RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VNM/5/Rev.2 
21 February 2006 
 (06-0739) 
Working Party on the 
Accession of Viet Nam  
 
   
ACCESSION OF VIET NAM 
Draft Report of the Working Party on the Accession of Viet Nam
 
 
Revision  
 
     WT/ACC/SPEC/VNM/5/Rev.2 
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 TABLE OF CONTENTS 
Introduction................................................................................................................... .........................1  
Documentation provided ......................................................................................................... ..............1  
Introductory statements ........................................................................................................ ................1  
ECONOMIC POLICIES.............................................................................................................. .........3  
Monetary and fiscal policy ..................................................................................................... ...............3  
Foreign exchange and payments.................................................................................................. .........7  
Investment regime.............................................................................................................. ..................12  
State-owned and State trading enterprises...................................................................................... ..20 
Privatization .................................................................................................................. .......................30  
Pricing policies ............................................................................................................... ......................36  
Competition policy............................................................................................................. ..................39  
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES .................................................41  
POLICIES AFFECTING TRADE IN GOODS ................................................................................51  
Trading rights (the right to import and export)................................................................................ 51 
1. Import Regulation.............................................................................................................. .....57  
Customs tariff................................................................................................................. ......................57  
Other duties and charges....................................................................................................... ..............60  
Tariff rate quotas, tariff exemptions .......................................................................................... ........61  
Fees and charges fo r services rendered......................................................................................... .....67  
Application of internal taxes .................................................................................................. .............70  
Quantitative import restrictions, including pr ohibitions, quotas and licensing systems...............74  
Customs valuation.............................................................................................................. ..................82  
Rules of origin ................................................................................................................ ......................84  
Other customs formalities ...................................................................................................... .............86  
Pre-shipment inspection ........................................................................................................ ..............87  
Anti-dumping, countervailing duties, safeguard regimes ................................................................88  
2. Export regulation.............................................................................................................. ......90  
Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports........................................................................................................................ ..............90  
Export restrictions............................................................................................................ ....................91  
3. Internal policies affecting foreign trade in goods.................................................................94  
Industrial policy, including subsidies......................................................................................... ........94  
Technical barriers to trade, standards and certification................................................................100  
Sanitary and phytosanitary measures............................................................................................ ..106  
Trade-Related Investment  Measures (TRIMs) ...............................................................................115  WT/ACC/SPEC/VNM/5/Rev.2 
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 Free zones, special economic areas............................................................................................. ......118
 
Government procurement......................................................................................................... ........122  
Trade in ci vil aircraft........................................................................................................ .................124  
Transit ....................................................................................................................... .........................124  
Agricultural policies.......................................................................................................... .................126  
(a) Imports – description of the types of border protection maintained ...............................126  
(b) Exports........................................................................................................................ ...........127  
(c) Internal policies.............................................................................................................. .......129  
Fisheries ...................................................................................................................... ........................131  
[Textiles regime].............................................................................................................. ...................133  
[Core labour standards......................................................................................................... .............134  
TRADE-RELATED INT ELLECTUAL PROPERTY RIGHTS (TRIPS) ...................................134  
1. General........................................................................................................................ ...........134  
(a) Industrial property protection.............................................................................................134  
(b) Responsible agencies for policy formulation and implementation ...................................136  
(c) Participation in international intellectual property agreements ......................................136  
(d) Application of national and MFN treatment to foreign nationals....................................137  
(e) Fees and taxes ................................................................................................................. .......137  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ................................................................138  
(a) Copyright protection ........................................................................................................... .138 
(b) Trademarks, including  service marks.................................................................................143  
(c) Geographical indications, including appellations of origin...............................................146  
(d) Industrial designs............................................................................................................. .....148  
(e) Patents........................................................................................................................ ............149  
(f) Plant variety protection....................................................................................................... .152 
(g) Layout designs of integrated circuits ..................................................................................153  
(h) Requirements on undisclosed information, including trade secrets and test data..........153  
3. Measures to control abuse of intellectual property rights.................................................154  
4. Enforcement .................................................................................................................... ......155  
(a) Civil judicial procedures and remedies...............................................................................155  
(b) Provisional measures ........................................................................................................... .157 
(c) Administrative procedures and remedies...........................................................................157  
(d) Special border measures.......................................................................................................1 61 
(e) Criminal procedures............................................................................................................ .163 
POLICIES AFFECTING TRADE IN SERVICES.........................................................................166   WT/ACC/SPEC/VNM/5/Rev.2 
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 TRANSPARENCY ................................................................................................................... .........171  
Publication of information on trade............................................................................................ .....171  
Notifications.................................................................................................................. ......................174  
TRADE AGREEMENTS ............................................................................................................... ...175  
CONCLUSIONS .................................................................................................................... ............176  
ANNEX 1 ........................................................................................................................ ....................178  
ANNEX 2 ........................................................................................................................ ....................184  
 
  WT/ACC/SPEC/VNM/5/Rev.2 
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 Introduction 
1. The Government of the Socialist Republic of  Viet Nam applied for accession to the World 
Trade Organization in January 1995 (document WT/L /1).  At its meeting on 31 January 1995, the 
General Council established a Working Party to exam ine the application of the Government of the 
Socialist Republic of Viet Nam to accede to the World Trade Organization under Article XII of the 
Marrakesh Agreement Establishing the WTO.  The terms of reference and the membership of the 
Working Party are reproduced in document WT/ACC/VNM/1/[Rev.23]. 
2. The Working Party met on 30-31 July and 3 December 1998; 22-23 July 1999; 
30 November 2000; 10 April 2002; 12 May and 10  December 2003; 15 June and 15 December 2004 
under the Chairmanship of H.E. Mr. Seung Ho (R epublic of Korea); and on 15 September 2005 and 
[...] under the Chairmanship of H.E. Mr. Eirik Glenne (Norway). 
Documentation provided 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Viet Nam (WT/ACC/VN M/2), the questions submitted by Members on the 
foreign trade regime of Viet Nam, together with th e replies thereto, and other information provided by 
the authorities of Viet Nam (WT/ACC/VNM/3 a nd Corrigendum 1; WT/ACC/VNM/3 and Addenda 
1, 2 and 3; WT/ACC/VNM/5 and Addendum 1; WT/ACC/VNM/6 and Addenda 1 and 2; 
WT/ACC/VNM/7; WT/ACC/VNM/8; WT/ACC/VNM/9 and Addenda 1 and 2; WT/ACC/VNM/10; 
WT/ACC/VNM/11 and Revisions 1, 2, 3, 4 and 5; WT/ACC/VNM/12; WT/ACC/VNM/13 and 
Addenda 1 and 2; WT/ACC/VNM/14 and Addendum  1; WT/ACC/VNM/15 and Addenda 1 and 2; 
WT/ACC/VNM/16; WT/ACC/VNM/18 and Revisi on 1; WT/ACC/VNM/19 and Revision 1; 
WT/ACC/VNM/20 and Revisions 1 and 2; WT/ACC/VNM/21 and Revisions 1 and 2; 
WT/ACC/VNM/22 and Revision 1; WT/ACC/VNM/23;  WT/ACC/VNM/24 and Revisions 1 and 2; 
WT/ACC/VNM/25 and Revisions 1, 2 and 3; WT/ACC/VNM/29; WT/ACC/VNM/31 and 
Revisions 1 and 2; WT/ACC/VNM/32; WT/A CC/VNM/33 and Addendum 1; WT/ACC/VNM/34; 
WT/ACC/VNM/35; WT/ACC/VNM/36; WT/ACC/VNM/37; WT/ACC/VNM/38; WT/ACC/VNM/39; WT/ACC/VNM/40; WT/ACC/VNM/ 41….….), including the legislative texts 
and other documentation listed in Annex I. 
Introductory statements 
4. The representative of Viet Nam said that Viet  Nam had been carrying out economic reforms 
since 1986 under the "Doi Moi" (Renovation) polic y, focussing on market oriented economic WT/ACC/SPEC/VNM/5/Rev.2 
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 management; restructuring to build a multi-sectoral economy; financial, monetary and administrative 
reforms; and the development of external economic  relations.  Having joined the Association of 
Southeast Asia Nations (ASEAN), the Asia-E urope Cooperation (ASEM) and the Asia-Pacific 
Economic Cooperation Forum (APEC), Viet Nam was participating in regional institutions which 
were committed to WTO principles and rules, a nd preparatory and substantially supportive of 
Viet Nam's accession to the WTO. 
5. Viet Nam recognized the important role and si gnificance of the WTO in the development of 
the global economy as well as the economic growth of individual countries.  Viet Nam had decided to 
apply for WTO membership with a view to expandi ng its economic, trade and investment ties with 
other Members, reflecting a firm resolve to cont inue the process of integration of Viet Nam's 
economy into the world trading system.  Conscious that WTO membership involved both rights and 
obligations, Viet Nam was committed to upholding th e principles of the WTO as the basis for its trade 
policies.  Viet Nam was revising its legislation to adapt gradually to the rules and principles of the 
WTO. 
6. The Government had established an inter-mi nisterial National Committee on International 
Economic Co-operation (NCIEC), responsible for in ter-sectoral coordination in policy formulation 
and economic cooperation, as well as a Governmental Negotiation Team on International Economic 
and Trade Affairs, comprising senior officials from various Ministries.  Viet Nam was prepared to embark on negotiations in all sectors of interest to Members of the WTO.  Referring to Viet Nam as a 
low-income and highly indebted developing coun try, he hoped and believed that Members would 
show sympathy and flexibility in the elaborati on of the terms and conditions for Viet Nam's 
membership. 
7. Members of the WTO welcomed strongly Viet  Nam's application to join the WTO and 
pledged their full support to the accession process.   Members appreciated the significant reforms 
already undertaken and encouraged Viet Nam to c ontinue the policies towards market-orientation, 
liberalization and transparency.  Viet Nam's integration into the world economy would allow 
Viet Nam to solidify the gains of its ongoing economi c reforms.  Some Members noted that Viet Nam 
would need to make further adjustments in its  legal and trade regime to conform to WTO 
requirements, and looked forward to working ac tively with Viet Nam towards this objective. 
8. The Working Party reviewed the economic policie s and foreign trade regime of Viet Nam and 
the possible terms of a draft Protocol of Accession to the WTO.  The views expressed by members of the Working Party on the various aspects of Viet Nam's foreign trade regime, and on the terms and 
conditions of Viet Nam's accession to the WTO ar e summarized below in paragraphs 9 to [...].  WT/ACC/SPEC/VNM/5/Rev.2 
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 ECONOMIC POLICIES  
Monetary and fiscal policy  
9. The representative of Viet Nam said that in accordance with the Law on State Bank of 
Viet Nam, the main objective of Viet Nam's moneta ry policy was to stabilize the value of the currency 
– the Vietnamese Dong, to control inflation and to promote socio-economic development.  Credits 
were channelled into activities making full use of the potentials of various economic sectors.  The 
State Bank of Viet Nam was using monetary policy instruments such as refinancing, reserve 
requirements, interest rates, exchange rates, open market ope rations and other supplementary 
instruments to regulate the money supply.  The State Bank of Viet Nam had applied a uniform 
rediscount rate for all commercial banks since 1999.  Credit policy continued to be improved to meet 
sufficiently the financing requirements for economic growth in line with monetary policy objectives 
from time to time.  The credit mechanism had been am ended to become more li beral in order to create 
a level playing field among various economic sect ors, improve the autonomy and accountability of 
credit institutions, and enhance credit quality.   
10. Asked about the level of commercial debt owed  by public sector enterprises, he said that 
State-owned enterprises had owed Vietnamese commercial banks 142.9 trillion Dong in 2004, or 
34.0 per cent of the total outstanding loans of credit institutions and 42.8 per cent of the total 
outstanding loans of Viet Nam's four main State-owned commercial banks − Viet Nam's fifth 
State-owned commercial bank was very small a nd usually excluded from the statistics.  
Non-performing loans owed by State-owned en terprises to State-owned commercial banks had 
amounted to 4.646 billion Dong in December 2004,  which represented 3.67 per cent of the banks' 
total loans.  Financial institutions, including St ate-owned commercial banks, established their own 
lending procedures based on objective criteria such as the client's solvability, trading and production 
plans, feasibility assessment, and investment pr oject efficiency assessment, in accordance with 
Decision No. 1627 of 31 December 2001 on Lending Regul ations of Credit Organizations to Clients.  
Financial institutions considered and decided themselves whether to provide loans to State-owned 
enterprises, on commercial terms.  They were se lf-responsible for their credit activities.  Support 
through the Development Assistance Fund had am ounted to 917.1 billion D ong in 2004, including 
504.3 billion through medium- and long-term investment loans, 3 billion through short-term 
investment loans, and 109.9 billion in the form of  post-investment interest support.  He provided 
statistics about support provided under the Deve lopment Assistance Fund, including information 
about non-performing loans, in Annex 1 to docum ent WT/ACC/VNM/39.  He added that the question WT/ACC/SPEC/VNM/5/Rev.2 
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 of non-performing public sector debt was addressed  through equitization and restructuring of 
State-owned enterprises (see the "Privatization" section below).   
11. He noted that a number of measures had been taken since 2001 to reorganize State-owned 
commercial banks with a view to enhancing their efficiency.  Assets quality, disciplines, and risk 
management had been improved; policy lending ha d been separated from co mmercial credit activities 
and entrusted to social policy banks; State-owne d commercial banks had been required to establish 
their own credit handbook, which had been applicable  since late 2004-early 2005; and the credit risk 
management system had been brought into line with  international standards.  In addition, credit 
organizations and State-owned commercial banks were required,  under the Law of Credit 
Organization, to put in place an internal audit system and a Supervisory Board responsible for 
supervising the organization's financial and acco unting activities, ensuring the safety of credit 
operations, and conducting periodic in ternal audits.  To enhance the stability of the banking sector and 
progressively adopt international standards in banki ng operations, the State Bank of Viet Nam (SBV) 
had also promulgated Decision No. 493/2005/QD-NHNN  of 22 April 2005 on Debt Classification and 
Provisioning for Credit Risk Resolution in Banking Operations of Credit Institutions.  Under this 
Decision, debts were classified into five categor ies.  The first category, "qualified debt", had a 
provisioning ratio of zero per cent; the second categor y, "debt requiring attention", a provisioning 
ratio of 5 per cent; the third category, "below-sta ndard debt", a provisioning ratio of 20 per cent; the 
fourth category, "doubted debt", a provisioning ratio of 50 per cent; and the fifth category, "possibly 
lost debt", a provisioning ratio of 100 per cent.  Ca tegories 3, 4 and 5 were considered bad debts.  
Credit institutions were allowed to use provisioni ng sources to write off debts or enter them under 
off-balance sheet items in case of bankruptcy or di ssolution of the organization or enterprise being 
their client, death of their client or when the latter went missing, and in the event of debt belonging to 
the fifth category.  In addition, credit institutions were required to monitor cl osely debt collection and 
to restructure their bad debts.  
12. To further improve the operational efficiency  of State-owned commercial banks, the State 
Bank intended to equitized most State-owned commercial banks by 2010.  According to the 
Government's plan, two State-owned commercial banks were to be equitized in 2006.  The State Bank 
would remain responsible for State management , inspection and supervision over State-owned 
commercial banks and credit organizations.  
13. The representative of Viet Nam said that the budge t deficit was considered  the main cause of 
inflation.  The Government targeted a deficit ra tio of maximum 3 per cent of GDP, compared to an 
average budget deficit of about 8 per cent to GDP in the 1980s.  The budget deficit had amounted to  WT/ACC/SPEC/VNM/5/Rev.2 
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 1.3 per cent of GDP in 1999, 2.7 per cent in 2000, 2.9 per cent in 2001, 2.3 per cent in 2002 and 
2.1 per cent in 2003.  The Government also aimed at maintaining a surplus of current revenue over 
current expenditure at 4.5 per cent of GDP.  The respective ratios had been 5.1 per cent in 1999, 
5.2 per cent in 2000, 3.9 per cent in 2001, 5.8 per cent in 2002 and 5.1 per cent in 2003.  In response to a question concerning the impact of direct  lending and other subsid y programmes on the budget 
deficit, he noted that Viet Nam's subsidy progra mmes were insignificant and had a minimal effect on 
the budget deficit. 
14. The first phase of Viet Nam's tax reform progr amme had helped in raising the total tax 
collected to GDP ratio from 13.1 per cent in 1991 to 22.6 per cent in 1995.  The second phase of the programme had focussed on streamlining the tax rate structure, non-discrimination, a broadening of 
the tax base, improved tax administration, and the introduction of value-added tax (VAT) to replace a 
turnover tax.  The main taxes levied in Viet Na m were corporate income tax; Agricultural Land Use 
tax; a Tax on the Transfer of Land Use Rights; Natural Resources tax (Royalties); Land and Housing 
tax; (Personal) Income tax; VAT; Special Cons umption tax (Excise tax); and import and export 
duties.  In addition, the Government levied fi scal charges such as land rent, water charges, a 
slaughtering tax (abolished in 1999), business licensing tax, property registration fees and 
transportation fees.  The total revenue from taxes, fees, charges and other levies as a percentage of 
GDP had amounted to 22.1 per cent in 2002 and 21.9 per cent in 2003.   
15. Corporate income tax was levied in accordan ce with the amended Law on Corporate Income 
Tax, enacted by the National Assembly on 17 June 2003 and in effect since 1 January 2004, having 
replaced the Law on Corporate Income Tax of 10 May 1997.  The amended Law provided for a 
general tax rate of 28 per cent and preferential rates of 10, 15 and 20 per cent, and for a uniform set of 
criteria for entitlement to tax incentives for both dom estic and foreign invested enterprises.  The 
amended Law had also revoked a provision ref unding the amount of corporate income tax 
corresponding to reinvested income and the am ount of tax on profit repatriation according to 
Articles 42 and 43 of the Law on Foreign Investment  in Viet Nam.  The Agricultural Land Use tax 
had been levied since 1 January 1994 on all i ndividuals and entities using land in agricultural 
production.  Households us ing land in excess of established stan dard acreage paid an additional tax 
equal to 20 per cent of the basic rate.  The land a nd housing tax was levied on houses, residential land 
and construction sites.  However, the housing ta x had remained temporarily uncollected.  The 
amended Law on Corporate Income Tax had revoked a provision on taxes on the transfer of land use 
rights imposed on trading units according to the Law on Taxes on the Transfer of Land Use Rights.  According to the amended Law, income of trading units arising from the transfer of land use rights 
were now subject to corporate income tax.  Th e Law on supplements of and amendments to some WT/ACC/SPEC/VNM/5/Rev.2 
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 Articles of the Tax on the Transfer of Land Use Right s, effective since 1 January 2000, provided for a 
tax rate of 2 per cent on land used in agricultural,  forestry and aquatic production, and 4 per cent on 
land used for residential, construction and other purposes.  The natural resources tax was applied in 
accordance with the amendments  to the Ordinance on Natural Resources Tax of 30 March 1990, 
effective since 1 June 1998.  The Ordinance provide d for tax rates varying from 1-8 per cent on metal 
minerals, coal and precious gems, 0-25 per cent on oil and gas, 1-5 per cent on non-metal minerals, 
1-10 per cent on natural marine pr oducts, 1-40 per cent on natural forest products, 0-10 per cent on 
natural water, 10-20 per cent on swallow's nests, and 0-10 per cent on other natural resources.  The 
criteria used for determining the applicable tax ra tes were stipulated in the Ministry of Finance 
Circular No. 153/1998/TT-BTC of 26 November 1998 guiding the implementation of Government 
Decree No. 68/1998/CP of 3 September 1998.  Pursuant to Point 3, section II of the Circular, tax rates 
were adjusted periodically according to the type of  natural resource, its scarcity and economic value, 
whether recyclable or not, its use, and exploitatio n conditions.  The tax was applied to all types of 
projects, except when the Vietnamese partner in a joint venture had contributed the registered capital 
in the form of natural resources. 
16. Legislation on personal income tax - the Ordi nance on Income Tax of High Income Earners 
of 27 December 1990, last amended on 24 Marc h 2004 (Ordinance No. 14/2004) – distinguished 
between Vietnamese residents, foreign resident s in Viet Nam, and Vietnamese citizens working 
abroad.  Successive amendments had aimed at gra dually reducing the difference between the tax rates 
applied to Vietnamese residents, wh ich originally ranged from zero to  60 per cent with a threshold of 
1.2 million Dong, and foreign residents and Vi etnamese citizens working abroad, which had 
originally been taxed at rates from zero to 50 per cent with a threshold of five million Dong.  Under 
the newly amended Ordinance, Vietnamese and foreign residents were subject to the same progressive tax rates, ranging from zero per cent to 40 per cent,  but to a different taxable income threshold.  
However, the monthly taxable income threshold for Vietnamese residents had been raised to 
VND 5 million in order to reduce the gap to the thr eshold applicable to foreign residents.  The 
threshold for foreigners had remained uncha nged since 30 June 1999 and amounted to 
VND 8 million.  He confirmed that new tax ru lings were not applied retroactively.   
17. A Member was concerned about very high pe rsonal income tax rates in Viet Nam and 
considered this a major investment  disincentive.  The representativ e of Viet Nam replied that under 
the present system, foreigners were treated more fa vourably than Vietnamese nationals, which in his 
opinion created an enabling environment for inve stment.  Nevertheless, the tax system was under 
review.  A Law on Personal Income Tax, which w ould replace the Ordinance on Income Tax of High 
Income Earners, was expected to be submitted to  the National Assembly in 2007.  The Law would  WT/ACC/SPEC/VNM/5/Rev.2 
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 introduce a single tax system, broaden the scope of  application of the personal income tax, and 
provide for a clearer definition of residents and non-r esidents in conformity with international rules.  
The objective was to offer tax paying workers appr opriate incentives compatible with international 
norms and practices.  The Law was at an initial stage of study.  Other tax laws would also be amended 
to make them compatible with the Law on Value-A dded Tax and the Law on Corporate Income Tax.   
Foreign exchange and payments  
18. The representative of Viet Nam said that Viet Nam had replaced a fixed exchange rate system 
with a managed float flexible exchange rate mechanism in 1989.  Fore ign exchange transaction 
centres had been opened at the end of 1991, and an  inter-bank currency market for commercial banks 
had been established in October 1994.  The State Bank of Viet Nam monitored the balance-of-payments and foreign exchange reserv es position of Viet Nam, and the State Bank could 
intervene in the market as necessary.  The State Bank published the average transaction exchange rate 
of the Vietnamese Dong against the U.S. dollar in the inter-bank foreign exchange market on a daily 
basis.   
19. Viet Nam had normalized its financial relations with the International Monetary Fund (IMF) 
in October 1993.  In order to prepare for the accep tance of the obligations under Article VIII of the 
Fund's Articles of Agreement, Viet Nam had been gradually meeting the requirements mentioned in 
Article VIII.  The convertibility of the Vietname se Dong had been mentioned as an objective in 
Government Decree No. 05/2001/ND-CP of 17 January  2001, which had amended and supplemented 
Government Decree No. 63/1998/ND-CP on Foreign Exchange Management of 17 August 1998.  
Controls on current account transactions had been liber alized.  Pursuant to this Decree, (i) residents 
and non-residents were allowed to open and mainta in foreign exchange accounts with authorized 
banks in Viet Nam; (ii) Vietnamese citizens residi ng in Viet Nam were allowed to purchase, transfer 
and carry foreign exchange abroad for purposes su ch as tourism, education, medical treatment, 
payment of membership fees, and other charges fo r the purposes of providing support or inheritance 
to family and relatives abroad, upon presentation of relevant documents in accordance with the 
regulations of the State Bank; (iii) foreign reside nts having legal income in foreign currency were 
permitted to transfer or carry the money out of Vi et Nam, and income in Vietnamese Dong could be 
converted into foreign currency at authorized banks upon presentation of re levant documents and a 
certificate that all financial obligations in accordance  with the laws had been fulfilled.  Pursuant to 
Circular No. 04/2001/TT-NHNN on Foreign Exchange Management of foreign-invested enterprises 
and parties to business cooperation contracts (BCC) of 18 May 2001, foreign investors were permitted 
to transfer abroad profits and other legal inco me upon presentation of relevant documentation to the WT/ACC/SPEC/VNM/5/Rev.2 
Page 8  
 
 authorized banks, i.e. the Memorandum of the Board of Directors (or Project Management Unit in the 
case of a BCC) on the distribution of profits (or distribution of revenue in case of a BCC) and a 
certificate from the competent tax authorities testifying that all financial obligations to the State of 
Viet Nam had been fulfilled.  Foreign investors we re also permitted to transfer legal capital or 
reinvested capital due to termination or liquidatio n before expiry date upon presentation of relevant 
documents - i.e. the decision on dissolution of th e enterprise (or Decision on termination of a BCC), 
including a statement of liquidation for terminat ed projects, and the certificate issued by the 
competent tax authorities - to the authorized banks. 
20. Some Members noted that Viet Nam had imposed  obligations to surrender foreign exchange 
in 1998 and appeared to maintain measures at odds  with Articles XI and XVI (footnote 8) of the 
GATS.  Viet Nam was asked to reconsider these m easures.  [A Member also noted that Viet Nam 
applied a fee for the purchase or sale of foreign exch ange which varied according to the value of the 
transfer.  The fee did not meet the requirements of Article VIII of the GATT 1994, and should be eliminated or changed into a flat fee for the pro cessing of each application to import foreign exchange 
to meet the criteria of this Article.]   
21. The representative of Viet Nam replied that, due to the impact of regional monetary and 
financial crises, Viet Nam had introduced temporar y obligations to surrender foreign exchange in 
1998 with the aim of concentrating foreign currency in the banking system to meet essential needs for 
foreign currency in the economy.  Viet Nam had re laxed this surrender requirement continuously as 
the economic situation had improved.  The requi rement had been reduced from 80 per cent to 
50 per cent in 1999, 40 per cent in early 2001, and 30 per cent in May 2002, and had been set at zero per cent pursuant to Prime Minister's Decisi on No. 46/2003/QD-TTg, of 2 April 2003.  The 
Ordinance on Foreign Exchange Control, which had been passed by the Standing Committee of the 
National Assembly in December 2005, had removed the obligation for legal residents to sell their 
current revenues in foreign currencies to commercia l banks.  Foreign excha nge controls would only 
be applied in exceptional cases to maintain the na tional financial and monetary security in accordance 
with the IMF Articles Agreement and IMF Document No. 144 (52/51) of 14 August 1952.   
22. [Concerning the fee for the purchase or sale of fo reign exchange, he noted that this fee was 
applicable to the importation or exportation of phy sical currencies, not to the purchase or sale of 
foreign currency.  This fee for inspecting and count ing foreign currencies rem itted cross-border aimed 
at monitoring physical movements of foreign exch ange and at preventing co unterfeit currencies.  The 
fee was determined per tranche of US$ 100,000.  The first tranche was subject to a VND 100,000 fee 
(US$ 6), and each extra tranche to a VND 80,000 fee (US$5), with a maximum of VND 1.5 milllion  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 9 
 
 
 (US$ 100) for each transaction (Inter-Ministerial Circular No. 71/2000/TTLT/BTC-TCHQ of 
19 July 2000).  He added that these fees, which we re modest, had been adjusted to the cost the 
services rendered and were limited to a maximum ra te of VND 1.5 milllion.  In his view, these fees 
were not inconsistent with Article VIII of the GATT 1994.  In no case did they exceed the cost of the services rendered.  In response to renewed requ ests from Members that the fee for inspecting and 
counting foreign currencies remitted cross-border be revised, the representative of Viet Nam said that 
this fee had been abolished in November 2005.]   
23. Concerning Article XI and footnote 8 to Artic le XVI of the GATS, the representative of 
Viet Nam confirmed that all current account restric tions had been removed and that Viet Nam did not 
maintain any measures contrary to Articles XI and XVI (footnote 8) under Viet Nam's commitments on banking services and other financial services.  Vi et Nam fully complied with the obligations of 
Article VIII of the IMF Charter on current account pa yments and international remittances.  Importers 
could purchase foreign currency at authorized ba nks to conduct current transactions and other 
permitted transactions in accordance with Circul ar No. 08/2003/TT-NHNN of the State Bank of 
Viet Nam dated 21 May 2003, and the requirement to present documentation proving that fiscal 
obligations had been fulfilled had been eliminat ed by Government Decree No. 131/2005/ND-CP of 
18 October 2005 on the Amendments of  and Supplements to Government 
Decree No. 63/1998/ND-CP of 17 August 1998 on Fore ign Exchange Control.  This Decree, which 
had been prepared with the assistance of IMF ex perts, removed all remaining foreign exchange 
restrictions on payments and transfers for current  account transactions and provided for international 
current account transactions rules compliant with th e IMF definition.  Non-residents and residents 
were free to buy and transfer foreign currencies and there were no more restrictions on the repatriation 
of profits and other legal income by foreign investor s.  The IMF Office had notified its approval of the 
Decree to the State Bank of Viet Nam and officia lly announced Viet Nam's acceptance of Article VIII 
of the IMF Articles of Agreement on 8 November 2005.   
24. In respect of capital transactions, Viet Nam ha d relaxed capital transfers by foreign investors 
and foreign borrowing by resident organisations.  Vi et Nam only maintained restrictions on (i) capital 
transfers abroad for investment by resident orga nisations, which were subject to approval by the 
competent agencies and within the amount of foreig n currency owned by them; and (ii) payment and 
repayment of foreign loans by resident organisations , which had to be registered with the State Bank 
of Viet Nam.  However, enterprises were free to sign foreign loan contracts pursuant to 
Decree No. 134/2005/ND-CP of 1 November 2005.  The obligation to register medium and long-term 
contracts with the State Bank was a procedural matt er maintained for statistical purposes and in order 
to monitor medium- and long-term foreign borrowi ng by enterprises and maintain, in coordination WT/ACC/SPEC/VNM/5/Rev.2 
Page 10  
 
 with the Ministry of Finance, na tional foreign debts within a safety limit.  He noted that according to 
Article XII of the GATS (Restrictions to Safeguard th e Balance of Payments), such restrictions could 
be considered acceptable as Viet Nam was facing diffi culties in its international balance of payments.  
Viet Nam's foreign exchange regulations were bein g monitored by the IMF once a year as part of the 
Fund's missions under Article IV of the IMF Articles of Agreement.   
25. Asked about present requirements and restric tions on the repayment of loans and capital 
investments abroad by Vietnamese en terprises, he added that according to 
Decree No. 22/1999/ND-CP enterprises investing ab road were required to (i) obtain an overseas 
investment licence from the Ministry of Planning and Investment in accordance with Circular No. 05/2001/TT-BKH of 30 August 2001; (ii) open a foreign account with a credit 
institution, whether domestic or foreign, authori zed to conduct foreign exchange transactions and 
channel all remittances through this account; an d (iii) register the opening of the account and 
investment capital transfers with a State Bank's bran ch in the province or city of its head office.  
Documents to submit to obtain an overseas investme nt licence included the application for investment 
abroad; a copy of the decision of establishment or registration of the enterprise; the written approval 
of investment abroad by the competent authority of the host country, if any, and the contract with the 
foreign partner; information on the investment  projects (objectives, sources of investment); 
information about the mode of investment, capital tr ansfer, and profit repatriation; the enterprise's 
financial report; and for State-owned enterprises, th e written approval of investment abroad by the 
body having taken the decision to establish the enterpri se.  Overseas investment licenses were issued 
within 30 days.  The procedures for opening a fore ign account with a foreign exchange authorized 
bank and to register the opening of the account with a State Bank's branch were stipulated in the State Bank of Viet Nam's Circular No. 01/TT-NHNN of 19 January 2001.  The requirement to register the 
opening of the account and capital transfers aimed at monitoring the implementation of Vietnamese 
enterprises' overseas investment projects.  Docu ments to submit for registration included the 
application for registration; a notarized copy of the business registration certificate; a notarized copy 
of the overseas investment licence;  the written approval of investme nt by the host country (with a 
Vietnamese translation stamped and signed by the general director or di rector); and a document 
stating the timing of investment capital contributions.  Requests for registration were dealt with within 
5 working days.   
26. He noted that Vietnamese enterprises allowed to invest abroad under Decree 
No. 22/1999/ND-CP included enterprises establishe d under the Law on State-Owned enterprises, 
cooperatives established under the Law on Cooperativ es, and enterprises established under the Law 
on Enterprises.  Foreign-invested enterprises and fore ign individuals were not considered Vietnamese  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 11 
 
 
 enterprises.  They could, however, transfer the profits earned from their investments in Viet Nam 
anywhere abroad without having to go through the pro cedures applicable to Vietnamese enterprises.   
27. Pursuant to Circular No. 04/2000/TT-NHNN of 18 May 2001, foreign invested enterprises 
and foreign parties to business cooperation cont racts could open accounts overseas to facilitate 
medium and long-term overseas borrowing as stipulated  in Point 2, Item I, Chapter V, Part II of 
Circular No. 01/1999/TT-NHNN of 16 April 1999 on the implementation of 
Decree No. 63/1998/ND-CP.  Foreign invested ente rprises and foreign parties to business cooperation 
contracts could also be permitted to open ove rseas accounts for other activities under special 
circumstances, i.e. if they carried out very important projects according to the Government's programme; needed to open overseas accounts to implement their commitments (for BOT, BTO and 
BT foreign invested projects); were engaged in inte rnational trade, including aviation, navigation, post 
and telecommunications, insurance, and tourism,  and wished to open foreign currency accounts 
overseas to conduct clearing transactions in accordance with international practice; or needed to open 
overseas accounts for the operation of branches and representative offices ab road.  In addition, 
overseas accounts could be opened for investment projects under the Petroleum Law.  Such accounts 
had to be registered with the State Bank of Vi et Nam within 15 days from the date of opening the 
account.  The Governor of the State Bank of Viet  Nam considered other requests on a case-by-case 
basis depending on the need to open an overseas account. 
28. Some Members considered a requirement that each foreign company should maintain 
equilibrium between inflows and outflows of foreig n currency, as prescribed in Article 33 of the Law 
on Foreign Investment, an impediment to the commercial activities of foreign investors and 
recommended that this requirement be eliminated. 
29. The representative of Viet Nam replied that th e foreign exchange self-balancing requirement 
had been eliminated pursuant to Article 67 of Decree No. 24/2000/ND-CP dated 31 July 2000 on the 
implementation of the Law on Foreign Investment in Viet Nam approved by the National Assembly 
on 9 June 2000.  He confirmed that Viet Nam had no intention to reintroduce such a requirement.  The 
amendments allowed foreign invested enterprises a nd parties to business cooperation contracts (BCC) 
to purchase foreign currency at authorized banks to  finance current, capital and other permitted types 
of transactions. 
30. He added that his Government was consid ering guaranteeing the balancing of foreign 
currency needs for foreign investors investing in especially important projects identified in government programmes, and supporting foreign curre ncy balancing for infrastructure projects and 
some other important projects in case the authorized banks could not meet all foreign currency needs.  WT/ACC/SPEC/VNM/5/Rev.2 
Page 12  
 
 Detailed provisions were specified in Decree No . 24/2000/ND-CP of 31 July 2000 regulating the 
implementation of the Law on Foreign Invest ment in Viet Nam and in Government 
Decree No. 27/2003/ND-CP of 19 March 2003.  In response to a Member who enquired on what 
terms the Government was willing to offer foreign exchange to preferred customers if commercial 
banks were unable to meet preferred customers'  demand and why Viet Nam, which was abolishing 
foreign exchange surrender and ba lancing requirements, needed to guarantee foreign exchange 
balancing to selected projects, the representative of Viet Nam said that under Vietnamese legislation 
all domestic and foreign investors could access co mmercial banks to purchase foreign exchange to 
meet their business demand.  The State's guarantee of  foreign exchange balancing to selected projects 
was not intended to limit access to foreign exchange supplying sources nor create any discrimination.  
The guarantee to balance foreign exchange in case commercial banks were not able to meet the 
demand had been introduced upon request of investor s for investment projects with an important 
demand in foreign exchange facing high risks in foreign exchange balancing (construction projects, 
BOT, BTO and BT investment projects and other infrastructure projects − electricity supply, bridge 
and road toll, water supply, etc).  This measure ai med at encouraging private sector participation in 
infrastructure development as State investment in this area remained limited.  This measure existed in 
a number of countries and had been reco mmended by the World Bank and UNCITRAL. 
31. The representative of Viet Nam stated that Viet Nam would implement its obligations with 
respect to foreign exchange matte rs in accordance with the provi sions of the WTO Agreement and 
related declarations and decisions of the WTO th at concerned the IMF.  The representative of 
Viet Nam further recalled Viet Nam's acceptance of Article VIII of the IMF's Articles of Agreement, 
which provided that "no member shall, without th e approval of the Fund, impose restrictions on the 
making of payments and transfers for current inte rnational transactions".  He stated that, in 
accordance with these obligations, and unless otherw ise provided for in the IMF's Articles of 
Agreement, Viet Nam would not resort to any la ws, regulations or other measures, including any 
requirements with respect to contractual terms, that would restrict the availability to any individual or 
enterprise of foreign exchange for cu rrent international transactions w ithin its customs territory to an 
amount related to the foreign exchange inflows attr ibutable to that individual or enterprise.  The 
Working Party took note of these commitments. 
Investment regime  
32. The representative of Viet Nam said that the National Assembly had promulgated the Law on 
Companies and the Law on Private Enterprises in 1990, and that these laws had been considered  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 13 
 
 
 important milestones in the economic reform process in Viet Nam.  During the following ten years, 
about 45,000 new enterprises had been established.   
33. In June 1999, the National Assembly had p assed a new Law on Enterprises, superseding the 
Law on Companies and the Law on Private Enterprise.   The Law on Enterprises had entered into force 
on 1 January 2000.  The main changes brought forward by the new Law were broader eligibility to set 
up and contribute to enterprise capital; simplified administrative procedures, including single-stop 
registration of new businesses; and more business autonomy.  Business sectors were divided into 
(i) prohibited sectors, i.e. sectors in which "cond ucting business" was banned – prohibited to both 
domestic and foreign investors, regardless of owners hip, for reasons of national defence, security, 
public order, social moral, human health, tradition, environment, plant protection and other reasons in 
line with Articles XX and XXI of the GATT 1994 (see Table 1); (ii) conditional business sectors, 
i.e. sectors in which enterprises could conduct busin ess if they satisfied specific requirements laid 
down in the legislation ; (iii) sectors requiring legal capital; (iv) sectors requiring professional licence; (v) sectors reserved for partnerships or private en terprises; and (vi) other sectors.  Enterprise 
registration in other sectors was automatic.  Registration procedures and criteria for granting licenses 
for the five non-automatic business licence categories were detailed in Government 
Decree No. 109/2004/ND-CP of 2 April 2004.   
34. The Ministry of Industry and, for cultural produc ts, the Ministry of Culture and Information 
were responsible for determining whether an invest ment application fitted the categories of prohibited 
business.  He confirmed that this prohibition did not imply limitations on the rights of individuals or 
legal persons to be an importer of record and that  all future additions and deletions to the list of 
prohibited business sectors would comply with WT O rules.  Questioned about the meaning of the 
prohibition concerning "superstitious , depraved and reactionary cultu ral products", he noted that 
domestic and foreign investors could participate in  activities such as publishing, media, information 
technology etc., provided they did not conduct bus iness in "superstitious, depraved and reactionary 
cultural products" in line with applicab le laws (see also paragraph [198]). 
35. Conditional business sectors included sectors s ubject to requirements on environment, 
hygiene standards, food safety, fire prevention and fire  fighting, social order, traffic safety and other 
requirements on business activities, for which no busin ess licence was required, and sectors subject to 
business licensing in accordance with relevant legisl ation.  He noted that his Government was 
reviewing the business licensing system.  Results  of the on-going process were available on the 
websites of Viet Nam's Chamber of Commerce and Industries (http://www.vcci.com.vn) and other government agencies.  He provided an illustrative list of conditional business sectors subject to WT/ACC/SPEC/VNM/5/Rev.2 
Page 14  
 
 licensing in Table 2.  Conditional and prohibited bus iness sectors would be set out in the Government 
Decree guiding the implementation of the new Investment Law.   
36. The new Law on Enterprises had also abolished the minimum legal capital requirements for 
the establishment of enterprises stipulated in the La w on Companies, except in some financial services 
sectors.  The number of newly registered en terprises had been increasing rapidly since the 
promulgation of the Law on Enterprises.  By September 2003, some 72,600 new enterprises had been 
registered, adding to the 45,000 enterprises regist ered between 1991 and 1999 and thereby raising the 
number of privately-owned registered enterprises in Viet Nam to about 120,000.  Some 1.5 to 2.5 million jobs had been created by these enterprises.   
37. Foreign direct investment (FDI) activities in Vi et Nam were regulated by the Law on Foreign 
Investment of 29 December 1987 together with its  amendments and additio ns of 1990, 1992, 1996 
and 2000 and other guiding documents mentioned therein.  In additio n, with a view to creating a 
comprehensive legal framework for FDI, Viet Nam ha d signed and acceded to various bilateral and/or 
multilateral arrangements on investment, including bilateral agreements on the encouragement and 
protection of investment with 47 countries and territories, agreements on the avoidance of double 
taxation with 42 countries and territories, the Fr amework Agreement on ASEAN Investment (AIA), 
the MIGA and the New York Convention, etc.  These international treaties were  an integral part of 
Viet Nam's legal framework for FDI in Viet Nam.  The Ministry of Planning and Investment was the government authority regulating investment activiti es.  Approval procedures for foreign invested 
projects were stipulated in the Law on Foreign Investment, in Government 
Decree No. 24/2000/ND-CP of 31 July 2000, and in Decree No. 27/2003/ND-CP of 19 March 2003 on amendment of and addition to a number of Articles of Decree No. 24/2000/ND-CP, guiding in detail the implementation of the Law on Foreign Inv estment in Viet Nam.  Viet Nam encouraged 
foreign investment into almost all economic ar eas.  Sectors in which foreign investment was 
encouraged or especially encouraged were listed in Decrees Nos. 24/2000/ND-CP and 
27/2003/ND-CP.  Investments in some sectors were subject to certain conditions (specified in 
Decree No. 24/2000/ND-CP).  As of December 2003, 4,412 foreign investment projects, with a total registered capital of US$ 41.7 billion, operated in Viet Nam.  Foreign investment projects accounted 
for 18 per cent of the total invested capital, 31 per cent of Viet Nam's export revenue and 37 per cent 
of industrial output, contributing nearly 14 per cent of Viet Nam's GDP.  Foreign investment projects 
had created some 620,000 jobs directly, and several hundred thousand jobs were  indirectly dependent 
on these projects.    WT/ACC/SPEC/VNM/5/Rev.2 
 Page 15 
 
 
 38. In accordance with the provisions of Decree No. 27/2003/ND-CP of 19 March 2003, 
providing for the amendment of and addition to a number of Articles of Decree No. 24/2000/ND-CP, 
foreign investment in some sectors was only perm itted in the form of joint venture or business 
co-operation contract − business co-operation contracts allowed investors to have a commercial 
presence in Viet Nam without establishing a legal entit y and were therefore more flexible than joint-
ventures.  The sectors listed were the establishm ent of public telecommunica tions networks, provision 
of telecommunications services, business of domestic or international courier services, press, radio 
and television activities (foreign investment in th ese sectors was permitted provided the Vietnamese 
parties were specialized entities licensed to conduct business in such sectors); exploitation and 
processing of oil and gas and precious and rare mi nerals; consultancy services (except engineering 
services); air, railway and sea transportation; pub lic passenger transportation; airport and port 
construction (except for BOT, BTO and BT projects) ; maritime and aviation business services; culture 
(except for projects for the printing of technical materials, packaging and labels, and printing on textile and garments, leather and footwear, printi ng of computer graphics onto animated films, and 
entertainment and sports areas); aforestation (except for indirect aforestation via Vietnamese 
organizations, family households and individuals); travel tours; production of industrial explosives; 
and consultancy services (except for technical c onsultancy).  The Ministry of Planning and 
Investment would coordinate with ministries,  branches and people's committees of provinces and 
cities under central authority to submit the listed sect ors to the Prime Minister for consideration and 
promulgation.   
39. He added that his Government had abolishe d most regulations discriminating between 
domestic and foreign investment.  Differences in the rates of investment-related fees and charges 
applied had been eliminated pursuant to Deci sions No. 53/1999/QD-TTg and 215/2004/QD-TTg and 
a uniform electricity price had been applied to bo th Vietnamese and foreigners since 1 January 2005 
according to Decision No. 215/2004/QD-TTg of 29 D ecember 2004.  He confirmed that fees and 
charges were applied uniformly to both Vietnamese and foreign investors, without discrimination.  
The scope of discriminatory regulations con cerning establishment procedures and management 
organization had been reduced progressively and e liminated under the unified Law on Investment and 
the Law on Enterprises, which had been adopted by the National Assembly in November 2005.  These 
two laws applied uniformly to domestic and foreign investors and to all enterprises irrespective of the 
economic sector or form of ownership, in complia nce with WTO rules and Viet Nam's commitments.  
Implementing regulations for the Investment Law, including regulations on the percentage of shares 
of domestic enterprises that foreign investors woul d be allowed to purchase, would take effect upon 
the entry into force of the Investment Law, planned for 1 July 2006.   WT/ACC/SPEC/VNM/5/Rev.2 
Page 16  
 
