Agreement requires each Party, in accordance with its laws and regulations, to 
promptly publish, or otherwise make publicly av ailable, its laws, regulations, administrative 
procedures and rulings, and judicial decisions of gene ral application, and international agreements to 
which it is a party, with respect to any matter cove red by the Agreement.  The Parties will also make 
available to the public the names and addresses of the competent authorities responsible for this 
legislation.  Responses to specific questions raised by a Party, upon request, will be provided within a 
reasonable period of time on these matters. 
123. In addition, when introducing new or changing existing laws, regulations or administrative 
procedures that significantly affect the implementa tion and operation of the Agreement, the Parties 
shall, in accordance with their laws and regulati ons, endeavour to provide (except in emergency 
situations) a reasonable interval between the time when the legislation is published or made publicly 
available, and the time when it enters into force. 
124. Under Article 4 the Parties agree to adopt or  maintain public comment procedures to make 
publicly available in advance, regulations of genera l application that affect  matters covered by the 
Agreement when they are adopted, amended or re pealed;  and provide a reasonable opportunity for 
comments by the public and consider the comments before adopting, amending or repealing such 
regulations. 
125. Provisions on administrative procedures (Article 5)  require the Parties to inform the applicant 
of any administrative decisions taken within a reasonable period of time after submission of the completed applications, taking into account sta ndard periods of time established under the 
Agreement
19;  and provide within a reasonable period of time information concerning the status of the 
application at the request of the applicant.  Standards for taking administrative decision will be 
established by the Parties, which shall be made as specific as possible and shall make them publicly 
available unless this extraordinarily raises administra tive difficulties for the Government of the Party. 
126. Article 6 ensures the confidentiality of inform ation provided by the Parties to each other 
pursuant to the Agreement.  Nothing in the Agr eement will require a Party to provide confidential 
information if its disclosure would impede the enfor cement of its laws and regul ations or otherwise be 
contrary to the public interest or would prejudice the legitimate commercial interests of enterprises. 
127. Transparency provisions are also included un der Chapter 4 on customs procedures, and 
Chapter 9 on intellectual property rights.  With regard  to customs procedures, the Parties must ensure 
that all relevant information of ge neral applications relating to their customs laws is readily available 
to any interested person.  All changes must be ma de available to the public in advance of the entry 
                                                      
19 The standard periods of time are as described as follows: 
For Japan, Administrative Procedure Act Chapter 2 (Disposition upon Applicatio ns), Article 7 (Review 
and Response to Application.  For Viet Nam, Decree No. 20/2008/ND-CP, No. 63/2010/ND-CP, No. 25/NQ-
CP.   WT/REG275/1 
Page 38 
 
 
  into force of the change to allow interested pers on to take account of the changes, unless such an 
advance notice is precluded.  Wherever appropriate and on the request of any interested person, the 
Parties must provide as quickly and as accurately as possible, information relating to the customs 
matter raised by the interested person, including  the specific information requested and any other 
pertinent information that they believe the interested  person should be made awar e of.  With regard to 
intellectual property rights each Party shall, in accordance with its laws and regulations take 
appropriate measures to publish info rmation at least on patent applica tions and grants, registrations of 
utility models and industrial designs, applications for and registration of tr ademarks and new plant 
varieties.  The Parties will also endeavour to make available to interested pa rties official information 
relating to these rights and information on their systems of intellectual property rights protection and 
efforts to provide effective enforcement of IPRs (Article 84). 
B. CURRENT PAYMENTS AND CAPITAL MOVEMENTS  
128. Except for Article 68 of the Agreement which prohi bits restrictions on international transfers 
and payments for current transactions relating to specific services commitments taken in the 
Agreement (except for balance of payments reasons ), there are no provisions on current payments and 
capital movements.  The Agreement does not affect  the rights and obligations of the Parties as 
members of the IMF under the Articles of Agreement of the IMF. 
C. EXCEPTIONS  
129. For the purposes of trade in goods (Chapters 2, 3 and 4) and for services (Chapters 7 and 8), 
Articles XX and XXI of the GATT 1994 and Articles XIV and XIV bis of the GATS, respectively, 
are incorporated into and form part of the Agreement, mutatis mutandis .  
D. ACCESSION  
130. There are no provisions on accession by third parties to the Agreement.  Article 129 permits 
either party to terminate the Agreement upon giving one year's written notice.  
131. Article 127.1 permits the amendment of the Ag reement by agreement of both parties.  
Article 127.2 concerns amendment of Annexes 1 (Schedules on Goods), 2 (Product specific rules 
(origin)) and 3 (Operational certification procedures (certificates of origin)). 
E. INSTITUTIONAL FRAMEWORK  
132. A Joint Committee is established under Article 11 of the Agreement.  Its functions are to 
review and monitor implementati on and operation of the Agreemen t;  consider and recommend any 
amendments to the Agreement to the Parties;  supervise and coordinate the work of all sub-
Committees established under the Agreement (see belo w);  adopt the Implementing Regulations and 
any necessary decisions;  and carry out any other functions the Parties may agree.  The Committee is 
composed of representatives of the Governments of the Parties.20  It may also establish and delegate 
its responsibilities to sub-Committees.  The Joint Comm ittee shall meet at time s and venues agreed to 
by the Parties. 
133. To assist and contribute to the work of th e Joint Committee, various Sub Committees under 
various chapters of the Agreement are established on:  Rules of Origin;  Customs Procedures;  SPS;  
                                                      