 40. Pursuant to the Law on amendments and supple ments to some Articles of the Law on Foreign 
Investment of 9 June 2000, foreign-invested en terprises were permitted to change the form of 
investment and divide, de-merge, consolidate or merg e with other enterprises.  Existing joint-ventures 
could be allowed to transform into wholly-owned  foreign capital enterprises under certain conditions 
pursuant to Government Decree No. 24/2000/ND-CP of 31 July 2000. 
41. The representative of Viet Nam stated that due  to the low level of economic development, 
Viet Nam applied a wide range of incentives to  stimulate economic development and employment 
(see the sections on "Industrial Policies, including Su bsidies" for a description and discussion of these 
incentives).  The main elements of this policy were wide sectoral coverage; encouragement of a wide 
range of investment forms with no ceiling on the capita l held by foreign investors; priority accorded 
to projects in agriculture and the production of consumer goods; encouragem ent of export-oriented 
production, including import duty exemptions and/or duty drawback on imported inputs used in the 
production of exports; special incentives for investment in disadvantaged regions; import duty exemptions on machinery and equipment, means of tr ansportation, and materials used in construction 
for joint venture enterprises; and tax holidays.  Investors determined th e level of incentives and 
submitted their claim, along with relevant documenta tion, to the competent State body (Article 38 of 
the new Investment Law).  He added that all in vestment projects, whether domestic or foreign, 
State-owned or privately-owned, were require d to comply with Viet Nam’s minimum wage 
regulations.  Minimum wages had been stipulated in local currency since 1 July 1999.   
42. Some Members noted that foreign investors were facing various serious difficulties in 
Viet Nam.  These difficulties were  caused by complicated and burdensome procedures, and included 
governmental investigation and a public tender require ment for the construction of factories, and a 
requirement in Article 14 of the Law on Foreign Inv estment that personnel and financial decisions in 
joint-venture companies be unanimous.  Viet Nam's laws and regulations also encouraged increased 
Vietnamese participation in joint-venture compani es, thereby restricting substantially a foreign 
investor's participation.  Conditions on the right to  use land remained inconvenient and insufficient for 
foreign investors, limiting the possibilities for investors to raise funds by mortgaging land.  In addition, the land register system was consider ed imperfect and the methods for calculating land 
prices were not transparent.  In centives accorded to foreign invest ment in Viet Nam's laws and 
regulations were not available automatically, but subject to case-by-case approval by the authorities.  
These Members were also concerned with provisions  in the Investment Law allowing the Government 
to apply ad hoc incentives to encour age the development of an important  industry or a special region.  
Furthermore, Viet Nam applied a discriminatory la bour system against foreign invested companies, 
which were requested to hire employees through "employment promotion centres" and pay salaries of  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 17 
 
 
 local workers in U.S. dollars.  Viet Nam was en couraged to continue deregulating complicated 
procedures, in particular by introducing a one-s top service for investment, improving the laws and 
regulations regarding land and exte nding land use rights, ensuring that preferential benefits would be 
granted to foreign companies without exception, elim inating the possible resort to ad hoc incentives, 
and by making improvements to address discriminatio n in labour matters.  Viet Nam was also invited 
to allow stock-holding companies as one form of investment, and urged to ensure that all 
company-specific information obtained through th e licensing procedures would remain confidential.  
A Member highlighted specific problems in the mining sector, including overlapping regulatory responsibilities between central and provincial auth orities, as well as Viet Nam's practice to grant 
investment licences at the development stage, rather  than at the exploration stage, which was the 
international norm.   
43. The representative of Viet Nam replied that tender requirements aimed at ensuring 
fair competition, equality and transparency .  Government Decree No. 88/1999/ND-CP of 
1 September 1999 on the issuing of a Procurement Re gulation and its amendmen ts of 2000 and 2003 
had introduced more transparent, specific and simple  tender procedures.  Only joint-ventures, business 
co-operation contracts (BCC), and projects with more than 30 per cent of State-owned shares were 
subject to the Regulation on Tendering.  Public  tender was not required for projects set up by 
domestic or foreign investors on a private basis.  In his view, Viet Nam's legislation on tendering did not include any discriminatory provisions.  He adde d that inspections of c onstruction sites guaranteed 
the quality of the works in accordan ce with Viet Nam's construction standards.  A new Construction 
Law has been issued on 10 December 2003, enteri ng into force on 1 July 2004.  Following the 
passage of this Law, three Decrees had been issued  to guide the implementation of the Law.  These 
included a Decree on construction quality manageme nt, a Decree on the management of construction 
investment projects, and a Decree on constr uction planning and management.     
44. The representative of Viet Nam considered unani mity among the parties in a joint-venture an 
important contribution to its success.  He added that the Law on Foreign Investment had been 
amended in 2000 to narrow further the scope of  matters requiring unanim ity among joint venture 
parties.  According to this Law, financial decisi ons in joint-venture companies did not have to be 
unanimous.  In addition, regulations encouraging gradually increasing Vietnamese participation in 
joint-venture enterprises or allowing Vietnamese  enterprises to purchase part of the capital of a 
wholly foreign-owned enterprise were not binding, and should be applied strictly on the basis of 
mutual agreement between the joint venture parties or with the consent of the owner of the wholly 
foreign-owned enterprise.   WT/ACC/SPEC/VNM/5/Rev.2 
Page 18  
 
 45. Concerning the right to use land, he noted that land was subject to public ownership and State 
administration in Viet Nam.  Thus, even Vietnamese  nationals could not own or mortgage land.  The 
amended Law on Foreign Investment nevertheless stated that a foreign invested enterprise was 
permitted to mortgage assets associated with land an d the value of land use rights to secure loans from 
all credit institutions permitted to operate in Viet Nam.  The Law also held Provincial Committees and 
Vietnamese partners responsible for establishing clear  procedures relating to land use rights and, if 
necessary, offering compensation.  Foreign invested  enterprises could lease land in connection with 
investment projects.  Pursuant to Article 67.3 of the Land Law (as amended), the duration of the lease 
should normally not exceed 50 years.  However, th e lease could be extended upon termination of the 
initial duration.  In the case of projects with a larg e amount of invested capital, a long capital return or 
conducted in socio-economic difficult areas, the Government could grant leases with maximum 
70 year duration.  In his view, Viet Nam's land lease regulations, which were applied in a 
non-discriminatory manner between domestic and fore ign investors, were not obstructing business 
activities, and Viet Nam had no plans to revise these regulations.  He added that the National Assembly had adopted the Land Law on 26 November 2003.   
46. The representative of Viet Nam noted that Vietna mese enterprises were also required to apply 
for investment incentives, and that Government De cree No. 24/2000/ND-CP listed detailed criteria for 
the granting of preferential treatment to foreign inve stors.  Concerning the possible resort to ad hoc 
incentives, he said that Article 39 of the Investment  Law aimed at encouraging investment in certain 
sectors in line with the Government's development plans.  He confirmed that these measures would be 
applied in conformity with the principles set out in the Investment Law and WTO rules.   
47. As to labour matters, the newly amended La bour Code, which had entered into force in 
January 2003, allowed foreign invested companies to hire local personnel directly without going 
through employment promotion centres.  Wage payments to Vietnamese employees were effected in 
accordance with Decision No. 708/1999/QD-BLDTB XH of 15 June 1999.  He stressed that his 
Government respected and protected investors' right to confidentiality of th eir business contracts, and 
intended to address problems identified at all State agency levels.   
48. He added that his Government had issued  Decree No. 27/2003/ND-CP on 19 March 2003, 
providing for amendment of, and addition to, a number of Articles of Decree No. 24/2000/ND-CP 
with a view to simplifying procedures further.  The Decree (i) expanded the scope of activities where 
foreign investment was encouraged to include pr oduction of high-quality steel, alloy, non-ferrous 
metal, special metal, steel b illet, sponge iron; iron metallurgy; manufacturing of machinery, 
equipment and component packs for oil and gas e xploitation, mining, and energy; manufacturing of  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 19 
 
 
 large-scale lifting equipment; manufacturing machine tools for metal processing, metallurgy 
equipment; producing medical equipment for analy tical and extractive technologies in the medical 
sector; manufacturing equipment for testing toxic ity in foodstuffs; manufacturing information 
technology products; etc.; (ii) narrowed the list of sectors subject to conditional investment licences. Projects that had been removed included projects for printing of technical material, printing on packaging, printing of labels of goods, and printi ng on textiles and garments, leather and footwear; 
printing of computer graphics onto animated films; entertainment and sports areas; (iii) abolished 
restrictions on labour recruitmen t and capital contributions in the form of technology transfer.  
Foreign invested enterprises could recruit Vietna mese employees directly without having to pass 
through a local labour agency as previously required; (iv) expanded the group of projects subject to investment registration – which was more open than the investment licensing regime − by including 
specially encouraged investment projects located in an industria l zone; and (v) eliminated the 
20 per cent equity limitation on foreign investment in the form of technology transfer in joint 
ventures.  The Parties were now free to determine the value of technolog y to be transfe rred.  He added 
that a detailed list of conditional investment sector s and specific conditions for each sector would be 
included in the Decree guiding the implementati on of the new Investment Law.  Procedures for 
granting Investment Registration Certificates for conditional investment sectors were specified in 
Article 48 of the Investment Law. 
49. Viet Nam had authorized provincial committe es and management committees of industrial 
parks, and more recently provincial people’s comm ittees and industrial zones’ management boards, to 
grant licences to speed up procedures.  Investment licenses contained, inter alia, the name and address 
of the investor(s); objectives and scope of investme nt; investment location (i .e. where the investment 
project was implemented); project's registered i nvestment capital and legal capital, proportion of 
capital contribution of parties to the joint-venture (as applicable to joint venture projects); operation 
duration of the investment project; the rights and ob ligations of investor(s), etc.  He noted that 
licences were granted within one week in the pr ovince of Binh Duong.  Efforts to establish a "one 
stop" agency for foreign investment were ongoing .  On 6 June 2003, his Government had issued 
Decree No. 61/2003/ND-CP mandating the Agency of Foreign Investment within the Ministry of 
Planning and Investment to administer foreign in vestment activities uniformly throughout Viet Nam.  
Together with other concerned ministries and agenci es, the Ministry of Planning and Investment was 
reviewing existing regulations with the objective of abolishing provisions, procedures and licenses 
considered out-dated, overlapping or impeding th e operation of FDI enterprises.  In response to 
questions, he noted that the obligation, stipulated in investment licenses, to protect the environment 
was applied on a non-discriminatory manner to forei gn and domestic investors.  He confirmed that 
Vietnamese Law stipulated no obligation for foreign investors to transfer their assets without WT/ACC/SPEC/VNM/5/Rev.2 
Page 20  
 
 compensation to the State of Viet Nam upon termination of the project, and that the tax on 
transferring profits abroad, previously applied to fo reign investors and stipulated in the investment 
licence, had been eliminated.  Concerning Members'  request that stock-holding companies be allowed 
as one form of investment, he noted that on 15 April 2003 his Government had issued Decree No. 38/2003/ND-CP providing for the transforma tion of foreign invested enterprises into joint 
stock companies.   
50. As to foreign investment in mining, he noted that according to Government Decree 
No. 76/2000/ND-CP of 15 December 2000 (Article 52. 4), investment licences covering exploration, 
exploitation and processing activities were granted to foreign individuals and organizations, and joint 
ventures.  Hence, investment licen ses could be granted at the stage of exploration.  Management of 
foreign investment in mineral exploitation had been  transferred to local authorities to improve the 
effectiveness of FDI management in this sector.  He  considered this legislation in conformity with 
international practice.  He added that a Law on Am endments and Supplements to Some Articles of the 
Mineral Law of 20 March 1996 had been adopted on 14 June 2005.  In response to a request for 
information on the grounds for refusal of an investme nt licence at the exploration stage, he noted that 
the new Law did not include provisions concerning refusal  to grant an investment licence at this stage.  
Investment projects in mining were considered on a case-by-case basis. 
State-owned and State trading enterprises 
51. The representative of Viet Nam said that Viet Nam was shifting from a system of central 
planning to a market-based economy.  As of 31 December 2004, approximate ly 120,000 enterprises 
were operating in Viet Nam, of which 3,364 were State-owned.  In 2004, State-owned enterprises had 
accounted for 39.2 per cent of GDP, the non-State sector for 45.6 per cent, and FDIs for 15.2 per cent.  
Proprietorships and households also played an impor tant role in small scale production in Viet Nam.  
He provided statistics on output, import and export values by type of enterprise in Table 3, and 
information on sectors in which wholly State-owned enterprises and enterprises with a majority of 
State-owned shares existed, as classified unde r Decision No. 155/2004/QD-TTg of 24 August 2004, 
in Table 4.  A specific list of State-owned enterprises could not be provided as ministries and local authorities were in the process of reviewing and classifying State-owned enterprises in accordance 
with Decision No. 155/2004/QD-TTg.  He noted that domestic private enterprises were free to 
participate in the sectors listed in Decision No . 155/2004/QD-TTg, except for the production and 
supply of public goods and services re lated to national defence and security, but the State retained a 
controlling share in already existing State-ow ned enterprises because th ese sectors were vital 
economic and technological sectors with high risks, requiring large investments, or involving a long  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 21 
 
 
 pay-back time, or to ensure that the needs of i nhabitants of disadvantaged socio-economic areas were 
met.  The State, for example, would retain 100 pe r cent ownership in existing State-owned enterprises 
producing scientific films, documenta ries and films for children, as Vietnamese private producers of 
these types of films faced difficulties recovering their costs and were not interested in, or unable to, 
produce these goods.  Foreign investors may partic ipate in the sectors/activities listed in Decision 
No. 155/2004/QD-TTg in line with Viet  Nam's accessions commitments.   He added that Viet Nam's 
policy was to refrain from establishing new State- owned enterprises, i.e. enterprises with 50 to 
100 per cent of State-owned shares, and to narrow the scope of State-controlled enterprises, i.e. enterprises in which the State retained a c ontrolling stake (more than 50 per cent and less than 
100 per cent of shares).  The list of sectors where the State would retain 100 per cent or a majority of shares in existing State-owned enterprises was set out in Decision No. 155/2004/QD-TTg.  This list 
was being reviewed as part of the on-going equi tization programme and would be reduced (see the 
section on "Privatization"). 
52. The State-owned sector had been restructured and reorganized since 1986, and in particular 
since 1991.  Their assets had been  re-evaluated and audited.  The State had abolished direct 
monitoring and administration of enterprises by governmental agencies.  The management of 
State-owned enterprises had been given autonomy, and were held accountable for the performance of 
their business operations.  As part of the equitization programme of State-owned companies, i.e. transformation of State-owned enterprises into jo int-stock or limited liability companies subject to 
the Law on Enterprises (see the section on "Privati zation"), the National Assembly had adopted a 
revised Law on State-owned enterprises in Decemb er 2003 to improve the effectiveness of State-
owned enterprises and ensure that they would compet e with private enterprises on an equal basis.  The 
term "equitized enterprise" designated any State-owne d enterprise converted into a joint-stock or a 
limited liability company, regardless of the percenta ge of shares held by the State in the equitized 
company.  Under the new Law, equitized State-owne d enterprises had the status of limited liability 
companies and were subject to the Law on enterprises − and thus to the same provisions on 
establishment, business registration, rights and obligations, closure and bankruptcy as private 
enterprises.  He confirmed that all State-owned en terprises, equitized State-controlled enterprises and 
equitized State minority stake enterprises had the legal status of a limited liability company; 
shareholders and capital contributors were respons ible for the debts and other liabilities of the 
company within the limits of their respective cont ributions.  While in the past, the profits of 
State-owned enterprises had been transferred to the State budget and losses had been covered by 
subsidies from the State, insolvent State-owned enterprises were at present treated as any other 
enterprises under the Law on Bankruptcy, in force since 1 July 1994.  Since the promulgation of the 
Bankruptcy Law, 17 State-owned enterprises had gone bankrupt.  Under the 2003 Law on WT/ACC/SPEC/VNM/5/Rev.2 
Page 22  
 
 State-owned enterprises, profits of State-owned en terprises were paid to the members' contributing 
capital; used to cover losses of preceding years; and transferred – up to 10 per cent – to the financial 
reserve fund of the company provided this fund di d not exceed 25 per cent of the chartered capital 
and, in case of companies providing banking and insura nce services, to the risk  insurance fund.  The 
rest was distributed in accordance with the ratio  of invested State capital and the average capital 
raised by the company in that year.  Profits dist ributed according to the capital raised could be given 
as bonuses to employees and used for re-investment .  Profits distributed according to the capital 
invested by the State were re-invested.  The new Law also included provisions on owners' obligations 
and modification of the ownership structure.   
53. State-owned shares were held by line ministri es, including the Ministry of Industry, the 
Ministry of Construction, the Ministry of Transp ortation, the Ministry of Agriculture and Rural 
Development, the Ministry of Trad e, the Ministry of Posts and Te lecommunication, the Ministry of 
Fisheries, the Ministry of Cultu re and Information, and the Gene ral Department of Tourism, and 
People's Committees.  However, pursuant to th e new Law, State-owned enterprises were self-
responsible, i.e. they had full autonomy in the conduct of their business activities and could make 
their own decisions on business operations.  Mini sters and Chairmen of provincial People's 
Committees could not interfere in the business oper ations of the enterprises.  They were only 
responsible for managing the State equity in the enterprise and for supervising and evaluating the 
efficiency of State capital use in accordance with Prime Minister's Decision No. 271/2003/QD-TTg of 
31 December 2003.  State-owned enterprises were self-responsible for fulfilling their tax obligations, 
conducting business, and utilizing the State invested  capital efficiently.  State-owned enterprises 
having failed to fulfil their tax obligations could be  liable for an administrative penalty or prosecution 
for criminal offence, depending on the seriousness of the offence.  Efficient use of State capital was 
assessed in the light of profits.  In the case of ine fficient use, the Director and Board of Management 
members could be deprived of bonus and pay rise a nd asked to compensate for the company's losses.  
Government Decree No. 199/2004/ND-CP of 3 August  2004 provided for self-liability of State-owned 
enterprises for debts and other asset obligations within th e extent of the State capital invested therein.  
The Government conducted periodic reviews and unscheduled assessments of SOEs' business 
efficiency.  Results of such reviews could be pub lished, posted in the company's offices, or presented 
at employees' and shareholders' meetings.  In r esponse to a question, he noted that Vietnamese 
legislation did not address the question of the re lationship between the National Competition Council 
and the supervision and evaluation of State-owned companies' efficiency.  
54. General Directors and Directors of State-ow ned enterprises having a Board of Management 
were selected by the Board − under Vietnamese law, only general corporations, i.e. enterprises with  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 23 
 
 
 subsidiaries, and holding companies had a Boar d of Management; the Board was the direct 
representative of State ownership in State-owned enterp rises.   Foreigners could be hired as Directors.  
Directors of enterprises that did not have a Board of Management were selected by the Minister or 
Chairman of the provincial People's Comm ittee having established the enterprise.  
55. Directors of State-owned enterprises which di d not have a Board of Management were 
entitled to make decisions on investment project s representing less than 30 per cent of the total 
remaining asset value in the accounting book of the en terprise or smaller than the value specified in 
the enterprise's Charter, and decisions on borro wing, lending, leasing and other economic contracts 
inferior to the enterprise's char tered capital.  State-owned enterp rises' Boards of Management could 
make decisions on investment projects representing less than 50 per cent of the total remaining asset 
value in the accounting book of the enterprise or sma ller than the value specified in the enterprise's 
Charter, and decisions on borrowing, lending, l easing and other economic contracts of a value 
exceeding the enterprise's chartered capital.  Other investment projects and economic contracts had to 
be approved by the State owner.  The decision- making authority of equitized enterprises was the 
Board of Management.  
56. The Government did not intervene in asset eval uation.  Under the new Law, asset evaluation 
was provided by consultancy organi zations and valuation centres subject to market mechanisms and 
via auction.  Asset purchases and sales were deci ded and conducted by the enterprises themselves 
through competitive tenders.  Decisions on capit al mobilization were taken by the Board of 
Management or the representative of the owner of th e State equity if the value of the proposed project 
was greater than the enterprise's chartered capital.  Other projects were decided by the General Director or the Director of the enterprise in accordance with Decree No. 199/2004/ND-CP on 
Regulation of Management of State-Owned Ente rprises.  Capital investments by State-owned 
enterprises were conducted through co mpetitive bidding in accordance with 
Decree No. 16/2005/ND-CP of 7 February 2005.   
57. Under Viet Nam's Law on State-Owned Enterp rises of 2003, State-owned enterprises were 
subject to accounting, auditing, financial and stat istical reporting obligations in accordance with the 
Law and upon request of the State owner (Article 16.5 of the Law).  State-owned enterprises were 
required to comply with the same accounting st andards as other enterprises.  These standards had 
been developed in conformity with international accounting standards.  State-owned companies were 
responsible for the reliability and legality of their financial operations.  They were required to observe 
requirements on annual financial reporting, to make  financial information public, and to provide 
information necessary for a reliable assessment of the efficiency of the company's operations WT/ACC/SPEC/VNM/5/Rev.2 
Page 24  
 
 (Articles 18.4 and 18.5).  SOEs' financial statements were subject to audit in accordance with 
Viet Nam's laws on auditing (Article 89.1).  Stat e-owned enterprises were required to make public 
their financial information to the State management  authorities mandated to receive financial reports 
(financial State agencies, taxation department, busin ess registration agencies, statistics agencies) and 
to other parties concerned (owners and employees, capital contributors) within 120 days from the last 
day of their financial year.  They paid profits to the State mainly via tax obligations.  The rest was 
reinvested to increase the companies' State assets.  
58. State-owned enterprises made their operational purchases as any other enterprise.  They had 
the right to look for markets and customers and ma de their own decisions on the prices of their 
products and services, except for public utility prod ucts and services and other products and services 
for which prices were set by the State (see the section on Pricing policy).   
59. He further noted that the 2003 Law on State- Owned Enterprises had removed the concept of 
public interest State-owned enterprises provided for under the 1995 Law so as to permit enterprises of 
all economic sectors to provide public goods and ser vices through orders placed or tenders put up by 
the State.  Government Decree No. 31/2005/ND-CP of 11 March 2005 on the Production and 
Distribution of Public Services set out three criteri a for identifying public goods and services.  Under 
this Decree, goods and services were considered public services if (i) they were socially and 
economically essential for the country or a particular community, or concerned national security and defence (i.e. electricity supply and distribution in rural areas; management and operation of small and 
medium irrigation works; production and preservation of plant varieties/seeds and animal breeds; 
protection of natural forests, etc.); (ii) their pr oduction and distribution was not viable under market 
conditions; and (iii) they had been procured to Government entities or were produced under 
governmental planning with prices and charges set by the State.  The list of public goods and services 
was attached to the Decree.  Goods and services not mentioned in the list were not deemed public 
goods and services.  Public goods and services we re purchased by the Government for final 
consumption of the Government a nd non-governmental entities.  All en terprises irrespective of their 
ownership could produce and suppl y, through competitive bidding, public goods and services, with 
the exception of goods and services related to nationa l security and defence which were carried out by 
order or task assignment.  Prices of public goods and services were determined by bidding or, in the 
case of goods and services related to national secur ity and defence, by the Government.  He 
confirmed that public goods and services open to public bidding were treated as any commercial 
goods or services within the meaning of the WTO Agreements.  Enterprises supplying public goods 
and services could import goods to produce public goods  and services.  Detailed procedures for the 
application of bidding and orde ring procedures for the procurement of public goods and services had  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 25 
 
 
 been submitted to the Prime Minister for approva l.  In response to a question concerning power 
transmission and distribution, he noted that the national electric transmission system was still under 
the control of Electricity of Viet Nam.  However,  his Government planned to equitize the companies 
supplying power and a pilot equitization of Kh anh Hoa Electricity Company had already been 
conducted.   
60. A Member asked Viet Nam to provide information on State trading enterprises.  This Member 
expressed a general concern that exporting State tr ading enterprises (STEs) could use their special 
rights and privileges to disguise export subsidi es or to otherwise engage in anti-competitive 
behaviour.  Viet Nam was requested to provide deta ils on the specific steps it would take to ensure 
that the operations and policies of STEs within its jurisdiction would not distort trade, and otherwise 
be consistent with the principles of non-discriminatory treatment prescribed by Article XVII of the 
GATT 1994.  Information on products subject to  non-tariff barriers provided by Viet Nam in 
document WT/ACC/VNM/9, Annex I, indicated that many products subject to State trading were 
subject to additional measures such as quantitative restrictions, surcharges and import licensing.  
Some of Viet Nam's enterprises appeared to be i nvolved in trade as well as industry regulation, and 
Viet Nam was encouraged to separate these func tions to ensure a more open and transparent 
regulatory and purchasing environment. 
61. The representative of Viet Nam provided in formation on State-trading enterprises in 
document WT/ACC/VNM/3/Add.1, Anne x 6, and a "Notification on State Trading Enterprises" in 
document WT/ACC/VNM/14 of 28 June 2000, subsequently revised in document 
WT/ACC/VNM/14/Add.1 of 31 October 2003.  The entities identified by Viet Nam as State trading enterprises in 2002 and the products traded by th em, listed by HS numbers, are enumerated in 
Table 5.  He noted that all State trading enterp rises in Viet Nam were operating in accordance with 
commercial considerations.  He confirmed that Viet  Nam's State trading enterprises held no regulatory 
functions in the industries in which they operated.   Regulatory functions were under the authority of 
Government agencies. WT/ACC/SPEC/VNM/5/Rev.2 
Page 26  
 
 Table 5:  State Trading Enterprises in Viet Nam
 
No Products HS Code Name of ente rprise Functions of enterprise 
1 Crude oil 27090010 Viet Nam Oil and Gas Corporation 
(PETROVIETNAM) Searching, exploring, 
exploiting, processing and 
dealing in oil and gas products, 
providing oil and gas related 
services. 
2 Refined petrol 
& gasoline 271011 
271019 
271099 - PETROLIMEX 
- PETEC 
- PETECHIM 
- SAIGON PETRO 
- PETROMEKONG - VINAPCO (Airlines Petrol & Gasoline 
Company which is the exclusive re-
exporter of aircraft gasoline) 
- Petroleum Processing and Trading 
Company; 
- MARINESUPPLY 
- Military Petroleum and Gas Corporation  
- Dong Thap Petroleum Import-Export 
Company Authorised importers of 
gasoline and petrol for 
supplying to domestic 
consumption.  
3 Aircraft spare 
parts and 
aviation 
equipment, 
facility 8802, 8803 Airlines Import Export Corporation 
(AIRIMEX) Ensuring the supply of aircraft, 
equipment, facility and 
materials used in aviation;  
Sole importer of aircraft and 
aviation materials, spare parts. 
4 Film  8524 Viet Nam Films Import/Export and 
Distribution Company (FAFILM 
VIET NAM) Sole importer and distributor of 
feature films (video tape, VCD). 
5 Newspapers 4902 Books and Newspapers Import Export 
Company (XUNHASABA) Sole importer and distributor of 
newspapers. 
 
62. A Member noted that several products including rice, fertilizer, pharmaceutical products, 
coal, gemstone, printing equipment, cinematographic and video materials, and spirits, had been taken 
out of the list and asked Viet Nam to explain th e process and reforms undertaken to eliminate these 
State trading activities.  A Member also requested Viet Nam to clarify why several major State-owned 
enterprises involved in agricultural trade had not b een included in Viet Nam's submissions, noting that 
a Vietnamese website listed several entities as Stat e enterprises, including the Viet Nam National 
Coffee Corporation (VINACAFE), the Viet Nam National Tea Corporation (VINATEA), and the 
Viet Nam Dairy Products Company (VINAMILK).   
63. In response, the representative of Viet Nam said  that price controls on rice exports and the 
system of designating authorized enterprises to ex port rice had been phased out.  This product had 
therefore been removed from Viet Nam's State tradi ng list.  As for fertilizer, the system of fertilizer 
import quotas and designated importers had been phased out pursuant to 
Decision No. 46/2001/QD-TTg of 4 April 2001, as well as the price controls imposed by the Government Pricing Committee.  Any enterprise regist ered to trade in fertilizer could import and trade 
fertilizer freely.  Fertilizer production and trading was regulated by Decree No. 113/2003/ND-CP of  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 27 
 
 
 7 October 2003.  There was no restriction on the pa rticipation of private enterprises in fertilizer 
production and trade.  He confirmed that 100 per cen t privately owned fertilizer companies could be 
established.  However, in order to ensure that the needs of inhabitants in disadvantaged regions that 
private enterprises could not satisfy were met, th e State retained a majority ownership in the 
Agricultural Materials Corporation, which fell under the responsibility of the Ministry of Agriculture 
and Rural Development, and in four or five other companies under the authority of provinces.  All the 
other enterprises involved in the importation and distribution of fertilizer were private companies.  
However, so far only State-owned enterprises we re involved in the production of nitrogenous 
fertilizer because of the capital-intensive character istics of this industry, although no restriction 
existed on the participation of private enterprises.  He noted that some foreign investors had been 
granted investment licenses to produce and distribute NPK fertilizer in Viet Nam.  As of 
December 2005, four 100 per cent foreign-invested  companies had been established in this sector. 
64. Concerning VINACAFE, VINATEA and VINAMIL K, he did not consider that these 
enterprises fell within the scope of GATT Article XV II, as they were not granted any privileges or 
special rights and acted on the basis of commercial c onsiderations.  He provided information on the 
trading activities of these enterprises in document WT/ACC/VNM/32, Annex 2.  VINACAFE had 
exported 220,000 tons of coffee beans in 2004 − which represented 25.9 per cent of Viet Nam's total 
coffee beans exports − and VINATEA 20,000 tons of tea in 2005 − i.e. 23.7 per cent of Viet Nam's 
total tea exports.  He added that 9 member en terprises of VINACAFE and 8 member enterprises of 
VINATEA had been equitized.  As for VINAMILK, it had been entirely equitized.  The State owned 
50.1 per cent of VINAMILK's shares.  VINAMILK's activities were based on commercial considerations and free from any government inte rvention.  He confirmed that no regulation 
prohibited VINAMILK from selling imported products on the domestic market.  He further noted that 
six salt companies of the Salt General Corporation had been equitized as of mid-2005.  The 
percentage of shares owned by the State in thes e companies now ranged from 51 to 57 per cent.  Salt 
production and business enterprises under the manage ment of local authorities would also be 
equitized.  He noted that these companies did not have any commercial operations underwritten by the 
State.  The companies were not, in his view, State trading enterprises.  
65. In response to a question on the rationale for State involvement in the distribution of salt, the 
representative of Viet Nam said that salt production was the main source of revenue for more than 
100,000 poor farmers in coastal areas where the use of land for agriculture w as almost impossible.  
State involvement in the distribution of salt aime d at ensuring income stability for these farmers and 
guaranteeing that inhabitants in disadvantaged soci o-economic areas were adequately supplied.  The 
General Corporation of Salt had ten member ente rprises specialized in salt production and trade.  WT/ACC/SPEC/VNM/5/Rev.2 
Page 28  
 
 Operating on the basis of market mechanisms, the General Corporation of Salt purchased salt from 
small salt farmers, produced different types of sa lt (purified salt, refined salt, iodized salt), and 
ensured public stockholding of salt.  The annual sa lt output of the General Corporation of Salt, 
including the own production and joint production of its member enterprises, represented about 15 to 
20 per cent of the domestic salt production.  Th e General Corporation of Salt purchased 30 to 
40 per cent of the national output annually.  Mo st of the salt volume purchased by the General 
Corporation of Salt from salt farmers was supplied as  material to its 32 salt producing mills and to 
mountainous provinces to produce iodized salt for hu man consumption within the framework of the 
National Priority Programme.  He noted that all en terprises were free to engage in the production and 
distribution of salt.  There were no restrictions on private enterprises to invest in this sector.  
Numerous private enterprises were trading salt in Vi et Nam and the distribution of salt to consumers 
within the country was mainly undertaken by private enterprises and small retailers. 
66. Noting that Viet Nam had put a reservation on the right to trade in certain products (Table 8), 
a Member enquired whether State-trading enterprises existed or were planned in relation to these 
products and whether the enterprises involved had been or would be notified as State trading 
enterprises.  The representative of Viet Nam replied that all the enterprises trading the products 
subject to State trading, with the exception of ciga rettes and cigars, had been notified.  Cigarettes and 
cigars would be subject to State trading from th e date of accession when the import prohibition would 
be removed.  He confirmed that Viet Nam w ould notify the enterprise involved upon accession.  The 
reservation on trading rights aimed at reserving import ation rights of Vietnamese and foreign-invested 
enterprises for a certain period.  Viet Nam committe d to ensure that the activities of State-trading 
enterprises would comply with WTO rules, including Article XVII of the GATT 1994 and the Understanding on the interpre tation of this Article.  
67. He added that Viet Nam had no specific rules governing the procurement activities of State 
trading enterprises.  All decisions of STEs to purchase or import were based on actual demand and 
made on commercial considerations via a bidding process. 
68. Asked to describe what legal recourse a private or  equitized firm had to appeal a State trading 
enterprise operating on a non-commercial basis or engaged in anti-competitive behaviour, the 
representative of Viet Nam said that anti-competitive  behaviour was subject to the provisions of the 
Competition Law, in particular its Article 15(3)  (see section on "competition policy").  Private or 
equitized enterprises could also seek redress according to Chapter V of the 1996 Civil Code 
(Articles 609 and 633).  They could initiate a civ il law suit against these State-owned enterprises for  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 29 
 
 
 compensation of non-contractual damages.  He a dded that no such cases had been initiated in 
Viet Nam until now. 
69. [The representative of Viet Nam confirmed th at his Government woul d apply its laws and 
regulations governing the trading activities of Stat e-owned enterprises and [other] [State-trading] 
enterprises with special or exclus ive privileges in full conformity with the provisions of the WTO 
Agreement, in particular Article XVII of the GATT 1994 and the Understanding on that Article and 
Article VIII of the GATS.  He further confirme d that Viet Nam would notify any enterprise falling 
within the scope of Article XVII, including those [ noted] [referred to] in Table 5.  The Working Party 
took note of these commitments.]  [The representative of Viet Nam confirmed that [from the date of 
accession] the operation of State-trading enterprises  in Viet Nam would comply with WTO rules, 
including Article XVII of the GATT 1994 and the Unde rstanding on the Interpreta tion of this Article.  
He further confirmed that Viet Nam would notify its State-trading enterprises in accordance with 
WTO regulations.] 
70. [The representative of Viet Nam further confirmed that Viet Nam would ensure that all 
enterprises that were State-owned, State-controlled,  and [other] enterprises with special or exclusive 
privileges, [including equitized firms in which the St ate retained [an equity] [a major equity] stake, 
and State trading enterprises] would [, having due regard to other provisions of the WTO,] make 
purchases and sales based solely on commercial consid erations, e.g. price, quality, marketability and 
availability, and that the enterprises of other WTO Members would have an adequate opportunity [in 
accordance with customary business practice] to comp ete for [participation in] sales to and purchases 
from these enterprises on non-discriminatory terms and conditions [in accordance with the WTO Agreement].  In addition, the Government of Viet Nam would not influence[, directly or indirectly,] 
commercial decisions on the part of State-owned a nd State-controlled, as well as [other enterprises 
with special and exclusive privileges] [State tradi ng enterprises], including on the quantity, value or 
country of origin of any goods purchased or so ld, [except in a manner consistent] [in a manner 
inconsistent] with the WTO Agreement.]  The Working Party took note of these commitments. 
71. The representative of Viet Nam confirmed that , without prejudice to Viet Nam's rights [with 
respect to] [in future negotiations in] the Governme nt Procurement Agreement, all laws, regulations 
and measures relating to the [purchases or sales] [pro curement] by State-owned, State-controlled, or 
[other enterprises with special and exclusive priv ileges] [State trading enterprises] of goods and 
services for commercial sale, production of goods or supply of services for commercial sale, or for 
non-governmental purposes would not be considered to  be laws, regulations and measures relating to 
government procurement.  [In such cases, Viet Nam would apply WTO pr ovisions governing access WT/ACC/SPEC/VNM/5/Rev.2 
Page 30  
 
 to such purchases or sales and these laws, regulati ons, or other measures would be subject to and 
would comply with the provisions of the GA TS and GATT 1994] [Thus, such purchases or sales 
would be subject to the provisions of Articles II,  XVI and XVII of the GATS and Article III of the 
GATT 1994].  The Working Party took note of this commitment.] 
Privatization  
72. The representative of Viet Nam said that Resolution No. 51/2001/QH10 of 
25 December 2001, which amended the 1992 Constitu tion, recognized seven types of ownership – 
State-owned, collective, private individual, househol ds, private capitalist, State capitalist and foreign 
investment – as equal before the laws.  All enterpri ses operating legally on the territory of Viet Nam 
and/or under the laws of Viet Nam were recognized  and protected by the laws, including protection 
against nationalization.  The laws of Viet Nam did not yet recognize private ownership of land, forests 
and water resources, but recognized the right to u se these properties.  Sustainable land use rights for 
land users, including the transfer of land-use rights,  had been recognized by the State since 1993.  The 
State of Viet Nam recognized the ownership to fi xed assets (except land) of foreigners during their 
residency in Viet Nam. 
73. A Member requested Viet Nam to provide a table detailing the progress in privatization, 
including data on completed transformations as well as future plans by major sector and/or size of enterprise.   
74. The representative of Viet Nam replied that  Viet Nam had undertaken a programme of 
"equitization", i.e. transformation of State-owned enterprises into joint-stock or limited liability 
companies subject to the Law on Enterprises, to help  restructure, upgrade and enhance the efficiency 
of State-owned enterprises.  Pursuant to Pr ime Minister's Directive No. 20/1998/CT-TTg of 
21 April 1998, State-owned enterprises had been classified in three groups; (i) enterprises which 
would remain 100 per cent State-owne d and would not be equitized, (ii) enterprises in which the State 
would retain controlling shares and (iii) enterprises in  which the State would dispose of all its shares 
or retain a minority stake.  The Government's equ ity in an equitized company was not set and could 
therefore vary.  Restrictions had been lifted on the proportion of initially issued shares that individuals 
and legal entities could purchase and on the percentage of shares that had to be sold by auction to 
outsiders through financial institutions.  The process foresaw diversity of ownership, including by the 
State and the employees, and was implemented with c onsideration to the interests of the employees.   
75. Group 1 were State-owned enterprises consider ed essential to ensure national security and 
public order, implement the Government's poverty eradication policy and guarantee the provision of  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 31 
 
 
 goods and services that would not be viable for private enterprises, and therefore 100 per cent 
State-ownership should be retained.  Notwithsta nding their inclusion in Group 1, public-interest 
State-owned enterprises could be equitized upon appr oval of the Prime Minister, for enterprises with 
capital exceeding 10 billion Dong (US$ 600,000), or deci sions taken by a Minister, or the Chairmen 
of People's Committees of provinces or cities, for enterprises involving capital equal to or less than 
10 billion Dong.  Group 2 were enterprises in wh ich the State should retain controlling shares, 
i.e. 50 per cent of the chartered capital, when equ itizing, as their businesses were related security or 
defence, the activities were considered vital to the economy, involved the supply of essential products, 
or activities which his Government believed the priv ate sector was unwilling or unable to engage in.  
Joint-stock companies were required to comply with the provisions of the Company Law (now 
Enterprise Law).  At least 20 per cent of the en terprises in Group 2 subject to self-accounting had 
been targeted for "equitization" during 1998-99 in  accordance with Directive No. 20/1998/CT-TTg of 
21 April 1998.  Group 3 consisted of enterprises in wh ich the State did not hold a controlling interest, 
having disposed of all or part of its sharehol dings.  Group 1 and Group 2 sectors, as provided in 
Decision No. 155/2004/QD-TTg of 24 August 2004, which had superseded Decision 
No. 58/2002/QD-TTg, are listed in Table 4.  He noted that Ministries and local authorities were in the 
process of classifying State-owned enterprises pursu ant to Decision No. 155/2004/QD-TTg.  The list 
of enterprises in which the State would retain 100 per cent of the shares or a controlling share was not 
available.  He added that State-owned commercia l banks were subject to equitization pursuant to 
Government Decree No. 187/2004/ND-CP.  He confir med that domestic private enterprises were free 
to participate in the sectors listed in Decisi on No. 155/2004/QD-TTg (see Table 4), except for the 
production and supply of p ublic goods and services related to na tional defence and security.  Foreign 
investors may participate in these sectors/activiti es upon WTO accession in line with Viet Nam's 
commitments.  However, the State retained a controlling share in already existing State-owned 
enterprises because these sector s were vital economic and technological sectors with high risks, 
requiring large investments, or involving a long pay- back time, or to ensu re that the needs of 
inhabitants of disadvantaged socio-economic areas were met. 
76. Decision No. 155/2004/QD-TTg also specified the criteria for classifying enterprises as 
State-owned and State corporations.  State-owned ge neral corporations would be merged, dissolved or 
transformed into individual enterprises.  Only a fe w qualified general corpora tions would be retained 
and restructured.   
77. By 31 December 2004, Viet Nam had "equitized" 2,242 enterprises − 1,327 enterprises with a 
State-owned capital inferior to VND 5 billion, mainly  in construction, produc tion of consumer foods, 
trade and services, and agricultural processing indus tries; 500 enterprises with a State-owned capital WT/ACC/SPEC/VNM/5/Rev.2 
Page 32  
 
 of VND 5 to 10 billion; and 415 enterprises with  a State-owned capital exceeding VND 10 billion.  
18 equitized enterprises had foreign investors' partic ipation, but none of them had been transformed 
into FDI joint-ventures.  Among the equitized en terprises were big companies such as Viet Nam 
Dairy Products Company (VINAMILK with a cap ital of VND 2,500 billion, 1,500 billion of which 
was State-owned), Song Hinh-Vinh Son Hydroelectric Plant (with a capital of VND 2,114 billion, of which VND 1,253 billion was State-owned), and Hochiminh City Insurance Company (BAO MINH 
with a capital of VND 1,311 billion, of which 63 per cent were State-owned).  On average, the State 
held 46.5 per cent of the chartered capital of equ itized enterprises, employees 38.1 per cent, and other 
shareholders 15.4 per cent.  The State had retain ed controlling shares in 736 companies (or 28 per cent 
of all equitized companies), had kept a minority stake in 1,341 companies (51 per cent) and had sold all the shares it had in the remaining 552 comp anies (21 per cent).  Following the ownership 
transformation, most of these enterprises were operating more efficiently and 26 of them were listed 
on Viet Nam's stock exchange.  All garment comp anies had been equitized, with the exception of 
Viet Tien Garment Company, which had been transf ormed into a holding company with subsidiaries.  
He noted that the equitization process of ente rprises involved in management and operation of 
irrigation works, production of original plants a nd animals, and salt produc tion and management had 
not attracted private investors as these enterprises faced many difficu lties and generated low profits.  
From 2005 onward, 1,472 State-owned enterprises woul d be equitized, transferred, sold, closed or 
subject to bankruptcy.  Under the current 200 5-2007 restructuring plan, about 50 State-owned 
enterprises would be subject to bankruptcy.  He provided information about the number of equitized 
enterprises since 1992 in Table 6.   
78. Viet Nam's Prime Minister had also decided to equitize two State-owned commercial banks, 
the Bank for Foreign Trade of Viet Nam (Vietcombamk) and th e Mekong Delta Housing 
Development Bank.  Vietcombank would be equi tized in accordance with the Prime Minister's 
Decision No. 230/2005/QD-TTg of 21 September 2005.  An internati onal consulting firm had been 
recruited to assist in the valuation and equitization process of the bank.  Valuation was expected to be 
completed by 31 December 2005.  Up to 10 per cent of the shares would be sold in 2006 and up to 49 per cent during a second phase, from 2007 to 2010.  The State would retain a controlling stake.  
The equitization of the Mekong Delta Housing Deve lopment Bank would be carried out pursuant to 
Decision No. 266/2005/QD-TTg of 27 October 2005.  The starting date for valuation was 31 December 2005.  The Bank would be equ itized along the same lines as Vietcombank.   
79. Equitization procedures were stipulated in Circular No. 126/2004/TT-BTC of the Ministry of 
Finance of 24 December 2004 on the implementation of Decree No. 187/2004/ND-CP.  The first step 
consisted in preparing the equitization plan.  Th e body making the decision on equitization established  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 33 
 
 
 a steering committee for equitization, and an assist ant group compiled factual information about the 
enterprise (documents on establishment of the en terprise, assets, liabilities, uncompleted capital 
construction works, long-term investment capital in  other enterprises, financial reports, tax reports, 
list of permanent employees, classification of employees by type of labour contracts, estimates of the equitization process), carried out a valuation of the enterprise (inventory, classification of assets), 
settled outstanding financial and tax issues, and designed the equitization plan.  The second step was 
the sale of the shares.  The steer ing committee decided on the auction method (direct auction at the 
enterprise, auction at an intermediary financial orga nization, or auction at a Securities Trading Centre) 
and the number of shares subject to preferential sale to employees and domestic strategic investors 
(see paragraph below).  Shares of equitized enterp rises were sold by public auction before shares 
subject to preferential sale were sold to employ ees and domestic strategic investors.  Preferential 
prices had to be contingent upon the average aucti on price.  After the auction, the steering committee 
submitted a report on the results of the share sale to the body making the decision on equitization, 
which adjusted the equitization plan accordingly.  Th e last step was the conversion of the enterprise 
into a shareholding company.  The steering comm ittee and assistant group held the first General 
Meeting of Shareholders to adopt the company's Charter, and elect the Members of the Board of 
Management, Control Board and mana gement apparatus.  The Board of Management was responsible 
for the business registration of the company.  A fi nancial report was prepar ed, tax obligations and 
equitization expenses finalized, a report submitted to the body making the decision on equitization, 
and proceeds from equitization paid to the relevant b odies.  Shareholding shar es were then issued to 
the companies' shareholders.  These steps had to be  completed within nine months.  Passed this 
period, the body making the decision on equitization w as responsible for any extra expenses incurred.   
80. Strategic domestic investors and employees could purchase shares of equitized enterprises at 
a discount price, subject to certain terms and conditions, in accordance with 
Decree No. 187/2004/ND-CP of 16 November 2004.  St rategic domestic investors were defined as 
manufacturers and frequent suppliers of inputs to the enterprise; persons committed to purchase the 
enterprise's product over a long period; persons who a had long-term strategic interest in the 
enterprise's products; and persons who had a long-term strategic inte rest in the enterprise's business 
operation and possessed financial potential and manage ment expertise (Article 26.2, Article 27.3 and 
Article 28.2).  Employees were entitled to purch ase up to 100 shares (of VND 10,000 each) for each 
year of employment in the State sector with a 40 per cent discount on the average auction price, and 
strategic domestic investors could purchase up to 20 per cent of the shares offered for sale at a 
20 per cent discount price.  All the remaining shar es, which should amount to minimum 20 per cent of 
the chartered capital (Article 27.4), were  publicly auctioned to investors.   WT/ACC/SPEC/VNM/5/Rev.2 
Page 34  
 
 81. Foreign investors were allowed to participat e in the equitization process by purchasing shares 
of State-owned enterprises in some sectors in accordance with the Prime Minister's 
Decision No. 36/2003/QD-TTg of 11 March 2003.  These sectors included telecommunication; 
textiles and garments; footwear; leather-processi ng; production and processing of agricultural, 
forestry and marine products; production of ot her consumer goods; pro duction of construction 
materials; road transportation, inland wate rway transportation and container merchandise 
transportation; production of stationery and t eaching equipment for schools; production of toys; 
commerce, hotel and hotel-related services; and mechanical engineering manufacturing.  The 
regulation did not distinguish between enterprises pr oducing for the local market or for exportation.  
Moreover, Viet Nam did not prohibit the establishmen t of foreign invested enterprises competing with 
State-owned enterprises undergoing equitization.  He noted that the new Investment Law would 
stipulate the sectors in which foreign investors would or would not be allowed to participate, taking 
into account Viet Nam's WTO accession commitments. 
82. For equitized Group 2 and Group 3 enterprises, the total value of shares sold to foreigners 
should not exceed 30 per cent of the company's registered capital pursuant to Government 
Decree No. 187/2004/ND-CP, Prime Minister's Decision No. 36/2006/QD-TTg of 11 March 2003 and 
Prime Minister's Decision No. 146/2003/TTg of 17 Ju ly 2003.  Shares purchased by foreign investors 
were paid in local currency.  Foreign exchange w as converted at the average inter-bank exchange rate 
announced by the State Bank of Viet Nam at the ti me of the sale.  Procedures for selling shares to 
foreign investors were stipulated in Prime Minister's Decision No. 36/2003/QD-TTg.  Asked whether 
foreign investors would be able to increase their holdings above 30 per cent after the initial 
distribution of shares, the representative of Viet Na m said that the 30 per cent cap remained valid after 
the initial distribution of shares.  However, the lis t of sectors in which foreign investors were entitled 
to purchase shares and the 30 per cent cap applicable to foreign investors were under review.  The list 
of sectors in which foreign investors would be allo wed to participate would be specified in the new 
Investment Law and the percentage of shares of existing Vietnamese enterprises that foreign investors would be allowed to purchase in the implementing Decree.  He confirmed that these changes would 
apply to State-owned enterprises having been equitized.   
83. Shareholders of shareholding companies, includi ng equitized companies, were free to transfer 
their shares to other investors, except (i) strate gic shareholders during the first three years of 
registration of the company.  These could, in special  cases, transfer their shares prior to this date upon 
approval of the Board of Management through public  auction at the shareholding company or at an 
intermediate financial institution (Article  38.2.b of Decree No. 187/2004/ND-CP); and 
(ii) shareholders possessing preferential voting shar es.  In addition, during the first three years of  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 35 
 
 
 registration of the company, the transfer of founding shareholders' common stocks to 
non-shareholders was subject to approval of the Ge neral Meeting of Shareholders.  In such cases, 
decisions of the General Meeting of Shareholders were taken without the votes of the shareholders 
wishing to transfer their shares.  Transfers of Stat e's shares were subject to the same regulations.  
Shares were sold through public auction at intermed iate financial institutions or securities exchange.  
Offers and transfers of shares were regulated by th e Law on Enterprises.  Asset valuation of equitized 
enterprises was conducted by valuatio n agencies subject to market m echanisms.  He added that the 
Government of Viet Nam encouraged eligible equi tized companies in which the State held controlling 
shares to list in the securities exchange.  
84. Equitized firms were subject to the Enterpri se Law and were managed by a General Meeting 
of Shareholders, a Board of Management elected by the General Meeting of Shareholders and a 
General Director appointed by the Board of Mana gement.  Decisions of the General Meeting of 
Shareholders were adopted by vote during meeti ng sessions or written opini ons (Article 77 of the 
Enterprise Law).  Decisions were taken by the majority of the votes − specific ratios were stipulated 
in the company's chartered capital, except for decisions on the type a nd number of shares to be issued, 
amendments to the company's Chapter, reorganizati on and dissolution of the company, investment or 
sale of more than 50 per cent of the total value of the company's assets, which required a 65 per cent 
majority.  Therefore, only a group of shareholders representing at least 51 per cent of the votes, or 65 per cent in some cases, had a veto right.  Shar eholders, whether in person or in group, holding 
10 per cent or more of the ordinary shares during at least 6 months were entitled, inter alia , to 
nominate a representative to participate in the Bo ard of Management; request convocation of the 
General Meeting of Shareholders; and receive copies  and extracts of lists of shareholders entitled to 
participate in sessions of the General Meeting of Shareholders.  He noted that employees or their 
representatives had been involved in the manageme nt of some large shareholding companies. 
85. In the case of equitized enterprises without Stat e capital, the State only acted as a regulator; it 
did not intervene in the affairs of the enterprise.  Wh en the State partly or wholly owned an enterprise, 
the State had the rights and obligations of a sharehol der corresponding to its capital contribution.  The 
State did not assign the management of shareholding companies.  Such assignment was the 
responsibility of the General Meeting of Shareholde rs, Board of Management or Director/General 
Director, regardless of whether the State held cont rolling shares or not.  If the State held more than 
10 per cent of the company's shares, the State could,  as a shareholder, nominate a representative to be 
elected to the Board of Management subject to a pproval of the General Mee ting of Shareholders.  
Should the General Meeting of Shar eholders disapprove the election of  that representative to the 
Board of Management, the State would not have any representative on the Board of Management.  WT/ACC/SPEC/VNM/5/Rev.2 
Page 36  
 
 State representatives elected to the Board of Management and assigned to a managerial function 
reported to those he/she represented,  not to any other agency.  Shareholding companies did not have 
to report to any administrative Ministry; they reported as any other company.   
86. He added that a Corporation for State Capita l Investment and Trading (SCIC) had been 
established to manage, invest and trade State capital in equitized enterprises with State-owned shares 
pursuant to Prime Ministers' Decision No. 151/20 05/QD-TTg of 20 June 2005.  The chartered capital 
of the SCIC at the time of establishment was VND 5 trillion.  The SCIC was responsible for acquiring 
and exercising the rights of a State representative in limited liability companies and shareholding 
companies transformed from independent and newly established State-owned enterprises; invest and trade State capital in Viet Nam and abroad; purchase part or whole of other companies; and purchase 
and sell shares, bonds, and financial instruments in  capital and security markets.  The organization 
and operating regulations of the SCIC were under preparation.  
87. Equitized enterprises had benefited from a 50 per cent reduction in corporate income tax for 
two years after the transformation had taken place.  Under the current regime, equitized enterprises 
were subject to the same incentives as newly est ablished enterprises under the Law on Encouragement 
of Domestic Investments.  The fees associated w ith the transformation were deducted from the State 
capital.  Enterprise employees were entitled to buy shares at a discount price (see paragraph 82), and 
cash bonuses were also distributed to the employees.   
88. The representative of Viet Nam confirmed that from the date of accession, Viet Nam would 
provide WTO Members with annual reports on the st atus of [privatization in Viet Nam] [its 
equitization programme as long as the programme woul d be in existence].  The Working Party took 
note of this commitment. 
Pricing policies  
89. The representative of Viet Nam said that his Government resp ected the autonomous right of 
enterprises and individuals operating legally in Viet Na m to set their prices.  Prices of most goods and 
services were determined by market forces.  The Ordinance on Price, which had come into effect on 
1  July 2002 and Decree No. 170/2003/ND-CP of 25 December 2003 guiding in detail the implementation of a number of Articles of this Ordi nance, confirmed that direct State intervention in 
pricing would be limited.  His G overnment would only use measures dire ctly affecting prices in case 
of dumping or abuse of monopoly position in order to stabilize the socio-economic environment, or to 
protect the legitimate interests of producers, consumer s and the State.  Such rates, the enterprises and 
individual businesses subject to price control, and the implementing period, were published widely in  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 37 
 
 
 the media (television, newspapers and the Internet ) in Viet Nam.  Since 2003, his Government had 
applied price controls only on petrol, electricity, postal and telecommunications services, air fares 
between Hanoi and Ho Chi Minh City, and potable  water.  Price controls on telecommunication 
services applied to local subscription charges, char ges for using local fix-line subscriptions, universal 
service charges, and services charges imposed by prov iders with a dominant market share, regardless 
of the mode of supply.  Service charges were a pproved by the Ministry of Posts and Telematics 
pursuant to Prime Minister's Decision No. 217/2003/QD-TTg of 27 October 2003. 
90. The Ministry of Trade had been empowered to establish maximum import prices in 
accordance with Government Decree No. 33/CP of 19 April 1994.  Maximum import prices had been 
imposed on fertilizer, petroleum, iron and steel and certain machinery and equipment.  This price 
control measure had been temporary.  It had b een abolished pursuant to the Ordinance on Price 
No. 40/2002/PL-UBTVQH10 of the Standing Committee of  the National Assembly of 10 May 2002.   
91. A Member enquired whether Viet Nam applied any minimum prices.  This Member noted 
that minimum price measures, if applied, would have  to be in conformity with Article III:4 of the 
GATT 1994 and other WTO provisions.  In particular , any requirement that imported products be 
subject to mandatory minimum import prices would appear to be contrary to Article III:4 of the 
GATT 1994.  This Member also asked Viet Nam to pr ovide information on the allocation of tariff rate 
quotas on imported salt and interest rate subsidies gran ted to some trading enterprises.  In response, 
the representative of Viet Nam said that Viet Na m did not apply any minimum prices to imported or 
exported products.  Concerning cott on, sugar and salt, no legal requirement obliged traders to sell, 
purchase, import or export these products at minimum prices.  However, Viet Nam's cotton and sugar processing plants could participate in a product-sp ecific support programme under which they could 
purchase domestic raw cotton and sugar cane at a pre-committed price agreed mutually between the processors and farmers.  This subsidization progr amme had been notified in Viet Nam's tables on 
domestic support in agriculture (see paragraph 345).   He confirmed that these contractual prices 
applied only to domestic products.  Purchasers of refi ned sugars were not required to purchase either 
domestic or imported refined sugar at a minimum price.  Concerning the allocation of tariff-rate 
quotas on imported salt, he noted that industrial user s of salt were not required to submit information 
about their actual or proposed purchase prices for dom estic or imported salt with their application for 
tariff quota allocations.  The decisive factor in  determining the allocation was the demand for 
industrial salt to be used in the enterprise's producti on.  As for the interest rate subsidies granted to 
some trading enterprises, he confirmed that selected  trading enterprises received such subsidies to 
encourage purchases from domestic producers at times of price weakness, aimed at supporting the 
internal prices of pork, sugar, and rice.  Howe ver, such enterprises were neither required nor WT/ACC/SPEC/VNM/5/Rev.2 
Page 38  
 
 encouraged to purchase imported pork, sugar, and rice at the same prices at which they were 
encouraged to purchase domestic like products. 
92. In response to a Member who asked whether frei ght subsidies for an input were linked to the 
price of this input, the representative of Viet Nam not ed that the level of freight subsidy for certain 
agricultural products and materials (mainly fertili zer) did not depend on their prices prior to 
transportation.  The objective of freight subsidies wa s to offset the differential costs of transportation 
of agricultural inputs and materials from lowla nds to mountainous and remote areas where the 
infrastructure was underdeveloped, thereby making transportation difficult and costly.  Direct 
beneficiaries of freight subsidies were trading ente rprises mandated to trade in the subsidized goods.  
He confirmed that freight subsidies were not dependent on whether the input had been produced 
domestically or imported.  
93. A Member noted that with the introduction of Value Added Tax on 1 January 1999, the 
Vietnamese authorities had issued "guidance" to en terprises not to add VAT to the price of their 
goods.  This Member considered such "guidance"  measures unreasonable.  The representative of 
Viet Nam replied that to avoid market disturban ce his Government had issued a Prime Minister's 
Directive in 1999 requiring all businesses to declare publicly the selling prices of their goods.  This 
measure had been introduced on a temporary basis during the initial period of application of the VAT to educate the public and to enc ourage enterprises not to take advantage of the introduction of the 
VAT to increase their prices inappropriately.  Th is "guidance", which did not legally prevent 
enterprises from doing so, had automatically ceased to have effect after expiration of the period of 
public education.  He confirmed that privat e sector companies were allowed to set prices − and 
include VAT payments into the price − according to the dictates of the market.   
94. He added that Viet Nam had gradually phased out its system of dual pricing according to 
which Vietnamese and foreign enterprises and indivi duals were charged different prices for identical 
goods or services.  Uniform telecommunications char ges had been applied since 1 October 2000.  By 
February 2004, Viet Nam had eliminated th e dual pricing mechanism on domestic air fares 
(Decision No. 3226/QD-CHK of 26 November 2003), telecommunication services, and port services, and a common electricity price had been applie d for both Vietnamese and foreigners since 
1 January 2005 (Decision No. 215/2004/QD-TTg of 29 December 2004).   
95. Some Members were pleased that Viet Nam had eliminated dual prices.  These Members 
reminded Viet Nam that in order to meet WTO require ments, price controls applied to trade should be 
transparent and conform to other WTO provisions, e.g. national treatment and the avoidance of 
prejudicial effects on imports in Article III of the GATT 1994.    WT/ACC/SPEC/VNM/5/Rev.2 
 Page 39 
 
 
 96. The representative of Viet Nam confirmed that, from the date of accession, Viet Nam would 
apply price controls in a WTO-consistent fashion and take account of the interests of exporting WTO 
Members as provided for in Article III:9 of th e GATT 1994, and in Article VIII of the General 
Agreement on Trade in Services (GATS).  He also confirmed that Viet Nam had published the list of 
goods and services subject to State price control and any changes in its Official Gazette and would 
continue to do so after accession.  He further confirmed that pricing policy in Viet Nam would be 
applied in compliance with the provisions of Artic le III:4 and XI:1 of the GATT 1994 and Article 4 of 
the Agreement on Agriculture.  The Working Party took note of these commitments. 
Competition policy 
97. The representative of Viet Nam said that during the period of central planning in Viet Nam, 
government agencies had controlled all State- owned enterprises operating in each sector.  
Government agencies no longer had such controlli ng power, but they were still responsible for 
sectoral development policies ("sectoral management"). 
98. A Competition Law had been adopted on 3 Decem ber 2004.  The Law had entered into force 
on 1 July 2005.  The Law applied to all enterpris es, whether State-owned, private, equitized or 
foreign-invested, and to trade associations (Article 2) .  It recognized enterprises' freedom to compete 
and protected the right to business competition.  The law prohibited anti-competitive acts and unfair 
competition.  It also prohibited State management  agencies from performing certain acts, such as 
forcing enterprises, organizations or individuals to  buy or sell goods or provide services to designated 
enterprises (except for ar eas where the State held a monopoly or in emergency cases); discriminating 
between enterprises; forcing enterprises or trade associ ations to align with one another with a view to 
precluding, restricting, or preventing other enterprises from competing on the market; and performing any other act preventing the lawful business activities of enterprises. 
99. Anti-competitive acts prohibited under the Law included anti-competitive agreements, abuse 
of dominant and monopoly position,  and economic concentration (A rticle 8).  Anti-competitive 
agreements comprised agreements fixing, directly  or indirectly, the price of goods and services; 
agreements on the distribution of outlets, sour ces of supply of goods, or provision of services; 
agreements restricting or controlling produced, pur chased or sold quantities or volumes of goods or 
services; agreements restricting technical and techno logical development or investments; agreements 
imposing on other enterprises conditions to pur chase or sell goods or services or forcing other 
enterprises to accept obligations which had no direct connection with the subject of such contracts; 
agreements preventing, restraining, or disallowing other enterprises to enter the market or develop 
business; agreements eliminating from the market ente rprises other than the parties of the agreements; WT/ACC/SPEC/VNM/5/Rev.2 
Page 40  
 
 and agreements to enable one or all of the parties to the agreemen t to win bids to supply goods or 
provide services.  The last three categories of an ti-competitive agreements were prohibited per se.  
The others were proscribed if the parties to these agreements had a combined share exceeding 
30 per cent of the relevant market, except as provide d for in Article 10.  Abuse of dominant position 
was defined in Article 13 of the Law, and a buse of monopoly position in Article 14.  Economic 
concentration (merger, amalgamation, acquisiti on, joint-venture and other acts of economic 
concentration) was prohibited under Article 18 if the combined market sh ares of the enterprises 
participating in the economic concentration accounted  for more than 50 per cent of the shares in the 
relevant market, except if after implementation th e enterprises were still small or medium-sized 
enterprises as prescribed by Law (Article 18) or if on e or more of the participants was/were in danger 
of dissolution or bankruptcy or if the economic  concentration contributed to socio-economic 
development, technical and technological devel opment, or increased exports as specified in 
Article 19.  Projects of economic concentration ha d to be notified before implementation if the 
combined market shares of the par ticipants in the project accounted for 30 to 50 per cent of the shares 
in the relevant market, except if after implementa tion the enterprises were still of small or medium 
size.  The procedures for notification were set out in Articles 21 to 38 of the Law. 
100. Unfair competition acts were defined in Chapte r III of the Law and included the provision of 
misleading information; infringement of business se crets; coercion in business; defamation of other 
enterprises; disruption of business activities of othe r enterprises; advertisement or promotion aimed at 
unfair competition; associative discrimination; illega l multi-level (pyramid scheme) sale; and other 
unfair competition acts according to the criteria dete rmined in Clause 4, Article 3 of the Law and 
prescribed by the Government. 
101. The Law specified the procedures for conducting investigations and hearings, the rights and 
obligations of the parties, and incurred penalties.   Organizations and individuals could lodge a 
complaint against anti-competitive behaviour with the Competition Administration Agency 
(Article 58(1)).  The Competition Administration Agency was responsible for conducting preliminary 
investigations aimed at determini ng whether there was an evidence of  violation (Article 59 and 86).  
In the event of such evidence, an  official investigation was launched (Article 87).  The Competition 
Administration Agency could also, if it detected si gns of violations, launch an investigation upon its 
own initiative.  Once finalized, the investigation report was transmitted to the Competition Council 
(Article 93), which set up a Tribunal responsible  for handling the competition case.  The Tribunal 
could hold an open hearing, return the file  to the Competition Administration Agency for 
supplementary investigation, or suspend the ha ndling of the case (Articles 99 and 100).  Hearings 
were public.  Decisions of the Tribunal were made  by secret ballot at the majority of the votes  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 41 
 
 
 (Article 104).  Decisions took effect 30 days afte r the signing date if no complaint had been lodged 
against it within that period in  accordance with Article 107 (Article 106).  Decisions of the Tribunal 
could be appealed to the Competition Council and decisions of the Competition Administration 
Agency to the Ministry of Trade (Article 107).  Sh ould the complainant disagree with the decision of 
the Competition Council or Ministry of Trade, he/she  could initiate an administrative law suit to the 
competent provincial-level people's courts against one  part of, or the whole, decision (Article 115).  
Enforcement of the decision was monitored by th e provincial-level civil judgement enforcement 
agencies of the province or city where the party against which the decision had been taken had its 
headquarters or residency.   
102. In response to a specific question, he added that no provision of the law addressed whether 
wholly or partially State-owned firms retained competitive privileges under law compared to other 
enterprises.  The Law could be consulted in Eng lish at the website of the Ministry of Trade 
(http://www.mot.gov.vn/en/Files/1727D5D2C1F.PDF).   
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
103. The representative of Viet Nam said that in the unitary State of Viet Nam the National 
Assembly was the highest organ of State and legislative power in accordance with the 1992 
Constitution of the Socialist Republic of Viet Nam.  The National Assembly decided on the 
fundamental domestic and foreign policies, socio- economic policies, national defence and security 
issues, etc.  The State President and Vice-President , the Prime Minister, the President of the Supreme 
People's Court and the Head of the Supreme Peopl e's Procuracy were all elected by the National 
Assembly.  The duration of each National Assembly  legislature was five years.  The National 
Assembly held two regular sessions each year and,  whenever necessary, ex traordinary sessions would 
be convened.  
104. The Standing Committee of the National Assemb ly was a permanent body entitled to enact 
and supervise ordinances and resolutions.  The Standing Committee also supervised the 
implementation of the Constitution and resolutions of the National Assembly, as well as the activities 
of the executive and juridical branches of government and local elected bodies.  The Standing Committee of the National Assembly was authori zed to interpret the Constitution, laws and 
ordinances, and carry out the routine tasks of  the National Assembly in-between its sessions. 
105. The State President was elected by the National Assembly among its Deputies for a term 
similar to that of the National Assembly.  Among th e duties and powers of the State President were to 
promulgate the Constitution, laws and ordinances; to  negotiate and sign international agreements on WT/ACC/SPEC/VNM/5/Rev.2 
Page 42  
 
 behalf of the Socialist Republic of Viet Nam with  other heads of State; and to ratify or accede to 
international agreements, except in cases requiring ra tification by the National Assembly.  Pursuant to 
the resolutions of the National Assembly or the Standing Committee of the National Assembly, the 
State President could appoint, relieve from duty or dismiss the Vice Prime Minister, Ministers and other members of the Government, the Vice President of the Supreme People's Court, judges, and the Vice President and prosecutors of the Supreme People's Procuracy. 
106. Executive power to implement policies affec ting the economy, cultural and social life, 
national defence and security, foreign policy, etc.  rested with the Government, reporting to the 
National Assembly, the Standing Committee of the Na tional Assembly, and the State President.  The 
Government was in charge of foreign affairs.  It negotiated and signed in ternational agreements on 
behalf of the Socialist Republic of Viet Nam ex cept in cases falling under the responsibility of the 
State President, and on behalf of the Government; ratified international agre ements on behalf of the 
Government and monitored their implementation; and protected the interests of the State and Vietnamese organisations and citizens abroad.  The Government ensured implementation of the 
Constitution and the laws, prepared bills and draf t law amendments for approval by the National 
Assembly, issued by-laws (decrees and regulations ), and guided the implementation of laws and 
ordinances (Article 18(2) of the Law on Governme nt Organization).  It exercised administrative 
power at all levels of the administrative system, i.e. central government, pr ovinces and cities directly 
under the central government, districts, precinc ts and ward communes.  Provincial People's 
Committees carried out State administrative manage ment and control over fo reign economic activities 
within their provinces pursuant to the Constitution,  the Law on Organization of People's Councils and 
People's Committees, and other relevant legislati on.  The Government ensured uniform nationwide 
implementation of the legal system (see also paragraphs below).   
107. The Prime Minister was empowered to promul gate decisions and directives to implement 
laws, ordinances and law-decrees; to suspend or a nnul decisions, directives, and circulars issued by 
Ministers or other senior members of the Governme nt, and decisions or directives issued by the 
People's Committees and by the President of the People's Committees of provinces and cities under central management which were considered cont rary to the Constitution, laws and other legal 
documents issued by higher-level State agencies; to  suspend the implementation of resolutions issued 
by the People's Councils of provinces or cities unde r central management which were considered 
contrary to the Constitution, laws and other legal documents issued by  the higher-level State agencies, 
and to propose their annulment by the Standing Committee of the National Assembly.  The main 
ministries and agencies involved in trade and investme nt related policies were the Ministries of Trade,  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 43 
 
 
 Planning and Investment, Finance, Foreign Affairs;  the Office of the Government; and the People's 
Committees of provinces and cities directly under central government rule. 
108. He confirmed that the National Assembly was the only body empowered to promulgate the 
Constitution and laws.  In case of conflict between provisions of legally e quivalent documents, the 
most recently promulgated provisions would prevail.  Pursuant to the Law on the Enactment of Legal 
Documents of 12 November 1996 and the Law on amen dment of and addition to a number of Articles 
of the Law on Enactment of Legal Documents adopted by the National Assembly on 
16 December 2002, the hierarchy of laws in Viet Nam comprised - in descending order - (i) the Constitution of the Socialist Republic of Viet Nam, (ii) legislation issued by the National Assembly, 
including laws and resolutions, (iii) legislation issued by the National Assembly's Standing Committee including ordinances and resolutions, (iv) orders and decisions of the State President, 
(v) resolutions and decrees of the Government and decisions and instructions of the Prime Minister, 
(vi) decisions, instructions and circulars issued by  Ministers and heads of ministry-equivalent bodies, 
(vii) resolutions of the Judicial Committee of the Supreme People's Court; decisions, instructions and 
circulars issued by the Head of the Supreme People' s Procuracy, (viii) resolutions and circulars issued 
jointly by government authorities, government authorities and socio-political organizations, and 
(ix) legislation issued by People's Councils and People Committees at different levels in order to 
implement the legislation of superior government authorities.   
109. Encouraged by some Members to improve oppor tunities for consultation prior to the passage 
of laws, and to accelerate the process of issuin g guidelines accompanying the relevant laws, the 
representative of Viet Nam noted that Viet Nam had made considerable progress in speeding up procedures for the promulgation of legal documents.  Government agencies involved in the drafting of 
legal documents were required to offer individual s and organizations an opportunity to comment on 
the legal document, and to take account of these comments according to Article 3 of the amended 
Law on the Enactment of Legal Normative Docu ments, approved by the National Assembly on 
16 December 2002 (see also the section "Transparency" ).  In response to Members' observations that 
conflicting provisions in Viet Nam's legislation en couraged subjective interpretation and complicated 
enforcement, the representative of Viet Nam did not share these opinions, particularly in respect of 
legal documents issued by the National Assemb ly or its Standing Committee in the area of 
international trade.  He stressed that Viet Na m was making every effort to identify and correct 
discrepancies among its laws and regulations.  Viet Nam would also consider proposals to move from 
a "positive" to a "negative" list approach in its legislation, whereby activities would be considered 
permitted unless expressly prohibited by law.  The princi ple had already been applied, for example, in 
the Constitution (Article 16) and in the Enterprise Law (Article 6).  However, the "negative" list WT/ACC/SPEC/VNM/5/Rev.2 
Page 44  
 
 approach was still a novelty in Viet Nam, and would require further examination and evaluation.  In 
regard to a suggestion that Viet Nam should make it s laws self-enforcing, he stressed that Viet Nam 
was making every effort to enforce laws immediately after promulgation.   
110. Questioned about the applicability of internati onal treaties, he noted that a new Law on the 
Conclusion, Accession and Implementation of In ternational Treaties had been adopted on 
14 June 2005.  According to the new Law, whic h had entered into force on 1 January 2006, the 
National Assembly, the President and the Government  could decide on the direct applicability, in 
whole or in part, of international treaties as appropr iate and decide or propose to amend, abrogate, or 
promulgate legal normative acts to implement these trea ties (Article 6.3).  Provisions of international 
treaties that would not be considered directly applicab le would be transposed into national legislation.  
Under the Law, the Government, agencies, organizations and individuals were required to strictly 
observe the international treaties to which Viet Nam was a party (Articles 3.6 and 97).  In the event of 
a conflict between the provisions of an interna tional treaty to which Viet Nam was a party and 
domestic legislation, the provisions of the internati onal treaty would prevail (Article 6.1).  Conflicting 
domestic laws and regulati ons would be amended to conform to the provisions of the international 
treaty or, if feasible, the relevant provisions of the international treaty would be applied directly.  
Article 69 of the Law provided for the publication of  international treaties in the Official Gazette and 
the "Series of International Treaties".  Concerning the application of MFN and national treatment, he 
noted that the Ordinance on Most Favoured Natio n and National Treatment in International Trade 
No. 41/2002/PL-UBTVQH10, which had entered into  force on 1 September 2002, provided for the 
general principles of non-discriminatory treatment in trade, as well as exceptions to MFN and national 
treatment in strict accordance with WTO rules.   
111. He added that procedures for negotiation, conclusion and approval or ratification of 
international treaties were regulated by the ne w Law on Conclusion, Accession and Implementation 
of International Treaties adopted on 14 June 2005.  The State President decided on the ratification of 
international agreements, except in  cases where these would need to be submitted to the National 
Assembly for decision.  International treaties subj ect to ratification were those containing provisions 
on mandatory ratification and those concluded on behalf of the State or the Government and 
containing provisions which contradicted provisions  of legal documents issued by the National 
Assembly, the National Assembly Standing Committee or the State President.  International treaties 
signed on behalf of the Government subject to  approval were those containing provisions on 
mandatory approval, or treaties containing provisions in contradiction with le gal documents issued by 
the Government or provisions on completion of in ternal legal procedures.  He confirmed that 
accession to the WTO would require ratification.  The National Assembly was competent to supervise  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 45 
 
 
 the implementation of international agreements in Viet Nam and to promulga te legal documents for 
the implementation of such international agreements. 
112. Viet Nam's judicial system comprised the Supreme People's Court, local People's Courts and 
military tribunals.  The National Assembly could al so decide to establish special tribunals.  The 
Supreme People's Court supervised and directed the j udicial work of local People's courts and military 
tribunals.  The President of the Supreme People's Court reported to the National Assembly or, when 
not in session, to its Standing Committee and to the St ate President.  Hearings of the People's Courts 
were public except in cases determined by the law.  Judgements by the Civil Courts were executed by 
central and local level bodies under uniform administration by the Ministry of Justice.  Pursuant to Article 5.1 of the Ordinance on Judges and Peoples' Jurors No. 02/2002/PL-UBTVQH11 of 4 October 2002, any person faithful to the fath erland and the Constitution, good in moral sense, 
upright, honest, determined to protect the socialis t legal system, having a legal Bachelor's degree and 
training in adjudication, experienced, capable of judging in accordance with the Ordinance, and in 
good health, could be selected and designated as a judge.   
113. Procedures for the settlement of economic di sputes were stated in the Ordinance on 
Procedures for Settlement of Economic Cases, a dopted by the Standing Committee of the National 
Assembly on 29 March 1994.  All parties to an ec onomic dispute were entitled to bring their cases to 
the People's courts for resolution within 6 months from the date on which the dispute had arisen.  He 
expected the Code for Prosecution of Civil Cases and the Ordinance to be amended to extend the 
current time limit from 6 months to 2 years.  Disputes involving a foreign party were solved by 
People's courts at the provincial level in accordance with first instance procedures.  The court would 
seek amicable settlement before th e first instance hearing.  The fi rst instance hearing was conducted 
by a council of trial comprising two judges and one juror assigned by the tribunal presidents.  Plaintiffs and defendants were not allowed to partic ipate in the process of selection of the council of 
trial, but they could request that judges or People's jurors be changed if it was proved that those might 
not be impartial in performing their duties (Articles 46, 47, 58, 213 and 214 of the Civil Procedure Code).  Council of trial decisions were taken by majority vote.  Judg ments or decisions of the People's 
court in economic disputes were mandatory and were  enforced in accordance  with the Ordinance on 
Civil Judgment Execution No. 13/2004/PC-UBTVQH11 of 25 December 2001.  Pursuant to this 
Ordinance, the party in favour of which the ju dgment had been made was entitled to ask the 
judgement execution authority to issue a writ of ju dgement execution if the party against which the 
judgment had been made (the "judgment debtor")  had not voluntarily paid the judgment.  The 
judgment execution authority could take compulso ry measures against judgement debtors consisting 
of account deductions, money deduc tions, withdrawal of valuable  documents, income deductions, WT/ACC/SPEC/VNM/5/Rev.2 
Page 46  
 
 seizure of property, obligation to transfer propert y, move houses or transfer the land use right, and 
obligation to do or not to do certain activities.  In  addition, under the Criminal Code a person not 
having implemented a court's verdict was liable to th ree years of re-education or six months to three 
years of imprisonment.  
114. Under the 2004 Civil Procedures Code, all parti es were entitled to appeal against the first 
instance court's judgment or decision and to request the People's court at a higher level to conduct the 
second instance trial within 15 days from the date of declaration of the court's judgment, or in case of 
absence of the parties concerned within 15 days from  the date a copy of th e judgement was delivered 
to the parties or from the date of posting of the judge ment.  Appeal applications  had to be submitted to 
the Court of first instance and should include th e date of appeal, the name and address of the 
appellant, the part of the judgement  which was being appealed against,  the grounds for appeal and the 
request of the appellant, the signatu re or fingerprint of the appella nt, and any document necessary to 
support the appeal.  The judgement of the court of first instance would be legally effective if not 
appealed within this time-limit.  Except in comple x cases, the court of appeal would generally open 
the appeal hearing within one month after the date of receipt of all documents submitted by the court 
of first instance.  The judgment or decision of the co urt of appeal would be legally effective.  Noting 
that the international norm for filing an appeal w as 30-45 days, a Member asked Viet Nam whether it 
was considering lengthening the 15 day period provid ed under Vietnamese legislation.  In response, 
the representative of Viet Nam said that he consid ered 15 days appropriate to enable the parties 
concerned to protect their legal interests and to accel erate the procedure for civil dispute resolution.  
His Government had no plans to amend this regulation. 
115. Asked how Viet Nam guaranteed that a private company in an economic dispute with a 
government entity or a State-owned enterprise would receive an impartial hearing, the representative of Viet Nam replied that several provisions aimed at ensuring impartial hearing in economic cases.  
Article 132 of the Constitution guaranteed the defe nding right of the accused.  Article 8 of the 
2004 Civil Procedure Code provided for the principl e of equality of rights and obligations in civil 
procedures of all agencies and organizations, regardl ess of their form of organization or ownership, 
and Article 12 of the Civil Procedure Code and Article 4 of the Ordinance on Judges and People's 
Jurors for the principle of judging independency.  Pursuant to Article 16 of the Civil Procedure Code, 
judges and People's jurors were not allowed to adjudicate if they could be prejudiced, for valid reasons, in fulfilling their tasks and authority.  Articles 46 and 47 explicitly laid down the cases where 
judges and People's jurors had to refuse to judge or ha d to be changed to ensure impartial hearing.  In 
addition, related persons were a llowed to ask that judges or Peopl e's jurors be changed if it was 
proved that they might not be impartial (Article  58).  The Civil Procedure Code also entrusted  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 47 
 
 
 People's Procuracies with the role of supervising le gal compliance in civil procedure, timeliness, and 
consistency with the laws.  Finally, the Civil Pr ocedure Code guaranteed the right of individuals, 
agencies and organizations to complain against a nd denounce illegal acts of persons carrying out civil 
proceedings. 
116. Individuals and organizations were entitled to a ppeal administrative decisions or actions to 
the courts if they considered such decisions or  actions illegal pursuant to the Law on Complaint and 
Denunciation.  Disputed administrative decisions woul d first be appealed to the agency having taken 
the decision.  The appeal should be lodged within 90 days from the date of receipt of the decision (Article 30 of the Law on Complaint and Denunciati on).  If the complainant was not satisfied, he 
could further appeal to the immediate higher administ rative level or initiate legal proceedings with an 
Administrative Court (paragraph 7 of Article  1 of Law No. 26/2004/QH11 amending the Law 
on Complaints and Denunciation and para graph 1 of Article 1 of Ordinance 
No. 10/1998/PL-UBTVQH10 of 25 December 1998 amending the Ordinance on Procedures for 
Settlement of Administrative Disputes).  Article 1 of the Ordinance on Procedures for Settlement of 
Administrative Disputes, adopted on 21 May 1996 , and its amendments of 25 December 1998, 
stipulated that every individual, entity and govern mental body had the right to initiate a case before 
the Administrative Court to protect their legitimate rights and interests.  The Administrative Court had 
competence to handle economic-related administrati ve cases such as petitions against administrative 
decisions or administrative actions concerning land management, the grant or withdrawal of permits 
and licences in construction, production and business, forced requisition, purch ase or confiscation of 
property, the collection of taxes and tax arrears, a nd decisions or actions concerning the collection of 
charges and fees.  The Administrative Court was a judi cial tribunal in the system of People's Courts 
and was independent from the executive branch.  He  confirmed that all administrative decisions on 
WTO-related matters could be challe nged at the administrative courts.  
117. A Member noted that most WTO Members allowe d for the full use of administrative appeals 
prior to recourse to the courts, and that participa tion in one process would not preclude recourse to the 
other.  This Member urged Viet Nam to consider the advantages of allowing both avenues of appeal 
in the context of its accession.  In response, the representative of Viet Nam said that a new Law on 
Complaint and Denunciation, which conformed to  WTO rules on complaints, denunciations and 
appeals, had been adopted on 12 December 2005.  A new Ordinance on Procedures for Settlement of 
Administrative Disputes, which would allow the partie s involved in an administrative dispute to bring 
the dispute before the court if the settlement of  the dispute through administrative proceedings had 
been unsatisfactory, had also been drafted.  The Ordinance had been submitted to the Standing 
Committee of the National Assembly for review and promulgation.   WT/ACC/SPEC/VNM/5/Rev.2 
Page 48  
 
 118. Court judgments or decisions having come in to legal force could be challenged under the 
judicial procedure. The President of the Supr eme People's Court and the Head of the Supreme 
People's Procuracy had the right to protest against judgments or decisions, which had taken effect, of 
Courts at all levels.  The Vice President of the Supreme People's Court and the Deputy Head of the 
Supreme People's Procuracy had the right to protest  against judgments or decisions (which had taken 
effect) of lower-level Courts.  The President of the provincial People's Court and the Head of the 
provincial People's Procuracy also had the right to pr otest against effective judgements or decisions of 
lower-level Courts.  The Head of the Supreme Peopl e's Procuracy had the right to request retrial of 
judgements or decisions (which had taken effect) of People's Courts or Military Courts at all levels.  
The Head of the provincial People's Procuracy had th e right to request retrial of effective judgements 
or decisions of district People's Courts.  The Head of the Regional Military Procuracy could request 
retrial of effective judgements or  decisions of Regional Military C ourts.  The trial panel was entitled 
to reject a protest, to retry a case under the first instance or appeal procedures, or to modify the 
judgements or decisions of the case.   
119. Procedures for settlement of economic disputes by arbitration were provided in Ordinance 
No. 08/2003/PL-UBTVQH on Commercial Arbitration, which had been adopted on 25 February 2004 
in replacement of Decree No. 116/CP of 5 September 1994 and Prime Minister's  Decision No. 204/TTg of 28 February 1993.  The Ordinance had entered into force on 1 July 2003.  If the parties to a dispute did not want to file a pe tition to the People's court, they could choose, by 
consensus, to resolve the disput e by an economic arbitration centre.  The petition should attach a 
written agreement on the choice of arbitrators and othe r related documents.  Arbitrators were selected 
by the Parties or appointed by the court.  Arbitrat ors could be foreign arbitrators under the law of their 
home countries.  They did not necessarily have to  be selected from the list of members of the 
Viet Nam Arbitration Centre.  The Ministry of Justice was responsible for the organization and 
activities of arbitrators.  Once established, Arbitra tion Centres operated according to the Charter and 
Procedural Rules of Arbitration Centres.  Unless specified otherwise, the deadline for filing an arbitration case was two years from the date the dispute had arisen.  Arbitration proceedings were not open to the public.  However, if th e parties agreed, the arbitration tribunal could permit other persons 
to attend the hearings (Article 38).  The Ordi nance expanded the concept of commerce to be 
consistent with international practi ce and stipulated that decisions of an arbitrator would be final and 
binding, unless nullified by a court.  Disputes subjec t to an arbitration decision could not be brought 
to the court, except for cases wher e the arbitration agreement was void (Article 5).  Arbitration 
decisions could be nullified by a court if ther e was no agreement on arbitration; the agreement on 
arbitration was void under the Ordinance; the members of the arbitration tribunal and the arbitration 
proceedings were not consistent with the agreemen t of the parties; the dispute did not fall under the  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 49 
 
 
 authority of the arbitration tribunal, whether wholly or partly; the requesting party had proved that an 
arbitrator was violating his obligations; or the arbitr ation decision was contrary to the public interests 
of Viet Nam (Article 54 of the Ordinance).  He not ed that the definition of "public interest" was in 
conformity with international norms and th e 1958 New York Convention on Recognition and 
Enforcement of Foreign Arbitral Awards.  Asked wh ether a court had already nullified an arbitration 
decision based on this principle, he said that  there was no information on such cases.   
120. Arbitration decisions became effective upon announ cement (Article 44.4).  Decisions had to 
be announced within 60 days from the date of closing of the final session (Article 45.1) and 
communicated in writing to the parties immediately after announcement.  If the arbitration decision 
had not been implemented within 30 days from its date of announcement, the interested party could 
file a request for enforcement in writing to a pr ovincial judgment execution agency.  Domestic and 
international arbitration judgments had immediate effect in Viet Nam.  He confirmed that the 
Ordinance on Commercial Arbitration guaranteed non- discriminatory treatment and that both private 
and State-owned enterprises could seek arbitration at  domestic or foreign arbitration tribunals.   
121. In response to a question concerning the publicatio n of arbitration decisions, he said that the 
Ordinance did not provide for such publication as arbitration was non-governmental by nature.  
Dispute resolution through arbitration presented the advantage of confidentiality and the guarantee of 
non-disclosure without the parties' consent.  His G overnment had therefore no plans to revise this 
regulation. 
122. Asked about Viet Nam's participation in th e Washington Convention on the Settlement of 
Investment Disputes, the representative of Viet Nam noted that his Government was considering becoming a party to the Convention.  
123. A Member asked the representative of Viet Nam to confirm that sub-central entities had no 
autonomous authority over issues of subsidies, ta xation, trade policy or any other measures covered 
by WTO provisions, and that Viet Nam would apply the provisions of the WTO agreement, including 
its Protocol of Accession uniformly throughout its  customs territory and other territories under its 
control, including in regions engaging in border trad e or frontier traffic, special economic zones, and 
other areas where special regimes for tariffs, taxes a nd regulations were estab lished.  Viet Nam should 
also confirm that, after accession, when informed  of a situation where WTO provisions were not 
being applied or applied in a non-uniform manner, the central authorities would act to enforce WTO 
provisions without requiring affected parties to petition through the courts. WT/ACC/SPEC/VNM/5/Rev.2 
Page 50  
 
 124. The representative of Viet Nam replied that the assignment of authorisation to different levels 
of administration was determined by Viet Nam's laws.  Thus, according to the Law on Organization of 
People's Councils and People's Committees of 26 November 2003, the functions of provincial 
People's Committees included (i) the establishment of  plans to develop trade, services and tourist 
networks and participate in inte rnational cooperation in trade, services and tourism as stipulated by 
laws; (ii) issuing and revoking li censes for tourist businesses, tourist areas, tourist spots, hotels, and 
local travel agencies within a prov ince as regulated by laws; (iii) market supervision and organization 
of export-import management as regulated by laws; and (iv) inspection and supervision of trade, 
services and tourism activities to ensure their compliance with laws and regulations.  The 
decentralization of management functions to People's Committees at different levels was also stipulated in other specific laws.  However, th e People's Committees implemented the administrative 
functions specifically stipulated in legal docum ents, and were required to comply with these 
documents.  The People's Committees were not allowed to issue provisions contrary to those issued 
by the Central Government.  He further noted th at the People's Procuracies were responsible for 
supervising the promulgation and implementation of legal documents of local administrative agencies 
and ensuring uniform enforcement of laws.  The People's Procuracies supervised judicial activities 
and exercised the right to initiate public prosecuti on within their jurisdictions.  In addition, the 
Supreme People's Procuracy supervised the full and strict observance of the law by local authorities 
and had the right to initiate public prosecution.  He  confirmed that local authorities had no right to 
promulgate any kind of  fees on imported goods. 
125. A Member appreciated the information and assurances provided by Viet Nam concerning the 
application of national treatment, MFN, transparency, right of appeal, and the authority of sub-central 
entities in trade policies issues and invited Viet Nam to  take appropriate commitments in these areas.   
126. The representative of Viet Nam confirmed that  the provisions of the WTO Agreement would 
be applied uniformly throughout the customs territo ry of Viet Nam including in regions engaging in 
frontier traffic, special economic zones and other areas where special regimes for tariffs, taxes and 
regulations were established, and that, the Gove rnment of Viet Nam would ensure that laws, 
regulations and other measures, including those of local governments at the sub-national level 
conformed to Viet Nam’s obligations undertaken in the WTO Agreement.  He added that, when 
informed of a situation where WTO provisions were  not being applied or applied in a non-uniform 
manner, national authorities would investigate such cl aims, and if the charges were found to be valid, 
would act to enforce WTO provisions without requi ring the affected parties to petition through the 
courts.  The Working Party took note of this commitment.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 51 
 