20 On Viet Nam's side this comprises representatives from the Ministry of Foreign Affairs, Ministry of 
Finance, Ministry of Industry and Trade, Ministry of Labor, War Invalids and Social Welfare, Ministry of 
Agriculture and Rural Development, Ministry of Justice, Ministry of Science and Technology, Ministry of 
Public Health, Office of the Government.    WT/REG275/1 
 Page 39 
 
 
  Technical Regulations, Standards and Conformity A ssessment Procedures;  Services;  Intellectual 
Property;  Improvement of the Busin ess Environment;  and Co-operation.   
F. DISPUTE SETTLEMENT  
134. Chapter 13 describes the Dispute Settlement provisions of the Agreement.  It sets out 
procedures for the resolution of disputes relating to the interpretation or app lication of the Agreement 
(Article 116.1).  The Agreement does not prejudice th e rights of the Parties to use dispute settlement 
procedures under any other international agreement to which both Parties are parties (Article 116.2).  
Per Article 116.3, once a dispute settlement pro cedure has been initiated under Chapter 13 or any 
other agreement to which both are parties, the sel ected procedure will be the only one governing the 
dispute.  However, the exclusiv e forum clause will not apply wher e a dispute involves substantially 
separate and distinct rights or obligations under diffe rent international agreem ents (Article 116.3).  A 
dispute settlement procedure is deemed to have  been initiated when a party has requested the 
establishment of a tribunal or panel under Chapter 13  or any other international agreement to which 
both are parties (Article 116.4).   
135. Either party may make a written request for cons ultations with the other Party on any matter 
relating to interpretation or application of the Agre ement (Article 117.1).  A request for consultations 
must identify the specific measures at issue and indi cate the factual and legal basis to the complaint 
(Article 117.2).  The other party shall reply prompt ly and enter into the consultations in good faith 
within 30 days (Article 117.3).  Good offices, c onciliation and mediation may be requested at any 
stage of a dispute, including when an Arbitral Tribunal is in progress.   
136. Once consultations have been requested, a comp laining party may request the establishment 
of an arbitral tribunal (Article 119.1).   
137. Article 119 concerns the establishment of arbitr al tribunals.  Article 119.1 provides that a 
party that has made a request for consultations un der Article 117, it may request the establishment of 
an arbitral tribunal – provided that the defendi ng party does not enter into consultations within 
30 days (15 for perishable goods) or if consultations fail to resolve the dispute within 60 days, and the 
complaining party  considers that any benefit unde r the Agreement is being nullified or impaired 
(directly or indirectly).  Any such request must identify the legal and factual basis for the complaint 
(Article 119.2).  Thirty days after the receipt of su ch a request, each party shall appoint one arbitrator 
and propose up to three candidates to serve as third arbitrator (who must not be a national of either 
party, nor be resident in, employed by either pa rty nor have dealt with the matter in any capacity) 
(Article 119.3).  Arbitrators shoul d have relevant technical or le gal expertise (Article 119.7).   
138. If the parties are unable to on the third arbitrat or, per Article 119.4, Article 119.5 permits the 
Director-General or a non-national senior official of the WTO to appoint a third arbitrator.  The date 
of establishment of the arbitral tribunal is the date on which the chair of the panel is selected 
(Article 119.6).   
139. Article 120 sets out the functions of the arbitral tribunal.  The tribunal may suggest 
implementation options for the parties to consider (Article 120.1(d)).  The rules and procedures of a 
tribunal are set out in Article 121.  Article 121.12 pr ovides that the tribunal shall attempt to make its 
decisions and award by consensus but if that is not possible, a decision can be taken by majority vote (Article 121.12.  The award of the tribunal shall be final and binding on the Parties (Article 121.13).  
Within 20 days after issuing of the award, the Pa rty complained against shall notify the complaining 
Party of the implementation period (Article 123.2). 
140. Article 122 permits the parties to jointly agree to terminate the proceedings of the arbitral 
tribunal prior to the issuance of the award to the parties.   WT/REG275/1 
Page 40 
 