 
 127. The representative of Viet Nam further confirmed that Viet Nam would revise its relevant 
laws and regulations so that its relevant domestic laws and regulati ons would be consistent with the 
requirements of the WTO Agreement on procedures for judicial review of administrative actions.  He 
further stated that the tribunals responsible for su ch reviews would be impa rtial and independent of 
the agency entrusted with administrative enforcemen t, and would not have any substantial interest in 
the outcome of the matter.  The Workin g Party took note of these commitments. 
POLICIES AFFECTING TRADE IN GOODS  
Trading rights (the right to import and export)  
128. The representative of Viet Nam said that domestic  investors wishing to import or export were 
required to hold a Business Registration Certificat e and foreign investors an investment license.  
Procedures for business registration of domestic i nvestors were set out in the 1999 Law on 
Enterprises, Government Decree No. 109/2004/ND-CP of 2 April 2004 on Business Registration, and 
Circular No. 03/2004/ND-CP of the Ministry of Pl anning and Investment of 29 June 2004.  Domestic 
investors, whether enterprises or individual busin ess households, were free to register any business 
line, except those prohibited under Vietnamese law.   Registration of some business lines was subject 
to specific conditions (conditional business lines, business requiring a minimum legal capital or 
certain practicing certificates).  Applications for business registration certificates had to be submitted 
to the business registration office of the province where the enterprise would be located and should 
include the business registration form; the company' s charter; the list of members and shareholders; 
and a certificate of capital or a copy of the pr ofession certificate for the sectors requiring such 
certificates.  Business registration certificates were delivered within 15 days provided the business sector was not prohibited, the name of the ente rprise was in accordance with domestic law, the 
application was complete, and the business registration fee had been paid (VND 200,000 − about 
US$ 12 − for limited liability companies and shareholding companies and VND 100,000 − about 
US$ 6 − for sole proprietorship).  He noted that dom estic investors could onl y import goods listed in 
their Business Registration Certificate.   
129. Procedures for issuing investment licenses were  described in the Law on Foreign Investment, 
Decree No. 24/2000/ND-CP of 31 July 2000, Decree No. 27/2003/ND-CP of 19 March 2003 
amending Decree No. 24/2000/ND-CP, and Circular No. 12/2000-TT/BKH of the Ministry of 
Planning and Investment of 15 September 2000.  Investment licenses also served as business registration certificates.  Investment licenses specified the scope and objectives of the investment project.  Foreign investors were free to do busin ess in accordance with their investment licence.  
Investment licenses were granted by the Prime Mi nister upon recommendation of the Ministry of WT/ACC/SPEC/VNM/5/Rev.2 
Page 52  
 
 Planning and Investment for Group A projects, the Ministry of Planning and Investment for Group B 
projects, and Provincial People's Committees for the ot her projects (see Table 7).  Applications had to 
be submitted in Vietnamese or any other common language to the Ministry of Planning and 
Investment for Group A and Group B projects and to Provincial People's Committees for the other 
projects.  Applications were required to follow th e standard format introdu ced by the Ministry of 
Planning and Investment.  Projects other than Gr oup A and Group B projects, which did not belong to 
the list of projects in respect of which environmen tal impact assessment reports were required, which 
conformed to the approved industr ial development plan, and which either had an export ratio of 
80 per cent, were located in an industrial zone which did not belong to Group A projects but was 
included in the list of sectors where investment was encouraged or specially encouraged, or had an 
investment capital of up to US$ five million, were s ubject to "registration", i.e. automatic licensing.  
All other projects were subject to "evaluation", i.e.  the licensing authority examined the project before 
granting the licence.  Documents to be submitted included a copy of the contract or charter, information about the legal status and financial position of the company's investors, documents 
relating to technology transfer (if any), and in the case of applications for evaluation, an economic and 
technical explanation of the project.  Other relate d documents could be requested by the body issuing 
the licence on a case-by-case basis depending on the na ture of the project.  Investment licenses were 
delivered within 15 days for projects subject to re gistration and within 30 to 45 days for the other 
projects.  He noted that these procedures were being revised and simplified.  New rules would be 
applied upon entry into force of the new Investment Law on 1 July 2006. 
130. All these texts were published in the Official Gazette and were available on the websites of 
the Ministry of Planning and Investment (http//www.mpi.gov.vn) and of other government bodies.  He noted that a new Law on Enterprises had been  adopted (see the "Investment regime" section 
above).  He confirmed that registration procedures for enterprises with fore ign-invested capital to 
engage in import and export activities were in no case be made more restrictive than those applied to 
domestic enterprises. 
131. Any change to scope of business of a foreign- invested enterprise had to be approved by 
competent authority pursuant to Article 61 of the Foreign Investment Law.  Wholly 
Vietnamese-owned enterprises intending to amend the Business Registration Certificate had to 
re-register with the local Department of Planning a nd Investment.  National Co rporations belonging to 
the Government were also obliged to comply with  this procedure, but these registered with the 
Ministry of Planning and Investment.    WT/ACC/SPEC/VNM/5/Rev.2 
 Page 53 
 
 
 132. Since 1 September 1998, all wholly Vietna mese-owned enterpri ses - irrespective of 
ownership structure, nature (trading or manufacturi ng) and size of capital - were allowed to import 
and export goods.  However, business activities in some  sectors were prohibited (arms, narcotics, etc.) 
or conditional (mainly for safety, human health and environmental purposes − see paragraph 33).  His 
Government did not limit or otherwise intervene in the scope of business chosen by Vietnamese 
enterprises and, except in the prohibited sectors, wholly Vietnamese-owned enterprises were entitled 
to determine their scope of business at their own discretion.   
133. As a step towards levelling the playing field between Vietnamese-owned and foreign invested 
enterprises, the Government of Viet Nam had promulgated Decree No. 10/1998/ND-CP on 
23 January 1998.  The Decree allowed foreign in vested manufacturing enterprises to purchase goods 
in the local market for direct exportation or e xportation after processing, except goods prohibited to 
export (also applicable to Vietnamese enterp rises) as well as (i) rice (HS 1006.10-1006.40), 
(ii) explosives and inflammables (HS 3601-360 4 and 3606), (iii) books and magazines (HS 4901, 
4902), (iv) pearls, precious stones and metals, a nd jewellery (HS 7101-7116 a nd 7118), (v) fine art 
items, collectibles and antiques (HS 9701-9706), (v i) garments and textiles destined for the 
European Communities, Canada, Norway and Turk ey, (vii) processed items made from wood, 
(viii) coffee beans, (ix) wild animals, (x) forest ry plants for seeds, (xi) aquatic products, and 
(xii) minerals (see also Annex II in document WT /ACC/VNM/9).  Foreign invested enterprises could 
only export goods falling within these categories if indicated in their investment licences.   
134. Categories (iii), (vi), (viii), (xi), (xii) and part  of (v) had subsequently been removed from the 
list of goods FDI enterprises were not allowed to  purchase for export in accordance with Circular 
No. 26/2001/TT-BTM of 4 December 2001.  Pursuant to Government Decree No. 24/2000/ND-CP of 31 July 2000 foreign-invested enterprises and busin ess co-operation parties were allowed not only to 
export directly or authorize agents to export th eir products, but also to purchase goods and products 
directly in the Vietnamese market for processing  for export or for exportation without further 
processing, except for prohibited exports or certain exports specified by the Ministry of Trade for 
particular periods.  Foreign invested enterp rises and business cooperation parties exported goods 
subject to the list of conditional exports, and imported goods in accordance with their awarded 
investment licences.  Pursuant to Decree No. 45/2000/ND-CP of 6 September 2000, branches of 
foreign traders were allowed to purchase handicraf ts, agricultural products and processed agricultural 
products (except rice and coffee), vegetables and processed vegetables, consumer goods, poultry and 
cattle meat and processed foodstuff for export.  Th ese branches were also permitted to import certain 
goods for sale in the Vietnamese market – machinery;  equipment for mineral exploitation, processing 
of agricultural products and a quatic products; materials for production of human and animal WT/ACC/SPEC/VNM/5/Rev.2 
Page 54  
 
 medicines; and materials for the production of fe rtilizer and pesticides - provided they used the 
foreign exchange earned from export activities to fi nance the imports, and had obtained a licence from 
the Ministry of Trade.  Viet Nam did not apply foreign exchange regulations for importation specific 
to foreign invested enterprises. 
135. Some Members noted that importation of items d esignated to be of special importance to the 
national economy were reserved for "specialized  business enterprises".  Annex 3 of document 
WT/ACC/VNM/3/Add.1 contained all possible items falling under the category of special importance 
as of 1997, and Viet Nam was requested to provide information on the frequency and procedure of adding and removing items of special importance.  Th e representative of Viet Nam replied that import 
trading rights had been relaxed considerably over th e past years.  Importation of items designated to 
be of special importance to the national economy was no longer reserved for "specialized business 
enterprises", except for the products listed in document WT/ACC/VNM/14/Add.1.   
136. Some Members stated that foreign-invested fi rms did not have the same rights to import, 
import for resale, or export as Vietnamese firms.  Foreign-invested enterprises could not import goods 
of the same kind as the goods they produced under th eir investment licence unless they applied for a 
new investment licence.  This system granted a preference to national companies over foreign ones 
and denied imported goods national treatment as  required by Article III of the GATT 1994.  
Restricting importation to items specified in th e investment licence or the Business Registration 
Certificates could be seen as a non-tariff barrier to importation prohibited by GATT Article XI.  These 
Members insisted that Viet Nam should eliminate this discriminatory system, thus allowing domestic 
and foreign individuals and firms to import inputs an d finished goods for resale, and to export without 
any restriction other than those consistent with  GATT Articles XX and XXI.  The process should be 
completed prior to or by the time of accession to the WTO, as national treatment was a basic requirement of the WTO.  Viet Nam should provide additional information to the Working Party on 
its plans to ensure national treatment in this regard.   
137. Having reviewed the new Commercial Law enacted by the National Assembly on 
14 June 2005 and its implementing Decree, a Member also noted that the draft Decree suggested that 
only existing foreign-invested enterprises with investors from countries with which Viet Nam had 
reciprocal MFN status would be permitted to impor t products for sale into the Vietnamese market.  
Such a provision would appear in contradiction w ith Article III of the GATT 1994.  The Decree also 
seemed to impose conditions on existing foreig n-invested enterprises such as minimum capital 
investment.  This Member asked Viet Nam to commit, upon accession, not to apply any limitation on granting investment licenses for local manufacturing, importing and marketing of any product, except  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 55 
 
 
 those for which limitations were indicated either in the schedule of specific commitments on trade in 
services or in the lists concerning trading ri ghts or import limitations  and prohibitions.   
138. The representative of Viet Nam replied that, in  his opinion, the restrictions outlined in 
paragraph [136] did not violate the national treat ment obligation of Article III of the GATT 1994 and 
did not amount to an import restriction as enterprises were free to define their scope of business (trading lines) and hence free to de termine the list of imported goods i ndicated in their Certificate of 
Business Registration, except for goods listed as proh ibited imports and exports.  Article 61 of the 
Law on Foreign Investment stipulated that any cha nge in the business objective of an enterprise with 
foreign owned capital required approval by the compet ent authority.  In his view, the provisions of 
Article 61 of the Law on Foreign Investment di d not cause any impediment to the importation of 
equipment, machinery, and materials used in th e establishment and production of these enterprises.  
Importation of goods for resale in Viet Nam was, in his opinion, a matter relating to distribution 
services and therefore to be addressed in the bilate ral market access negotiations on trade in services.  
As for the provisions of the draft Decree implem enting the new Commercial Law, he noted that 
pursuant to Article 2, paragraph 3 of the latest draft the Minister of Trade decided, in the case of 
businesses from countries or territories with whic h Viet Nam had no international commitments on 
market access with respect to commercial activities, whether or not to permit the establishment of 
foreign-invested enterprises in acco rdance with the Prime Minister's instructions.  He added that 
Article 5 of the draft Decree abolished mi nimum capital investment requirements. 
139. The representative of Viet Nam confirmed that  wholly Vietnamese-invested enterprises had 
been granted full rights to trade since 1 January 2002.  Regarding foreign invested enterprises, he 
proposed to phase in import and export trading rights for certain products gradually in accordance 
with the conditions and the timeframe deta iled in Annex 1 of document WT/ACC/VNM/32, 
subsequently revised in Annex 1 of doc ument WT/ACC/VNM/33, Annex 2 of document 
WT/ACC/VNM/36/Add.2, Annex 1 of document WT/ACC/VNM/38, and Annex II of document 
WT/ACC/VNM/41, which is reproduced in Table 8.   
140. Members were pleased to note that Viet Na m was now proposing trading rights for products 
such as rice, tobacco, petroleum, motion pictur e films, printed books, ne wspapers, brochures and 
leaflets, printing machines, records, tapes, and other recorded media, and had revised its restriction on 
100 per cent foreign-invested enterprises.  Howe ver, these Members expressed disappointment with 
Viet Nam's proposal to make previously "unbound"  products subject to State trading, to phase-in 
trading rights for some products by 2009 only, and to grant foreign-invested enterprises full trading 
rights after 1 January 2007 only.  A Member noted that foreign-invested enterprises continued to face WT/ACC/SPEC/VNM/5/Rev.2 
Page 56  
 
 difficulties in seeing their WTO rights enforced even for products for which no  prohibition, limitation 
or phase-in existed.  Members were also concer ned with the enforcement requirements for customs 
and fiscal purposes described in point 7 of Table 8.  These Members noted that restrictions to the right 
to trade were inconsistent with WTO requirement s, in particular Articles XI:1 and III:4 of the 
GATT 1994.  Viet Nam was urged to review its pr oposed "Commitments on Trading Rights" with a 
view to addressing the issue of national treatment and ensuring full compliance with the relevant 
Articles of the GATT 1994, in particular Article s III and XI and the provisions of the TRIMs 
Agreement.   
141. Members sought a commitment from Viet Nam that  from the date of accession, any natural or 
legal person, domestic or foreign, wo uld have the right to be the importer or exporter of record of any 
product allowed to be imported into  or exported from Viet Nam, and in the case of importation, would 
have the right to sell those products to any legal or  natural person, domestic or foreign, having the 
right to distribute them.  A Member sought confirmation that trading rights would be administered in conformity with all relevant WTO provisions by th e time of Viet Nam's accession.  Several Members 
also sought a commitment from Viet Nam that Vi et Nam would grant trading rights for all goods 
subject to State trading by a specific date and w ould ensure that State-trading enterprises observe 
commercial considerations and the principles of  non-discrimination in the purchase and sale of 
State-trading goods, as required by Article XVII of the GATT 1994.   
142. In response, the representative of Viet Nam sai d that time was required to merge the import 
trading rights systems for foreign and domestic legal persons, promulgate the necessary regulations, 
and strengthen the management/administrative capa city of the government agencies involved.  For 
these reasons, his Government proposed to grant all enterprises with foreign direct investment full 
trading rights no later than 1 January 2007, i.e. fu ll rights to import as the importer of record any 
goods regardless of whether or not they were co nnected to their tradi ng lines, except for some 
products subject to State trading, and requested th at the Working Party gran t Viet Nam a transition 
period until 1 January 2009 for the right of foreign- invested enterprises to import certain products and 
until 1 January 2011 for the right to export rice (see Table 8).  No later than 1 January 2007, all 
foreign individuals and companies would be able to  establish foreign-invested enterprises, including 
foreign majority-owned joint-ventures, wholly foreign-owned trading companies and branches, in 
accordance with Viet Nam's commitments on tradi ng rights.  Decrees on the right to import and 
export guiding the implementation of the amende d Commercial Law were being drafted.  These 
Decrees would be applied in a tr ansparent, uniform and non-discriminatory manner, in compliance 
with WTO rules and Viet Nam's commitments on trad ing rights.  He confirmed that importers were 
free to choose their distributor in Viet Nam and th at Viet Nam's commitments on trading rights would  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 57 
 
 
 be applied to all WTO Members on an MFN basis upon Viet Nam's accession to the WTO.  
Concerning State-trading, he confirmed that th e goods listed in Tables 8(a) and 8(b) could be 
imported and exported by any wholly Vietnamese- invested enterprise, while the products in 
Table 8(c) could only be traded by State-trading ente rprises.  The State-trading regime to be applied to 
tobacco products after accession was meant to re place the existing import prohibition.  He further 
confirmed that Viet Nam would ensure that the operation of State-trading enterprises comply with 
WTO rules on State-trading, and in particular th at State-trading enterprises observe commercial 
considerations and the principles of non-discrimination in the purchase and sale of State-trading goods, as required by Article XVII of the GATT 1994. 
1. Import Regulation  
Customs tariff 143. The representative of Viet Nam said that Viet Nam had begun levying import duties in 
accordance with the Law on Import, Export Duties fo r Commercial Goods of 29 December 1987.  In 
1991, Viet Nam had promulgated the Law on E xport-Import Duties, which had replaced the 
1987 Law.  The Law on Export-Import Duties had been amended in 1993, 1998 and on 14 June 2005, 
and the tariff rates were accordingly decided by his Government within duty bands promulgated by 
the Standing Committee of the National Assembly  (see paragraph 147 below).  Viet Nam's tariff 
schedule had been modified several times since 1996 in  response to the country's development needs.  
The number of tariff bands had been reduced, as well as the number of tariff lines subject to zero 
tariff.   
144. As per 20 April 2005, Viet Nam's trade-weighted  average tariff amounted to 11 per cent and 
Viet Nam's simple average tariff to 17.8 per cent.  The simple average tariff on major imported items 
added up to 21.4 per cent for agricultural prod ucts, 38.4 per cent for transportation equipment, 
37.3 per cent for textiles, 13.5 per cent for mine rals, 18.46 per cent for machinery and electrical 
equipment, and 8.05 per cent for metals.  Ta riffs ranged from zero to 60 per cent, with about 
52 per cent of the tariff lines falling in the 0-5 per cent range.  Over the period 2002-2004, import 
taxes had amounted to VND 17,826 billion, VAT  on imports levied at the border to 
VND 12,266 billion and excise taxes on imports collected at the border had totalled 
VND 2,017 billion.  In principle, the rate of duty applied to imports should not exceed 60 per cent of 
the c.i.f. price at the point of customs clearance.  In order to improve the transparency of its trade 
policy regime and fulfil commitments vis-à-vis the IMF and the World Bank, Viet Nam had gradually 
removed import restrictive non-tariff measures after 2000 and replaced them by import duties and surcharges (see also the section on "Other Duties an d Charges").  By the end of 2003, most import WT/ACC/SPEC/VNM/5/Rev.2 
Page 58  
 
 surcharges had been incorporated into import duties to  ensure greater transparency.  Thus, Viet Nam's 
customs tariff included some MFN tariff rates exceed ing 60 per cent.  He provided a list of MFN tariff 
rates exceeding 60 per cent, including a description of the products, in document 
WT/ACC/VNM/28/Add.1. 
145. Some Members requested information on the implementation of the Harmonized System 
nomenclature in Viet Nam and further work to align with the ASEAN Harmonized Tariff 
Nomenclature (AHTN).  Viet Nam was also asked to clarify its "Current Statutory Applied Ceiling 
Rates" and their relationship with the applied customs tariff.  Some Members observed that 
Viet Nam's present tariff system lacked transpar ency, and urged Viet Nam to submit its current 
customs tariff and detailed trade statistics to f acilitate the market access negotiations on goods.  A 
Member said that his authorities had been advised  by exporters that Viet Nam had increased the 
import duty on wheat flour from 10 to 20 per cent in October 1998, and wondered whether Viet Nam 
had raised import duties on any other products.  Th is Member considered such action inconsistent 
with the standstill expectation on new trade distorting measures. 
146. In reply, the representative of Viet Nam said that the Harmonized System Convention had 
come into force in Viet Nam on 1 January 2000,  making Viet Nam's tariff nomenclature in full 
compliance with the HS 1996 nomenclature at the six-digit level.  Viet Nam's nomenclature had subsequently been harmonized with the AHTN at the eight-digit level, in full consistency with 
HS 2002.  The new tariff nomenclature had been issued by virtue of Decision No. 82/2003/QD-BTC 
of 13 June 2003.   
147. Concerning the tariff rates, he noted that th e Standing Committee of the National Assembly 
had established statutory MFN tariff ceilings at the four-digit HS level ("Current Statutory Ceiling 
Rates of Duty"), which constituted the legal basis fo r the "effective rates of duty" established by the 
Government at the eight-digit level, currently stipulated in Decision No. 110/2003/QD-BTC of 
25 July 2003.  He provided a copy of Viet Nam's statutory MFN tariff ceilings in document 
WT/ACC/VNM/28/Add.1.  Changes in tariff rates we re decided in consultation with the business 
community and the Ministries and agencies concerne d.  He confirmed that all legal documents, 
including decisions on tariff rate changes, were publis hed in the Official Gazette prior to application 
in accordance with Article X.2 of the GATT 1994 a nd took effect 15 days after publication.  The 
customs tariff introduced through Decision No. 110/ 2003/QD-BTC had been published in the Official 
Gazette and circulated widely prior to its entry into force.  Tariff rates on iron, steel and oil products had been decreased recently to comp ensate the sharp rise in the international price of these products.  
Tariffs on steel billets had been reduced from 10 to  5 per cent, tariffs on construction steel products  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 59 
 
 
 from 40 to 10 per cent, and tariffs on oil and petrol eum products had been brought down to zero.  
In 2004, imports of oil and petroleum products had amounted to US$ 3,547 million and imports of 
iron and steel products to US$ 2,572 million. 
148. In response to a Member who enquired whether Viet Nam intended to align its statutory MFN 
tariff ceilings with the bound MFN rates of duty in  its Schedule of Concessions and Commitments on 
Goods upon accession, the representative of Viet  Nam said that Viet Nam would abide by its 
commitments after accession to the WTO.  However,  the statutory ceiling rates set by the National 
Assembly's Standing Committee would continue to serve as the domestic legal basis.  Viet Nam did not intend to align its statutory tariff ceilings with the bound rates of duty in its Schedule of 
Concessions and Commitments on Goods.  He confir med that these rates would not conflict with 
WTO rules.   
149. He noted the preference expressed by some Me mbers for ad valorem duty rates and their 
concern that any future conversion to specific duties would lead to reduced transparency and 
predictability, but stressed that Viet Nam might need to apply specific or  compound duty rates on 
certain items in the future to co unter customs fraud.  The applicati on of specific duties, their scope 
and rate were still under consideration.  Three sensitive items subject to fraud, representing about 
100 tariff lines, were likely to be targeted.  He stre ssed that any conversion of ad valorem rates after 
Viet Nam's accession to the WTO would comply with the procedures for modification of schedules under Article XXVIII of the GATT 1994 as well as othe r relevant regulations of the WTO.  In 
response to renewed concerns from Members and comments that Article XXVIII negotiations were 
time consuming and inappropr iate for addressing this kind of issue, he assured the Working Party that 
his Government would endeavour to ensure transp arency and limit as much as possible any possible 
resort to GATT Article XXVIII.  
150. The representative of Viet Nam added that pur suant to the Law on Import-Export Duties of 
1998, as amended, Viet Nam's trading partners were  subject to tariff treatment at the "special 
preferential", MFN or "standard" rate (also refe rred to as normal or non-MFN rate).  "Special 
preferential rates" applied to goods imported from countries having signed special preferential trade 
agreements with Viet Nam, i.e. free trade and customs unions agreements and agreements to facilitate 
border trade, such as the Common Effective Pref erential Tariffs implementing the ASEAN Free Trade 
Area.  Such countries included Brunei, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and China.  MFN rates (or "preferential rates") were levied on 
goods imported from countries having signed agreem ents on most-favoured nation treatment with 
Viet Nam (see Annex 3 of document WT/ACC/VNM/ 36/Add.1), while standard rates applied to WT/ACC/SPEC/VNM/5/Rev.2 
Page 60  
 
 products imported from other countries.  Under the Law, standard rates could not exceed 170 per cent 
of the MFN rates.  Current standard rates were a pplied uniformly at 150 per cent of the MFN rate.  He 
added that standard rates were ra rely applied as Viet Nam had signed bilateral trade agreements with 
almost all its trading partners.  General provisions  also allowed Viet Nam to impose additional import 
duty on goods originating in countries discriminati ng against goods originating in Viet Nam on the 
basis of tariffs or other measures.  However, Viet Nam had never invoked these general provisions 
and had no specific provisions regulating such cases, and he could therefore not indicate the criteria 
Viet Nam would use to identify such discriminatory treatment.  He confirmed that after accession to 
the WTO, any measure taken by Viet Nam in response to discriminatory treatment would be consistent with the principles stipulated in th e WTO Agreements.  The Standing Committee of the 
National Assembly had adopted the Ordinance on Most Favoured Nation and National Treatment on 
22 May 2002, which required Viet Nam to comply with MFN and national treatment provisions of 
international treaties.   
151. Viet Nam's commitments on bound tariffs are contained in the Schedule of Concessions and 
Commitments on Goods (document WT/ACC/VNM/[...])  annexed to Viet Nam's draft Protocol of 
Accession to the WTO. 
152. [The representative of Viet Nam confirmed that from the date of accession, Viet Nam would 
apply tariffs on an MFN basis to [all countries an d separate customs territories with which it had a 
WTO relationship] [all WTO Members] and would appl y its authority to increase tariffs in conformity 
with WTO provisions and its WTO commitments.  Th e Working Party took note of this commitment.] 
Other duties and charges  
153. The representative of Viet Nam said that his Government had operated a Price Stabilization 
Fund since April 1993.  The difference between do mestic and world market prices for certain goods 
was monitored, and surcharges were collected in ca se of significant fluctuations.  The Government 
decided or authorized the Head of the Government  Pricing Committee to decide on the items subject 
to surcharge and the amount of surcharge.  The a pplied rate of surcharge normally amounted to 30 to 
70 per cent of the price differences observed.  The revenues were used to stabilize domestic prices and 
to protect domestic production a nd consumption.  Viet Nam maintained no fixed list of goods and 
services subject to price stabilization, but it was ge nerally applicable to essential goods such as paddy 
and rice, coffee, rubber, sugar cane, cashew nut s, petroleum-related pr oducts, iron and steel, and 
fertilizer.  After 1993, surcharges had been impos ed on imported petroleum, iron and steel for 
construction purposes, DAP fertilizer and sheet steel.    WT/ACC/SPEC/VNM/5/Rev.2 
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 154. Some Members sought the elimination of a ll non-tariff charges on imports other than 
domestic taxes applied in conformity with Article  III of the GATT 1994, customs or other fees or 
charges applied to cover the cost of services rendered, or other charges authorized by WTO 
Agreements.  Consequently, Viet Nam was requested  to bind all "other duties and charges" (ODCs) 
within the meaning of Article II:1(b) of the GA TT at "zero" in its Schedule of Concessions and 
Commitments on Goods.   
155. The representative of Viet Nam replied that Viet Nam had been eliminating non-tariff 
measures on imports gradually since 2000 under an ex tended structural adjustment programme.  The 
non-tariff measures had in some cases been replaced temporarily by import surcharges, including on 
cement, clinkers, ceramics, paper, and steel.  Howe ver, all import surcharges had been eliminated in 
December 2004.  The last import surcharges on PVC and welded steel pipe had been eliminated by 
virtue of Decision No. 81/2004/QD-BTC of 15 Oc tober 2004 and Decision No. 102/2004/QD-BTC of 
27 December 2004, respectively.  
156. The representative of Viet Nam stated that an y other duties and charges applied to imports 
other than ordinary customs duties and fees and ch arges for services rendered would be in accordance 
with WTO provisions from the date of accession.  He further confirmed that Viet Nam had agreed to 
bind at zero other duties and charges in its Sche dule of Concessions and Commitments on Goods 
pursuant to Article II:1(b) of the GATT 1994.  The Working Party took note of these commitments.  
Tariff rate quotas, tariff exemptions - Tariff rate quotas  
157. Some Members were concerned that Viet Na m was proposing to introduce tariff rate quotas 
for a range of products, arguing that TRQs were out moded and distorted trade.  Some Members noted 
that although TRQs could be effective measures to ensure stable market access, all relevant 
information necessary for applicants and users would ha ve to be made public to ensure transparency.  
Thus, should tariff quota commitments be agreed upon,  Viet Nam would be requested to provide full 
details of all tariff quota arrangements in fo rce, including information on the in-quota and 
out-of-quota tariff rates;  proposed quota volumes and annual growth rates;  supporting data on 
domestic production, consumption and imports fo r each product concerned;  and guarantee tariff 
quota access on a non-discriminatory basis for all WTO Members.  Viet Nam was reminded that a 
tariff quota system should be simple, transparent, timely, predictable, uniform, non-discriminatory and non-trade restrictive, and be administered in a way that would not distort trade or cause more 
burdens than absolutely necessary.  Accordingly,  Viet Nam would be requested to adopt detailed WT/ACC/SPEC/VNM/5/Rev.2 
Page 62  
 
 commitments relating to the allocation of tari ff quotas and other aspects of tariff rate quota 
administration. 
158. The representative of Viet Nam replied that his Government had issued 
Decision No. 91/2003/QD-TTg on 9 May 2003, intr oducing tariff rate quotas on the importation of 
cotton, tobacco materials, salt, dairy products, eggs and maize.  Viet Nam's TRQ system was 
regulated by Decision No. 91/2003/QD-TTg; Circular No. 10/2004/TT-BTM of 27 December 2004 of 
the Ministry of Trade guiding the implementation of Decision No. 91/2003/QD-TTg, as amended by 
Circular No. 04/2005/TT-BTM of 24 March 2005; and Decision No. 46/2005/QD-TTg of 
3 March 2005 revising the list of imported goods su bject to TRQs.  He provided information on the 
product coverage and alloca tion mechanism of tariff rate quotas, as laid down in 
Circular No. 09/2003/TT-BTM of 15 December 2003,  in Annex 4 of document WT/ACC/VNM/33.  
Imports of tobacco (HS 2401) were subject to a 30 per cent rate (15 per cent for tariff line 24013010) 
up to 29,000 metric tons, and to 100 per cent th ereafter (80 per cent for tariff line 24013010).  On 
average, 29,374 metric tons of tobacco products had been imported annuall y between 1999 and 2001.  
The TRQ on salt (HS 2501) amounted to 200,000 metr ic tons, with an in-quota rate ranging from 
10 to 30 per cent and an out-of quota rate of 50 or 60 per cent depending on the tariff lines.  Some 
146,146 metric tons had been imported annually on average between 1999 and 2001 and 130,000 
metric tons in 2004.  As for eggs, a 40 per cent ra te was applied up to US$ 20,000 of imports, and an 
80 per cent rate thereafter.  Between 1999 a nd 2001, US$ 21,300 had been imported on annual 
average.  He added that the TRQs on dairy pr oducts, cotton and maize had been eliminated on 
1 April 2005 pursuant to Decision No. 46/2005/QD-TTg of 3 March 2005.  TRQs were being applied 
on a pilot basis as a step in the process of increasing market access and in the elimination of non-tariff 
measures such as prohibitions, licences or impor t quotas affecting the same products.   
159. Asked to explain the rationale for the TRQ on sa lt, he noted that salt was the main source of 
income for hundreds of thousands of poor farmers living in coastal areas where the use of land for 
agriculture was almost impossible.  The TRQ on salt aimed at securing employment and ensuring income stability for these farmers.  In his view, a TRQ was the most efficient measure to satisfy this 
objective compared to other import restrictions su ch as non-automatic licensing.  The annual volume 
of tariff rate quota for salt was determined by the Mi nistry of Trade, the Ministry of Agriculture and 
Rural Development, and the Ministry of Industry on the basis of the production output, the demand for salt for manufacturing and processing, the manufacturing and processing capacity, and the utilization of the tariff rate quota in the previous year.  Pursuant to Decree No. 86/2003/ND-CP of 
18 July 2003, enterprises using salt in their produc tion could lodge an application for allocation of 
TRQs with the Ministry of Trade.  Quotas were allocated on the basis of the production capacity, type  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 63 
 
 
 of materials used and import performance through th e first-come first-served method.  Enterprises 
importing salt under the TRQ system were required to report on their import performance under the 
TRQ to the Ministry of Trade by each quarter-end.  This measure aimed at monitoring the use of TRQ 
volumes to allow the timely reallocation of unused licenses as the statistics provided by the General 
Department of Customs to the Ministry of Trade and Ministry of Agriculture and Rural Development 
were often outdated.  He confirmed that the Ministry  of Trade did not allocate tariff rate quotas on salt 
to manufacturers of salt for human consumption.  Sa lt could be imported directly at the out-of-quota 
rate by enterprises that did not use salt in their produ ction.  In response to a question, he added that 
the General Corporation of Salt operated on the basis of market mechanisms; it did not have any role 
in determining the TRQ volume or allocating or administering the TRQ; and was not granted any preference or privilege.  The General Corporation of Salt possessed some capacity to produce salt as 
materials for other industries and was therefore eligib le to apply for salt quota allocations to use in its 
own  production (see al so paragraph 65).   
160. Noting that tariff quota allocations were not ava ilable to intending industrial users of salt for 
human consumption, a Member proposed that salt for human consumption be excluded from the 
proposed bound tariff quota for salt and be subj ect to a separate tariff-only commitment.   
161. Concerning sugar, the representative of Viet Nam added that imports of sugar were subject to 
discretionary licensing by the Ministry of Trade pursuant to Prime Minister Decision No. 46/2001/QD-TTG of 4 April 2001.  He noted that sugar cane was grown in 
disadvantaged areas with adverse natural conditions and that diversification from sugar cane to other 
crops was often very difficult.  However, hi s Government committed to replace discretionary 
licensing by a tariff rate quota mechanism as from the date of accession.  In response to a request from a Member for more information about the allocation mechanism and administrative 
arrangements that Viet Nam intended to apply to a TRQ on sugar, he said that Viet Nam would apply 
and administer tariff rate quotas in conformity with  WTO applicable rules and regulations, including 
the MFN and national treatment provisions of the GATT.   
162. Some Members requested that Viet Nam consider eliminating the TRQs on salt − a fortiori  as 
no other non-agricultural product was subject to a TRQ in Viet Nam − bird eggs, sugar and tobacco 
upon accession.  A Member raised concerns over a proposal by Viet Nam to use auctioning as a 
method of allocating tariff quotas.  In the view of this Member, auctioning of tariff quota would be 
inconsistent with a number of WTO provisions in cluding Articles II, X and XI of the GATT 1994 and 
Article 4 of the Agriculture Agreement, as bindings for in-quota rates could be breached by additional 
imposts, auction prices would represent minimum prices payable by purchasers of imports, WT/ACC/SPEC/VNM/5/Rev.2 
Page 64  
 
 appropriate standards of transparency and predic tability with respect to the terms of importation 
would not be met, and any starting prices would by themselves represent minimum import prices.  
This Member also raised concerns over any non-au tomatic licensing associated with the allocation or 
other administration of tariff quotas that would have trade-restrictive or distortive effects on imports 
additional to those occasioned by the quantity-limited in -quota rate and the out-of-quota rate, contrary 
to the provisions of the Agreement on Import Licensing Procedures.  Another Member noted that 
importers were to be designated by the Governme nt under allocation method B.  This Member was of 
the view that the party conceding the tariff could not become the party deciding how many, and to whom, tariff quotas would be allocated and requ ested Viet Nam to find another administration 
method. 
163. A Member raised additional concerns over cer tain requirements proposed by Viet Nam to 
relate amounts of tariff quota allocated to each im porter's levels of domestic production and export, 
inconsistently with the WTO's prohibitions on such measures under Article XI of the GATT 1994, 
Article 4 of the Agriculture Agreement and Article  2 of the Agreement on Trade-related Investment 
Measures;  to allocate tariff quota contingent upo n the approval of import plans by the Government, 
inconsistently with Article XI of the GATT 1994 and Article 4 of the Agriculture Agreement;  to 
allocate tariff quota on the conditions that the importer uses amounts imported only for its own production, inconsistently with Articles III and XI of the GATT 1994 and Article 4 of the Agriculture 
Agreement, and that the importer refrains from in ternal resale of product imported under the quota, 
inconsistently with Article III of the GATT 1994;  to deprive intending traders that do not have a 
particular kind of business registration of the right to  be importers of record in relation to the amounts 
imported under the quota and of the right to become  quota holders, inconsistently with Articles III and 
XI of the GATT 1994;  to require that a quota holde r must send quarterly reports on tariff quota usage 
to the Ministry of Trade (when such data would be readily available to the Government through 
official customs statistics), inc onsistently with Article XI of the GATT 1994 and Article 4 of the 
Agriculture Agreement;  and to prohibit the sale, pu rchase and transfer of allocated quota quantities to 
other parties, inconsistently with Article XI of the GATT 1994 and Article 4 of the Agriculture 
Agreement.  This Member called upon Viet Nam to allocate tariff quotas consistently with the WTO 
from the date of accession.  Viet Nam was also asked to clarify whether a TRQ could be filled by 
materials imported under a TRQ and subsequently exported under Viet Nam's duty drawback scheme. 
164. In response, the representative of Viet Nam said  that Viet Nam had narrowed considerably the 
coverage of products subject to TRQs and limited the application of  TRQs to the minimum extent.  
He noted that salt production involved farmers and w as therefore considered an agricultural activity in 
Viet Nam.  Concerning allocation method B, he explained that this method only applied to un- WT/ACC/SPEC/VNM/5/Rev.2 
 Page 65 
 
 
 manufactured tobacco (HS 2401).  He reminded Memb ers that un-manufactured tobacco was subject 
to State-trading − quotas were allocated to State-trading en tities or groups of producers.  He added 
that the provision according to which TRQs were al located to enterprises using the imported goods in 
their production was only applicable  to salt and un-manufactured tobacco.  In his view, this measure 
was not inconsistent with WTO rules and regulati ons.  Furthermore, the allocation of TRQs to 
enterprises having trading activities was in complian ce with Viet Nam's current import management 
policies.  He was of the opinion that this provisi on did not breach WTO rules as enterprises were free 
to register their own business lines and activities.  As for the provision requiri ng enterprises to send a 
report on import performance of TRQs to the Ministry of Trade by each quarter-end, the requirement aimed at guaranteeing up-to-date and accurate informa tion so as to enable the authority to adjust the 
TRQs when enterprises so needed.  He was of the view that Viet Nam's provisions of TRQ allocation 
and administration were consistent with WTO rules a nd regulations.  He also noted that Viet Nam had 
committed to eliminate all quantitative import restrictions upon accession and to limit the number of items subject to TRQs.  Concerning the li nk between the duty drawback scheme and TRQ 
arrangements, he noted that traders could either apply for TRQs or import the goods directly.  They 
could, in both cases, benefit from duty drawback (see also paragraph 257) .  He added that goods 
imported under the TRQ and subseque ntly exported did not count towards exhaustion of the TRQ.    
165. [The representative of Viet Nam confirmed that from the date of accession Viet Nam would 
[apply, allocate and administer its tariff rate quot as in conformity with WTO applicable rules and 
regulations, including the MFN and national treatment  provisions of the GATT] [allocate tariff quota, 
administer tariff rate quota arrangements and apply in ternal measures to products that have entered its 
territory under such arrangements only in conform ity with the WTO Agreement, including Articles I, 
II, III, VIII, X, XI and XIII of the GATT 1994, Article  4 of the Agriculture Agreement, Article 2 of 
the Agreement on Trade-related Investment Measures, the Agreement on Import Licensing 
Procedures and other WTO provisions].  The Working Party took note of these commitments.] 
166. [The representative of Viet Nam confirmed that Viet Nam would replace [the current system 
of discretionary licensing] [any discretionary licensi ng measures currently applied] pursuant to Prime 
Minister Decision No. 46/2001/QD-TTG of 4 April 2001 with a tariff rate quota mechanism as from 
the date of accession.  He further confirmed that Vi et Nam would apply and administer its tariff rate 
quotas in conformity with WTO applicable rul es and regulations, including the MFN and national 
treatment.  The Working Party took note of these commitments.]  
[Viet Nam's submitted an offer on TRQs in document WT/ACC/SPEC/VNM/1/Rev.3/Add.1 dated 
27 April 2004, subsequently revised in Addenda 2 and 4 of May and July 2005.] WT/ACC/SPEC/VNM/5/Rev.2 
Page 66  
 
 - Tariff exemptions  
167. The representative of Viet Nam said that the procedure for tariff exemption was outlined in 
the Law of 20 May 1998 amending and supplem enting the Law on Import-Export Duties of 
26 December 1991.  Tariff exemptions were perm itted for non-refundable aid; temporary imports and 
re-exports, temporary exports for exhibitions and re-i mports; goods in transit; exports and imports of 
foreign organizations and individuals enjoying immunities stipulated by the Government pursuant to 
international treaties to which Viet Nam was a signatory or participant; and materials and raw 
materials imported for processing and re-export in ac cordance with a contract entered into with a 
foreign party.  In accordance with Article 11 of  the Law amending and supplementing the Law on 
Import-Export Duties, import duty exemptions were applicable to imports for specialized use for 
security, national defence, science, education, a nd training; equipment and machinery imported in 
accordance with Article 47 of the Law on Foreign Investment and Article 25 of the Law on Promotion 
of Domestic Investment; exports and imports of enterprises with foreign owned capital and foreign 
parties to a business co-operation contract; gifts of foreign organizations  and individuals to 
Vietnamese organizations and individuals, and vice- versa, within the permitted amount; and imported 
goods for duty-free shops.  The tax exemptions acc orded under Article 47 of the Law on Foreign 
Investment applied also to project expansions and upgrading of technology.  In regions where investment was specially encouraged, the import duty exemption for raw materials, equipment and 
components was valid for five years (non-renewable)  following the commencement of production, in 
accordance with Article 11 of the Law on amendmen ts of and supplements to some Articles of the 
Law on Export and Import Duties, Article 47 of the Law on Foreign Investment, and Article 25 of the 
Law on Promotion of Domestic Investment.  He confirmed that the import duty exemptions and 
reductions mentioned in this para graph were not contingent upon e xport performance, export ratios or 
local content requirements. 
168. The importer (a domestic enterprise or a foreign- owned enterprise) filed an application to the 
General Department of Taxation of the Ministry of Finance for approval on a case-by-case basis for imports which were eligible for duty exemption pursuant to Section D of Circular No. 87/2004/TT-BTC of 31 August 2004.  The requi red documentation was specified in the legal 
documents guiding the implementation of the Law on Export and Import Duties.  These procedures 
were not required if the Ministry of Trade ha d already approved the importation of equipment, 
machinery or specialised means of transport fo r the capital construction establishing a foreign 
invested project.  Regarding other cases of duty ex emption, importers filed applications with the 
Customs authority.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 67 
 
 
 169. In response to a specific question, he added th at Viet Nam had not signed any agreement with 
Cambodia favouring border trade.  According to Decision No. 0724/99/QD/BTM of 8 June 1999, 
border trade by local residents amounting to 500,000 Dong (about US$ 35) per passage per day were 
exempt from customs duty.  The excess value was subj ect to normal tariff treatment.  Cargoes cleared 
through Customs by businesses were of a commercial nature and therefore subject to normal duty.  
The same principles applied to trade alo ng the borders with China and Lao PDR. 
170. The representative of Viet Nam confirmed that upon accession, Viet Nam would adopt and 
apply tariff reductions and exemptions so as to en sure MFN treatment for imported goods.  He also 
confirmed that Viet Nam would not provide tariff reductions and exemptions  contingent upon export 
performance, export ratios, or local content require ments.  The Working Party took note of these 
commitments. 
Fees and charges for services rendered  
171. The representative of Viet Nam said that fees a nd charges for the State budget were levied in 
accordance with Decree No. 04/1999/ND-CP of 30 January 1999, Chapter IV of Government 
Decree No. 16/1999/ND-CP of 27 March 1999 on cust oms procedures, customs supervision and 
customs fees, and the Ordinance on Fees and Charges th at had come into effect on 1 January 2002.  
The Ministry of Finance and General Department  of Customs had issued an Inter-Ministerial 
Circular No. 71/2000/TTLT/BTC-TCHQ on 19 July 2000 providing for guidelines on the collection of customs fees and usage management.  The Inter-Min isterial Circular identified the customs fees for 
services rendered as (i) customs clearance fees appli cable to imported or e xported goods calculated on 
the basis of quantity of goods, (ii) customs ware house fees for cargo and luggage, (iii) cargo escort 
fees based on accompanying distance, (iv) customs sealing fees (for paper, lead seal and seal ring), (v) transit fees, and (vi) administrative fees for re -certification of customs documents (re-certification 
of documents related to customs procedures, imported/exported goods, or import/export duties upon 
request of the importer or when the original documen ts had been lost).  Customs clearance, customs 
warehouse, and administrative fees are enumerated in Table 9, and cargo transit and escort fees in Tables 21 (a) and 21 (b).  The Inter-Ministerial Circ ular had superseded an earlier inter-ministerial 
circular issued in April 1993.  A provision in the 1993 circular allowing customs fees to be adjusted 
when market prices fluctuated more than 20 per cent relative to an established price index had been 
abolished.  The current fees had been set so as to  ensure that they would cover the costs of the 
customs service rendered, including the costs of prod ucing lead seals, sealing paper, customs services, 
utilities bills, conservation of goods, labour, maintenan ce and repair equipment, inputs and materials 
directly used in providing the services.   WT/ACC/SPEC/VNM/5/Rev.2 
Page 68  
 
 172. In response to questions about the purpose of th e cargo and luggage transit fees and the cargo 
escort and sealing fees, he noted that the transit fees aimed at covering the costs of the customs 
services rendered for the transit of goods from a thir d country through the territory of Viet Nam.  
Sealing fees aimed at covering the costs of materials (paper seals, lead seals, and seal rings) and labour involved in the sealing process.  As for escort fees, they corresponded to the costs involved to 
escort the goods, including management costs.  Th ese costs varied substantially depending on the 
distance and the volume to escort.  He noted that fees and charges were being reviewed to ensure that 
the actual collectible fees did not exceed the costs i nvolved.  Fees found to be higher than the cost of 
services rendered would be adjusted downward to ab ide by the principle that no fee should exceed the 
cost of services rendered.  
173. A Member noted that Viet Nam's customs processing fees were based on the quantity of 
imports, by weight and form of tran sportation, which did not appear to comply with the provisions of 
Article VIII of the GATT 1994 and asked Viet Na m to clarify these fees.  In response, the 
representative of Viet Nam said that the fees did not aim at generating revenue for the State budget.  The fees covered the cost and expenses incurred by customs authorities in rendering services related 
to the importation and exportation of cargoes and vehicles, such as inspection, supervision, 
document-related costs, office expenses, etc.  Such costs varied accord ing to the means of 
transportation (land versus sea transportation) and the volume or size of the imports (storage and 
conservation costs were higher for la rge volumes).  The fees were ther efore levied in proportion to the 
volumes imported or exported.  This allowed small im porters and exporters to be  charged a lower fee.  
He noted that Viet Nam imposed ceiling rates fo r each customs clearance.  He added that his 
Government was reviewing the customs processing f ees and would adjust them to conform to WTO 
rules from the date of accession.   
174. Some Members noted that fees for fundamental  infrastructure, such as port services, were 
very high in Viet Nam compared to other countries in the region, and requested that these fees be 
reduced drastically.  The representative of Viet Nam replied that the general policy of his Government 
was to try to reduce such fees to facilitate trade and investment activities in Viet Nam.  Between 2003 
and December 2004, maritime fees and charges had b een reduced by 30 to 50 per cent pursuant to 
Decisions Nos. 61/2003/QD-BTC and 62/2003/QD-BT C of 25 April 2003.  Taking into account the 
recommendations of some Members, his Governme nt had conducted a comparative study across the 
region with a view to aligning Viet Nam's sea port fees with those levied in neighbouring countries.  As a result, a new Decision had been adopted reducing weight fees by 45 per cent, marine insurance fees by 52 per cent, navigation fees by 12 to 30 per cent, and quay fees by 10 per cent as of 
1 January 2005 (Decision No. 88/2004/QD-BT C dated 19 November 2004, which replaced  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 69 
 
 
 Decisions Nos. 61 and 62).  In addition, since 1 January 2006, marine insurance fees had been 
collected at 75 per cent of the 2005 applied rate.  This Decision had reduced Viet Nam's sea port fees 
to a level comparable to that applied in Thailand. 
175. A Member was concerned that Viet Nam maintained "minimum" fee regimes for importers of 
certain goods, such as cust oms clearance fees for automobiles a nd motorcycles, and special customs 
warehouse fees for IT products, which were higher than  the ordinary fees.  This Member noted that 
such fees seemed to be a revenue- or policy-driven measure, not fees related to the cost of customs 
processing.  This Member asked Viet Nam to provi de a justification for the higher fees applied for 
customs clearance of these products.  The Worki ng Party would need to examine these fees and 
charges to determine those that would have a ne gative impact on trade in possible violation of 
Article III or Article VIII of the GATT.  The repres entative of Viet Nam replied that minimum fees 
had been imposed pursuant to Inter-Ministeri al Circular No. 71/2000/TTlT/BTC-TCHQ on the 
importation of certain goods to take into account th e complexity of the State management activities 
involved.  The fees had been set so as to cover th e costs of management (costs of paper seals, lead 
seals, seal rings; costs directly linked to fee collection; remuneration of fee collectors; costs of escort 
of cargoes and luggage; costs of maintenance of prop erties, machines, and equi pment used to collect 
fees; purchase of materials; and other expenditures directly linked to fee collection), as well as the costs of storage and conservation of the goods.  Customs processing fees for automobiles and motorbikes had been set higher becau se of the necessity to check each single unit of automobile and 
motorbike parts. 
176. [The representative of Viet Nam confirmed that from the date of accession Viet Nam would 
apply all fees and charges for services rendered app lied on or in connection with importation or 
exportation, including those discussed  in paragraphs [... and ...] above , in conformity with relevant 
provisions of the WTO Agreements, in particular Articles VIII and X of the GATT 1994.  He further 
confirmed [that such fees and charges would be based  on unified criteria that would ensure] that they 
were limited to the approximate cost of services rendered.  He added that  the practice of higher 
special fees for some imports would be eliminated and that fees that varied based on the value or 
volume of imports or applied for revenue purposes would be eliminated upon accession or revised to 
conform with the provisions of Article VIII.  He  further confirmed that information regarding the 
application and level of any such fees, revenues collected and their use would be provided to WTO 
Members upon request.  The Working Party took note of these commitments.]  
177. [The representative of Viet Nam confirmed that, upon accession, Viet Nam would apply fees 
and charges for services rendered for importation and exportation in conformity with the WTO WT/ACC/SPEC/VNM/5/Rev.2 
Page 70  
 
 Agreement, in particular Article VIII of GA TT 1994.  The Working Party took note of this 
commitment.] 
Application of internal taxes 
178. The representative of Viet Nam said that certain goods were subject to excise tax, levied in 
accordance with the Law on Excise Tax of 30 J une 1990, with amendmen ts of 5 July 1993, 
28 October 1995, 20 May 1998, and 2003.  The ta x system was explained in further detail in 
Circular No. 98 TC/TCP of the Ministry of Fina nce.  Taxes initially ranged from 32 to 70 per cent on 
tobacco, 75 to 90 per cent on beer, 15 to 90 per cen t on other alcoholic beverages, 100 per cent on 
pyrotechnic articles (excluding firecrackers), 30 to 100 per cent on motor vehicles and 15 per cent on petroleum products.  Bottled, canned, and fresh beer were taxed differently depending on the 
consumption pattern, and thus the elasticity of  demand, for each type of beer.  Effective 
1 January 1999, the coverage of the Law on Excise Tax had been extended to  various "non-essential" 
goods and services, including automobiles (less th an 24 seats); air conditioners; votive paper and 
votive objects; dancing halls; massage parlours; karaoke bars; casino, jackpot games and gambling 
activities; and golf services, including the sale of golf club membership cards and tickets.  Lotteries 
had been added to the list in 2003.   
179. The taxable value was the duty-inclusive pri ce for imported goods and the ex-works selling 
price for domestically-produced goods.  Excise tax w as in general applied uniformly to imported and 
domestically-produced goods.  However, cigarette s made from imported tobacco were taxed at a 
higher rate than cigarettes made with domestic tobacco. 
180. The representative of Viet Nam added that, in principle, all individuals and entities producing 
or importing goods subject to excise tax were liable to pay the tax.  However, the Law on Excise Tax 
specified cases where tax reduction could be consid ered for production enterprises facing difficulties 
due to natural disasters, war and other continge ncies.  The criteria to benefit from excise tax 
reductions following natural disasters, war or other contingencies were laid down in Article 16 of 
Decree No. 149/2003/ND-CP of 4 December 2003.  Th e amount of tax reduction was calculated on 
the basis of the damages incurred and could not exceed 30 per cent of the total taxable amount.  
However, in the event of serious damages preven ting the affected enterprises from manufacturing, 
doing business, and paying taxes, a tax exemption could be granted.  Tax breaks for enterprises 
investing in new technology and additional production capacity had been abolished. 
181. Domestically manufactured or assembled motor ve hicles were originally not subject to excise 
tax.  Since 1 January 1999 such vehicles had been subjected to exci se tax, in principle.  However,  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 71 
 
 
 according to the Law on Excise Tax and Circular No . 168/1999/TT-BTC of the Ministry of Finance, 
local car assembling enterprises had been entitled to  a 95 per cent tax reducti on until the end of 2003, 
and the reductions could be extended an additional fi ve years for enterprises still incurring losses.  He 
added that Article 16 of the am ended Law on Excise Tax No. 08/ 2003/QH11 of 17 June 2003 allowed 
excise tax reductions for domestic automobile ma nufacturers until 31 December 2006.  Golf business 
enterprises had been accorded an excise tax reduction of 30 per cent for three years starting from 1999 
and, as a transitional measure until 2004, loss-maki ng small breweries qualified for a reduction in the 
amount of excise tax due equal to the annual loss.  He confirmed that the tax exemption for loss-
making small breweries had been abolished according to the amended Law on Excise Tax 
No. 08/2003/QH11 of 17 June 2003.   
182. Some Members noted that Viet Nam applied discriminatory excise taxes on imported tobacco, 
a possibly WTO-inconsistent lower rate of excise duty on herbal wines, and preferential excise tax 
rates on domestically-produced beer and automobiles.  The excise taxes applied to cigarettes and beer 
were in clear contrast to Article III of the GATT 1994 as they taxed like products differently, and 
these Members requested Viet Nam to submit a deta iled plan for the elimination of the existing 
discrimination to the Working Party.  In their view, the preferential tax treatment for domestic 
producers was also inconsistent with the national treatment principle of Article III and should be 
abolished prior to accession.  These Members sought  a commitment from Viet Nam that it would 
equalize the excise tax rates on these products by the date of accession and that from this date 
Viet Nam would apply its taxation measures in fu ll compliance with Article III of the GATT without 
affording protection to domestic production. 
183. The representative of Viet Nam replied that on ly cigarettes made of domestically-produced 
materials and those made of importe d materials were subject to different excise tax rates according to 
Article 7 of the Law on Excise Tax of 20 August 1998.   Concerning beer, Viet Nam used its excise 
taxes to regulate consumption between high-value, luxurious products and cheaper varieties and to 
contain alcohol consumption, and therefore applied lower tax rates on low-cost items such as draft 
beer and medicinal and herbal wine, which were most ly consumed by low-income people.  Both draft 
and draught beer were produced domestically and onl y a small quantity of draught beer was imported.  
He reiterated that the regulation providing excise tax reductions to small loss-making breweries had 
been eliminated pursuant to the amended Law on Excise Tax No. 08/2003/QH11 of 17 June 2003.  As 
for motor vehicles, he noted that the manufacturing of automobiles was still an infant industry in 
Viet Nam.  To support this sector, preferential excise tax rates had been granted to automobile 
manufacturing enterprises when investment licences had been issued.  However, as a compromise 
between the need to support this industry and the po tential negative effects that could result from the WT/ACC/SPEC/VNM/5/Rev.2 
Page 72  
 
 imposition of lower excise tax rates, Viet Nam had agreed to phase-out the excise tax incentive 
granted to domestically-produced automobiles by th e end of 2006.  Asked to review this timeframe 
and to eliminate all discriminatory excise tax ra tes by the date of accession, he subsequently 
confirmed that Viet Nam would apply uniform excise tax rates for tobacco, beer and motor vehicles upon accession.  A new Law on Amendments of and Add itions to some Articles of the Law on Excise 
Tax and the Law on Value Added Tax had been adopt ed in November 2005 to this effect.  The Law 
had entered into force on 1 January 2006.  In hi s view, this Law conformed fully to the national 
treatment principle with respect to excise taxes.  
184. Concerning the lower excise rates on herbal and medicinal wine, he noted that herbal and 
medicinal alcohol had a low alcohol content compar ed to other wines and was used for medication 
purposes, to treat or cure illness, rather than as an ordinary alcoholic beverage .  This product was not 
in direct competition with other alcoholic produc ts, and the amount of medicinal alcohol produced 
and consumed was insignificant.  Nevertheless, a provision introducing a common excise tax rate of 
20 per cent on herbal and medicinal wines, spirits under 20 per cent vol alcohol, and fruit-based wines 
had been introduced in new Law on Amendments of and Additions to some Articles of the Law on 
Excise Tax and the Law on Value Added Tax adopt ed in November 2005.  He provided an updated 
list of excise tax rates applicable as of 1 January 2006 in Table 10. 
Table 10:  Goods and Services Subject to Excise Tax (as of 1 January 2006) 
 
No. Goods, services Tax rate (%) 
I. Goods 
1 Cigarettes, Cigars:  
  a) Cigars 65 
  b) Cigarettes  
   - From 2006 to 2007 55 
   - From 2008 65 
2.  Spirits:  
  a) Spirits of more than 40o 65 
  b) Spirits from 20o to 40o 30 
  c) Spirits of under 20o, wines brewed from fruits, herbal and medicinal 
wines 20 
3 Beer:  
  a) Bottled beer and canned beer 75 
  b) Draught beer and draft beer  
   - From 2006 to 2007 30 
   - From 2008 40 
4. Automobiles*:  
  a) Automobiles of 5 seats or less 50 
  b) Automobiles of 6 to 15 seats 30 
  c) Automobiles of 16 to under 24 seats 15 
5. Assorted petrol, naphtha, reformate component and other components to be mixed 
in petrol 10 
6. Air-conditioners with the capacity of 90,000 BTU or less 15  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 73 
 
 
 7. Playing cards 40 
8. Votive paper 70 
II.  Services: 
1. Operating discotheques, massage lounges, karaoke parlous 30 
2. Operating casinos, offering jackpot games 25 
3. Recreation services with gambling 25 
4. Golf: selling memberships and tickets for playing golf 10 
5. Lottery  15 
* Auto-parts were not subject to excise tax.  
185. Regarding the value added tax, the representa tive of Viet Nam said that the Law on Value 
Added Tax, adopted by the National Assembly  on 10 May 1997 had entered into force on 
1 January 1999, replacing the Law on Turnover Tax.   The Law on Value Added Tax stipulated four 
rates (0, 5, 10 and 20 per cent).  However, amen dments to the Law on Value Added Tax introduced 
on 1 January 2004 (Law of 17 June 2003) had repeal ed the VAT rate of 20 per cent.  The tax was 
collected monthly and settled at the end of every cal endar year.  VAT applied generally to all products 
and services in the covered categories and used  in production and consumption in Viet Nam 
irrespective of their origin.  The list of items ex empt from VAT had been issued in accordance with 
Circular No. 122/2000/TT-BTC of 29 December 2000 of the Ministry of Finance.  He provided a 
detailed listing of imported items subject to VAT (e xempt, 5 or 10 per cent) in 2003, prepared in 
accordance with the Minister of Finance's Circular No. 84/2003/TT-BTC of 28 August 2003 (see notice in document WT/ACC/VNM/28/Add.2).  In res ponse to Members' comments, he noted that the 
amendments to the Law on Value Added Tax wh ich had entered into force on 1 January 2004 had 
made excise taxed goods subject to VAT.   
186. A Member noted that the VAT exemption on unprocessed and semi-pro cessed agricultural 
and aquatic products sold by indivi duals and organizations in Viet Nam was discriminatory as similar 
imported products were taxed at 5 per cent.  This Member invited Viet Nam to integrate producers of 
unprocessed and raw agricultural products into its VAT system or, alternatively, to commit to exempt 
imports of such products from VAT from the date of accession.  In response, the representative of 
Viet Nam said that the objective of Article 4,  section 1 of the amende d Law on Value Added Tax 
No. 07/2003/QH11 of 17 June 2003 was not to prot ect domestic production against imports, but a 
measure to simplify the management of the VAT syst em.  A large number of households involved in 
small-scale farming sold their products without in voices, which made tax collection and management 
difficult.  Viet Nam's administrative capacity in this  area was very limited.  However, in the light of 
Members' comments, Viet Nam ha d reviewed its provisions on va lue-added tax and adopted a new 
Law on Amendments of and Additions to some Articles of the Law on Excise Tax and the Law on 
Value Added Tax in November 2005, which exempt ed all unprocessed and raw agricultural products, 
whether domestically-produced or im ported, from value-added tax.   WT/ACC/SPEC/VNM/5/Rev.2 
Page 74  
 
 187. Noting that Viet Nam exempted from VAT ma chinery equipment imported for fixed asset 
purposes by foreign investing enterprises accordi ng to Article 60 of the Foreign Investment 
Regulation, a Member requested Viet Nam to apply this exemption uniformly and in compliance with 
Article III of the GATT 1994, as VAT exemptions app eared not to be granted if the same kind of 
equipment could be manufactured in Viet Nam.   
188. In reply, the representative of Viet Nam confirmed that according to Article 60 of 
Decree No. 24/2000/ND-CP, VAT was not levied on e quipment, machinery and specialized means of 
transportation forming part of a technological line, not yet domestically produced, and imported to form fixed assets of FDI enterprises or to implemen t business co-operation contracts.  In his opinion, 
this regulation was not inconsistent with Artic le III of GATT 1994 since no comparison could be 
made to a "like domestic product", and the purpose of  this measure was not to afford protection to 
domestic production, but rather to encourage fore ign-invested enterprises to invest and set up 
production facilities in Viet Nam.  The measure fa voured foreign-invested enterprises over domestic 
enterprises.  He noted that equipment and machiner y produced in Viet Nam wa s subject to the same 
value added tax as imported products.   
189. The representative of Viet Nam confirmed that from the date of accession, Viet Nam would 
ensure that its laws, regulations and other measure s relating to internal taxes and charges levied on 
imports, [including those listed in paragraphs [..., and ...]] [including automobiles, draft and draught 
beer, and herbal and medicinal wine] would be in  full conformity with its WTO obligations, in 
particular Article III of the GATT 1994, and that it would implement such laws, regulations and other 
measures in full conformity with those obligations.  [The representative of Viet Nam confirmed that 
Viet Nam’s laws had been changed so that excise taxes on imported automobiles, beer, and herbal and 
medicinal wine were levied at rates no less favourab le to imports than those applied to domestically-
produced automobiles, beer, and distilled spirits.]  The Working Party took note of these 
commitments.  
Quantitative import restrictions, including prohibitions, quotas and licensing systems 
190. The representative of Viet Nam said that Vi et Nam had been liberalizing its quantitative 
import restrictions.  Viet Nam currently applie d import prohibition, import restrictive licence/quota 
and line management measures.  Responding to  statements from Members that quantitative 
restrictions were inconsistent with GATT Article XI and that Viet Nam should provide a single 
comprehensive and consolidated list of its curren t quantitative restrictions, including all bans, quotas 
and restrictive licensing requirements and to provide a timetable for each measure currently in place, either to be eliminated, revised or replaced with a specific WTO consistent alternative, or present an  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 75 
 
 
 appropriate WTO justification for the retention of the measure, the representative of Viet Nam 
provided information on import prohibitions and th eir justification in Table 11, a list of toxic 
chemicals prohibited from importation or su bject to conditional approval pursuant to 
Decree No. 100/2005/ND-CP of 2 August 2005 on the implementation of the Convention on the 
Prohibition of the Development of Production, St ockpiling and Use of Chemical Weapons and on 
their Destruction in Tables 12 (a) and 12 (b), an d a list of products subject to line management 
measures in Table 13.  He noted that all import restrictions, with the exception of the restrictions 
applied to sugar, had been eliminated (see paragra ph 204 below).  In response to a question, he added 
that payment method restrictions established in 1998 had been abolished on 1 May 2001 by 
Decision No. 46/2001/QD-TTg of 4 April 2001.   
191. The main agencies responsible for issuing detailed regulations a nd guidance concerning 
products subject to import prohibition included the Ministry of Public Security, the Ministry of 
Culture and Information, the Ministry of Industry, an d the Ministry of Health.  Restrictions on trade in 
toxic products were applied equa lly to Vietnamese and foreign traders.  In exceptional cases, 
importation of prohibited goods c ould be authorized by the Prime Minister for non-commercial 
purposes, in consultation with relevant ministries  and agencies.  However, for security reasons 
(i.e. the importation of arms), procedures used in such cases could not be officially published. 
192. Some Members questioned whether Viet Nam was using the least trade restrictive means to 
address health, environmental, safety or other concerns.  Viet Nam was requested to provide more 
specificity with respect to the second-hand prod ucts prohibited from importation as some of the 
categories, e.g. electronic goods and refrigerator equi pment, appeared rather broad and would prevent 
companies from filling services contracts with remanufactured goods.  Viet Nam was invited to 
indicate any exceptions to this prohibition.  Unless Viet Nam could confirm that it prohibited the internal resale or resale of domestic manufactur es for all second-hand consumer goods, materials and 
equipment listed in Table 11, Viet Nam was invite d to explain how its import prohibitions did not 
violate Articles III and XI of th e GATT 1994, and in the absence of any rationale, to abolish these 
measures.  Viet Nam was also asked to provide an i ndication of the types of children's toys considered 
to have adverse effects on moral education and soci al security, and provide examples of depraved and 
reactionary cultural products.  Noting that encryption software and machines could be found in 
computers, palm pilots, phones, etc, a Member asked Viet Nam to provide a detailed list of 
"specialized encryption software and machines" prohibited from importation, excluding commercially-traded electronic goods with encryption technology. WT/ACC/SPEC/VNM/5/Rev.2 
Page 76  
 
 193. In response, the representative of Viet Nam replied that due to administrative capacity 
constraints in Viet Nam, the health, envir onmental, and safety objectives sought through the 
imposition of import prohibiti on could not, in his view, be achiev ed through alternative measures.  
Remanufactured electronic and household electrical  goods were prohibited from importation because 
of Viet Nam's weak management system, whic h did not permit to distinguish between purely 
second-hand and re-manufactured goods , and between re-manufactured goods and electronic waste. 
194. Viet Nam prohibited imports of second-hand clot hing to protect public health as it had no 
enforceable internal mechanism and no processing a nd disinfection facilities for used clothing.  He 
noted that no domestic organizations  or individuals were granted Business Registration Certificates to 
conduct business in second-hand consumer products s ubject to import restrictions.  He added that 
some WTO Members with a higher level of devel opment than Viet Nam maintained such import 
prohibition on certain used items.   
195. Importation of second-hand internal combusti on engines below 30 CV and importation, 
registration and circulation of motorcycles with e ngine capacity exceeding 175 cm³ were prohibited to 
ensure traffic safety.  Importation of motorcycles with engine capacity exceeding 175 cm³ was only 
allowed for special purposes such as for the arme d forces, security personnel, or for competitive 
sports.  Responding to calls for removal of this ban upon accession, as motorcycles of this size were 
produced and sold as a commercial good for non-military  use in many countries,  the representative of 
Viet Nam noted that the prohibition was applied on a non-discriminatory basis and that Viet Nam had 
no domestic production of such motorcycles.  He  considered the import prohibition on second-hand 
motor vehicle spare parts to be the most feasibl e measure to protect safety that Viet Nam could 
implement under the current conditions, as there was no alternative enforceable internal mechanism.  
Asked to reconsider the ban, which in the view of  Members was not the least trade-restrictive measure 
to ensure traffic safety, Viet Nam subsequently confirmed that it would eliminate the import 
prohibition on used motor-vehicles from the date  of accession and replace it by a system of import 
quota to be applied during three years after accession.  Imports of used motor-vehicles would also be 
subject to additional import duties.  Detailed info rmation on the proposed system is provided in 
Table 14.  He further confirmed that Viet Nam would apply technical measures to second-hand motor 
vehicles in compliance with the TBT Agreement.   
196. A Member noted that the proposed quota for used motor-vehicles wa s so limited that its 
practical effect would be a de facto import prohibiti on.  This Member also noted that the additional 
import duty to be imposed on such vehicles could only  be used for products with a separate tariff line 
for used vehicles.  This Member urged Viet Nam not  to introduce additional duties that would not be  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 77 
 
 
 consistent with WTO rules.  In response, the repr esentative of Viet Nam said that the proposed quota 
was not small given the size of Viet Nam's current market for passenger cars.  This measure was 
necessary to enable his Government to develop a syst em of quality standards for traffic, environment, 
and human health safety applicable to means of transportation in compliance with WTO rules.  
Regulations in this regard woul d be issued promptly.  Asked to  provide data on domestic production 
and registration of cars and trucks, he said that  51,500 cars had been registered annually between 
2003 and 2005, including 18,980 tr ucks and 24,200 passenger cars.  In 2003-2004, approximately 
43,850 cars and trucks had been pr oduced annually.  Concerning the imposition of an additional duty, 
he acknowledged that Viet Nam's nomenclature only  provided for breakouts at the 8-digit level for 
used motor vehicles under heading 8703.  Under Viet  Nam's Tariff Schedule, all used automobiles for 
which there was no 8-digit breakout were subject to 150 per cent of the tariff rate imposed on new 
automobiles − under the current ban, used motor vehicles could only be imported in exceptional cases 
upon approval of the Prime Minister.  Viet Nam pr oposed to replace the current ban by a combined 
tariff ( ad valorem  + specific) on used automobiles upon accessi on.  Eight-digit breakouts for used 
motor vehicles would then be introduced to permit the application of different duties depending on the 
type of motor vehicles.   
197. Concerning toys, the Minister of Trade had issu ed a detailed list of goods subject to import 
prohibition in Decision No. 0088/2000/QD-BTM of 18 January 2000.  The Decision specified "children toys having adversely effect in moral ed ucation, children's health and social security" as 
gun-shaped toys; airguns or guns using compressed spring as propelling force for firing plastic bullets 
or other kinds of bullets; guns firing water or water vapour; guns flaring or making noise while 
shooting; weapon-shaped toys other than gun-shap ed toys; shape-like grenades, bombs, mines, or 
explosives; shape-like swords, spears, bayonets, daggers, bows and crossbows; firecrackers of all 
kinds; certain types of virtual toys; toys in th e form of cultural products (publications, cassettes, 
discs), electronic games containing images, sound, actions describing brutal combats, fights, 
murderous attacks or other actions degradi ng or offending human dignity, destroying the 
environment, or detrimental to children's aesthetic sense or adversely affecting children's education; 
computer software, electronic games with conten t inciting the users to violence or prostitution; 
remote-controlled electrical toys that could interfere  with the operation of other equipment, devices or 
be unsafe for children; and toys using the nation al flag, Viet Nam's map, leaders' pictures and 
photographs inconsistent with regula tions, or for bad intentions.   
198. Viet Nam had not issued any specific legal doc ument stipulating the criteria for determining 
"superstitious, depraved and reactionary cultural products".  However, depraved goods could be 
defined as products containing images , designs, languages, sounds or acti ons of lewdness or incest or WT/ACC/SPEC/VNM/5/Rev.2 
Page 78  
 
 describing in detail scenes of nudity or sexual act ivities running counter to Viet Nam's traditional 
morals and reactionary cultural products as pr oducts propagating or co mmunicating hatred and 
violence; destroying the solidarity of the Vietnam ese ethnic community; disclosing national, military, 
security, and other secrets provided for in Viet Nam's la ws and regulations; or di storting historic truth, 
damaging the nation's reputation or national heroes, etc.  He suggested that depraved, reactionary, 
superstitious or morally pernici ous cultural products would include  books, newspapers, magazines, 
pictures, paintings, calendars, posters, catalogues,  leaflets, circulars, handbills, pamphlets, 
tracts/propaganda leaflets, slogans, couplets, scro lls, sound or pictures recording tapes and discs of 
various kinds, films (including cinematographic f ilms and video films), photos, practical arts, and 
other cultural documents and produc ts of depraved, reactionary, supe rstitious or morally pernicious 
content (falling within codes HS 9701, 9703, 9706, 9705, 4901, 4902, 4903, 4904, 4909, 4910, 4911, 
8524, 3706).  He noted that domestic and foreign i nvestors could do business in activities such as 
publishing, media, information t echnology etc., provided they did not trade "superstitious, depraved 
and reactionary cultural products", in line with a pplicable laws.  All cultural products identified as 
superstitious, depraved and reactionary cultural pr oducts were banned from production, exportation, 
importation, business and circulation in Viet Nam, whether they were for commercial purposes or not.  
This regulation applied to all or ganizations, individuals, domestic  and foreign economic entities on a 
non-discriminatory basis.  Competent State management agencies conducted inspections in all economic sectors and assessed whether a cultural produc t was superstitious, reactionary or depraved 
on the basis of applicable laws, including the Co mmercial Law, the Law on the Press and the Law on 
Publication.  Prohibited toys included virtual toys propagating violence or running counter to 
traditional Vietnamese morals.  Asked to provide a specific list of children toys and depraved and 
reactionary cultural products prohibited from importa tion, he said such products fell under the HS 
numbers 3706, 4901-4904, 4909-4911, and 8524 for cultural products containing pornographic, 
violent, reactionary or anti-Vietnamese images,  sounds, or elements, and HS numbers 9501 to 9505 
for toys having an adverse effect on personal de velopment, social order, security and safety.  
However, as the HS nomenclature did not classify goods according to their content, it was not possible to provide a more specific list.   
199. As for "specialized encryption software a nd machines", he confirmed that the import 
prohibition did not apply to general, commonly tr aded goods equipped with encryption technology 
and destined for mass consumption.  Only specia lized encryption machines and software subject to 
state secret could not be imported (Decision No . 46/QD-TTg of 4 April 2001).  For security reasons, 
his Government could not, however, provide a speci fic list of specialized encryption software and 
machines used in Viet Nam.   WT/ACC/SPEC/VNM/5/Rev.2 
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 200. He added that cigarettes were prohibited from importation as part of an anti-smoking 
programme aiming at restricting the production and consumption of cigarettes.  Although existing 
tobacco production facilities were being utilized, Viet  Nam had no intention to develop its cigarette 
industry and discouraged the establishment of ne w production units.  He added that provisions 
restricting domestic production and consumption of  tobacco had been included in Government 
Resolution No. 12/2000/NQ-CP of 14 August 2000 on a national policy on preventing harmful effects 
of tobacco in the period 200 0-2010, and in Decree No. 76/ 2001/ND-CP of 22 October 2001.  
Viet Nam had also signed the Framework Convent ion on Tobacco Control, adopted by the World 
Health Organization on 25 May 2003, in order to  limit the increasing number of death tolls of 
tobacco-related diseases.  However, Viet Nam was seeking alternative WTO-consistent measures to 
achieve its objectives, and accordingly committed to e liminate the prohibition on imports of cigarettes 
and cigars upon accession.   
201. Noting that Table 12 (a) seemed to include some  chemicals that were not covered by the 
Chemical Weapons Convention, a Member asked Vi et Nam to explain the basis for prohibiting these 
chemical products.  Viet Nam was also invited to provide further information as to the basis for the 
conditional nature of the licensing of imported chem icals listed in Table 12 (b).  In response, the 
representative of Viet Nam said that Table 12 (a ) listed toxic chemicals that were explosive, 
flammable or corrosive and had adverse effects on human and animal health, assets, the environment and national security, as well as  chemicals falling within the sc ope of the Chemical Weapons 
Convention.  As for Table 12 (b), it contained toxi c chemicals that caused ca ncer or were dangerous 
for human health or the environment.  Trade in these chemicals, including importation, was regulated 
by Decree No. 68/2005/ND-CP of 20 May 2005 on Chemic al Safety and subject to certain conditions, 
such as the existence of adequate handling facilities.   
202. Concerned about Viet Nam's licensing syst em, some Members asked  whether Viet Nam 
applied procedures which met the definition of automatic import licensing under the Agreement on 
Import Licensing Procedures and sought an explan ation why government ministries needed to 
supervise the quality of imported products as this s hould be an issue determined between buyers and 
sellers.  Viet Nam was requested to clarify, for each  tariff line item, the WTO rationale of the measure 
applied and the precise conditions under which licenses w ould not be issued or would be restricted in 
volume or otherwise.  A Member noted that Viet Nam was using discretionary licensing to restrict imports of dairy products, eggs, maize, tobacco, salt, cotton, and sugar.  This Member invited 
Viet Nam to eliminate all such measures without an appropriate WTO justification by the date of 
accession.   WT/ACC/SPEC/VNM/5/Rev.2 
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 203. In reply, the representative of Viet Nam pr ovided information on import licensing procedures 
in document WT/ACC/VNM/3/Add.1, Annex 3, subsequently revised in document 
WT/ACC/VNM/40 of 14 September 2005, and a list of products subject to import licensing in 
Annex 2 to document WT/ACC/VNM/33.  Although Viet Nam had initially envisaged to phase out 
quotas and restrictive licensing requirements on some  non-agricultural products after accession, the 
representative of Viet Nam subsequently confirmed that his Government would eliminate all 
quantitative import restrictions in the form of quotas or restrictive licences upon accession and 
provided a timetable for phasing out such measure s in Annex 2 to document WT/ACC/VNM/33.  All 
import restrictions, with the exception of the rest riction applied to sugar, had effectively been 
eliminated pursuant to Prime Minister's Decision No. 46/2001/QD-TTg of 4 April 2001, Prime Minister's Decision No. 91/2003/QD-TTg of 9 May 2003, and Prime Minister's Decision 
No. 187/2003/QD-TTg of 15 September 2003.  The r estriction on sugar would be replaced by a TRQ 
upon accession (see paragraph 161 above).  He adde d that Viet Nam imposed line management 
measures in the form of automatic import li censing on certain products.  Import restrictive 
line-management measures had been eliminated in  early 2001.  Current line management measures 
were imposed to protect the environment, human health, labour safety, national security, food safety 
and hygiene.  He provided a comprehensive list of all line management measures applied in Viet Nam 
in the period 2001-2005, including the products covere d and the WTO justification for such measures, 
reproduced in Table 13.  In his view, these measures  were in compliance with international practice 
and WTO provisions, notably Articles XX and XXI of  the GATT 1994.  The fees associated with the 
issuance of licences were consistent with the Ordi nance of Fees and Charges and, in his opinion, 
modest and commensurate with the related administrative costs.  He added that a new line-management mechanism for the post-2005 period w as in preparation.  He confirmed that this new 
mechanism would be designed so as to ensure th at it did not impose quantitative restrictions on 
imports and complied with WTO rules, includi ng Articles XX and XXI of the GATT 1994.   
204. In response to a Member who requested Viet Nam to list the international environmental 
conventions Viet Nam was a party to, he said that  Viet Nam was a signatory to the Convention on 
World Cultural Heritage and Natural Resour ces Conservation signed on 19 October 1987; the 
Convention on Wetland of Internati onal Importance, especially of  Waterfowls Habitat (Ramsar), 
signed on 20 January 1989; the Convention on Inte rnational Trade in Endangered Species of Wild 
Flora and Fauna (CITES), signed 20 January 1994; the Montreal Protocol on Substances that Deplete 
the Ozone Layer; the Framework Convention on C limate Change, signed on 16 November 1994; the 
Convention on Biological Diversity (CBD), signe d on 16 November 1994; the Convention on Marine 
Law, signed in 1994; the Basel Convention on control ling the transit and disposal of dangerous waste, 
signed in 1995; the United Nati ons Convention to Combat Desertification (CCD), signed on  WT/ACC/SPEC/VNM/5/Rev.2 
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 23 July 1998; the Cartagena Protocol on Biosafet y; and the Vienna Convention on the Ozone Layer 
Protection.   
205. Some Members sought a commitment from Viet  Nam that, upon accession to the WTO, it 
would only maintain those import restrictions that can be justified under WTO rules.  Vi et Nam was 
requested to submit a detailed action plan for the introduction of licensing procedures that conform to 
WTO rules.  Notably, Article 1.6 of the Agreem ent on Import Licensing Procedures stipulated that 
licence applicants should need to approach only on e body, and not more than three administrative 
bodies if "strictly indispensable".  Viet Nam would al so need to bring its licensing regime into full 
compliance with the time-limits for processing of import licence applications as set out in Article 3.5(f) of the Agreement on Import Licensing Procedures. 
206. In reply, the representative of Viet Nam subm itted an action plan for the implementation of 
the WTO Agreement on Import Licensing Procedur es (WT/ACC/VNM/22), subsequently revised in 
document WT/ACC/VNM/22/Rev.1.  According to the revised plan, Viet Nam would ensure full compliance with the Agreement by 1 January 2 005, except for the submission of publications 
containing information on import licensing procedures to the Secretariat (obligation under 
Article 1.8), and the provision of all relevant info rmation to Members interested in the trade in a 
product subject to non-automatic licensing (Article 3.5.a).  In application of this action plan, 
Viet Nam's Prime Minister had issued Deci sion No. 41/2005/QD-TTg on 2 March 2005.  The 
Decision had come into effect on 1 September 2005 and ensured compliance with WTO rules and 
regulations.  He confirmed that under Viet Nam's legislative system, "line management" was defined 
as administrative oversight by line government agencies of measures consistent with WTO rules in particular those on SPS, TBT and import licensing procedures.  He further confirmed that under 
Viet Nam's regulations, in particular Decision No. 46/2001/QD-TTg of 4 April 2001 and Decision No. 41/2005/QD-TTg, line management me asures could not constitute quantitative import 
restrictions or be administered in such a way as to have any trade-restrictive or distortive effects, and 
were in compliance with the Agreement on Import Licensing Procedures. 
207. The representative of Viet Nam confirmed th at, upon accession, Viet Nam would eliminate 
the import prohibition on cigarettes and cigars a nd used motor-vehicles and all quantitative import 
restrictions in the form of quota or restrictive licences inconsistent with WTO provisions.  Viet Nam 
would also [convert the discretionary import-licensing regime applied to sugar into a TRQ upon accession, and] as from the date of accession, apply line management measures in a WTO-consistent manner and not use these measures as quantitative impor t restrictions.  He further confirmed that WT/ACC/SPEC/VNM/5/Rev.2 
Page 82  
 
 Viet Nam would comply fully with the Agreem ent on Import Licensing Procedures upon accession.  
The Working Party took no te of these commitments.  
Customs valuation  
208. The representative of Viet Nam said that customs valuation of  imported and exported goods 
was carried out in accordance with the Law on Expor t-Import Duties of 1998, which had come into 
effect in 1999.  The basic valuation principle was the "contract price", which was not entirely 
synonymous with the "transaction value" sti pulated in the Agreement on Implementation of 
Article VII of the General Agreement on Tariffs a nd Trade 1994 (the Customs Valuation Agreement).  
Viet Nam provided information on the implementati on and administration of the Customs Valuation 
Agreement in document WT/ACC/VNM/3/Add.1, A nnex 4, subsequently revised in document 
WTACC/VNM/35.  He acknowledged that several of  the provisions of the Agreement had not yet 
been implemented in Viet Nam.  However, Viet Nam's customs valuation system was being reformed 
to be brought into conformity with the Customs Valuation Agreement.  The National Assembly had 
adopted a new Law on Customs on 29 June 2001, and Government Decree No. 102/2001/ND-CP of 
31 December 2001 provided detaile d procedures and processes to conduct post-clearance examination 
for exported and imported goods.  Viet Nam had also introduced measures to combat commercial 
fraud.  In addition, customs officers and the bus iness community needed training to use the new 
valuation procedures.   
209. Some Members noted that Viet Nam used mini mum import prices in customs valuation, and 
that Viet Nam's valuation practices resulted in hi gher tariffs on imports from some countries, raising 
issues of non-MFN treatment of imports, transparen cy and consistency with the Customs Valuation 
Agreement.  The proliferation of this practice to include differential valuation treatment for wines, 
spirits and ceramic tiles was highlighted.  These Members requested Viet Nam to provide a detailed action plan specifying each measure necessary for the implementation of the Agreement and target 
dates for implementation, including the elimination of minimum customs values.   
210. In reply, the representative  of Viet Nam submitted an action plan for the implementation of 
the Custom Valuation Agreement in documen t WT/ACC/VNM/20, subsequently revised in 
documents WT/ACC/VNM/20/Rev.1 and Rev.2, and an  update on the implementation of the Customs 
Valuation Agreement in document WT/ACC/VNM/34.   He noted that domestic legislation to 
implement the Customs Valuation Agreement had be en largely completed with the promulgation of 
Government Decree No. 60/2002/ND-CP of 6 June  2002 and the adoption of a new Law on Import 
and Export Duties on 14 June 2005 (Law No. 45/2 005/QH11) and of a Law amending some articles 
of the Customs Law (Law No. 42/2005/QH11 of 14 June 2005).  The Ministry of Finance had  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 83 
 
 
 promulgated Circular No. 118/2003/TT-BTC of 8 December 2003 guiding the implementation of 
Decree No. 60/2002/ND-CP of 6 June 2002, providing for the introduction of a customs valuation 
system based on the transaction value as required by  the Customs Valuation Agreement.  The new 
system had been applied on a pilot basis for certa in target groups of countries from 1 January 2004 
and had been expanded gradually.  On 15 Decem ber 2005, a new Decree had been issued in 
replacement of Decree No. 60/2002/ND-CP (Decree No. 155/2005/ND-CP).  This new Decree, which 
had entered into force on 1 January 2006, made th e use of the transaction value applicable to all 
imports, in full conformity with the Customs Valua tion Agreement.  The Decree also provided for the 
full application of the computed value method and the deductive method.  He further noted that 
minimum customs values had been eliminated  in September 2004 pursuant to Circular 
No. 87/2004/TT-BTC of 31 August 2004 and that Viet Nam had fully incorporated the provisions of 
the Customs Valuation Agreement and the Interpre tative Notes in its regulations, in particular 
Circular No. 118/2003/TT-BTC and Decree No. 155/2005/ND-CP of 15 December 2005.  Noting that the elimination of minimum values seemed to a pply only to a list of countries, a Member enquired 
how Viet Nam intended to ensure full complianc e with the Customs Valuation Agreement upon 
accession.  In response, the representative of Viet  Nam noted that the list referred to had been 
abolished in 2004.   
211. Asked to clarify whether an importer had the right to judicial review of customs valuation 
decisions by an independent judicial body, and that recourse to an independent tribunal would not 
preclude the right to lodge administrative appeal s, the representative of Viet Nam said that under 
current rules an importer could appeal a disputed  administrative decision to the agency which had 
taken the decision.  If dissatisfied or if the settle ment period had expired, the importer could appeal 
further either to a higher administrative body or  bring a case before the Administrative Court in 
accordance with Article 1.7 of Law No. 26/20 04/QH11 amending the Law on Complaints and 
Denunciation and Article 1.1 of Ordinance No. 10/1998/PL-UBTVQH10 of 25 December 1998 
amending the Ordinance on Procedures for Settlement of Administrative Disputes.  Cases brought forward by one complainant would be handled by  the Administrative Court.  Final and binding 
decisions on appeals to the higher Customs bodies we re taken by the Minister of Finance; in 
exceptional cases the Minister's decision could be brought before the Prime Minister.  In order to 
comply fully with Article 11 of the Agreement on Customs Valuation, Viet Nam had drafted new 
amendments to the Ordinance on Procedures for Se ttlement of Administrative Disputes, which had 
been submitted to the Standing Committee of the National Assembly for review and promulgation.  
He further noted that Decree No. 155/2005/ND-CP had introduced a surety bond system for release of 
imported goods from customs pending dispute resolution.   WT/ACC/SPEC/VNM/5/Rev.2 
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 212. In response to a question, he added that transp arency requirements were provided for in the 
decision guiding the implementation of Decree No. 60/2002/ND-CP of 6 June 2002.  Legal 
documents pertaining to Customs were published in accordance with Vietnamese legislation on 
publication and transparency of legal normative doc uments (see the "Transparency" section below), 
and customs administrative rulings were sent to co mplainants pursuant to Article 17 of the Law on 
Complaints and Denunciation. 
213. A Member sought a commitment from Viet Nam to  implement fully the provisions for the 
valuation of carrier media bearing software for data processing equipment and the provisions on the treatment of interest charges in the customs value of imported goods.  The representative of Viet Nam 
replied that carrier media bearing software and inte rest charges were being valued in accordance with 
the basic principles of the Agreement on Customs Valu ation.  He added that the valuation of carrier 
media bearing software raised complex issues.  Nevertheless, Viet Nam committed to implement the 
provisions of the Decision on the Valuation of Carri er Media bearing Software for Date Processing 
Equipment as soon as possible, and in no case late r than two years from the date of accession.  
214. The representative of Viet Nam confirmed that, from the date of accession, Viet Nam would 
fully [apply the WTO provisions concerning cust oms valuation, including] [implement] the 
Agreement on the Implementation of Article V II of the GATT 1994 and Annex I (Interpretative 
Note).  Viet Nam would ensure that any custom s valuation method to be applied would be in 
accordance with these WTO rules.  He further confirmed that minimum prices and any system of 
reference prices or fixed valuation schedule app lied in lieu of the transaction value had been 
eliminated and would not be reintroduced and that th at all methods of valuation used were in strict 
conformity with those provided for in the WTO Agreement on the Implementation of Article VII of 
the GATT 1994.  He added that a surety bond system had been established pursuant to Decree No. 155/2005/ND-CP of 15 December 2005 on customs va luation of imports and exports.  He further 
confirmed that Viet Nam would apply the provisi ons for the Valuation of Carrier Media Bearing 
Software for Data Processing Equipment (G/VAL/5) as soon as possible, but in any event no later that 
two years from the date of accession.  The Working Party took note of these commitments. 
Rules of origin 
215. A Member requested Viet Nam to supplement or amend its legislation to meet all aspects of 
the Agreement on Rules of Origin, in particular the requirements of Article 2(h)  and paragraph 3(d) of 
Annex II of the Agreement.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 85 
 