 
  141. The steps to be taken in the dispute se ttlement process are described below.   
Table V.1 
Synopsis of Dispute Settlement Provisions under the Agreement 
 
 
Request for Consultations (Art.117.1) 
Establishment of Arbitral Tribunals (Art.119) 
Issuance of Award (Art.121.10 and 121.11) 
Notification of Implementation Period (Art.123.2) 
Consultation on Compensation (Art.123.3) Referral to Arbitral Tribunal (Art.123.4) 
Suspension of Concession (Art.123.6) Consultations (Art.117.2) 
Consultation (Art.123.7) 
Referral to Arbitral Tribunal (Art.123.7) Issuance of Award (Art.123.8) 
Issuance of Award (Art.123.8) 
 
  WT/REG275/1 
 Page 41 
 
 
  G. RELATIONSHIP WITH OTHER AGREEMENTS  CONCLUDED BY THE PARTIES  
142. The Agreement's relationship with other agreemen ts concluded by the Parties is defined in 
Article 9, where the Parties reaffirm their rights and obligations under the WTO Agreement.  When 
there are inconsistencies in the Agreement a nd the WTO Agreement, the WTO Agreement will 
prevail to the extent of any inconsistency.    
143. Article 22 provides that any commitments under Ch apter 2 (trade in goods) will not affect the 
commitments of the parties under the Agreemen t on Comprehensive Econom ic Partnership among 
Japan and Member States of ASEAN.    
144. Table IV.4 lists all other regional trade agreem ents (RTAs) notified and not notified to the 
GATT/WTO and in force to which Japan and Viet Nam are party. 
Table IV.4 
Japan and Viet Nam:  Participation in other RTAs (n otified and non-notified in force), as of April 2011  
GATT/WTO Notification Partner/ 
Agreement Date of entry 
into force Type of 
agreement Year WTO Provision 
JAPAN 
Switzerland  01.09.09 Goods & Services 2009 GATT Art. XXIV & GATS Art. V 
Philippines 11.12.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
ASEAN a 01.12.08 Goods  2009 GATT Art. XXIV 
Brunei Darussalam  31.07.08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V 
Indonesia  01.07.08 Goods & Services 2008 GATT Art. XXIV & GATS Art. V 
Thailand 01.11.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Chile  03.09.07 Goods & Services 2007 GATT Art. XXIV & GATS Art. V 
Malaysia 13.07.06 Goods & Services 2006 GATT Art. XXIV & GATS Art. V 
Mexico 01.04.05 Goods & Services 2005 GATT Art. XXIV & GATS Art. V 
Singapore 30.11.02 Goods & Services 2002 GATT Art. XXIV & GATS Art. V 
VIET NAM  
ASEAN Agreements : a     
- ASEAN – Rep. of Korea 01.01.10 
01.05.09 Goods 
Services 2010 
2010 GATT Art. XXIV & Enabling Clause 
GATS Art. V 
- ASEAN – India 01.01.10 Goods 2010 Enabling Clause 
- ASEAN - Australia - New Zealand 01.01.10 Goods & Services 2010 GATT Art. XXIV & GATS Art. V 
- ASEAN - Japan 01.12.08 Goods 2009 GATT Art. XXIV 
- ASEAN - China  01.07.07 Services 2008 GATS Art. V 
 01.07.03 Goods 2004 Enabling Clause 
- AFTA 28.01.92 Goods 1992 Enabling Clause 
GSTP 19.04.89 Goods 1989 Enabling Clause 
a Dates of entry into force differ. 
 
AFTA: ASEAN Free Trade Area. 
GSTP: Global System of Trade Prefer ences among Developing Countries.  
 