 
 216. The representative of Viet Nam said that Viet  Nam had issued several legal documents to 
implement ASEAN preferential rules of origin as well as non-preferential ru les of origin, including 
Decision No. 416/TM-DB of 13 May 1996 of the Minister of Trade, and joint-ag ency Circulars of the 
Ministry of Trade and the General Customs Department Nos. 09/2000 /TTLT-BTM-TCHQ of 
17 August 2000 and 22/2001/TTLT-BTM-TC HQ of 2 October 2001.  Viet Nam was participating in the 
ASEAN Free Trade Area (AFTA) and the preferential rules of origin of AFTA, and importers were thus 
required to submit certificates of  origin (form D), proving 40 per cent ASEAN cumulative origin, for 
goods imported under the CEPT implementing the ASEAN Free Trade Area.   
217. Certificates of origin were required for goods originating from countries to which Viet Nam 
extended duty preferences in accordance with Vietnamese  laws or international treaties or agreements 
to which Viet Nam was a party; goods subject to  import management regulations in accordance with 
Vietnamese laws or international treaties or agreements to which Viet Nam was a party; goods 
announced by the Government of Viet Nam or intern ational organizations as likely to harm social 
security, public health or the environment; and goods  imported from countries subject to trade remedy 
measures.  Certificates of origin issued by manuf acturers had to be certified by the competent agency 
or organization in the country of origin.  When the origin of the goods could not be determined, 
customs authorities charged the ordinary (standard) duty rate. 
218. In Viet Nam, certificates of origin were issu ed by the Chamber of Commerce and Industry of 
Viet Nam, the Ministry of Trade, or the Manageme nt Boards of industrial parks and export processing 
zones authorized by the Ministry of Trade.  Pursuant to Decision No. 183/2000/QD-BTC of 
14 November 2000, fees charged for the issuance of  export certificates amounted to VND 10,000 per 
certificate, fees for the cer tificate of origin form A for footwear products exported to the European 
market to VND 40,000 per certificate, and fees for the re-issuance of certificates to VND 10,000 per 
certificate.  These fees had been set so as to cover the cost of the services rendered (printing costs, 
remuneration of the service providers and fee colle ctors, related expenditures such as inspection, 
communications, etc).  The owners of the goods, or the customs agents acting on their behalf, were 
legally responsible for the accuracy of the inform ation contained in their certificates of origin. 
219. The existing legal documents were, in his view , consistent with the Agreement on Rules of 
Origin, although they did not elaborate fully all aspects governed by the Agreement.  He confirmed 
that the requirements of Article 2(h) and Paragra ph 3(d) of Annex II of the Agreement on Rules of 
Origin had been incorporated in the draft Decr ee implementing the 2005 amended Commercial Law.  
The Decree also provided for the principle of subs tantial transformation as a means of determining the 
origin of goods and included provisions on verificati on and audit.  The draft had been submitted to the WT/ACC/SPEC/VNM/5/Rev.2 
Page 86  
 
 Government for review and promulgation.  In r esponse to a question, he said that administrative 
decisions on origin were subject to the same admi nistrative and judicial review mechanisms as other 
administrative decisions.   
220. [The representative of Viet Nam confirmed that from the date of accession Viet Nam’s laws 
and regulations on rules of origin for both MFN and preferential trade would be applied in conformity 
with the provisions of the WTO Agreement on Rules of Origin, including the provisions of 
[Article 2(h) and] Annex II, and that these provisions would be established in Viet Nam’s legal 
framework.  [He further confirmed that, in line with the requirements of Article 2(h) and of Annex II, 
paragraph 3(d), both for non-preferential and preferen tial rules of origin, its customs authorities would 
provide an assessment of the origin of the im port and outline the terms under which such an 
assessment would be provided upon the request of  an exporter, importer or any person with a 
justifiable cause.  According to the provisions of the WTO Agreement on Rules of Origin specified 
above, any request for such an assessment would be accepted even before trade in the goods 
concerned had begun, and any such assessment would be  binding for three years.]  The representative 
of Viet Nam further stated that [notwithstanding the measure or instrument of commercial policy to 
which they were linked] Viet Nam would not use the rules of origin as an instrument to pursue trade 
objectives directly or indirectly.  The Working Party took note of these commitments. 
Other customs formalities 
221. Some Members noted that Viet Nam’s customs procedures were complicated and at times 
unpredictable, depending on the discretion of customs officials.  Moreover, continued high tariffs 
appeared to be contributing to rampant smuggling, putting goods cleared through the official channels 
at a disadvantage in the Vietnamese market.  The presence of significant quantities of illegally copied 
goods was also noted.  Viet Nam was urged to est ablish prompt, simplified and more transparent 
customs procedures, as well as to strengthen the pr otection of intellectual property rights, including 
the enforcement capability of border measures. 
222. In reply, the representative of Viet Nam said that customs procedures had been reformed to 
facilitate trade and investment, and to ensure comp liance with Viet Nam's international obligations.  
The provisions of the Customs Law were generally c onsistent with the set of  rules and procedures 
recommended by the Revised Kyoto Convention of 1999 on harmonization a nd simplification of 
customs procedures − Viet Nam was a party to the 1974 Kyoto Convention and was taking steps to 
join the revised Convention.  Further amendmen ts to the Customs Law had been adopted on 
14 June 2005 to ensure full compliance with that Convention (Law No. 42/2005/QH11).  The amendments, which had come into effect on 1 January 2006, made customs procedures more  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 87 
 
 
 transparent, provided for standardized custom s procedures compliant with the Revised Kyoto 
Convention, simplified and harmonized customs procedures to reduce the number of documents 
required, and introduced a system of electronic customs declaration and clearance and a risk 
management and post-clearance audit system.  The system of electronic customs declaration and clearance had been launched officially on 19 Augu st 2005 pursuant to the Minister of Finance's 
Decision No. 50/2005/QD-BTC of 19 July 2005.  Viet Nam had qualified for 81 of the 148 norms and 
standards provided for by the Kyoto Convention, including norms on clearance, customs procedures, 
customs tariff and taxes, and customs inspections. 
223. He added that Viet Nam was making continuous efforts to ensure fair trade and reinforce 
legal compliance.  His Government had establishe d a Steering Committee to supervise activities to 
combat smuggling and fraudulent trading practic es, and Viet Nam's customs administration was 
receiving technical assistance from the World Cu stoms Organization and bilateral donors to 
strengthen and enforce anti-smuggling measures.  Viet Nam's customs legislation provided for 
suspension of customs clearance in case of IPR vi olation.  He added that  new intellectual property 
legislation had been drafted, which strengthene d intellectual property control over exported and 
imported goods in compliance with the TRIPS Agre ement (see section on "Trade-Related Aspects on 
Intellectual Property Rights").  The General Depart ment of Customs had organized training courses to 
enhance the knowledge of Viet Nam's customs regu lations among customs officials, and cooperated 
with the Viet Nam Chamber of Commerce and Indus try to raise awareness of the Law on Customs 
and its guiding legal documents  among other agencies and the business community.  Customs 
procedures were publicly known and transparent.  Th ey were discussed with interested parties during 
the drafting process and published in the Official Gazette once finalized.  They entered into force 15 days after their publication.  All customs pr ocedures, regulations and policies related to 
importation and exportation were disclosed official ly through mass media (customs news, customs 
journal, website of the General Department of Customs − www.customs.gov.vn).  In addition, 
grievance settlement teams that could be contacted  via a hotline system had been set up in every 
provincial and city customs departments to discourage bribery practices.   
Pre-shipment inspection 
224. Some members noted that Viet Nam did not appl y pre-shipment inspection requirements.  In 
case Viet Nam would contract the services of pr e-shipment inspection firms, the Government of 
Viet Nam was asked to ensure that the operations of such firms be consistent with the relevant WTO Agreements, in particular GATT Article VIII, th e Agreement on Pre-shipment Inspection and the 
Agreement on the Implementati on of Article VII of the GATT 1994.  A Member requested a WT/ACC/SPEC/VNM/5/Rev.2 
Page 88  
 
 commitment that Viet Nam would not apply PSI measures until WTO-consistent legislation had been 
implemented. 
225. In reply, the representative of Viet Nam said that Viet Nam's Customs Law did not include any 
provision regarding pre-shipment inspection.  Result s of non-compulsory inspections could not be used 
by the customs authorities.  While he had initially  indicated that pre-shipment inspection might be 
introduced on a trial basis on particular consignments , he subsequently confirmed that Viet Nam was not 
operating any official PSI system and was not preparin g any legislation covering this subject matter.   
226. The representative of Viet Nam stated that if pre-shipment inspection requirements were 
introduced, they would be temporary and in confor mity with the requirements of the Agreement on 
Pre-shipment Inspection and other WTO relevant agreem ents.  Viet Nam would take full responsibility 
to ensure that such enterprises operating on its be half complied with the pr ovisions of WTO Agreements 
including the Agreements on Technical Barriers to Trade, Sanitary and Phyt osanitary Measures, Import 
Licensing Procedures, the Implemen tation of Article VII, Rules of Origin, the Implementation of 
Article VI (Antidumping), Subsidies and Countervail ing Measures, Safeguards,  and Agriculture.  The 
establishment of charges and fees would be c onsistent with Article VIII of the GATT 1994 and 
Viet Nam would ensure that the due process and transparency requirements of the WTO Agreements, in 
particular Article X of the GATT 1994 would be applied.  Decisions by such firms could be appealed by 
importers in the same way as administrative decisi ons taken by the Government of Viet Nam.  The 
Working Party took note of these commitments. 
Anti-dumping, countervailing duties, safeguard regimes 
227. The representative of Viet Nam said that Viet Nam at the outset had no provisions on 
antidumping, countervailing duty or safeguard measures in  its legislation.  He noted, however, that the 
Law on Amendment and Revision of a number of Articles in the Law on Import and Export Duties (Articles 2 and 9), passed by the National Assemb ly on 20 May 1998, would allow the imposition of 
additional duty on goods imported at a price lower than the "normal price as a result of dumping 
practices, and consequently causing difficulties to  domestic producers of like products" or "normal 
price resulting from subsidy in the exporting country , consequently causing difficulties to domestic 
producers of like products".  Viet  Nam could also impose additi onal duty on goods originating in 
countries that applied "d iscriminatory treatment against Vietname se goods with respect to tariff rates 
and/or any other measures".  He considered this provision necessary to ensure that Viet Nam, as a non-WTO Member, would not be disadv antaged in international trade.  WT/ACC/SPEC/VNM/5/Rev.2 
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 228. The representative of Viet Nam acknowledged that Viet Nam needed to establish a proper 
legal and institutional framework to enforce provi sions on antidumping and countervailing measures.  
New Ordinances on Antidumping, Countervailing, and Safeguard Measures had been drafted to this 
effect.  The Standing Committee of the National A ssembly had approved the Ordinance on Safeguard 
Action on 25 May 2002, Ordinance No. 20-2004- PL-UBTVQH11 "Against Dumping of Imported 
Goods into Viet Nam" on 29 April 2004, and Ordinance No. 22-2004-PL-UBTVQH11 "On Measures 
against Subsidized Products Imported into Viet Na m" on 20 August 2004.  Implementing regulations 
were being drafted.  The regulations would be r eady prior to Viet Nam's accession to the WTO.  A 
Decree on the implementation of the Ordinance on Measures against Subsidized Products Imported 
into Viet Nam had already been  adopted (Decree No. 90/2005/ND-CP of 11 July 2005).  The Decree 
had been elaborated so as to ensure conformity with the Agreement on S ubsidies and Countervailing 
Measures.  The Decree included detailed provision s on confidentiality, provis ion of information, 
organization of consultations, obliga tion to publish elements or decisi ons relevant to investigations, 
procedures for investigations, app lication of countervailing duties, et c.  Anti-dumping, countervailing 
and safeguard decisions were made public via ne wspapers, official communication channels, the 
Ministry of Trade's website, etc.  He added that th e Ministry of Trade would issue an Official Bulletin 
on anti-dumping, countervailing and safeguard measures in which decisions would be published.  He 
further noted that pursuant to Article 27 of the Ordinance on Anti-dumping and Article 29 of the Ordinance on Measures against Subsidized Products Imported into Viet Nam, the provisions of 
international agreements to which Viet Nam was a party would prevail over Vietnamese anti-dumping 
and countervailing legislation in the event of a confli ct.  In his view, Viet Nam's new legislation on 
anti-dumping and countervailing measures complied fu lly with the WTO Agreement on Subsidies and 
Countervailing Measures.  In response to a questi on, he noted that no trade remedy cases had been 
initiated in Viet Nam so far. 
229. The representative of Viet Nam confirmed [that his Government would ensure] that any 
legislation in place at the time of accession pr oviding for the application of measures taken for 
safeguard, anti-dumping or countervailing duty purposes would be in conformity with the provisions 
of the WTO Agreements on Safeguards, on An ti-dumping and on Subsidies and Countervailing 
Measures.  The representative of Viet Nam further confirmed that Viet Nam would not apply 
measures for safeguard, anti-dumping or countervailin g duty purposes after accession until legislation 
in conformity with the provisions of these WTO Ag reements had been notified and implemented.  In 
the future elaboration of any legislation concer ning anti-dumping, counterva iling duty and safeguard 
measures, Viet Nam would ensure their full confor mity with the relevant WTO provisions, including 
the Agreements on the Implementation of Article VI, the Agreement on Subsidies and Countervailing 
Measures and the Agreement on Safeguards.  The Wo rking Party took note of these commitments.  WT/ACC/SPEC/VNM/5/Rev.2 
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 230. [Several Members noted that Viet Nam was c ontinuing the process of transition towards a full 
market economy.  Those Members noted that under t hose circumstances, in the case of imports of 
Vietnamese origin into a WTO Memb er, special difficulties could exist in determining cost and price 
comparability in the context of anti-dumping invest igations and countervailin g duty investigations.  
Those Members stated that in such cases, the im porting WTO Member might find it necessary to take 
into account the possibility that a strict comparison with domestic costs and prices in Viet Nam might 
not always be appropriate.] 
2. Export regulation 
Customs tariffs, fees and charges for services rend ered, application of internal taxes to exports  
231. The representative of Viet Nam said that  Viet Nam levied export duties on some 
non-renewable minerals and natural resources expor ted in raw form.  The main purpose of these 
export duties was to protect scarce natural resources, limit the export of strategic goods, and to 
regulate and reconcile revenue to the State budget.  Export duties were imposed in accordance with the 
Law on Import, Export Duties, and Decision No. 45/2002/QD-BTC of 10 April 2002.  Viet Nam's 
export duties were applied on an MFN basis.  Rate s of export duty ranged from one per cent on certain 
precious stones to 45 per cent on sc rap metal.  Goods subject to export duties are listed in Table 15.   
232. Some Members were concerned that the high e xport duties imposed on ferrous and non-ferrous 
scrap (35 and 45 per cent) could distor t trade flows, put pressure on pri ces, and would restrict exports of 
these products.  These Members noted that this m easure provided a considerable benefit to users in 
Viet Nam in relation to users outside Viet Nam.  A Member asked Viet Nam to provide a plan for 
scheduling the reduction of all its export duties a nd eliminate export duties on ferrous and non-ferrous 
metal scrap by the date of accession.  In response, the representati ve of Viet Nam said that the domestic 
source of ferrous scrap was becoming exhausted and that Viet Nam reli ed on imports of this product.  
The measure aimed at ensuring supply for domest ic production and limiting the costs of enterprises 
needing ferrous scrap.  In his vi ew, this measure did not distort in ternational trade as Viet Nam's 
resources were not the main sour ce of ferrous scrap in the wo rld and only a small quantity of 
Vietnamese ferrous scrap was exporte d.  He did not consider the impo sition of export duties inconsistent 
with WTO rules. 
233. In addition, surcharges of 10 per cent were a pplied to exports of unprocessed rubber latex and 
raw cashew nuts.  Surcharges applied to exports of coffee had been phased out in 1995.  The rates of 
surcharge were linked to fluctuati ons in commodity prices, and the revenue had been channelled into 
the Price Stabilization Fund, later replaced by th e Export Promotion Fund pursuant to the Prime  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 91 
 
 
 Minister's Decision No. 195/1999/QD-TTg of 27 Sept ember 1999.  According to Article 3 of this 
Decision, revenue was collected on price differentia ls for certain imported and exported goods.  For 
exported goods, the price differentia l was calculated on the basis of the actual export price, excluding 
freight and insurance, but inclusive of export tax a nd domestic distribution fee, if applicable.  In 
response to questions, he said that  surcharges applied for the benefit of the Export Promotion Fund 
would be adjusted in accordance with the requireme nts of the WTO.  Viet Nam was trying to reduce 
fees and charges applied to exports with a view to encouraging exportation.  He did not consider 
Viet Nam's regulations on surcharges  to be at odds with WTO rules. 
234. [The representative of Viet Nam recognized the concerns of Members that export duties could 
act as de facto export restrictio ns and confirmed that Viet Nam would apply export duties, export 
restrictions as well as internal  regulations and taxes applied on or in connection with exportation in 
conformity with the WTO Agreement, in particular with Arti cle I of the GATT 1994.  He further 
confirmed that Viet Nam would re duce or eliminate export duties in accordance with the List of 
Concessions and Commitments annexed to the Protocol  of Accession and that the List of Concessions 
and Commitments included all expor t duties applied by Viet Nam.  In  particular, he confirmed that 
export duties on ferrous and non-ferrous scrap had been  eliminated in advance of accession.  He also 
confirmed that Viet Nam would not introduce new, re introduce or increase expo rt duties unless justified 
under an exception of the WTO Agreement.  The Working Party took note of  these commitments.] 
235. [The representative of Viet Na m confirmed that Viet Nam w ould apply export duties, export 
restrictions as well as internal regulations and taxes applied on or in connection with exportation in 
conformity with the WTO Agreemen t, in particular Article I of the GATT 1994.  The Working Party 
took note of this commitment.] 
Export restrictions 
236. Some Members noted that Viet Nam allowed only licensed businesses to export.  In addition, 
Viet Nam prohibited exports of timber logs, sawn wood, charcoal, raw rattan and various 
semi-processed and processed wood pr oducts "for the purpose of protec ting the environment" and these 
Members asked whether Viet Nam could confirm th at domestic production of  these items was also 
restricted for the same reasons.  Some Members were also  concerned that Viet Nam's export quota on 
rice was WTO-inconsistent, as Article XI of the GATT 1994 prohibited export quotas unless applied 
temporarily to prevent or reli eve critical food shortages. 
237. The representative of Viet Nam replied that the import-export licensing requirement had been 
abolished by virtue of Government Decree No. 57/1998/ND-CP of 31 July 1998, and that the working WT/ACC/SPEC/VNM/5/Rev.2 
Page 92  
 
 capital requirement for trading enterprises was no longer effective.  Viet Nam imposed 
product-specific controls  or restrictions on the items listed in Table 16.  Certain exports were subject to 
line management approval.  The Ministry of Aqua-c ulture licensed exports of certain aquatic species 
(see Table 17).  The list of products subject to export prohibition, in his view, conformed to the 
requirements of Article XX of the GATT 1994.  An  enterprise wishing to export a product on the 
prohibited list, submitted an application, including ju stifications for the exports, to the Ministry or 
People's Committee concerned.  If these institutions considered the demand just ifiable, the application 
would be submitted to the Prime Minister for final decision.  He added that Viet Nam restricted the 
cutting volume of wood and maintained an annu al cutting allocation in addition to quantitative 
restrictions on exports of wood.  The production ceiling for wood products had been reduced from 
617,000 m³ in 1995 to 300,000 m³ in 1999, and the corresponding export quotas for natural wood had 
been set at 330,000 m³ in 1996, 80,000 m³ in 1997, 100,000 m³ in 1998 and 150,000 m³ in 1999.  
238. In order to ensure national food security, Viet Na m had controlled the export of rice by setting 
indicative export volumes and by channelling expor ts through so-called fo cal point exporters.  
According to Decision No. 141/TTg of  the Prime Minister "On the Admi nistration of Rice Exports and 
Fertilizer Imports in 1997" of 8 Marc h 1997, rice export quotas had been  allocated to provincial People's 
Committees based on the output of rice paddy in co mmercial quantities in each province, and the 
provincial People's Committees allo cated their quotas to enterprise s based on their actual export 
capacity.  Quotas had also been dist ributed to certain Central Food Cor porations based on their capacity.  
Enterprises had been required to be members of the Vietnamese Foods  Association to be eligible for 
quota allocations.  An enterp rise unable to fill its a llocated quota would need to  report promptly to the 
Ministry of Trade and the Ministry of Agriculture and Rural Development.  The Prime Minister could transfer unused entitlem ents to other enterprises; no other form of  quota transfer or sale was permitted. 
239. The Government had announced the indicative expor t volume to be allocated to enterprises at 
the beginning of each year base d on forecasts for annual consumption, storage and production.  The 
indicative export volume could be adjusted during the year, and actual exports had exceeded the indicative levels in 1998 and 1999.  As for the foca l point exporters, only St ate-owned enterprises had 
held the right to export rice in the past.  Foca l point status was no longe r limited to State owned 
enterprises and, since 1998, other Vi etnamese enterprises regardless of form of ownership had also been 
entitled to export rice.  The number of enterprises ex porting rice had increased from 26 in 1997 to 64 in 
1999, and had continued to rise in 2000.  He confirmed that minimum e xport prices on rice and crude 
oil, serving only as guidance prices, had been abolished.  WT/ACC/SPEC/VNM/5/Rev.2 
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 240. Noting that export quotas were generally not justified under WTO rules, some Members 
requested a commitment that Viet Nam would only maintain those export restrictions that could be 
justified under WTO rules upon accession to the WTO.  Some Members did not consider Viet Nam's 
export controls, in particular those on rice and timb er, in conformity with WTO provisions.  Viet Nam 
was requested to revise its regime to introdu ce WTO consistent measures to achieve its policy 
objectives, and to provide a clear timetable for th e elimination of measures inconsistent with WTO 
rules. 
241. In reply, the representative of Viet Nam said th at rice was considered vital for Viet Nam's 
socio-economic security, and Viet Nam therefore di d not intend to eliminate controls on production 
(and trade).  However, rice export quotas had been  eliminated and Viet Nam was not applying any 
export restriction on rice at present.  Instead, a fl exible control mechanism had been developed.  
Under this mechanism, at the beginning of each year, the Government would announce an indicative 
export volume to all enterprises, based on annual  production and consumption forecasts, and reserve 
volumes.  The indicated export volume applied to  the economy as a whole; there was no indicative 
export volume of rice allocated to individual enterprises and no obligations were imposed on 
enterprises.  All traders having legally registered their business were free to sign rice export contracts at 
their own discretion, but the cont racts had to be notified to the Viet Nam Food Association.  No 
enterprise exporting rice was granted any exclusive rights or privileges, but Viet Nam would like to 
reserve rice exports for State trading until 2011 for fo od security purposes (see in Table 8 (b)).  The 
Viet Nam Food Association was a non-governmental socio-professional association operating on the 
principles of voluntary participation, self administra tion, self finance and self responsibility before the 
laws.  The Association's activities had been agreed  unanimously by its members in accordance with 
Vietnamese laws.  The association proposed to the Government, on behalf of  its members, policies 
related to food production and trade, and protected the legitimat e interests of its members.  The 
association was responsible for informing enterpri ses about accumulated contracted export volumes.  
He added that his Government reserved its right to  intervene in the rice market in a WTO-consistent 
manner in the event of a domestic shortage of rice.  
242. In response to a question concerning the suspension of export contracts for unprocessed 
minerals, the representative of Viet Nam said th at following serious mining accidents due to the 
illegal exploitation of solid minerals and the non-ap plication of safety measures, the Prime Minister 
had issued Instruction No. 10/2005/CT-TTg of 5 April 2005 suspending the signing of new contracts 
to export raw solid minerals until the issuance of new safety regulations that would supersede Circular No. 02/2001/TT-BCN of 27 April 2001 on the c onditions to export minerals.  The suspension WT/ACC/SPEC/VNM/5/Rev.2 
Page 94  
 
 was only temporary.  Enterprises having signed le gal mineral export contracts were allowed to 
continue exporting normally.  
243. The representative of Viet Nam confirmed that, upon accession, any remaining export 
restrictions and management measures would be applied in a manner fully consistent with WTO 
provisions.  The Working Party took note of this commitment. 
3. Internal policies affecting foreign trade in goods Industrial policy, including subsidies  
244. The representative of Viet Nam said that Viet  Nam's socio-economic development strategy 
was orientated towards industrialization and mode rnization.  The State had concentrated on 
rehabilitation, upgrading and construc tion of infrastructure such as electricity and water supply, roads, 
airports, sea-ports and post and telecommunications f acilities.  Most of Viet Nam's industries were at 
the initial stage of development and frequently suffered from low competitiveness.  The paper 
industry, for example, was characterized by sma ll scale, inefficient technology, poor product range, 
low quality and high production costs.  At the same  time, the industry was important for the living 
standards of farmers supplying raw materials fo r the production of paper.  The industry was 
accordingly protected by high tariffs and import control measures.   
245. The representative of Viet Nam submitted a notification on industrial subsidies, including 
export subsidies, for the period 1996-1998 in document WT/ACC/VNM/13, updated to cover the 
period 1999-2000 in document WT/ACC/VN M/13/Add.1, and 2001-2002 in document 
WT/ACC/VNM/13/Add.2.  He added that a new notification, covering the period 2003-2004, was 
being prepared.  The new notification would take  into account recent legislative changes.   
246. According to the notification for 2001-2002, Viet Nam provided import duty reductions on 
inputs to certain mechanical-electric and electronic i ndustries; support for the development of priority 
industrial products; investment incentives to dom estic and foreign invested enterprises producing 
goods for export, or operating in certain businesses and sectors, or certain areas; incentives through 
development assistance loans; support for the devel opment of the textiles and clothing industry; 
export rewards; export bonuses to enterprises produc ing goods for exports; export credits; support for 
market development and trade promotion activities; preferential credit terms for investment projects 
in manufacturing engines of two-wheel motorb ikes; support for the ship-building industry; 
development assistance to enterprises located in mountainous, island and ethnic minority areas; assistance to enterprises facing difficulties due to objective reasons; and investment assistance for  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 95 
 
 
 science and technology development.  Two ot her programmes for labour-intensive domestic 
enterprises and enterprises employing a large number of female employees had not been notified in 
the revised notification as the incentives provide d under these programmes were not industry- or 
enterprise-specific.  Subsidies granted under the pr ogramme for labour-intensive domestic enterprises 
included exemption or reduction of land rental and land use tax, and extended corporate income tax 
exemptions and reductions.  The programme aimed primarily at creating employment and improving 
people's income and conditions of living.  The in centives provided under this programme were linked 
entirely to the number of employees.  As for domes tic and foreign-invested enterprises employing a 
large number of female employees, they were en titled to corporate income tax reductions.  The 
enterprises could also deduct expenses related to th e employment of female workers from the taxable 
income.   
247. He noted that most of the subsidy programm es were based on reduction or exemptions from 
taxes (corporate income tax, land rental tax, land use tax, personal income tax, etc), i.e. revenue 
foregone to his Government, and that Viet Nam's st atistical and data manage ment systems were not 
yet sufficiently developed to estimate the revenue fo regone and thus to provid e data on total subsidy 
amount or subsidy per unit for most of the programm es listed.  However, in his assessment, most of 
the programmes provided only minor subsidies.  He  provided information on investment incentives 
granted during the period 1996-2003 according to the ty pe of enterprises, the number of investment 
projects and the investment areas having benef ited from investment incentives between 2001 and 
2003 in Tables 18 (a), (b) and (c).  Tax incentives were listed in the investment licenses, i.e. the 
Government guaranteed the provision of incentives.  There was no stan dard duration for an investment 
licence.  Both domestic and foreign invested ente rprises, including joint-ventures and 100 per cent 
foreign-owned enterprises, were eligible for incentives  on an equal basis.  He confirmed that all direct 
subsidies available to State-owned enterprises we re also available to private companies.   
248. Questioned about the difference between the land use tax and land rental tax, he explained 
that the land use tax was a tax collected annually by  the Government for the use of land allocated by 
the Government to entities or individuals on a lo ng-term basis for the purpose of agricultural 
production, residence, construction or business.  Th e land rental  tax was an annual tax on the use of 
land allocated on the basis of land rental contracts.  The tax payers, rates, land use right and property 
rights were different.  The criteria for land rental  and land use tax exempti ons and reductions were 
stated in Viet Nam's Notification on Industrial Subsidies (document WT/ACC/VNM/13/Add.2). 
249. In response to questions about the impor t duty reduction programme for domestic and 
foreign-invested enterprises producing or assembling mechanical, electric, or electronic products WT/ACC/SPEC/VNM/5/Rev.2 
Page 96  
 
 and/or parts of these products, he noted that th is programme was part of Viet Nam's overall 
industrialization strategy, although he recognized that  the programme only played a useful role in the 
development phase of these industries.  Current legislation did not specify eligibility criteria or 
indicate any timeframe for the application of the s ubsidy.  However, he confirmed that the import 
duty reduction programme for two-wheel motorcyc les and parts had not been applied since 
1 January 2003.  He further confirmed that the duty reductions were the only incentives provided to 
recipient firms under this programme, and that fi rms reducing their local content ratios without 
approval from the competent authorities would face san ctions, including repaym ent of rebated duty.  
250. Asked to provide information about export subs idy programmes in Viet Nam, he said that 
Viet Nam had established an Export Promotion Fund to assist, encourage and promote exportation of Vietnamese products.  Subsidies were provided in th e form of interest rate support (full or partial 
refund of interest incurred on ordinary bank loans); di rect financial support, particularly to first-time 
exporters, for exports to new markets, or goods subj ect to major price fluctuations; and export rewards 
and bonuses.  Total expenditure from the Export Pr omotion Fund had amounted  to 128.4 billion Dong 
(about US$ 9.2 million) in 2000.  As ked to define the terms "financi al support" and "export reward", 
the representative of Viet Nam said that financial support covered any kind of financial benefit, and 
that both financial support and export rewa rd could be considered as grants.   
251. The Export Promotion Fund had also been providing support to enterprises for expenditures 
on trade promotion activities such as participation in trade fairs and exhibitions, market surveys, 
consultancy fees and the opening of trade promotion centres and representative offices abroad since 
early 2001.  Payments were determined on the basis of exported value (0.1-0.2 per cent), but the support 
could not exceed 50 to 70 per cent of the actual expe nditures of enterprises on such activities.  He added 
that the new trade promotion programme for 2006- 2010 would be applied in conformity with WTO 
rules. 
252. Export rewards were paid to traders exporting new products of recognized high quality, based 
on labour intensive manufacturing or the processing of local raw materials.  In order to receive a "Certificate on Export Performance", successful traders would also need to satisfy criteria with respect 
to minimum export volume or export growth.  Sinc e 1998, the average annual export reward to each 
eligible enterprise had ranged between US$ 2,900 and US$ 4,710.  The programme to provide export 
bonuses had targeted exports of agricultural products  in 2001, but in 2002 the programme had been 
extended to include non-agricultural products such  as handicrafts, rattan and bamboo ware, plastic 
products and mechanical products (Decisi on No. 63/2002/QD-BTC of 21 May 2002).    WT/ACC/SPEC/VNM/5/Rev.2 
 Page 97 
 
 
 253. Effective since 25 September 2001, the Develo pment Assistance Fund - which had been 
established in 1999 to assist in the implementation of important economic projects and the 
development of disadvantaged areas - was admi nistering an export cr edit programme, covering 
short-term loans and guarantees, medi um and long term investment loan s, post-investment  interest rate 
support and investment credit guar antees.  Viet Nam had granted short-term export support loans 
amounting to 140 billion dong in 2001 and 3,006 billion dong in 2002.  He provided statistics on lending 
through the Development Assistance Fund for the years 2003 and 2004 in Annex 1 to document 
WT/ACC/VNM/39. 
254. He added that Viet Nam granted a five year  tariff exemption on the importation of production 
raw materials to foreign invest ed enterprises exporting at least 80 per cent of their products 
(see paragraph 303), or 50 per cent in the case of ag ricultural, forestry or aqua-cultural products.  
Investment in such projects were "specially en couraged" according to Decree No. 24/2000/ND-CP.  
In addition, preferential rates of corporate income ta x (10, 15 or 20 per cent against the standard rate 
of 28 per cent) and tax reductions or exemptions of up to 9 years, could be granted to foreign-invested 
enterprises depending on their export ratio or area of investment.  The incentives applicable and their 
duration were specified in the investment licence.  Foreign invested enterprises were also allowed to 
purchase goods not produced by themselves in the dom estic market to be processed for export or 
exported without processing (except products liste d as prohibited to trade for exportation, or 
conditionally exported goods).   
255. Domestic firms producing goods for export were exempted from import duties on the 
importation of equipment, machinery, and specializ ed transportation means used in the establishment 
of the enterprises' fixed assets.  Fixed assets used in  the production, processing or assembly of exported 
goods had been subject to a ccelerated deprec iation (half the normal duration).  In addition, enterprises in 
the software and mechanical indu stry benefited from duty exemption on the exportation of their 
products.   
256. Credit incentives and credit guara ntees were also granted to en terprises in export-oriented 
sectors under the development investment loan progra mme.  The subsidies provided took the form of 
preferential investment loans from the Developm ent Assistance Fund and cr edit guarantees up to 
100 per cent from financial institutio ns operating legally in Viet Nam. 
257. He added that Viet Nam operated a duty draw back regime to refund duties paid on imported 
products used in the manufacturing of goods for e xport.  In response to a Member noting that the 
volumes of products entering Viet Nam's territory under a duty drawback arrangement should not be 
considered as part of, or linked to any tariff rate quota and asking Vi et Nam to clarify the link between WT/ACC/SPEC/VNM/5/Rev.2 
Page 98  
 
 the duty drawback regime and its TRQ arrangements, the representative of Viet Nam noted that traders 
could apply for tariff rate quotas or import directly the goods to be used in the manufacture of products 
for export, in both cases bene fiting from duty drawback.   
258. Some Members noted that a number of programmes notified in Viet Nam's notification on 
industrial subsidies appeared to be  contingent upon local content or export performance.  In particular, 
the import duty reduction programme for products  and parts of two-wheel motorbike and 
mechanical-electric and electronic industries,  the export reward programme, and the support 
programme for investment projects in manufacturi ng engines of two-wheel motorbikes seemed to 
provide incentives contingent upon the use of domes tic over imported goods.  As for the investment 
incentive programme for domestic enterprises oper ating in Viet Nam, the investment incentives 
programme for foreign-owned enterprises, the pr ogramme on incentives in development investment 
loan, the support programme for the development of  the textiles and clothi ng industry, the export 
promotion programme, the trade promotion supp ort programme, the assi stance programme to 
enterprises facing difficulties due to objective reasons, and the inve stment incentives programme for 
science and technology projects, these programmes seemed to be c ontingent upon export performance 
(see document WT/ACC/VNM/13/Add.2).  Aspects of the Price Stabilization Fund which had been 
maintained in the Export Promotion Fund, i.e. surc harges assessed based on di fference between national 
and world market prices, appeared to be a price band.  The use of these funds for export promotion could be an export subsidy.  These Members asked Vi et Nam to revise these programmes and amend its 
legislation prior to accession to remove all prohibit ed elements and ensure th at investors would only be 
entitled to previously enjoyed incentives that were WTO-consistent.  Members noted, in this respect, 
that Viet Nam's draft Inve stment Law continued to in corporate export-contingent  subsidies.  Viet Nam 
was urged to revise the draft and ensure that th e new Law would conform fully to WTO rules.  A 
Member sought a commitment from Viet Nam that, from the date of accession, Viet Nam would 
refrain from issuing any new investment licenses pr oviding for prohibited subsidies.  In addition, 
noting that Viet Nam administered two separate investment incentive schem es for export-oriented 
foreign-invested and domestic enterprises, a Member observed that a unification of the schemes would be - economically, financia lly, and from a transparency point of view - preferable, and 
enquired about Viet Nam's plans to reform its system.   
259. Some Members noted that Viet Na m considered itself a low-inco me developing country eligible 
to maintain export subsidies under the Agreement on Subsidies and Countervailing Measures (SCM).  A Member expressed support for Viet Nam's incl usion under Annex VII of the Agreement on 
Subsidies and Countervailing Measures, owing to  Viet Nam's low per capita GDP (less than 
US$ 1,000).  Another Member, however, noted that Article 27.2(a) of the Agreement was specific to  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 99 
 
 
 developing countries referred to in Annex VII of the SCM, and this was not a self-nominated or 
expanding list of countries.  Moreover, the provisions of Article 27.4 of the Agreement, available to 
developing countries with a small share of world expor t trade, would not be available to Viet Nam.  
While ready to consider some flexibility as to how Viet Nam would phase out its prohibited export 
subsidies, this Member maintained that Viet Na m should have no recourse to provisions allowing the 
use of prohibited subsidies following its accession.  Moreover, as Viet Nam would be acceding to the 
WTO after the lapse of the phase-out period for expo rt subsidies by developing countries, Viet Nam 
should phase out its export subsidy schemes upon accession.   
260. In response, the representative of Viet Nam said that the export ratio requirement had been 
eliminated by Decree No. 27/2003/ND-CP of 19 March 2003 and that subsidies contingent upon 
localization ratios and the use of domestic over imported goods had been abolished by the new 
Investment Law.  He confirmed that export subsidies in the form of direct payments from the State 
budget would cease as from the date of accession.  He further confirmed that from the date of 
accession, Viet Nam would apply import duty exemp tions and drawback practices in full conformity 
with the requirements of Annexes I and II of  the Agreement on Subs idies and Countervailing 
Measures.  He added that Viet Nam's Law on Investme nt had been revised to eliminate the practice of 
granting prohibited export subsidies,  which were mainly in the form  of investment incentives, as of 
the entry into force of the Law on 1 July 2006.  In his view, the new Law provided for incentives in 
full conformity with WTO rules, in particular  Article 3 of the Agreement on Subsidies and 
Countervailing Measures, and Viet Nam's accessi on commitments.  He proposed to eliminate 
prohibited subsidies in the form of investment in centives granted under alrea dy conceded investment 
licenses within five years from the date of accession in order to respect Viet Nam's commitments with 
existing investors and stabilize the business environment, without prejudice to Viet Nam's commitment in paragraph [343] to eliminate agri cultural export subsidies.   No later than the 
expiration of the transition period, Viet Nam w ould promulgate legal doc uments terminating the 
validity of prohibited subsidies in the form of i nvestment incentives, thereby nullifying the provisions 
of investment licenses granting such subsidies wit hout prejudice to the other provisions included in 
the investment licenses.  Enterprises benefiting fro m such incentives would be notified accordingly.  
Concerning the surcharges applied under the Export  Promotion Fund, he confirmed that Viet Nam 
would bind its other duties and charges at zero upon accession in its Schedule of Concessions and 
Commitments on Goods.  As for the unification of th e investment incentive schemes, he noted that the 
Law on Corporate Income Tax, as amended, and implementing Decree No. 164/2003/ND-CP of 22 December 2003 provided a uniform basis for cor porate tax incentives applicable to export-oriented 
activities.   WT/ACC/SPEC/VNM/5/Rev.2 
Page 100  
 
 Technical barriers to trade, standards and certification 
261. The representative of Viet Nam said that a St ate administration body - the Directorate for 
Standards and Quality (STAMEQ), reporting to th e Ministry of Science and Technology - was 
responsible for advising the Government on issues related to standardiza tion, metrology and quality 
management, and representing Viet Nam in internat ional standardization fora.  STAMEQ had been 
designated as Viet Nam's central contact point for standards, technical regulations and conformity 
assessment issues, and Viet Nam's TBT Notifica tion Authority and Enquir y Point pursuant to 
Decision No. 356/2003/QD-BKHCN of 25 March 2003 of the Ministry of Science and Technology.  
He confirmed that the enquiry point would be fully operational as from the date of accession.  He 
provided information on technical barriers to tr ade in document WT/ACC/VNM/3/Add.1, Annex 5. 
262. The main tasks of STAMEQ included preparation of rules and regulations on standardization, 
metrology and quality control for approval by the co mpetent authorities; supervision and control of 
the implementation of approved rules and regulatio ns; to organize and guide activities relating to 
standardization, metrology and quality control; to formulate national standards; to perform quality 
system certification, product certification and accr editation of testing and calibration laboratories, 
quality inspection bodies and quality certification bodi es; to implement State supervision of quality 
requirements related to goods; to keep the national measurement standards; to organize and guide 
activities of verification, calibration, and certification of measuring instruments and patterns; to conduct studies on standardization, metrology and quality cont rol; to participate in international cooperation 
on standardization, metrology and quality control; and to provide information and training on these 
subjects.  Asked to clarify the respective roles of STAMEQ and the Ministry of Science and Technology, he said that unlike the Ministry of Science and Technology, STAMEQ did not have the power to issue legal documents.  STAMEQ deve loped TBT policies and submitted them to the 
Ministry or the Government for approval.  In  addition to its policy-making role, STAMEQ had a 
technical role (testing, certification, inspecti on).  Responding to concerns about the ability of 
STAMEQ to function independently and impartially as an accreditation body, the representative of Viet Nam said that the accreditation and certification services of STAMEQ were entirely separate from a financial, professional, and legal point of view.  STAMEQ's role was to ensure conformity 
with Vietnamese laws and international sta ndards and recommendations.  He added that his 
Government was considering establishing a Natio nal Accreditation Council as an effort towards 
reorganizing STAMEQ.  The Decision establishi ng the National Accreditation Council would be 
provided to the Working Party once promulgated.   WT/ACC/SPEC/VNM/5/Rev.2 
 Page 101 
 
 
 263. The legal framework for standardization, metr ology and quality control consisted of the 
Ordinance on Metrology No. 16/1999/PL-UBTVQH10 of 6 October 1999, the Ordinance on Goods 
Quality No. 18/1999/PL-UBTVQH10 of 24 Decemb er 1999, the Ordinance on Consumer Rights 
Protection No. 13/1999/PL-UBTVQH10 of 27 April 1999, the newly promulgated Ordinance on Food 
Safety and Hygiene No. 12/2003/PL-UBTVQH11 of 26 July 2003, issued by the National Assembly Standing Committee, and other rela ted regulations such as Decrees or Decisions issued by the 
Government or Prime Minister, including Decisi on No. 444/2005/QD-TTg of 26 May 2005 approving 
the scheme of implementation of the TBT Agreement,  and inter-Ministerial or Ministerial Circulars 
and/or Decisions issued by ministries or Minister s to guide the implementation of the Ordinance on 
Metrology and the Ordinance on Goods Quality.  His Government was considering developing a 
framework Law on Standardization that would cover a ll standard-related issued currently contained in 
the various legal documents, including the Ordinanc es on Measurement, Goods Quality, Food Safety 
and Hygiene, Plant Protection, Veterinary, and C onsumer Protection.  This framework Law would 
focus on issues such as the development and app lication of standards, conformity assessment 
procedures, as well as technical regulations.  He expected this Law to be passed in 2006.   
264. The main ministries involved in standardizati on and quality requirements were the Ministries 
of Science and Technology; Industry; Fisheries; Health; Trade; Agriculture and Rural Development; 
Post and Telematics; Resources and Environment; Tran sport; and Construction.  Asked to define the 
term "quality" more precisely, he said that the term should be understood in a broad sense.  The 
Ordinance on Goods Quality governed the State administration of quality through technical 
regulations with the aim to protect human health, safety, the environment and other legitimate objectives as indicated in the TBT Agreement. 
265. Viet Nam had embarked on programmes to harm onize national standards with international 
standards, particularly for electrical and electroni c products, within the frame work of ASEAN, APEC 
and ASEM.  As per December 2004, over 5,800 nati onal standards (Viet Nam standards) existed in 
Viet Nam, of which nearly 1,450 standards were fo reign regional and international standards adopted 
and translated for application in Viet Nam.  The other 4,350 standards were in part based on foreign 
regional and international standards.  Sectors with  a low level of harmonization included shipbuilding, 
aviation, garments, cosmetics, wooden articles a nd glassware, and sectors with geographical, cultural 
and custom specificities.  Because of changes in  fashion and consumers' needs, harmonization of 
garment standards focused on material s and auxiliary parts of garments. 
266. Draft technical regulations or standards were prepared by drafting committees or technical 
committees respectively (for example, for drafting Viet Nam standards 90 technical committees and WT/ACC/SPEC/VNM/5/Rev.2 
Page 102  
 