Source : WTO Secretariat. 
H. GOVERNMENT PROCUREMENT  
145. Article 106, on Government Procur ement, requires parties, in accordance with its laws and 
regulations, to enhance transparency and implemen t in a fair and effective manner its measures on 
government procurement.   WT/REG275/1 
Page 42 
 
 
  I. INTELLECTUAL PROPERTY RIGHTS  
146. The Agreement has as one of its objectives th e protection of intellectual property and 
promotion of cooperation in the field (Article 1.(b)).   Intellectual property is defined by Chapter 9, 
Article 80.3 as:  i) patents;  ii) industrial designs;  iii) trademarks;  iv) copyright and related rights;  
v) new varieties of plants;  vi) geographical indica tions, vii) unfair competition;  and viii) those that 
are under the WTO TRIPS Agreement and/or the releva nt international agreements referred to in the 
TRIPS Agreement (Article 80.3(b)).   
147. Each Party will accord national tr eatment to the other, in accord with Articles 3 and 5 of the 
TRIPS Agreement.  MFN treatment must be accorded to nationals of the other Party, in accord with 
Articles 4 and 5 of the TRIPS Agreement.  Article  83 provides for the streamlining and harmonization 
of administrative procedures for the protection of intellectual property. Such procedures covered by 
the Article include those on the authentication of signatures on documents to be submitted to 
competent authorities, the certification of the accuracy of translations, powers of attorney, and the 
classification of patent and trademark applications.   
148. Article 86 on patents creates additional obligatio ns with respect to the patentability of 
computer programme-related inventions (without prejudice to the patentability of programmes as 
such), an applicant's opportunity to request for exam ination in advance of other applications,  and the 
right of a patent owner to seek correction of  his/her  patent in order to restrict the scope of its claims.  
Article 87 on industrial designs obliges the Parties to ensure protection of industrial designs in 
accordance with Articles 25 and 26 of the TRIPS Ag reement.  Article 88 on trademarks requires the 
Parties to ensure effective protection of the trad emarks under Articles 15-21 of the TRIPS Agreement.  
Article 89 on copyright and related rights requires the Parties to effectively protect rights under 
international agreements to which they are parties, and to provide legal remedi es to secure those rights 
in the digital environment.  The Parties are required to take appropriate measures21 to promote the 
development of collective ma nagement organizations.   
149. The Parties recognize the importance of protecti ng new varieties of plants (Article 90), and 
shall endeavour to provide protecti on of all plant genera and species as early as practicable, consistent 
with the 1991 Act of the International Convention for the Protection of New Varieties of Plants.  
Article 91 requires the Parties to ensure adequate protection of geographical indications in accordance 
with its laws regulations and with  the TRIPS Ag reement.  Article 92 on Unfair Competition requires 
parties to provide effective protection against act s of unfair competition which are defined as "any act 
of competition contrary to honest practices in industrial or commercial matters".  Article 92.3 
prohibits certain types of unfair competition which include acts of acquiring or holding the right to 
use or using a domain name identical with or co nfusingly similar to a protected trade name and 
trademarks of another person for certain purposes.  Article 92.4 requires Parties to ensure protection 
of  undisclosed information in accordance with Ar ticle 39 of the TRIPS Agreement.  Article 92.5 
requires Parties to establish  appropri ate remedies to prevent or to punish acts of t unfair competition.   
150. Obligations on border measures in accordance with Articles 51-60 of the TRIPS Agreement 
are restated in Article 93.  Article 94 stipulates the civil remedies for  damages from intellectual 
property infringement.  Article 95 reiterates the Par ties  obligations under Artic le 61 of the Agreement 
on TRIPS.   
151. Forms of cooperation in intellectual property (A rticle 96) are identified in the Implementing 
Agreement and such examples include the exchange of information and holding seminars and training 
programmes.  The dispute settlement mechanism under the Agreement does not apply to Article 96.   
                                                      
21 "in accordance with its laws an d regulations" (Article 89.2).  WT/REG275/1 
 Page 43 
 