 42 sub-committees had been established to date).   These committees and sub-committees had been 
established by STAMEQ and were organized and opera ted in accordance with the guidelines of the 
International Standardization Organization (ISO).  To facilitate the collection of comments, STAMEQ 
posted at the beginning of each year an annual wo rk program on the Internet (http://www.vsc.org.vn).  
This programme was revised in th e second part of the year, genera lly during the third quarter, and 
re-posted.  The programme included information about the title of the proposed standards and 
technical regulations, the name of the technical committee in charge, and the form of adoption.  
Interested parties could request copies of draft st andards for consideration and comment.  He added 
that a schedule of development would be c onsidered and added to the programme.   
267. Concerning technical regulations, the Law on the Promulgation of Legal Documents 
stipulated that for technical regulations issued  by the Government, the Government would assign a 
drafting body to establish drafting committees.  Th e drafting committees consis ted of the relevant 
agencies and organizations, experts and scientists.  Ministries or Ministerial level bodies issuing 
technical regulations established committees or work ing groups to assist in the preparation.  These 
drafting committees or working groups were dissolv ed upon completion of the assignment.  Reviews 
of existing regulations were carried out on an an nual basis by each government agency involved.  
Draft technical regulations were - subject to thei r nature and content - submitted to the relevant 
bodies, organizations and individuals for comment.  Notices of proposed technical regulations were, for that purpose, published in the Appendix of the O fficial Gazette by decision of the competent State 
bodies (Article 5.4 of Governmental Decree No . 104/2004/ND-CP of 23 March 2004 on the Official 
Gazette of Viet Nam and Circular No. 04/2005/TT-VPCP of 21 March 2005 guiding the implementation of the Decree).  Asked whether Viet  Nam published notices of its intention to make a 
standard or elements of it mandatory to allow an opportunity for comment before it was approved, he 
said that his Government was considering publishi ng draft laws and regulations, including technical 
regulations, in the electronic Official Gazette.  He added that the issue of ensuring quality and 
integrity in the development of legal documents was provided for in the Law on the Enactment of 
Legal Normative Documents.  In response to a question, he noted that the draft Law on 
Standardization provided for a period of six m onths between adoption an d implementation of a 
technical regulation, in line with TBT rules.  He  added that a network of TBT notification bodies and 
enquiry points had been established in the con cerned Ministries and local authorities by Prime 
Minister's Decision No. 114/2005/QD-TTg of 26 May 2005.  The network would support the central TBT notification body to fulfil the obligation of notifying proposed technical regulations to WTO 
Members through the Secretariat.    WT/ACC/SPEC/VNM/5/Rev.2 
 Page 103 
 
 
 268. All standards were voluntary unless specifically indicated in the relevant regulation.  Among 
the 5,800 national standards listed in the Viet  Nam Standards Catalogue in 2004, 231 were 
mandatory.  Mandatory requirements aimed at protec ting the environment or human, animal or plant 
life or health, or at preventing deceptive practices or  national security.  Requested to provide a list of 
the mandatory requirements /technical regulations applicable in Viet Nam, he referred Members to the 
internet homepage of STAMEQ ( http://www.tcvn.gov.vn ).  Providing an example, he noted that on 
24 December 1999, the Standing Committee of th e National Assembly had adopted Ordinance 
No. 18/1999/PL-UBTVQH10 which stipulated that goo ds related to food, safety, sanitary, human 
health, environment, and other goods specified by laws and regulations, were obliged to be in 
conformity with Viet Nam's national standards.  Th e Ordinance had entered into force on 1 July 2000, 
superseding an Ordinance on Goods Quality of 27  December 1990.  The Ordinance stipulated that 
both domestic and imported goods could be subject to either quality inspection - the list of goods 
would be determined by the Government - or quality certification, to be determined by Ministers.  
Both methods were being develope d and revised on the basis of ISO Guides.  Quality certification to 
establish conformity with Viet Nam's standards was mostly carried out on a voluntary basis.  
Conformity assurance procedures were la id down in Decree No. 179/2004/ND-CP of 
21 October 2004 guiding the implementation of  the 1999 Ordinance on Goods Quality. 
269. Viet Nam was developing safety certification, formerly known as "mandatory product quality 
certification", on the basis of Systems 4 of the ei ght third-party certification systems introduced by 
ISO, notably for electrical and electronic products.  Safety certification would include type testing and 
post-certification surveillance in the market or at th e production site.  Fees for testing, verification and 
related administrative formalities had been established by the Ministry of Finance 
(Circular No. 83/2002/TT-BTC of September 2002), based on the Ordinance on Fees and Charges promulgated by the National Assembly Standi ng Committee on 28 August 2 001, and Government 
Resolution No. 57/2002/ND-CP of 3 June 2002.  Acco rding to this Circular, Vietnamese and foreign 
organizations and individuals paid State management fees and charges for the granting, testing, goods 
quality State inspection, and verification of measuring instruments, by State administrative bodies for standards, metrology and quality, or other authori zed bodies.  The fees and charges were stipulated in 
Vietnamese Dong and were based on the costs of the services rendered.  Viet Nam had issued 
Decision No. 2424/2000/QD-BKHCNMT of 12 December 2000, introducing a procedure for supplier's declaration of conformity.  The proce dure was based on ISO/IEC Guide 22 and applied to 
products with a lower level of risk to product users than those subject to the safety certification procedure.  Products covered in cluded electrical goods, foodstuffs, c onsumer chemicals, cosmetics, 
construction materials, children's toys, etc.  This  list was under review [and would be submitted to the 
Working Party once promulgated].  Imported products were also subject to this method.  He expected WT/ACC/SPEC/VNM/5/Rev.2 
Page 104  
 
 supplier's declaration of product c onformity to become the principal method of quality management in 
Viet Nam in the future.  Viet Nam had also established certification schemes of quality assurance 
systems based on ISO guidelines, Codex (GMP, HACCP) and on the systems of other countries such 
as New Zealand and Japan. 
270. The representative of Viet Nam listed im ported and exported commodities subject to 
mandatory quality inspection in 1997 in doc ument WT/ACC/VNM/3/Add.1, Appendix 5.  The 
Ordinance on Goods Quality stipulated that the Go vernment should issue a list of goods subject to 
mandatory quality inspection. The most  recent list had been published in 
Decision No. 117/2000/QD-KHCNMT of 26 January 20 00, but this list was subject to revision.  
[Once published, the revised list will be provided to  the Working Party].  Current quality inspection 
and mandatory safety certification line management  measures applied in Viet Nam are listed in 
Table 13.  He added that mandatory registration of  product quality had been abolished in early 2001.  
Inspection procedures for imported and exported go ods had been simplified by moving towards a 
system of type testing.  The requirement to insp ect each individual consignment could be waived for 
companies with a proven track record of quality.  The principle of simplified inspection procedures 
applicable to imported and expor ted goods had been approved by the Minister of Science and 
Technology in Decision No. 1091/ 1999/QD-BKHCNMT of 22 June 1999.  The detailed conditions 
under which simplified inspection procedures could be a pplied were specified in regulations issued by 
the Directorate for Standards and Quality and lin e management ministries for each type of goods.  
Complaints against decisions by the authorities responsible for conformity assessment or quality 
inspection procedures were conducted in complia nce with Viet Nam's Ordinance on Claim and 
Denouncement.  In response to a Member who e nquired why line government agencies had to be 
involved in the inspection for quality/conformity t esting of imported goods, he said that government 
agencies had set up and operated testing facilities to  support enterprises, in particular small and 
medium-sized enterprises, many of which did not have  testing facilities and were not able to test the 
quality and conformity of import products.  He noted  that these testing facilities were financially 
independent. 
271. Asked specifically about the quality inspecti on and customs procedure for imported goods 
subject to State quality inspection, he added th at the procedures were guided by Inter-Circular 
No. 37/2001/TTLT/BKHCNMT-TCHQ issued by the fo rmer Ministry of Science, Technology and 
Environment and General Department  of Customs on 28 June 2001.  The Circular stipulated that the 
owner of imported goods was legally responsible for the specified quality of imported goods subject 
to State mandatory quality inspection.  The owner re gistered for quality inspection with the inspecting 
body using the registration form provided in the Inte r-Circular No. 37 upon arrival of the goods at the  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 105 
 
 
 port of entry.  Within one working day followi ng customs clearance, the goods owner should present 
the declared goods in their original state togeth er with the cleared customs documents and other 
documents pursuant to the regulations of the in specting body.  The inspecting body was required to 
verify the registration for State quality inspection, or  issue a notification of inspection exemption, to 
the customs agency within one working day.  As  noted above, the list of imported and exported goods 
subject to State quality inspection was implemented according to the Decision 
No. 117/2000/QD-BKHCNMT of the former Minister of Science, Technology and Environment.  The 
list specified the goods subject to State quality inspection under the competence of specialized inspecting bodies of the former Ministry of Scie nce, Technology and Environment (now Science and 
Technology); the Ministries of Health; Agriculture  and Rural Development; Industry; Transportation 
and Fisheries.  He noted that goods processed  for re-exportation by Vietnamese enterprises − i.e. 
Vietnamese-owned enterprises and forei gn-invested enterprises in Viet Nam − for foreign traders 
outside Viet Nam were not subject to State quality inspection.  
272. Among the steps Viet Nam was taking to remedy deficiencies in its current standardization 
and regulatory regime, he noted that existing standard s were subject to review and revision to ensure 
consistency with international and regional standards, inspection procedures were shifting from 
consignment-by-consignment inspection to type tes ting where appropriate, Viet Nam was establishing 
product testing laboratories meeting the requirements of ISO/IEC Guide 17025, and Viet Nam had entered into multilateral mutual recognition agreem ents (APEC-MRA).  In response to a specific 
question, the representative of Viet Nam said that  Viet Nam had signed bilateral agreements with 
China, the Russian Federation an d Ukraine which included provisi ons on harmonization of national 
standards and conformity assessment procedures w ith international standards and guides, mutual 
technical cooperation, and a mechanism for mutual recognition of conformity assessment results.  He 
referred requests for the texts of Viet Nam's exis ting Mutual Recognition Agreements to the website 
of STAMEQ (http://www.tcvn.gov.vn). 
273. Asked whether and how Viet Nam accepted the results of conformity assessment procedures 
in other Members, as foreseen under Article 6.1 of the TBT Agreement, and whether Viet Nam 
recognized test data and/or certification conducted by bodies outside of Viet Nam, he said that 
Viet Nam provided many forms of acceptance of tes ting results or certification undertaken by foreign 
organizations.  In most of cases, test results and certifications undertaken by foreign organizations 
were accepted by the sellers and buyers.  For good s subject to quality inspection and certification, 
testing and certification results were accepted under,  for example, (i) bilateral and multilateral mutual 
recognition agreements to which Viet Nam and ex porting countries were parties; (ii) unilateral 
acceptance by Viet Nam of foreign laboratories or  certifying organizations; and (iii) import quality WT/ACC/SPEC/VNM/5/Rev.2 
Page 106  
 
 inspection.  Viet Nam's unilateral acceptance of foreign laboratories or certifying organizations was 
based on the criteria of the ASEAN and APEC mutual recognition agreements and guidelines.  
Testing results of foreign laboratories accredite d by foreign accreditation bodies were automatically 
accepted in Viet Nam if both Viet Nam and the fo reign country were signatories of APLAC and ILAC 
MRAs.  He confirmed that the CE mark could be recognized as a standards conformity stamp 
provided Viet Nam and the exporting country ha d signed a mutual recognition agreement on 
conformity assessment results.   
274. Some Members asked Viet Nam to confirm th at full compliance with the TBT Agreement 
would be ensured by the time of accession, and requested a detailed plan of action addressing all 
outstanding issues.  A Member was of the view  that mandatory certification was not the right 
approach.  The representative of Viet Nam submitte d an Action Plan for the Implementation of the 
WTO Agreement on Technical Barriers to Trad e in document WT/ACC/VNM/24, subsequently 
revised in documents WT/ACC/VNM/24/Rev.1 and Rev.2.   According to the revised plans, Viet Nam 
would ensure that all new technical regulations, standards, and conformity assessment procedures 
would be in full compliance with the Agreement from the date of accession.  The Ministry of Science 
and Technology developed, revised and implemente d Viet Nam's action plan in cooperation with 
other Ministries, including the Ministry of Trade.  In recent years his Government had been promoting 
a program to review legal documen ts to harmonize legal documents with WTO rules, including in the 
area of technical regulations and conformity assess ment.  The Ministry of Science and Technology 
acted as the focal point for the revision of technical regulations.  The Ministry of Justice had a central 
oversight responsibility to appraise dr aft legal documents.  He added that Viet Nam, by enhancing the 
capacity of STAMEQ to prepare standards, would accept and implement fully throughout its administration the Code of Good Practice for the Prepar ation, Adoption and Application of Standards.   
275. The representative of Viet Nam confirmed that Viet Nam would apply the Agreement on 
Technical Barriers to Trade from the date of accession  without recourse to any transition period.  The 
Working Party took note of this commitment.   
Sanitary and phytosanitary measures  
276. The representative of Viet Nam submitted an Action Plan for the implementation of the 
Agreement on the Application of Sanitary  and Phytosanitary Measures in document 
WT/ACC/VNM/11; the plan has subsequently been re vised five times.  He noted that Viet Nam was 
working on the establishment of an SPS regime b ased on international standards, guidelines and 
recommendations.  Among the main challenges facing Viet Nam were the limi ted capability of staff 
to conduct pest risk analysis, the absence of a phytosa nitary database, and the application of pest risk  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 107 
 
 
 analysis for imported commodities.  Viet Nam w as facing difficulties in performing risk assessment 
and had not yet been able to analyze disease risks in accordance with international criteria.  His 
Government was seeking international assistance to  address these issues.  In principle, Viet Nam 
applied international standards in the areas wher e Viet Nam could not conduct its own independent 
risk assessment.   
277. Government authorities responsible for food safety, plant and animal health included the 
Departments of Plant Protection and Animal Hea lth under the Ministry of Agriculture and Rural 
Development; the National Fisheries Quality Assura nce and Veterinary Directorate under the Ministry 
of Fishery; the Department of Viet Nam Food Safe ty Administration under the Ministry of Health; the 
Department of Science and Technology under the Ministry of Industry; and the Directorate for 
Standards, Measurement and Quality under the Mi nistry of Science and Technology.  Viet Nam's 
enquiry point and notification authority had been offi cially established at the Ministry of Agriculture 
and Rural Development pursuant to Prime Minister ‘s Decision No. 99/2005/QD-TTg of 9 May 2005.  
Under this Decision, concerned Ministries were  required, within their respective scope of 
responsibilities, to coordinate with the Ministry of Agriculture and Rural Development and Viet 
Nam's SPS Office to carry out the obligation of no tification and enquiry in accordance with the 
provisions of the SPS Agreement.  The Ministry of  Agriculture and Rural De velopment and relevant 
Ministries were developing regulations on the coor dination and operation of Viet Nam's National SPS 
Office and establishing SPS notifi cation and enquiry networks be tween Viet Nam' s National SPS 
Office at the Ministry of Agriculture and Rural Development and focal points at relevant Ministries.  
Viet Nam's National SPS Office would be  fully operational upon accession. 
278. Phytosanitary measures were regulated by th e Ordinance on Plant Protection and Quarantine 
on 15 February 1993, amended on 25 July 2002, the Regulation on plant quarantine, plant protection 
and pesticide management attached to Decree No . 58/2002/ND-CP of 3 June 2002, and decisions and 
circulars by the Ministry of Agriculture and Ru ral Development guiding their implementation.  
Viet Nam's phytosanitary legislation was based on the International Plant Protection Convention, as 
amended in 1997, and the disciplines of the Asia  Pacific Plant Protection Commission (APPPC).  
Viet Nam was in the process of reviewing and amen ding its subsidiary legi slation and setting up new 
phytosanitary measures to ensure consistency with  the amended Ordinance and the SPS Agreement.  
Plant pest surveillance and monitoring provisions had already been developed in the form of national 
standards including requirements for the establishmen t of pest free areas, gui delines for surveillance, 
and determination of pest status in an area.  Fu rther actions to be undertaken in 2006 included setting 
up a national pest risk analysis procedure, am ending the Plant Quarantine Regulation and further 
developing national standards on the basis of international standards. WT/ACC/SPEC/VNM/5/Rev.2 
Page 108  
 
 279. The principal legal framework for inspection of animals was the Veterinary Ordinance 
enacted on 15 February 1993; Decree No. 93/CP of 27 November 1993 for implementation of the 
Ordinance; Regulations on animal protection and inspection attached to Decree No. 93/CP; the 
Regulation on Quarantine Slaughter control and vete rinary hygiene inspection of animals and animal-
related products; and Decisions Nos. 389 NN-TY/Q D and 607 NN-TY/QD providing details of the 
Ordinance.  He added that a revised Veterinary Ordinance had been adopted on 29 April 2004.  The 
Ordinance had entered into force on 1 October 2004 and the Decree guiding the implementation of the 
Ordinance had been promulgated on 25 March 2 005 (Decree No. 33/2005/ND-CP).  Provisions on 
quarantine of animals and products of animal orig in were provided for in Articles 29 to 37 of the 
Decree.  He added that Decree No. 129/2005/ND-CP  on Administrative Infringement in Veterinary 
Services, Decisions Nos. 45/2005/QD- BNN, 46/2005/QD-BNN, 47/2005/QD-BNN and 
48/2005/QD-BNN, and Decree No. 129/2005/ND-CP on Administrative Infringement in Veterinary 
Services provided a detailed legislative framework for veterinary hygiene and food safety inspection 
procedures for veterinary drugs and vaccines.  Fees  charged for veterinary services, including the cost 
for additional quarantine, testing and/or d estruction of animals, were regulated by 
Decision No. 08/2005/QD-BTC.  He added that Viet Nam was revising its food safety inspection 
procedures for fishery products and developing ap proval and veterinary hygiene and food safety 
inspection procedures for fishery pr oducts (see paragraph [353]) and that regulations on treatment of 
infested animals and animal products we re expected to be issued in 2006. 
280. As for food safety, a new Ordinance on Food Safety and Hygiene had been promulgated in 
November 2003, along with Decree No. 163/2004/ND-CP in September 2004 guiding the implementation of the Ordinance.  The Ordinan ce addressed various issues including hygiene and 
food safety in the production, importation, and exportation of food and foodstuff.  The Ministry of Health was responsible for State control of food safety.   
281. Viet Nam was a Member of Codex, FAO and IO E and had become a contracting member of 
the International Plant Protection Convention (IP PC) in February 2005.  Viet Nam's national 
standards were based on those provided by Codex, IPPC, OIE and FAO/WHO.  In his view, Viet Nam's veterinary standards and inspection measures were consistent  with regulations of 
international organizations such as CODEX, OIE, and ASEAN.  As of November 2004, 50 per cent of 
Viet Nam's national standards (TCVN) relating to food and foodstuffs conformed to ISO, CODEX, 
international or regional standards.   He added that Viet Nam was planning to adjust its remaining 
standards to international and regional standards, with due regard to the conditions prevailing in 
Viet Nam.  He noted that a framework Law on Standardization providi ng detailed guidelines for 
adopting standards, guidelines or recommendations set  out by international organizations, including  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 109 
 
 
 those in the SPS area, was being prep ared.  The Law was expected to be  adopted in the first half of 
2006.  In the meantime, Viet Nam would make its  best efforts to apply SPS measures based on 
standards, guidance and recommendations of international organizations.   
282. He further noted that Viet Nam was partic ipating actively in the regional standard 
harmonization arrangements such as ASEAN, APEC  and ASEM and was developing standards 
harmonized with international standards.  In r esponse to questions about the ASEAN harmonization 
framework, he said that ASEAN members were  developing a harmonization framework for 
phytosanitary procedures comprising 10 agricultural products at the outset and applicable to ASEAN 
members only.  Work on a phytosanitary certificati on management system had been completed.  So 
far, ASEAN countries had concentrated mainly on exchanging legal normative documents, results of 
scientific studies relating to the phytosanitary area, and developed a pest list on some major crops for 
conducting risk assessment.  He confirmed that  the ASEAN harmonization framework was in line 
with the rules of the WTO SPS Agreement.   
283. Viet Nam applied line management measures to imports of some animal and plant products 
(see Table 13).  These measures, which took the form of testing certificates, aimed at protecting 
animal health and plant life.  He confirmed that Viet Nam's line management measures were based on 
international standards − Viet Nam's import requirements for animals and animal products, 
in particular, were based on the International Animal Health Code − and that the possible 
harmful character of a product was assesse d on the basis of scientific evidence.  
Unsuitable import requirements, if any, would be  revised to meet OIE standards.  A Joint 
Circular guiding the examination a nd supervision of expor ts and imports of animals, plants, and 
fishery products subject to inspection had been adopted on 14 March 2004 (Circular No. 17/2003/TTLT-BTC-BNN&PTNT-BTS) to  simplify the examination and supervision 
procedures applied to imports.  Animals and animal products subject to quarantine were stipulated in 
Decision No. 45/2005/QD-BNN.  Aquatic animal hea lth inspection procedures for import, export and 
in-country movements were also being revised to br ing them in line with the Veterinary Ordinance 
and OIE regulations and standards.  He added that no qualified inspection system had been 
established at border gates, but Viet Nam was maki ng efforts to enhance the capacity of staff and 
equipment to develop reasonable procedures for insp ection, supervision and approval.  Information 
about Viet Nam's veterinary hygiene and food saf ety inspection procedures and inspection procedures 
for veterinary drugs and vaccines was available on www.mard.gov/dah. 
284. Asked specifically about Viet Nam's current SPS requirements for the importation of meat 
and poultry, live plants, horticultural products and grain , as well as  technical requirements for the WT/ACC/SPEC/VNM/5/Rev.2 
Page 110  
 
 certification, labelling, and packaging of food prod ucts, the representative of Viet Nam said that 
Viet Nam's requirements for imported meat were generally based on the Recommendations of the 
OIE, the regulations of CODEX, and agreements be tween Viet Nam and exporting countries.  Poultry 
meat importers were required to obtain a sanitary  certificate issued by the National Veterinary 
Authority of the exporting country, certifying that (i) the exporting country was free from Avian influenza, (ii) the meat originat ed from healthy poultry slaughtered in disease free zones, (iii) the 
poultry had been examined ante-mortem and post- mortem and found free from clinical signs of 
animal infectious disease, and (iv) met all veterinary hygiene standards and were free from harmful micro-organisms.  He confirmed that the ante-m ortem and post-mortem ex aminations were also 
applicable in Viet Nam and that meat requirements were generally based on OIE standards.  In the remaining cases, Viet Nam's standards were not stri cter than internationally established standards.  
Plants imported for consumption, including grains , were required to be free from plant quarantine 
pests of Viet Nam and be accompanied by a Phytosan itary Certificate of the exporting country.  Live 
plants imported for propagation or planting should have a quarantine permit issued by the competent 
Vietnamese authority, a Phytosanitary Certificat e of the exporting country, and be free from plant 
quarantine pests.  As for technical requirements for the certification of food products, Viet Nam 
applied certification procedures based on national and international standards,  and certified the quality 
management system based on ISO 9000, Good Manuf acturing Practices (GMP) and Hazard Analysis 
and Critical Control Point (HACCP) for food prod ucing units.  Labelling and packaging of food 
products was regulated according to the Prime Minister's Decision No. 178/1999/QD-TTg of 30 August 1999, Circular No. 34/1999/TT-BTM of 15 December 1999 guiding the implementation of 
the Decision, and Circular No. 15/2000/TT-BYT of 30 June 2000. 
285. A Member expressed concerns about Viet Nam's poultry entrance requirements, which 
imposed burdensome obligations on foreign suppliers, and asked Viet Nam to bring its import 
requirements for poultry into conformity with th e provisions on national treatment, harmonization, 
regionalization and burdensome en try requirements of the SPS Agreement.  In response, the 
representative of Viet Nam said that veterinary  hygiene requirements for poultry entrance and 
procedures for veterinary drug and vaccine inspectio n were stipulated in Articles 38 to 41 and 52 to 
62 of Decree No. 33/2005/ND-CP and published in Eng lish on the website of the Veterinary Agency 
(www.mard.gov.vn/dah).  Under this Decree, animals intended for slaughter or preliminary 
processing were required to satisfy veterinary hygi ene standards and to have been quarantined and 
certified by the competent professional State veterinary agency.  Slaughter or preliminary processing had to take place at premises for slaughter and processi ng.  Products of animal origin were inspected 
by the competent authority prior to, during, and after slaughter or preliminary processing.  He noted 
that these requirements applied to both domestic and imported poultry.  He added that Viet Nam was  WT/ACC/SPEC/VNM/5/Rev.2 
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 reviewing, amending and supplemen ting its poultry entrance measures to ensure conformity with the 
SPS Agreement. 
286. Asked to clarify why the Veterinary Ordinance r estricted the entry of products to no more 
than two-thirds of their expiration date, the represen tative of Viet Nam noted that this measure applied 
only to raw materials and food additives, not to the final food product to be used in the production of 
food products.  The measure had been put in place to avoid the importation of raw materials and food 
additives close to expiration and thereby limit the risk  that expired material and food additives be used 
in the production of food products as had been revealed  by some on-site inspections.  In response to a 
Member who questioned the rationale of requiring that all pre-packaged food contain shelf-life 
requirements in addition to expiration date inform ation, he added that under Article 35 of the 
Ordinance on Food Hygiene and Safety, food labels had to indicate either the manufacture date, the 
expiration date or the shelf-life, not all three. 
287. The representative of Viet Nam further noted th at the recognition of different measures from 
other countries to ensure an equivalent level of protection was difficult as developed countries applied 
higher and stricter measures of hygiene, and plant an d animal quarantine than Viet Nam could afford.  
Asked to describe the process in pl ace to enable the recognition of measures, he said that Viet Nam 
required other countries to announce a complete list of SPS measures, including an indication of what 
these measures were based upon, to allow the Viet namese authorities to evaluate the measures.  
On-site investigations were conducte d in the countries if necessary to check the implementation of the 
measures.  Viet Nam had signed a number of bila teral agreements on food hygiene and safety, and 
sanitary and phytosanitary measures with other coun tries.  As per November 2005, Viet Nam had 
agreements and Memoranda of unde rstanding on plant protection a nd quarantine co-operation with 
11 countries and agreements and Me moranda of understanding on anim al health and quarantine with 
13 countries.  SPS Agreements and Memoranda of understanding had also b een signed with Canada, 
China, the Republic of Korea, and Thailand, as well as a Mutual Recognition Agreement on fishery 
with the EC.  Viet Nam expected to sign an ag reement on mutual recognition regarding processed 
food with ASEAN countries and bilateral agreemen ts on food safety with Lao PDR and Cambodia in 
2006.  He added that Viet Nam intended to develop more concrete equivalent  recognition procedures 
for SPS measures.  His Government was seeking technical assistance to address this issue. 
288. Due to lack of technical capacity and knowle dge of risk assessment techniques, Viet Nam 
also faced difficulties in conducting risk assessment .  Viet Nam was, however, gradually enhancing 
risk assessment techniques and pr ocedures in cooperation with inte rnational organizations and WTO 
Members.  A work plan on risk assessment had been developed to train staff in risk assessment; equip WT/ACC/SPEC/VNM/5/Rev.2 
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 computers of the animal quarantine and inspec tion divisions, the veterinary centres, and the 
quarantine stations at major border gates; purchase risk assessment software; set up a database for risk 
assessment; and establish a risk assessment unit in  the Animal Health Department.  In the 
implementation of this programme, Viet Nam had set  up a national pest analysis group composed of 
14 staff from the Plant Protection Department, develope d a Vietnamese standard on pest risk analysis 
in line with international standard No. 2, and co llected guideline documents and pest risk analysis 
reports from different WTO Members and websites as reference and information input for pest risk 
analysis in Viet Nam.  A programme had been laun ched to set up a datab ase on plant health control 
for pest risk analysis purposes, which listed the pests for each plant in acco rdance with international 
standards.  In addition, Viet Nam had starte d conducting pest risk assessment on a number of 
imported plants, had established a ne twork of specialists in plant protection to support plant risk 
analysis, and collaborated with institutes and univer sities to conduct surveys and collect information 
about plant pests.  However, further technical assist ance was needed to train staff, provide equipment, 
set up databases, and establish guidelines for risk assess ment procedures.  He expected Viet Nam to 
be in conformity with Articles 2.2, 5.1,  5.2 and 5.3 of the SPS Agreement upon accession. 
289. Some Members requested Viet Nam to detail how it would act when international standards 
did not exist or the level of protection of an international standard did not meet Viet Nam's 
appropriate level of protection, as the Agreement stip ulated that Viet Nam would need to undertake a 
risk analysis to validate each measure (Article 5.1) , or determine that insu fficient scientific evidence 
would only justify the application of a provisional me asure (Article 5.7).  Vi et Nam was invited to 
develop a process for approving scientifically justifie d measures stricter than international norms.  A 
Member noted that WTO provisions did not require WTO Members to conduct their own risk assessment; when technically viable, they c ould use those conducted by other Members or 
international organizations.  Viet Nam was asked to revise its Action Plan to include Article 5.7 
considerations.   
290. The representative of Viet Nam replied that  Viet Nam's SPS standards were based on 
CODEX and FAO/WHO standards, but had a generally lower level of pr otection in order to adapt to 
the production conditions in Viet Nam.  Should C ODEX and FAO/WHO standards not be available, 
Viet Nam would adopt the standards of regional or developed countries, or as a last resort, national 
standards would be applied to the extent that these were consistent with the SPS Agreement.  In the 
event of non-existent or insufficient international standards, Viet Nam would undertake its own risk 
assessment to meet its appropriate level of protectio n or consult the regulations of WTO Members, in 
particular those having trade relations with Viet Nam, and seek technical assistance to develop 
appropriate measures in accordance with Paragraphs 1 and 7 of Article 5 of the SPS Agreement.    WT/ACC/SPEC/VNM/5/Rev.2 
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 291. He confirmed that Viet Nam took into account regional conditions in its  application of SPS 
measures, as required by Article 6 of the SPS Agreement, and applied SPS measures in a 
non-discriminatory manner. 
292. A Member expressed reservations about Viet Nam' s current legislation on veterinary drugs, in 
particular the requirement that new drugs put forwar d for circulation in Viet Nam be re-trialed in 
Viet Nam, which generated additional costs and duplicated the trials already preformed by the 
producer, and the fact that the quality of a drug be  reviewed in case of complaints and denunciations, 
which could lead to abuse for non-health and saf ety reasons.  In response, the representative of 
Viet Nam said that the Ministry of Agriculture and Rural Development was developing a Protocol on 
drug registration for circulation in Viet Nam, which would specify the types of drugs subject to re-trial.  The Protocol was expected to be prom ulgated soon.  Concerning the requirement for quality 
review in case of complaints and denunciations, he noted that the assessment would be based on 
inspection or testing results by the veterinary drug control agencies upon request of the government management body.   
293. A Member requested Viet Nam to establish a law or guidance requiring the publication of 
proposed SPS measures and a reasonable timeframe for comments from Members.  This Member was 
concerned that the solicitation of comments might not be an open and transparent process.  This 
Member noted, in particular, that in many cases the degree of specificity predetermined in which journal the measure was announced, the drafting Mini stry decided who should review a particular 
regulation, and the regulation was published essentia lly to announce its adoption.  This Member 
sought assurances that these practices would be amended, that draft SPS measures would be 
announced publicly, that 60 days would be provided for public comment, that there would be a final 
review process to incorporate comments, and that th e proposed date of adoption and future date of 
enforcement would be clearly announced.   
294. In response, the representative of Viet Nam sa id that comments on draft regulations were 
solicited from all parties at an early stage of the pr ocess.  Pursuant to Article 3 of the new Law on the 
Enactment of Legal Normative Documents, as revi sed in 2002, all draft legal normative documents 
were open for comment.  Accordingly, when draftin g legal documents and regul ations related to TBT 
and SPS; drafting agencies were required to seek comments from all relevant bodies, organizations 
and individuals.  He added that pursuant to Prime Minister's Decision No. 99/2005/QD-TTg of 9 May 2005, the Ministry of Agriculture and Ru ral Development was preparing a "Regulation on 
Coordination and Operation between Viet Nam's National SPS Notification and Enquiry Point Office 
and the Focal Point Network at the Concerned Ministries", which would provide for a suitable WT/ACC/SPEC/VNM/5/Rev.2 
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 timeframe for public comment on draft SPS standard s and regulations of no less than 60 days, in 
conformity with the SPS Agreement.  He confir med that draft SPS measures and proposed actions 
related to SPS were posted on the enquiry point's we bsite.  The website could be accessed by both the 
public and private sector.  He further noted that a ll legal documents, including  those related to SPS 
issues, were published in the Official Gazette and entered into force minimum 15 days thereafter in 
accordance with the amended Law on the Enactment of Legal Documents.  At present, SPS-related 
legal documents were accessible at two websites (http://www.mard.gov.vn/dah and 
www.ppd.gov.vn).  The website of Viet Nam's Nati onal SPS Notification and Enquiry Point Office 
would be established after Viet Nam's accession.  The functions and tasks of concerned ministries in implementing SPS notification obligations were stipulated in Article 4 of 
Decision No. 99/2005/QD-TTg. 
295. A Member also noted that Viet Nam's legislati on did not seem to include provisions as to how 
an OIE-reportable disease or IPPC-monitored pest would be reported to international standards 
bodies, border authorities, trade partners or the suppl ying country.  This Member invited Viet Nam to 
establish clear communication channels.  In response,  the representative of Viet Nam said that the 
possible presence of a reportable disease would be post ed on the website of the Department of Animal 
Health (www.mard.gov.vn/dah) and sent to the OI E in accordance with OIE's regulations.  Such 
information would also be sent to other stakehol ders as agreed in bilateral agreements or upon 
request. 
296. In response to a Member who was concerned that Viet Nam required compulsory food 
labelling for all genetically modifi ed products, he noted that this was a relatively new subject in 
Viet Nam and that no national standards for GMO products had been developed yet.  Viet Nam's 
capacity to assess the impact of GMO products wa s still limited.  Labelling of GMO products was 
subject to the same regulations as other pr oducts, i.e. Decision No. 178/1999/QD-TTg of 
30 August 1999 on the importation, exportation and dom estic circulation of goods, Decision of the 
Ministry of Health No. 4196/QD-BYT of 31 August 2000, and Circular No. 15/2000/TT-BYT of 30 June 2000 providing guidelin es for the labelling of foodstuff.  Thus, the circulation of GMO 
products in the Vietnamese market was permitted.   Labelling only aimed at providing general 
information to the consumers.  A Member reminde d Viet Nam that any standards relating to GMOs 
would have to be in conformity with WTO rules and jurisprudence in this area. 
297. Some Members noted that Viet Nam appear ed to be taking appropriate account of 
international standards, guidelines and recommenda tions in establishing its SPS regime, and would 
welcome a commitment from Viet Nam to implemen t the SPS Agreement from the date of accession  WT/ACC/SPEC/VNM/5/Rev.2 
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 without recourse to any transition period.  A Member  called on Viet Nam to ensure that the enquiry 
point would provide prompt responses to specific e nquiries and that an open and flexible system of 
inter-agency consultation w ould be put in place; to establish a transparent process for the development 
of SPS measures, including the publication of draft measures and proposed actions in an official 
journal for a reasonable time period to allow comments and their timely notification to the WTO Secretariat; and to set up a transparent scien ce-based process for the assessment of risks.   
298. While Viet Nam had initially indicated that  it lacked human resources and technical 
equipment and facilities to implement fully its ob ligations under the SPS Agreement and would need 
a transition period, the representative of Viet Nam subsequently confirmed that Viet Nam would comply with the requirements to the SPS Ag reement upon accession without recourse to any 
transitional arrangements.  He noted, however, that Vi et Nam would need technical assistance to meet 
its obligations fully.  In particular, he hoped that co ncrete technical assistance would be delivered to 
train staff and help build up notification procedures and an SPS official journal, and that technical 
equipment and expertise (in particular for disease risk analysis, assessment, inspection, control, and 
approval procedures) would be prov ided to develop Viet Nam's labo ratories, information systems and 
control procedures.   
299. [The representative of Viet Nam confirmed that Viet Nam would [amend its laws and rescind 
any existing SPS measures that did not comply wi th the SPS Agreement requirements prior to its 
accession] [apply the Agreement on the Application of  Sanitary and Phytosanitary Measures from the 
date of accession without recourse to any transition period].  He further confirmed that SPS measures 
applied under the purview of line management would be subject to all relevant disciplines of the SPS 
Agreement.  The Working Party took  note of these commitments.]   
Trade-Related Investment Measures (TRIMs)  
300. Noting that Viet Nam appeared to apply local  content requirements and that the transition 
period for developing country Members for such requirements expired at the end of 2000, some 
Members requested a detailed action plan from Viet  Nam, identifying current measures inconsistent 
with the Agreement on Trade-Related Investment Measures (TRIMs) and specifying a timetable for 
their elimination.  A Member reminded Viet Nam th at the solution envisaged for automobile assembly 
factories, i.e. voluntary registration of local conten t, would not solve the problem of consistency with 
the TRIMs Agreement.  Conditions attached to ta x concessions to foreign enterprises investing in 
export processing zones and industrial zones also a ppeared to be inconsistent with the TRIMs 
Agreement.  Furthermore, Viet Nam was asked to  abolish the regulations restricting the maximum 
level of motorcycle production for foreign-invested  enterprises.  Several Members noted that most WT/ACC/SPEC/VNM/5/Rev.2 
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 TRIMs measures had been introduced after Viet Na m's application to join the WTO, and reminded 
Viet Nam that acceding governments were expected not to implement new restrictive measures.  In 
the view of some Members, Viet Nam should comp ly fully with the TRIMs Agreement from the date 
of accession to the WTO without invoking a transition period.  Viet Nam was also asked to commit, 
from the date of accession, not to relate tariff quota a llocations to the levels of production or export of 
particular enterprises that processed the tariff quot a product concerned as such measures were illegal 
TRIMs under paragraph 2(a) of the Annex to the TRIMs Agreement. 
301. The representative of Viet Nam replied that follo wing its application to the WTO, Viet Nam 
had amended its legislation to ma ke it increasingly compliant with WT O provisions on TRIMs.  He 
noted that, in 2000, the Law on Amendment and Supplement to some Articles of the Law on Foreign Investment had removed the requirement on foreig n exchange self-balancing and the obligation for 
foreign-invested enterprises to give priority to the purchase of domestic products.  Viet Nam had  no 
intention to reintroduce self-balancing requirements.   
302. He nevertheless acknowledged that Viet Nam's legislation on foreign investment included 
measures inconsistent with the TRIMs Agreemen t, for example local content requirements for 
automobile and motorcycle manufacturing projects.   Viet Nam provided sample notifications of 
existing TRIMs measures in document WT/ACC/VNM/19 and its Revision 1.  Manufacturing of automobile spare parts and accessories in Viet Nam was a condition for obtaining investment licences 
to assemble and manufacture automobiles.  The value of locally manufactured spare parts and 
accessories was required to reach minimum 5 per cent of the total value of the vehicle by the fifth year 
of the start-up of production, rising to at least 30 per cent by the tenth year of production.  For motorcycles, the value of components and spare part s manufactured in Viet Nam by a licensed project 
was required to account for 5-10 per cent of the comp lete motorcycle value from the second year of 
production.  The ratio was required to increase gr adually and steadily until reaching a target of 
minimum 60 per cent of the complete motorcycle value during the fifth or sixth year of manufacture.  
Viet Nam did not issue investment licences for projects  to assemble motorcycles in simple CKD form.  
Assembly projects in mechanical engineering,  and electric and electronic products were only 
approved in IKD form.  The value of components and spare parts manufactured in Viet Nam during 
the first two years should account for at least 20 per cent of the value of the finished products, and the 
ratio should increase steadily in subsequent years.  Investment projects for the manufacture of spare 
parts used in mechanical engineering, electric and electronics industries (except the motor vehicle 
industry) were granted preferential import duty rates c ontingent upon localization rates with respect to 
semi-finished products, accessories, parts and materials used in the production of such spare parts.  
Viet Nam had issued Inter-Ministerial Circular No. 176/1998/TTLT-BTC-BCN-TCHQ of  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 117 
 
 
 25 December 1998, and its amendment of 25 December 2000, providing guidelines on the 
implementation of Viet Nam's tariff policy cont ingent upon the localization ratio for products and 
components of mechanical, electrical and electronic industries.  These documents had come into 
effect in January 2001.  Viet Nam's export require ments and/or tax concessions applied to enterprises 
investing in industrial zones or export processing zon es were, in his view, not contrary to the TRIMs 
Agreement, because this type of measures had not b een included in the illustrative list contained in the 
Annex to this Agreement.  As for regulations  concerning the maximum level of motorcycle 
production, he noted that this restriction had been applied in parallel with the quantitative restriction 
on imported motorcycles and had been eliminat ed when the latter had been removed.   
303. He added that Decision No. 229/1998/QD-BKH of  29 April 1998 of the Minister of Planning 
and Investment on industrial products subject to export requirements applied only to projects licensed 
after the Decision had entered into force.  The 80 per cent export ratio was otherwise accepted by 
investors on a voluntary basis.  The sectors subject to this requirement are listed in Table 19.  This list 
had however been updated in light of Decision No. 718/BKH-QD issued on 7 December 2001 by the 
Minister of Planning and Investment.  The number of products subject to export requirements had 
been reduced to 14. 
Table 19:  Industrial Products Subject to Requirement to Export 80 per cent of Output  
No. Description of goods 
1. Motorcycles 
2. Minibuses, trucks of less than 10 ton tonnage 
3. Irrigating pumps of capacity less than 30,000 m3/h, pumps used for everyday lives of capacity less 
than 540 m3/h  
4. Medium and low voltage elect ric transmission cables 
5. Normal transmission cables 
6. Cargo ships of tonnage less than 30,000 tons, fishing ships of less than 1,000 CV, water boats, 
canoes, barges (this is applicable to 100 per cent foreign invested projects) 
7. Audio-visual products 
8. Aluminium profiles products 
9. Construction glasses in large use ( ∅ < 40 mm) 
10. NPK fertilizers 
11. PVC 
12. Bicycles and bicycle parts  
13. Transformers under 35 KV 
14. Diesel motors under 15 CV 
Note:   The list is attached to Decision No. 718/2001/QD-BKH of 7 December 2001 
304. A Member noted that the export requirement for some products, although deleted according 
to the new list, appeared not to have been eliminat ed in practice.  In some cases, foreign-invested 
enterprises appeared to have been requested also to maintain the same export sales ratio for products 
not included in the list (such as pork).   WT/ACC/SPEC/VNM/5/Rev.2 
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 305. The representative of Viet Nam submitted an action plan for the implementation of the 
TRIMs Agreement in document WT/ACC/VNM/18, and a revised action plan in document 
WT/ACC/VNM/18/Rev.1.  He stated that, in accordan ce with the revised action plan, the import duty 
preferences contingent on localization ratio w ith respect to enterprises producing and assembling 
motorcycles specified in the Inter-Ministry Circular No. 176/1998
/TTLT-BTC-BCN-TCHQ had 
been eliminated in 2003.  Furthermore, upon accession to the WTO Viet Nam would eliminate 
the localization requirements and import duty pr eferences contingent upon localization ratios for 
enterprises producing automobile parts, electronic and mechanical products specified  in the 
Inter-Ministry Circular No. 176/1998/TTLT-BTC-BCN -TCHQ; amend the list of sectors subject 
to conditional investment licensing (attached to Decree No. 24/2000/ND-CP) to eliminate the criteria requiring 
development of raw material sources for vegetable oils, sugar cane, and wood; 
eliminate the localization requirement in practi ce for investment licences applicable to projects 
producing or assembling automobiles and motorcycles;  and remove the export ratio requirement by 
abolishing Decision No. 718/2001/QD-BKH of 7 December 2001.   
306. Some Members encouraged Viet Nam not to enforce contracts imposing requirements 
inconsistent with the TRIMs Agreement, assuming that the Government of Viet Nam would also 
eliminate any such requirements accepted on a voluntary basis.  Viet Nam was invited to confirm that 
any export requirement listed in an investment licen ce, whether issued by the central government or a 
local authority, would be eliminated at the same time. 
307. The representative of Viet Nam replied that fo reign invested enterprises were free to choose 
their own markets for products other than those listed in Decision No. 718/BKH-QD of 7 December 2001.  Immediately upon accession, Viet Nam would remove the mandatory export 
requirement stipulated in current legal documents  as well as in investment licences issued by central 
or local authorities, and Viet Nam's competen t authorities would not apply any mandatory or 
voluntary export regulation for enterprises manufact uring the products listed in Table 19.  He 
confirmed that Viet Nam would implement fully the provisions of the TRIMs Agreement from the 
date of accession.   
308. The representative of Viet Nam confirmed that Viet Nam would comply fully with the TRIMs 
Agreement upon its accession to the WTO.  The Wo rking Party took note of this commitment. 
Free zones, special economic areas  
309. The representative of Viet Nam said that Viet  Nam had established 124 industrial or export 
processing zones as of the end of July 2005 (see Table 20).  Industrial zones were established by  WT/ACC/SPEC/VNM/5/Rev.2 
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 Government Decision or Decision of the Prime Mi nister.  The establishment and operation of export 
processing enterprises were governed by the Regul ations on Industrial Zones, Export Processing 
Zones, and High Tech Parks enacted by Decree No. 36/ND-CP.   
310. By the end of 2004, export processing zones and industrial zones had attracted 
3,612 investment projects, of which 1,773 were foreign investment projects and 1,839 domestic investment projects amounting to US$ 15.06 billion and VND 109,000 billion respectively.  
92 per cent of these projects were from private i nvestment sources and 8 pe r cent from State-owned 
enterprises.  Enterprises located in the zones included enterprises producing electric and electronic 
components, footwear, handbags, textiles and clothing,  animal feeds, metal components, medicines, 
and food and beverages.   Data on output and exports of enterp rises located in industrial and export 
processing zones were not available.  He added that  Viet Nam was trying to limit the establishment of 
new zones to zones for regional development and hunger and poverty eradication in socio-economic 
disadvantaged areas. 
311. Procedures for locating in the zones were the sa me as for foreign-invested projects.  He 
confirmed that requirements for establishment in such zones were not contingent upon export 
performance or the use of domestic inputs.  Gove rnment agencies responsible for regulating the 
operations of industrial and export processing zones included the Ministry of Planning and Investment, the Ministry of Industry, the Ministry of Construction, the Ministry of Science and Technology, the Ministry of Trade and the Minist ry of Home Affairs, in accordance with their 
functions, competences, and mandates.  In additi on, Management Boards of industrial zones and 
export processing zones could be authorized to im plement certain administrative functions.  The 
Ministry of Planning and Investment had author ized provincial management boards of industrial 
zones, high-tech zones and economic zones to gr ant, amend, and withdraw foreign investment 
licenses for projects inferior to US$ 40 million, and the Ministry of Trade and Ministry of Labour, 
War Invalids and Social Affairs had authorized the management boards of  industrial and export 
processing zones to implement certain administra tive functions under their management.  The 
Ministry of Planning and Investment would be  primarily responsible for ensuring the WTO 
compliance of the operations of industrial and export processing zones. 
312. Most incentives granted to ente rprises located in industrial and export processing zones took 
the form of exemptions and reductions of corpor ate income tax (see programmes III and IV in 
document WT/ACC/VNM/13/Add.2).  Incentives were awarded to domestic and foreign investors 
without discrimination.  Corporate income ta x incentives contingent upon export performance had 
been abolished.  Enterprises in export processing zones were exempt from import and export duties WT/ACC/SPEC/VNM/5/Rev.2 
Page 120  
 
 for goods imported from or exported to  foreign countries.  They were allowed to sell their products in 
the domestic market upon approval by the Ministry of Trade.  However, all such sales were subject to 
the same tariff treatment and customs procedures app licable to imported goods.  Enterprises located in 
industrial zones could import duty free equipment, machinery and specialized means of transport 
(including spare parts and accessories) for the initial establishment, expansion or rehabilitation of the 
project.  Materials and parts used in the producti on of exports were subject to import duty, which 
would subsequently be refunded in proportion to th e amount of exported produc ts.  He confirmed that 
regulations on import duty exemption were consiste nt with Annexes II and III of the Agreement on 
Subsidies and Countervailing Measures.  
313. Asked whether incentives in industrial zones a nd export processing zones were tied to export 
performance, the representative of Viet Nam said th at enterprises in industrial zones which exported 
less than 50 per cent of their output were subject to 15 per cent profit tax and corporate income tax 
exemption for two years after the first profit-making year.  An additional reduction of 50 per cent in payable corporate income tax was granted for the two consecutive years for enterprises exporting 
50 to 80 per cent of their output.  Enterprises exporting 80 per cent or more of their output were 
subject to 10 per cent corporate income tax as we ll as the two-year corporate income tax exemption 
and the 50 per cent reduction in payable corporate income tax for the third and fourth year after the first profit-making year.  Enterprises engaged in in frastructure development in the export processing 
zones were subject to 10 per cent corporate income tax, exemption from corporate income tax for four 
years after the first profit-making year, and a reducti on of 50 per cent in payable corporate income tax 
during the following four years.  The 10 per cent profit tax also applied to enterprises meeting at least two among four stipulated conditions, i.e. being a service enterprise, assigning assets to the State of Viet Nam without compensation upon expiry of opera tions, investing in regions with specially harsh 
socio-economic conditions, or investing in "specia lly encouraged" projects enumerated in Decree 
No. 24/2000/ND-CP of 31 July 2000.  He added that the type of investment incentives granted to 
enterprises in export processing zones, industrial z ones and other special economic areas, and their 
duration were specified in the investment licenses. 
314. Some Members stated that Viet Nam was using prohibited subsidies as incentives to locate in 
its export processing zones, as the benefits were tied  to a specific level of exportation from the zone.  
These Members requested Viet Nam to abolish a ll prohibited subsidies upon accession.  Viet Nam 
was also asked to ensure that its legislation made th e sales inside the rest of Viet Nam subject to the 
exempted taxes and tariffs.  A Member requested confirmation from Viet Nam that the preferential 
treatment for investments in high-tech parks, i ndustrial zones and export processing zones would not 
be granted in a manner inconsistent with the Agreement on Subsidies and Countervailing Measures.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 121 
 