 
  152. Article 97.1 stipulates that a Sub-Committee on Intellectual Property shall be established 
pursuant to Article 11.  The Sub-Committee review s the implementation of the Chapter and discusses, 
inter alia , issues on i) patents, ii) industrial designs, iii)  trademarks, iv) liability of internet service 
providers, v) unfair competition, vi) border measures, vii) geographical indications, and viii) issues on 
administrative remedies (Article 97.2).  The sub- Committee shall meet at such time and venue as 
agreed by the Parties and shall be composed of  representatives of the governments of the Parties 
(Article 97.4).  The Sub-Committee has not met yet.   
1. Other 
(a) Competition 
153. Chapter 10, Article 99 requires the parti es to promote competition by addressing anti-
competitive activities in accordance wi th its laws and regulations.  Ar ticle 100 provides definitions of 
"anti-competitive activities" and competition law".  Ar ticle 101 requires the parties to cooperate in the 
promotion of competition.  Chapter 13 (Dispute Settlement) does not apply to Chapter 10. 
(b) Improvement of the Business Environment 
154. Chapter 11 is entitled "Improvement of the Busi ness Environment".  Article 105 requires the 
parties to take measures to improve the business e nvironment in their territory for the benefit of 
nationals of the other party, in accord ance with its laws and regulations.  
155. Article 107 creates a Sub-Committee on Improvement of the Business Environment.  Its 
functions are described in Article 107.2 (a)-(g).  Article 109 establishes a Liaison office.  Article 110 
provides that Chapter 13 (Dispute Settlement) does not apply to Chapter 11.   
(c) Co-operation 
156. Chapter 12 concerns Co-operation between the pa rties.  Article 111 requires the parties to 
cooperate in the areas of (a) agriculture, forestry an d fisheries; (b) trade and investment promotion, 
(c) small and medium enterprises, (d) human resource management and development, (e) tourism, 
(f) information and communications strategy, (g) envi ronment, (h) transportation, and (i) other fields 
to be mutually agreed by the parties.  The Implementing Agreement establishes additional Working 
Groups on all but (i), ("other fields ...") in Chapters 4, 5, 6, 7, 8, 9, 10 respectively.   WT/REG275/1 
Page 44 
 
 
  ANNEX I 
 
Indicators of Trade Liberalization under the Agreement  
 
 
1. A comparison between the parties scheduled ta riff elimination set out in the Agreement and 
the MFN rates applied by Japan and Viet Nam ar e shown in Table AI.1 (Japan) and Viet Nam 
Table AI.2 below, by all products, agri cultural and non-agricultural products.   
2. Japan's average applied MFN rate in 2009 w as 4.8%.  Tariffs on agricultural products are 
higher than for non-agricultural products, with the average applied MFN tariff on agricultural 
products nearly three times higher than that applied to non-agricultural products.  Duty free tariff lines 
account for 41.4% of all tariff lines.  As a result of  entry into force of the Agreement, Vietnamese 
exporters to Japan enjoyed an absolute margin of preference of 1.4% for agricultural goods and 2.8% 
for non-agricultural goods in 2009.  
3. Overall, Viet Nam's exporters enjoyed an absolute margin of preference of 2.5% vis-à-vis  the 
prevailing average applied MFN tariff;  the shar e of duty-free lines applicable to imports from 
Viet Nam rose from 41.4% to 81.8% in 2009.  By 2018, ten years after entry into force of the Agreement, 84.1% of all tariff lines are due to b ecome tariff free for imports from Viet Nam;  
however, only 44.6% of agricultural tariffs compared to 93.5% of non-agricultural tariffs.  By 2024, 
the end of the implementation period, this will have risen to 89.3% for all products, 95.9% for 
non-agricultural products and 61.7% for agricultural products. 
Table AI.1 
Japan: Indicators of MFN tariff rates and pr eferential rates for imports from Viet Nam 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2009 4.8 8.3 41.4 11.2 15.8 25.5 3.4 6.2 45.3 
Viet Nam 2009 2.3 13.9 81.8 9.8 18.0 40.6 0.6 7.9 91.9 
 2010 2.2 13.4 81.8 9.5 17.5 40.6 0.6 7.5 91.9 
 2011 2.1 13.0 81.8 9.3 17.0 40.6 0.6 7.1 91.9 
 2012 2.0 12.6 81.9 9.0 16.6 40.6 0.5 6.8 92.0 
 2013 2.0 12.2 81.9 8.8 16.1 40.6 0.5 6.4 92.0 
 2014 1.9 12.4 83.0 8.5 16.0 41.8 0.5 6.7 92.8 
 2015 1.8 12.1 83.0 8.3 15.6 41.8 0.5 6.4 92.8 
 2016 1.8 12.6 84.0 8.0 16.1 44.6 0.4 6.7 93.5 
 2017 1.7 12.2 84.0 7.8 15.7 44.6 0.4 6.4 93.5 
 2018 1.7 11.8 84.1 7.6 15.3 44.6 0.4 6.1 93.5 
 2019 1.6 16.4 88.2 7.4 20.1 56.3 0.4 9.1 95.9 
 2020 1.6 16.2 88.2 7.3 19.9 56.3 0.4 9.1 95.9 
 2021 1.6 16.1 88.2 7.3 19.6 56.3 0.4 9.1 95.9 
 2022 1.6 15.9 88.2 7.2 19.4 56.3 0.4 9.1 95.9 
 2023 1.6 15.8 88.2 7.1 19.2 56.3 0.4 9.1 95.9 
 2024 1.5 17.6 89.3 7.0 22.8 61.7 0.4 9.1 95.9 
 a WTO Definition. Note: Tariff lines subject to in-quota rates are excluded in the computation; for the calculation of averages, specific rates a re excluded 
and the ad valorem  part of alternate rates are included. 
Based on the HS 2007 nomenclature. 
 
Source : WTO Secretariat estimates base d on data provided by Japan. 
 
4. Viet Nam's average applied MFN rate in 2009 was 11.4%.  Tariffs on agricultural products 
are higher than for non-agricultural products, 19.4% compared to 10.2%.  MFN duty free tariff lines 
in 2009 accounted for 29.6% of all tariff lines.  As a result of the Agreement,  Japanese exporters to 
Viet Nam enjoyed an absolute margin of preferen ce of 0.7% for agricultural goods and 0.4% for 
non-agricultural goods.  Overall, Japan's exporters to Viet Nam enjoyed an absolute margin of  WT/REG275/1 
 Page 45 
 
 
  preference of 0.5% vis-à-vis  the prevailing average applied MFN tariff with the share of duty-free 
lines applicable to imports from Viet Nam risi ng slightly from 29.6% to 29.8% in 2009.   
5. By 2018, ten years after entry into force of the Agreement, 43.2% of all tariff lines are due to 
become tariff free for imports from Japan, of which 47.4% for non-agricultural products but only 
13.8% for agricultural products.  By 2026, the end of  the implementation period, this will have risen 
to 91.6% for all products, 92.9% for agricultu ral products and 91.7% for non-agriculture. 
Table AI.2 
Viet Nam:  Indicators of MFN tariff rates and preferential rates for imports from Japan 
ALL PRODUCTS Agricultural products a Non-agricultural products 
Average applied 
tariff Average applied 
tariff Average applied 
tariff Origin of 
goods Year 
Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff 
lines (%) Overall 
(%) On 
dutiable 
(%) Share of 
duty-free 
tariff lines 
(%) 
MFN 2009 11.4 16.2 29.6 19.4 22.0 11.6 10.2 15.1 32.3 
Japan 2009 10.9 15.6 29.8 18.7 21.3 12.2 9.8 14.5 32.5 
 2010 10.5 15.0 29.9 18.1 20.6 12.2 9.3 13.9 32.5 
 2011 9.9 14.2 30.4 17.4 19.8 12.2 8.8 13.1 33.1 
 2012 9.2 13.3 30.7 16.4 18.6 12.2 8.1 12.2 33.4 
 2013 8.5 12.4 31.4 15.3 17.5 12.2 7.4 11.3 34.2 
 2014 7.6 11.3 32.5 14.0 16.0 12.2 6.6 10.3 35.5 
 2015 6.9 10.5 34.3 12.9 14.7 12.3 6.0 9.6 37.5 
 2016 6.1 9.7 37.4 11.6 13.2 12.3 5.2 8.9 41.1 
 2017 5.4 8.8 38.7 10.4 11.8 12.3 4.6 8.0 42.6 
 2018 4.6 8.1 43.2 9.0 10.5 13.8 3.9 7.5 47.4 
 2019 3.8 16.0 75.8 7.7 15.5 50.0 3.2 16.0 79.6 
 2020 3.5 14.9 75.8 6.9 13.9 50.0 3.0 15.1 79.6 
 2021 3.3 13.8 75.8 6.2 12.3 50.0 2.8 14.2 79.7 
 2022 3.0 12.5 75.9 5.3 10.5 50.0 2.6 13.0 79.7 
 2023 2.6 11.2 75.9 4.4 8.8 50.0 2.3 11.9 79.8 
 2024 2.2 25.8 90.9 3.3 46.1 92.9 2.0 23.4 90.9 
 2025 2.2 27.8 91.6 3.3 46.1 92.9 2.0 25.6 91.7 
 2026 2.1 26.9 91.6 3.3 46.1 92.9 1.9 24.5 91.7 
 
a WTO Definition. 
 Based on the HS 2007 nomenclature.  
Source : WTO Secretariat estimates based on data provided by Viet Nam. 
 
6. Table AI.3 shows the market access conditions in  Japan for Viet Nam's top 25 exports which 
in 2006-2008 accounted for 51.5% of its global expor ts.  Twenty-six tariff lines (at the HS 9-digit 
level) were already duty free on an MFN basis.  Ou t of 62 tariff lines that were dutiable, 23 became 
duty free with the entry into force of the Agreement;  2 will become duty-free in 2012, with a further 
11 in 2014 and 6 in 2019.  With full implementation of the Agreement, the following products will 
remain dutiable;  rice, footwear and fish (covering 20 tariff lines).  WT/REG275/1 
Page 46 
 
 
  Table AI.3 – Japan: Market access opportunities un der the agreement for Viet Nam's top 25 exports 
Access Conditions to Japan's import markets  
MFN (2009)  Viet Nam's top export products in 2006-2008  
No. of tariff 
lines  Duty-free in  
HS number and description of the product  
Share in 
global  
exports 
MFN  
average (%)  
Duty-free 
Dutiable 
2009  
2012 2014 2019 
Remain Dutiable  
270900 Petroleum oils and oils obtained from 
bituminous minerals, crude. 18.0 0.0 2       
100630 - Semi-milled or wholly milled rice, whether or 
not polished or glazed 3.7 0.0 a 1 1     1 
090111 -- Not decaffeinated 3.5 0.0 1       
030613 -- Shrimps and prawns 2.6 1.0  1 1     
270111 -- Anthracite 2.2 0.0 1       
640319 -- Sports footwear other than ski-boots or cross-
country ski footwear or snowboard boots, with 
outer soles of rubber or plastics or leather or 
composition leather and uppers of leather 1.9 28.5  2     2 
640399 -- Other footwear with outer soles of  leather, 
not covering the ankle. 1.6 29.6  7    1 6 
030429 -- Fish fillets and other fish meat (excluding HS 
subheading 030421-030492, whether or not 
minced), frozen fillets 1.5 4.4  7  2   5 
400129 -- Natural rubber other than latex or smoked 
sheets or technically specified natural rubber (TNSR) 1.5 0.0 1       
640411 -- Sports footwear; tennis shoes, basketball 
shoes, gym shoes, training shoes and the like 1.5 8.0  1    1  
080132 -- Shelled cashew nuts 1.3 0.0 1       
940360 - Other wooden furniture 1.2 0.0 3       
854430 - Ignition wiring sets and other wiring sets of a 
kind used in vehicles, aircraft or ships 1.1 2.4 1 1 1     
940350 - Wooden furniture of a kind used in the 
bedroom 1.1 0.0 1       
271019 Petroleum oils & oils obtained from bituminous 
minerals (other than crude) & preparations not 
elsewhere specified/incld., containing by weight 
70 %/more of petroleum oils/of oils obtained from bituminous minerals, these oils being the basic constituents of the preparations, other than 
waste oils and light oils & preparations 1.0 2.2 9 22 11  11   
847160 - Input or output units, whether or not containing 
storage units in the same housing 1.0 0.0 1       
640419 -- Footwear (e xcluding waterproof) with outer 
soles of rubber or plastics and uppers of textile materials (excluding HS subheading 640411) 0.9 16.3  5    2 3 
611020 - Jerseys, pullovers, cardigans, waist-coats & 
similar articles, knitted/crocheted, of cotton 0.8 10.5  4 4     
640219 -- Sports footwear other than ski-boots or cross-
country ski footwear or snowboard boots, with outer soles and uppers of rubber or plastics 0.8 6.7  1    1  
940169 -- Seats (excluding HS subheadings 940110-
940150), with wooden frames, other than upholstered 0.8 0.0 1       
400122 -- Technically specified natural rubber (TSNR) 0.7 0.0 1       
610910 - T-shirts, singlets & other vests, knitted or 
crocheted, of cotton 0.7 9.7  3 3     
620349 Men's/boys' trousers, bib & brace overalls, 
breeches & shorts (excluding swimwear; excluding knitted or croche ted), of other textile 
materials (excluding HS subheadings 620341-
620343) 0.7 9.4  3 3     
640299 -- Other footwear with outer soles and uppers of 
rubber or plastics, not covering the ankle. 0.7 8.1  4    1 3 
844332 -- Other, capable of connecting to an automatic 
data processing machine or to a network 0.7 0.0 2       
Total of above  51.5  26 62 23 2 11 6 20 
 
a Combination of duty-free and specific duty. 
Source:  WTO estimates based on data provided by  Japan and UNSD, Co mtrade database.  WT/REG275/1 
 Page 47 
 
 
  7. Table AI.4 shows the market access conditions in  Viet Nam for Japan's top 25 exports which 
in 2006-2008 accounted for 35.2% of its global expor ts.  Forty-one tariff lines (at the HS 12 digit 
level) were already duty free on an MFN basis.  Ou t of 243 tariff lines that were dutiable, 43 lines are 
to become duty free within 10 years of implementation by 2018.  A further 61 will become duty free 
in 2019 and 11 lines are to become duty free by the end of implementation.  With full implementation 
of the Agreement, products will remain dutiable: engine parts, motor vehicles, mineral fuels and 
electrical machinery (covering 128 tariff lines).  
Table AI.4 – Viet Nam:  Market access opportuni ties under the agreement for Japan's top 25 exports 
Access Conditions to Viet Nam's import markets  
MFN (2009)  Japan's top export 
products in 2006-
2008  No. of tariff 
lines  Duty-free in  HS 
number  
Share in 
global 
exports 
MFN  
average (%)  
Duty-
free 
Dutiable 
2011  
2012 
2013 
2014 
2015  
2016 2017 
2018 
2019  
2024 
2025 
Remain Dutiable  
870323 6.5 63.1  19         2   17 
870324 4.4 51.1  9         2   7 
870322 2.1 39.2  7         2   5 
852580 1.7 14.0  3   1   2       
844399 1.5 2.5 2 2  1 1          
854239 1.5 0.0 1              
870840 1.5 14.6  25    3     10   12 
890190 1.4 8.9 1 8         8    
271019 1.3 18.7  17     1 3 1  3   9 
852990 1.3 1.6 5 10 3  2 1 3   1     
842952 1.1 0.0 1              
854231 1.1 0.0 1              
848620 1.0 0.1 19 2 2            
854232 1.0 0.0 1              
851770 0.9 3.3 1 11 4 1 3   1   2    
870332 0.9 51.7  11         2   9 
854140 0.8 0.0 3              
890120 0.8 3.3 2 1         1    
381800 0.7 0.0 1              
840991 0.7 14.5  65         15 2 7 41 
870422 0.7 23.2  17            17 
870899 0.7 14.9  17    4    3 6 2  2 
847989 0.6 0.0 3              
870333 0.6 46.5  9         2   7 
853690 0.5 19.0  10    2     6   2 
Total 35.2  41 243 9 2 7 10 4 6 1 4 61 4 7 128 
 
Source:  WTO estimates based on data provided by Viet Nam and UNSD, Comtrade database.  WT/REG275/1 
Page 48 
 
 
  ANNEX II 
 
Tariff-Rate Quotas under the Agreement  
 
 
1. Under the Agreement, Japan maintains tariff-rate  quotas (TRQs) on one Agricultural product, 
honey (040900000).  Japan has no MFN TRQs on honey.  Viet Nam maintains no TRQs under the 
Agreement.  
Table AII.1 
Japan:  Tariff-rate quotas for some agricul tural products originating in Viet Nam 
TRQ from the date of entry into force 
(1 October 2009  Liberalization scheme  
Duty  HS Code (description)  
Quantity  In-quota Out of quota Quantity Duty 
Honey 040900000  100 metric tonnes (MT) 
in 2009 and increasing 
annually to 150 MT in 
2019  12.8%  
 MFN duty 
(2009)  
(25.5%) None- 
 
Note: The operation of the TRQs is based on Japan's fiscal year (April - March). 
 
Source: Part 2, Section 1 of Annex 1 to the Economic Pa rtnership Agreement between Japan and Viet Nam. 
 
 
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