 
 315. In reply, the representative of Viet Nam said that the preferential treatment provided by the 
Regulations on industrial zones, export processi ng zones and high-tech parks were measures 
commonly applied by other countries to attract fore ign direct investment.  The preferential measures 
applied to industrial zones, expor t processing zones and high-tech parks had been described in the 
Notification pursuant to Article XVI:I of th e GATT 1994 and Article 25 of the Agreement on 
Subsidies and Countervailing Measures in document WT/ACC/VNM/13/Add.2.   
316. The representative of Viet Nam confirmed that from the date of accession the Government of 
Viet Nam would ensure enforcement of its WT O obligations in its export processing zones [and 
industrial zones and any other zones with similar incentives and objectives].  [In this regard, the 
representative of Viet Nam confirmed that, prior to accession, the Laws on foreign investment and domestic investment and related regulations would be amended to  eliminate any provisions that 
conditioned the qualification for or receipt of  tax or any other incentives on export, export 
performance or the use of locally produced goods  over imports.  The representative of Viet Nam 
confirmed that all industrial and export processing zone subsidies that fell within the meaning of 
Article 3 of the WTO Agreement on Subsidies and Countervailing Duties would be eliminated on or 
before the date of accession, and that such subs idies would not be grandfathered or reintroduced.  
Moreover, no new subsidies inconsiste nt with Article 3(a) or (b) would be introduced after accession.]  
[The representative of Viet Nam confirmed that Vi et Nam's Law on Investment had been revised to 
eliminate the practice of granting prohibited export subsidies, which were mainly in the form of 
investment incentives, as of the entr y into force of the Law on 1 July 2006.  In his view, the new Law 
provided for incentives in full conformity with WTO rul es, in particular Article 3 of the Agreement on 
Subsidies and Countervailing Measures, and Viet Nam's accession commitmen ts.  He proposed to 
eliminate prohibited subsidies in the form of i nvestment incentives granted under already conceded 
investment licenses within five years from the date  of accession in order to respect Viet Nam's 
commitments with existing investors and stabilize the business environment, without prejudice to 
Viet Nam's commitment in paragraph [343] to elimin ate agricultural export subsidies.]  In addition, 
from the date of accession, goods produced in e xport processing zones or industrial or other zones 
with similar benefits and objectiv es under tax and tariff provisions th at exempt imports and imported 
inputs from tariffs and certain tax es would be subject to normal customs formalities when entering the 
rest of Viet Nam, including the application of tari ffs and taxes.  The Working Party took note of these 
commitments.  WT/ACC/SPEC/VNM/5/Rev.2 
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 Government procurement  
317. The representative of Viet Nam said that gove rnment purchases accounted for 14 per cent of 
Viet Nam's GDP.  His Government had promulgated Decree No. 88/1999/ND-CP on Procurement 
Regulations on 1 September 1999.  The Decree regul ated uniformly the management of bidding 
activities; the selection of consultants; procuremen t of goods; construction and installation; and the 
selection of partners to implement projects in full or in part. Several governmental agencies, including 
the Ministry of Investment and Planning in cooperation with the Ministry of Finance, the Ministry of 
Trade, the Ministry of Construction, the State Bank of Viet Nam, and other heads of related 
ministries/agencies had been involved in the elaboration of guiding documents to implement the Decree. 
318. The Government Decree had been s upplemented and amended by Decrees 
Nos. 14/2000/ND-CP of 5 May 2000 and 66/2003/ ND-CP of 12 June 2003, and a Regulation on 
Procurement had been issued together with the Government Decree in September 1999.  Viet Nam's 
legislation did not specify the procurement ag encies and entities covered, but according to the 
Regulation any purchase of goods and services or any investment by State agencies, mass 
organisations and State-owned enterprises financed by the State budget had to be made in the form of 
a tender.  Viet Nam had not published any list of  procuring entities, but the agencies involved were 
mentioned in each bidding announcement.  Statistics on the overall value of public sector purchasing 
and the major procuring entities were not available in Viet Nam.  Whether tenders for procurement 
were open to international bidders, or not, was not provided in the relevant regulations, but 
determined according to the nature and purpose of the procurement.   
319. The 1999 Decree and the Regulation on Procuremen t had required foreign contractors to enter 
into partnerships with Vietnamese contractors or  undertake to employ Vietnamese sub-contractors 
when participating in tenders for the selection of consultants, tenders for the purchase of goods, and 
tenders for construction and installation in Vi et Nam.  The amendments introduced through 
Government Decree No. 14/2000/ND-CP on 5 May 2000 limited this requirement to international 
tenders for construction and insta llation in Viet Nam.  The require ment applied to all construction 
projects, including those which were part of a larger procurement contract. 
320. Successful bidders were required to purchase and use materials and equipment produced, 
processed or available in Viet Nam, with due account taken of quality, price, safety and environmental considerations rela ted to the procurement.  The quality of materials and equipment 
purchased in Viet Nam should meet the requirements stipulated in the tender invitation documents, 
and be of equal quality to like materials and e quipment purchased overseas.  The price paid should  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 123 
 
 
 also be equal to or lower than that of like ma terials and equipment purchased overseas.  Safety 
requirements and "other necessary issues" would be stipulated in the tender invitation documents as 
well as in the procurement contract. 
321. Concerning procedures for publishing tenders, he said that the notification inviting bids and 
the bid result were required to be made public.  The opening of submitted bids was made public 
under the terms stipulated in the call for tenders  according to Article 13 of the Regulations on 
Procurement, attached to Decree No. 88/ 1999/ND-CP.  The opening report should include 
information such as the name of the tender package,  the date, time and location of the tender opening, 
the names and addresses of the bidders, the bid pri ce, the bid bond (warranty) and the implementation 
schedule.  The representatives of the party calling fo r tenders and the bidders were required to sign the 
report.  Although public notice of government pr ocurement was compulsory, Viet Nam's legislation 
did not specify any particular publication where these notices should be provided.  Consequently, 
public notices were made through either national or  local newspapers, audio-visual media or other 
mass media.  Procuring agencies and entities announ ced their tenders in a least three consecutive 
issues of widely circulated daily newspapers, or in the audio-visual and other mass media.  The 
announcements should be made at least five days be fore the issue of tender invitation documents for 
contracts worth less than 2 billion Dong, and minimu m ten days prior for larger tenders.  Calls for 
international tenders were announced in at le ast one English-language newspaper with wide 
circulation in Viet Nam. 
322. The representative of Viet Nam added that a new Ordinance on Procurement in preparation 
would provide for greater transparency in the procurement process.  The Ordinance foresaw the 
creation of a Procurement Gazette to provide gene ral information on tendering activities, invitations 
for tender, lists of tenderers participating in  limited tendering proceedings, selection of bids, 
information on enterprises prohibited to participate, or restricted, in the bidding process, etc.  The 
party calling for tenders would have to publish the terms and conditions of the tender in the 
newsletter.  The Ordinance also aimed at de centralizing procurement decision-making to the 
ministries, agencies and local authorities.  The ne w Ordinance would also identify bad practices and 
fraudulent behaviour, stipulate penalties for violati ons, and include provisions concerning right of 
appeal and the settlement of disputes.   
323. A Member encouraged Viet Nam to continue in its ongoing efforts to make its procurement 
systems more transparent and open to competition and to become an observer to the Committee on 
Government Procurement upon accession as a first step towards joining the Agreement on Government Procurement.  Noting that membersh ip in the Government Procurement Agreement WT/ACC/SPEC/VNM/5/Rev.2 
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 would bring Viet Nam benefits both in terms of access to the procurement markets of other 
Agreement members on a national treatment basis and in terms of transparency, another Member 
invited Viet Nam to negotiate membership in th e Agreement on Government Procurement as part of 
its WTO accession and to table an entity offer at  the time of accession.  Viet Nam was also 
encouraged to identify its cha llenges and needs for technical assistance in implementing the 
Agreement.   
324. The representative of Viet Nam replied that Viet  Nam had made efforts to improve the legal 
framework for government procurement to enhan ce its transparency and to harmonize the tender 
process and procedures with international practice.  The Ministry of Planning and Investment had 
recently set up a website providing information on bidding procedures and opportunities.  However, 
wishing to focus its limited resources on the impl ementation of the multilateral agreements, Viet Nam 
would consider joining the Agreement on Gove rnment Procurement after WTO Accession.  
Trade in civil aircraft 
325. A Member argued that joining the Agreement on Trade in Civil Aircraft, including the duty 
free treatment of imported aircraft and parts, woul d facilitate the maintenance of good air services and 
support in Viet Nam and help enhance Viet Nam's se rvices infrastructure and foster development and 
growth.  This Member requested Viet Nam to join the Agreement upon accession to the WTO. 
326. In reply, the representative of Viet Nam noted th at this was a plurilateral Agreement and that 
participation in the Agreement was not an oblig ation.  Viet Nam would consider joining the 
Agreement on Civil Aircraft after accession.   
Transit 
327. The representative of Viet Nam said that goods, in  order to transit through the territory of 
Viet Nam, required prior permission from the Ministry of Trade.  Permits were granted only to authorized Vietnamese carriers or carriers from countries which had si gned bilateral transit agreements 
with Viet Nam (China, the Lao PDR and Cambodia).  The selection of  Vietnamese carriers was based 
on past performance.  Regulations were  strict for the purpose of combating smuggling.  While in transit, 
goods were required to be trans ported along the prescribed route and within the time allowed.  
Warehousing of goods in transit was su bject to approval by Customs.  Consumption of goods in transit 
within the territory of Viet Na m was forbidden, and any discre pancy between the amount of goods 
entering and leaving Viet Nam requi red certification by Customs.  WT/ACC/SPEC/VNM/5/Rev.2 
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 328. Some Members noted that Viet Nam allowed only enterprises of countries having a common 
land border with Viet Nam to apply for the transit li cences, and that goods in transit were subject to a 
transit fee of 1 per cent of the value of the g oods.  These members questioned whether Viet Nam's 
regulations restricted the freedom of transit as pr ovided for under GATT Article V:2, and whether the 
associated fee was commensurate with the administrativ e expenses entailed by transit or with the cost 
of the services rendered for individual cases as required under GATT Article V:3. 
329. The representative of Viet Nam replied th at, upon accession to the WTO, Viet Nam would 
observe GATT 1994 rules on freedom of transit and on tr ansit fees commensurate with the cost of the 
services rendered.  The 1 per cent transit fee had been  abolished.  Current fe es applicable to goods, 
including postal packages and parcels, and l uggage were calculated according to the means of 
transport and the length of the journey.  The fees for transit and escorting of cargo are enumerated in 
Tables 21 (a) and 21 (b).  Transiting goods were escor ted when they could not be sealed.  In response 
to a question concerning the percentage of goods  escorted, he said that no such statistics were 
available.  
330. Some Members noted that Viet Nam in its res ponses had addressed the issue of transit fees, 
but not the fundamental principle of freedom of transit laid down in Article V of the GATT 1994.  
Viet Nam was invited to provide further justificati ons for its transit procedures and the conditions for 
granting transit permits, and explain how Viet Nam would bring its transit regime into conformity 
with the WTO. 
331. The representative of Viet Nam replied that goods  were generally allowe d to transit through 
Viet Nam once the customs procedures had been co mpleted.  Documents to be submitted at the 
customs included a list of the goods in transit, to  be submitted by the customs declarer or his/her 
representative, for goods transported in their orig inal condition, or for goods that had to be 
warehoused or transhipped onto another type of transport means, a customs declaration and a list of 
the goods in transit.  Customs authorities allowed or declined transit on the basis of the list of 
transiting goods, of the customs declaration and of th e transit permit, if required.  Physical inspection 
of goods in transit was carried out only if signs of vi olation of law were detected.  The requirement to 
obtain a transit permit from the Ministry of Trade a pplied only to in-land or waterway transportation 
of round timber and lumber, and to transiting goods subject to import or export prohibition.  No fee 
was charged for approval of a request to warehouse goods in transit.  Goods warehoused at customs 
bond warehouses or bonded warehouses were char ged a warehousing fee in accordance with 
Inter-Ministerial Circular of the Ministry of Trade and General Department of Customs 
No. 71/2000/TTLT/BTC-TCHQ of 19 July 2000.  Tr ansiting goods warehoused outside customs WT/ACC/SPEC/VNM/5/Rev.2 
Page 126  
 
 warehouses or bonded warehouses were subject to th e fees and charges of the enterprises providing 
the warehouse services at the rates specified by the enterprises.  Domestic legislation did not stipulate 
any time-limit for customs to process transit shipment s, but normal transit shipments were processed 
within four hours on average.  Current procedur es were, in his view, not in violation of GATT 
Article V and Viet Nam would therefore commit to observe fully WTO rules on transit upon accession.   
332. The representative of Viet Nam confirmed th at his Government would apply any laws, 
regulations and practices governing transit operations and would act in full conformity with the 
provisions of the WTO Agreement, in particular Article V of the GATT 1994.  The Working Party took note of this commitment.   
Agricultural policies  
(a) Imports – description of the typ es of border protection maintained 
333. Some Members noted that Viet Nam was using bans, quotas, discretionary licensing and other 
quantitative restrictions to regulate agricultural im ports, and that the WTO Agreement on Agriculture 
prohibited the use of quantitative rest rictions to regulate such imports.  A Member noted in particular 
that Viet Nam was using discretionary licensing to restrict imports of dairy products, eggs, maize, 
tobacco, salt, cotton, and sugar, and invited Viet  Nam to eliminate all such measures without an 
appropriate WTO justification by the date of accessi on.  In addition, import restrictions on rice 
appeared to violate the WTO Agreements on Agri culture and Import Licensing Procedures, and could 
not be justified under the provisions of Article XI of the GATT 1994.  As for the ban on imports of 
cigarettes for health reasons, Viet Nam was remi nded that Article III and Article XX of the GATT 
prohibited the use of such measures if Viet Nam allowed the manufacture, sale and distribution of 
cigarettes domestically (see also the section on "Quantitative import restrictions").  Viet Nam was requested to identify, by tariff line, agricultura l imports subject to non-tariff measures and undertake 
to eliminate these measures prior to accession to th e WTO.  If necessary, Viet Nam should rely on 
WTO-consistent measures, and ensure that imported items would be subject to the same treatment as domestically-produced items, even if Viet Nam's policy aimed at human health protection.  Viet Nam was urged to maintain a tariff-only regime rather  than resort to tariff-rate quotas and to provide 
information, if applicable, on differences in treatme nt between State-owned corporations and private 
companies in the allocation of licenses.  Some Memb ers noted that Viet Nam was seeking recourse to 
apply Special Safeguards (SSGs) if necessary.  These Members considered SSGs a transitional 
measure linked to the Uruguay Round commitments of some Members, and thus a provision not  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 127 
 
 
 available to acceding governments.  Viet Nam was as ked to enter a commitment not to seek recourse 
to SSGs. 
334. The representative of Viet Nam replied that Viet  Nam would consider using tariffs instead of 
quantitative restrictions.  As from the date of accessi on, Viet Nam did not intend to use quantitative or 
other import restrictions on any agricultural product, except for measures allowed under the 
provisions of WTO Agreements.  He noted that all import restrictions in the form of discretionary 
licensing, with the exception of the restriction applie d to sugar, had been eliminated pursuant to Prime 
Minister's Decision No. 46/2001/QD-TTg of 4 April 2001, Prime Minister's Decision No. 91/2003/QD-TTg of 9 May 2003, and Prime Minister's Decision No. 187/2003/QD-TTg of 15 September 2003.  Imported sugar wa s subject to discretionary licensing with a tariff of 30 per cent 
on raw sugar and 40 per cent on refined sugar, but  Viet Nam committed to replace discretionary 
licensing by a TRQ mechanism as from the date of accession (see paragraph [161]).  Sugar was 
included in Viet Nam's List of Sensitive Agricu ltural Products under the CEPT/AFTA framework and 
would not be subject to tax reduction in the shor t term.  He added that Viet Nam imposed line 
management measures in the form of automatic im port licensing on certain products.  Viet Nam did 
not apply any quotas nor any other form of quantitative restrictions on imported rice.  As for the 
import prohibition on cigarettes and cigars, it woul d be removed upon accession.  Viet Nam did not 
intend to develop its tobacco industry, but existi ng processing facilities were put to best use for the 
benefit of tobacco-growing farmers.  Viet Nam's le gislation did not favour State-owned enterprises to 
the detriment of the private sector.  He added th at all import surcharges had been eliminated in 
December 2004.  Therefore, surcharges based on the price differential between domestic and 
international prices were no longer collected. 
335. The simple average tariff on imports of ag ricultural products was 17.7 per cent in 1996 
(document WT/ACC/VNM/3) and 27.1 per cent in 2004, an increase due to the adjustments of 
Viet Nam's tariff schedule to the ASEAN harmon ized system nomenclature, the conversion of 
non-tariff barriers into tariffs, and the in corporation of ODCs in tariff rates.   
336. The representative of Viet Nam confirmed that, from the date of accession, Viet Nam would 
apply border protection for agricultural products in  a manner consistent with WTO Agreements, in 
particular with Article 4 of the Agreement on Agriculture. 
(b) Exports 
337. The representative of Viet Nam said that Viet Na m imposed export restrictions or controls on 
the products listed in Table 16 (see section "Expor t restrictions" for a discussion of these measures).  WT/ACC/SPEC/VNM/5/Rev.2 
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 He noted that rice export quotas had been elimin ated pursuant to Prime Minister's Decision 
No. 46/2001/QD-TTg of 4 April 2001 and that Viet Nam was not applying any export restriction on 
rice at present.  Since 1998, the right to export rice, previously limited to State-owned enterprises, had 
been extended to all Vietnamese enterprises regardle ss of form of ownership.  However, the right of 
foreign-invested enterpri ses was still restricted.  Viet Nam proposed to grant foreign-invested 
enterprises full rights to export rice as of 1 Janua ry 2011 (see the sections on "Trading rights" and 
"Export restrictions"). 
338. A Member noted that State-owned enterprises purchased a major portion of Viet Nam's 
agricultural production, and accounted for a large shar e of Viet Nam's exports, for example of rice 
(60 per cent), coffee (70 per cent) and rubber (90 per cent).  Viet Nam was requested to provide 
information about the purchase prices fixed by State-owned enterprises, the relationship between 
State-owned enterprises and the Price Stabilizati on Fund, and the functioning of this Fund. 
339. The representative of Viet Nam replied that purchase prices for exported agricultural products 
were determined by the enterprises themselves, subj ect to market conditions.  State-owned enterprises 
operated in the same manner as all other business ente rprises.  Enterprises had been treated equally in 
relation to the Price Stabilization Fund irrespective of ownership form.  The Price Stabilization Fund 
had been established in 1993 pursuant to Decision  No. 151/TTg and had aimed at regulating and 
stabilizing domestic prices.  The Fund's resource s had arisen from imports and exports, price 
differences between external and domestic prices, and windfall profits of producers operating under 
advantageous conditions.  In Oc tober 1999, the Price Stabilization Fund had been replaced by the 
Export Promotion Fund.  The purpose of the Expor t Promotion Fund, which was managed by the 
Ministry of Finance, was to help enterprises pr oducing and trading in expo rted products (mainly 
agricultural products) to cope with adverse fluctuations in interna tional market prices, to improve 
their competitiveness, and to promote exports.  Th e Fund was financed by surcharges on imports and 
exports and resources granted from the State budget annua lly.  However, as most of the surcharges 
had been eliminated, this funding source had decreased gradually. 
340. The representative of Viet Nam initially said that Viet Nam did not provide any export 
support in the form of direct transfers from the State budget.  However, Viet Nam had begun granting 
direct budgetary export subsidies in 1998.  Subsidie s took the form of interest rate support; export 
bonuses; support to cover losses for enterprises e xporting rice, pork, and coffee; and support to 
exports of vegetables and fruit.   
341. Some Members were concerned that Viet Nam had introduced and maintained export 
subsidies for agricultural products.  Their expecta tion was that Viet Nam would not use agricultural  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 129 
 
 
 export subsidies on any product after accession to the WTO.  These Member s asked Viet Nam to 
provide details of the steps it would take to e liminate export subsidies.  A Member requested 
information on export bonuses paid for a range of pr oducts including rice, coffee, canned vegetables, 
canned fruit and pork in 2001. 
342. The representative of Viet Nam replied that bonuses contingent on export performance had 
been paid to enterprises exporting rice, coffee, por k, canned fruit and canne d vegetables in 2001 in 
accordance with Decision No. 65/2001/QD-BTC of 29 June 2001 of the Ministry of Finance.  The 
export bonus programme had been continued in 2002 , and extended to also cover beef and poultry 
meat;  fresh, dried and semi-processed fruit and vegeta bles;  tea;  peanuts;  pepper;  and cashew nuts 
(Decision No. 63/2002/QD-BTC of 21 May 2002).  Detailed information on subsidy per unit was 
provided in document WT/ACC/VNM/13/Add.2, pages 20-22.  He added that Vietnamese farmers 
had faced particularly difficult conditions during 1999-2001 with large fluc tuations in commodity 
prices, and his Government had therefore provided support, including export subsidies, to stabilize 
production and foster the development of the agri culture sector.  However, his Government had 
recently taken measures to bring support measures clo ser to WTO rules.  Support had been shifted to 
trade promotion activities and the export bonus re gime had been amended in 2003-2004.  Export 
bonuses were now based on the annual turnover increas e rather than on the export turnover.  He 
considered the level of Viet Nam's export subsid ies negligible and with no significant distorting 
effects on international trade. 
343. [The representative of Viet Nam agreed that, upon accession, Viet Nam would bind its 
agricultural export subsidies at zero in its Sc hedule of Concessions and Commitments on Goods, and 
not maintain or apply any export subsidies for ag ricultural products, without prejudice to Viet Nam's 
rights and obligations arising from WTO existing rules.  The Working Party took note of this commitment.]   
[The representative of Viet Nam confirmed that agricultural export subs idies would be bound 
at zero in Viet Nam's Schedule of Concessions and Commitments for Goods.  He also confirmed that 
export subsidies applied to agricu ltural products would accordingly be  eliminated by the date of 
accession.  The Working Party took note of these commitments.] 
(c) Internal policies 
344. The representative of Viet Nam said that agricu ltural and rural development was a priority in 
the economic and social strategy of his Government .  Commercial banks were encouraged to provide 
loans to agricultural projects and farmers on normal commercial terms.  Soft loans could be provided WT/ACC/SPEC/VNM/5/Rev.2 
Page 130  
 
 to poor farming households; to develop agricultu re in mountainous or is land regions, and areas 
populated by ethnic minorities; as natural disaster relief, etc.  Transformation of land reserved for rice 
production to cultivation of other plants was not en couraged for food security reasons.  However, his 
Government presently allowed and facilitated diversif ication from rice to other plants or shrimp 
breeding in areas where rice productivity was unstable or low.  Except for land reserved for the cultivation of rice, where the State had invested subs tantially in irrigation infrastructure, farmers were 
free to decide their agricultural production. 
345. He provided information on domestic support an d export subsidies in agriculture for the 
period 1999-2001 in documents WT/A CC/SPEC/VNM/3 of 5 November 2002, 
WT/ACC/SPEC/VNM/3/Rev.1 of 30 October 2003, WT/ACC/SPEC/VNM/3/Rev.2 of 28 April 2004, 
and WT/ACC/SPEC/VNM/3/Rev.3 of 28 October 200 4.  In calculating the Total Aggregate 
Measurement of Support, Viet Nam applied a de minimis  level of 10 per cent.  He noted that most of 
Viet Nam's support measures were considered "Green  Box" policies.  Viet Nam's commitments on 
domestic support in agriculture are contained in Viet Nam's [draft] Schedule of Concessions and Commitments on Goods annexed to Viet Nam's [draft] Protocol of Accession to the WTO. 
346. Asked specifically about policies to support the sugar sector, the representative of Viet Nam 
said that sugarcane was cultivated mainly in poor  and disadvantaged areas, i.e. in the mountainous 
midland, central coastal regions, highlands and in  the Cuu Long delta.  Policies supporting the sugar 
sector aimed at improving the economic conditions a nd job creation in these disadvantaged regions.  
In the past, sugar had mostly b een produced by household sugar mills, characterized by low quality, 
waste and environmental pollution.  Since 1995, hi s Government had used funds from abroad and 
domestic credits, and stimulated foreign direct invest ment to build refining plants.  However, the new 
plants had been unable to operate at full capac ity, resulting in low productivity, high prices and, 
consequently, import protection. 
347. A Member requested more detailed informa tion on specific measures applied to support 
Viet Nam's coffee sector, including tax and cred it policies, development assistance programmes and 
export subsidies.  Viet Nam was asked to confirm that its coffee sector was now operating according 
to market principles.  
348. The representative of Viet Nam replied that , under cooperation agreements signed with 
former Socialist partners in 1983, Viet Nam had received a loan of 30 million Transferable Roubles in the form of merchandise such as fertilizer, tractors, petroleum products, trucks, etc.  The loan, which 
had been reimbursed in 1991, had enabled Viet Nam to sow coffee on 24,500 hectares of land.  
Viet Nam was currently involved in two cooperation projects; (i) a technical assistance programme to  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 131 
 
 
 strengthen the research capacity of the coffee industry, and (ii) a 700 billion Dong project to plant an 
additional 40,000 hectares of arabica in North Viet Nam.  About 400 billion Dong for the arabica 
coffee project had been financed through a loan from an overseas development agency.  The coffee 
sector was, in his view, operating in accordance with  market principles.  In 2000 and 2001, Viet Nam 
had purchased 150,000 tons (representing some 20 pe r cent of domestic production) for temporary 
stockholding.  However, the strategy had failed and the stocks had subsequently been exported at a 
loss.  The low price of Viet Nam's coffee refl ected the high productivity of the domestic coffee 
industry due to good quality soil and favourable climatic conditions.  Viet Nam's coffee prices tracked 
fluctuations at the London Commodity Exchange (LIFFE).  The gap between Vietnamese and LIFFE 
prices, ranging from US$150 to more than US$200, was mainly due to temporary oversupply in Viet Nam and the gap between the FOB price in Viet  Nam and the CIF price in London.  More than 
90 per cent of Viet Nam's coffee production was expor ted, mainly in the form of green coffee.  
Roasted and ground coffee was largely consumed domestically.   
349. In response to a specific question, the repres entative of Viet Nam confirmed that Viet Nam 
had adopted a rice production adjustment policy, which consisted mainly in investments for the 
irrigation of high productivity rice cultivated ar eas, and support for irrigation and provision of 
extension services to farmers in low-productivity rice cultivated areas to encourage shifting to aquatic 
and fruit production. 
350. The representative of Viet Nam confirmed that Viet Nam would apply subsidies on 
agricultural products in a manner consistent with  WTO rules, in particular the Agreement on 
Agriculture, and Viet Nam's domestic support tables circulated in document 
WT/ACC/SPEC/VNM/3/[…] and contained in Viet Nam's Schedule of Concessions and Commitments on Goods. 
Fisheries 
351. The representative of Viet Nam said that his Government was implementing a comprehensive 
programme to develop aqua-cultu re industries.  The programmes were managed by enterprises, 
households and fishermen, and cooperatives, and re lied to a large extent on technical assistance by 
government experts through a fisheries extension system, training and management guidance for 
labourers in the sector.  Infrastructure, including the construction of refrigerated facilities and 
facilities for the construction and repa ir of fishing boats, was also be ing developed.  His Government 
was offering long-term loans to fishermen to build  or upgrade offshore fishing boats, and encouraged 
the introduction of new technologies.  His Government  had also promulgated the Law on Fisheries, as WT/ACC/SPEC/VNM/5/Rev.2 
Page 132  
 
 well as standards and regulations equivalent to re gulations on hygiene, food safety and veterinary 
requirements issued by Codex and the Code of Conduct for Responsible Fisheries.   
352. As of 31 December 2003, 1,468 fisheries enterpri ses operated in Viet Nam, with an average 
capital of approximately 0.5 billion Dong.  Fisher ies industries, including related-services sectors, 
employed about 5.4 million people.  In 2004, this  sector had contributed to  27,474 billion Dong to 
Viet Nam's GDP.  Fisheries production had increased  on average by 9 per cent annually between 2000 
and 2004.  Foreign-direct investment in this sector had amounted to US$ 7.8 million in 2004 
(five projects) and the exporting turnover to US $ 2.4 billion.  Exports ha d grown by 13 per cent on 
average between 2000 and 2004 and imports by 84 pe r cent.  The importing turnover had increased 
from US$ 30.65 million in 2000 to US$ 64.17 million in 2002.  Imports of feeds and chemicals for aquaculture had risen by 22.5 per cent annually. 
353. Import licenses for specialised fishery products mentioned in Decision 
No. 344/2001/QD-BTS of 2 May 2001 and Decision  No. 20/2003/QD-BTS of 12 December 2003 of 
the Ministry of Fisheries, includi ng seeds, feed, medicines, vaccin es, bio-chemical treatments, and 
growth stimulants, applied only to new products, in which case a licence for experimental import was 
required.  The Decision stipulated the requirement s and procedures relating to import and export of 
specialised fishery products.  Quarantine requireme nts and quarantine certificates were applied for 
health protection purposes − to prevent the spread of infecti ous diseases in the aqua-culture industry − 
in accordance with the 2004 Veterinary Ordinan ce, Decree No. 33/2005/ND-CP and the Quarantine 
Directive No. 2596/CLTY-TY for NAFIQAVED.  Impor ted fish and fish products were required to 
have been quarantined and certified by the compet ent authorities of the exporting country.  This 
measure aimed at ensuring that the products we re free from diseases listed on the OIE Concern and 
met the requirements of the OIE Aquatic Animal  Health Code.  Upon entry into Viet Nam, 
Vietnamese quarantine authorities checked both the doc umentation and the animals.  Infected animals 
were either returned to the exporting country or  destroyed.  He added that Viet Nam's export 
quarantine requirements conformed to the OIE regul ations and requirements of the importing country 
and Viet Nam's quarantine certification on export and import of aqua-products to the requirements of 
the Quarantine Certification Form of the OIE and the Aquatic Animal Health Code.  The Ministry of 
Fisheries could ban exportation of rare marine speci es threatened by extinct ion and set conditions for 
the export of rare living marine species with high economic value if considered necessary to preserve 
resources.   WT/ACC/SPEC/VNM/5/Rev.2 
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 [Textiles regime] 
354. The representative of Viet Nam said that tex tile and garment production was a relatively new 
industry in Viet Nam, but rapid expansion had swel led the workforce absorbed by this industry to 
more than two million workers.  Exports of te xtiles and clothing had grown rapidly, although 
Viet Nam's exports were still modest compared to  other countries with comparable population.  
Viet Nam had exported textiles and clothing worth nearly US$ 4.4 billion in 2004, and 
US$ 2.5 billion during the first seven months of 2005 .  He noted that Viet Nam's export restraints on 
textile and clothing products were based on agre ements with countries a pplying quantitative import 
restrictions (Canada, the EU, Turkey and the United States). 
355. Some Members noted that Viet Nam banned importation of second-hand clothing, and urged 
Viet Nam to apply less trade restrictive measures.   The representative of Viet Nam noted these 
comments, but considered the import prohib ition necessary to protect human health.   
356. A Member asked whether Viet Nam would accept that, for the purposes of Viet Nam's 
accession to the WTO, the phrase "in force on the da y before the entry into force of the WTO 
Agreement" contained in Article 2:1 of the Agreem ent on Textiles and Clothing should be deemed to 
refer to the WTO, and that the increase in growth  rates provided for in Article 2:13 and 2:14 of the 
Agreement on Textiles and Clothing  should be applied to these base levels, as appropriate, from the 
date of accession of Viet Nam to the WTO. 
357. The representative of Viet Nam confirmed that the quantitative restrictions on imports 
maintained by WTO Members on textiles and clothing pr oducts originating in Viet Nam that were in 
force on the date prior to the date of accession of  Viet Nam to the WTO should be notified to the 
Textiles Monitoring Body (TMB) by the Members main taining such restrictions  and would be applied 
for the purposes of Article 2 of the Agreement on Textiles and Clothing.  Thus, for the purposes of Viet Nam's accession to the WTO, the phrase "in for ce on the day before the entry into force of the 
WTO Agreement" contained in Article 2.1 of the Agreement on Textiles and Clothing shall be 
deemed to refer to the day prior to the date of accession of Viet Nam to the WTO.  To these base 
levels the increase in growth rates provided for in  Article 2.13 and 2.14 of the Agreement on Textiles 
and Clothing shall be applied, as appropriate, in  the Agreement on Textiles and Clothing from the 
date of Viet Nam's accession, such base leve ls and growth rates coming to an end upon the 
termination of the Agreement on Textiles and Clot hing.  The Working Party took note of these 
commitments.]   WT/ACC/SPEC/VNM/5/Rev.2 
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 [Core labour standards 
358. Referring to paragraph 4 of the Singapore Ministerial Conference Declaration, a Member 
noted the commitment of all WTO Members to the observance of core labour standards, 
i.e. recognising that the International Labour Orga nization (ILO) was the relevant body to advise upon 
these standards and declaring that all Members had an obligation to promote and realize the 
fundamental principles and rights at work.  In this  context, this Member requested Viet Nam to 
provide information concerning (i) the provision of core labour standards to workers in Viet Nam 
through national law and practice; (ii) work undertak en with the ILO to modify its law and practice to 
bring these into greater conformity with interna tionally recognised core labour standards; and 
(iii) whether the Government of Viet Nam had re quested technical cooperation and advisory services 
from the ILO to promote Viet Nam's observance of these standards.  A Member noted that Viet Nam 
had not ratified eight ILO Conventions related to cu rrent core labour standards, and asked whether 
Viet Nam had stipulated any rules or regulations concerning minimum wages. 
359. The representative of Viet Nam replied that Vi et Nam had ratified many conventions in the 
framework of the ILO.  By May 2003, Viet Nam had ratified 16 ILO Conventions.  The Labour Code 
of Viet Nam and other related lega l documents had been established w ith reference to the conventions 
and recommendations of the ILO.  The Vietnamese  Government had requested technical cooperation 
and advisory services from the ILO in order to ensu re that Vietnamese labour  laws were consistent 
with established international standards.  Asked ab out enforcement of the new laws and regulations 
and problems encountered, the representative of Vi et Nam added that his Government had been 
cooperating with social partners to strengthen the implementation of the Labour Code.  Viet Nam had 
also received technical assistan ce from the ILO and other partners  in areas such as child labour, 
disabled workers, female workers, industrial relatio ns, occupational health and safety, social security 
law and the fight against HIV/AIDS at work.] 
TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS (TRIPS) 
1. General (a) Industrial property protection   
360. The representative of Viet Nam said that the main legal instruments for the protection of 
intellectual property in Viet Nam were the Civil Code of 1995 (Part Six); Government 
Decree No. 63/CP of 24 October 1996 on De tailed Regulations on Industrial Property; 
Circular No. 3055/TT-SHCN of 31 December 1996 of the Ministry of Science, Technology and  WT/ACC/SPEC/VNM/5/Rev.2 
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 Environment on Guiding the Implementation of th e Provisions on the Procedures for Establishing 
Industrial Property Rights, and a number of other procedures in Decree No. 63/CP; and Government 
Decree No. 76/CP of 29 November 1996 on Guiding the Implementation of the Provisions on 
Copyright in the Civil Code; and Circular No. 23-TC/TCT of 9 May 1997 of the Ministry of Finance on Industrial Property Fees. 
361. His Government had made important efforts dur ing the past few years to make Viet Nam's 
intellectual property laws and regul ations consistent with the TRIPS Agreement.  Viet Nam had 
enacted Government Decree No. 12/1999/ND-CP of 6 March 1999 on handling administrative violations in the industrial property fields; Circular No. 825/2000/TT-BKHCNMT of 3 May 2000 as 
amended by Circular No. 49/2001/TT-BKHCNMT of the Ministry of Science, Technology and 
Environment guiding the implementation of Decree No. 12/1999/ND-CP; Government Decree 
No. 54/2000/ND-CP of 3 October 2000 on the protecti on of industrial property rights in business 
secrets, geographical indications, trade names a nd protection against unfair competition in the 
industrial property field; Government Decree No. 06/2001/ND-CP of 1 February 2001 on amendment 
and supplement to some articles of Decree No. 63/CP detailing the regulations on industrial property; 
Government Decree No. 13/2001/ND-CP of 20 April 2001 on the protection of new plant varieties; 
Government Decree No. 31/2001/ND-CP  of 26 June 2001 on handling admi nistrative violations in the 
field of culture and information, including copyright; Joint Circular No. 01/2001/TANDTC-VKSNDTC-BVHTT of 5 December 2001 on dispute settlement 
procedures concerning copyright violations; th e Customs Law 2001 and D ecree No. 101/2001/ND-CP 
of 31 December 2001 providing guidelines on cust oms procedures; Decree No. 42/2003/ND-CP of 
2 May 2003 on the protection of layout designs of  semiconductor integrated circuits; Circular 
No. 29/2003/TT-BKHCN of 5 November 2003 of the Ministry of Science and Technology guiding the implementation of procedures for establishing indu strial property rights to industrial designs; and 
Circular No. 30/2003/TT-BKHCN of 5 November 2003 of the Ministry of Science and Technology 
guiding the implementation of procedures for establishing industrial property rights to inventions/utility solutions, including provisions on application and examination in respect of 
micro-organisms.  Moreover, in 2004 Viet Nam ha d promulgated an Ordinance on Plant Varieties, a 
new Civil Procedure Code, Circular No. 132/2004/ TT-BTC of 30 December 2004 of the Ministry of 
Finance on industrial property fees and charges (replacing Circular No. 23/TC-TCT of 9 May 1997), and joint Circular No. 129/2004/TTLT/BTC-BKHCN of 29 December 2004 of the Ministry of Science and Technology and the Ministry of Fi nance on border control measures in respect of 
industrial property rights for imports and exports. WT/ACC/SPEC/VNM/5/Rev.2 
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 362. He considered the prevailing laws and regulati ons consistent with the requirements of the 
TRIPS Agreement.  However, Viet Nam was upgrading the legal system for the protection of 
intellectual property rights to ensure the effective implementation and enforcement of these rights.  He 
presented an Action Plan for the Implementa tion of the TRIPS Agreement in document 
WT/ACC/VNM/12, and revised action pl ans in documents WT/ACC/VNM/21 and 
WT/ACC/VNM/21/Rev.1 and Rev.2.  He noted that the new Intellectual Property Law, which had 
been adopted by the National Assembly on 29 November 2005, had made Viet Nam's intellectual 
property legislation fully compliant with the TRIPS Agreement.   
(b) Responsible agencies for policy formulation and implementation 
363. The representative of Viet Nam said that the ma in ministries and agencies responsible for IPR 
policy formulation and implementation were the Mi nistries of Science and Technology; Culture and 
Information; Justice; Finance; and Trade; the Ge neral Customs Department (under the Ministry of 
Finance); the National Office of Intellectual Prop erty (under the Ministry of Science and Technology) 
and the Copyright Office (under the Ministry of Culture and Informa tion).  Administrative enforcement 
of IPR legislation was entr usted to the customs offices, the mark et control organizations, the Economic 
Police, the Culture and Informa tion Inspections, the Science and Technology Inspections, and the 
People's Committees at provin cial and district levels. 
364. Concerning the tasks of the enforcement agenci es, he said that customs was responsible for 
controlling borders to prevent and deal with infringe ment of intellectual property rights in export and 
import activities, the market control organizations de alt with protection of intellectual property rights 
in production, trade and services within the domestic market, while the Economic Police was 
responsible for preventing and handling infringement of intellectual property rights in all business 
activities.  Departments of Scie nce and Technology under the People's Committees at the provincial 
level were entrusted by the Central Government to cooperate with enforcement bodies in protecting 
industrial property rights (Section 63(3) of Decree No. 63/CP). 
(c) Participation in international intellectual property agreements 
365. The representative of Viet Nam said that Viet Nam had been party to the Paris Convention for 
the Protection of Industrial Property and the Madrid  Agreement on International Registration of Marks 
since 1949; the Convention establishing the World In tellectual Property Organization since 1976; and 
the Patent Cooperation Treaty since March 1993.  Viet Nam had become an official party to the Berne 
Convention on 26 October 2004, to the Geneva Co nvention on 6 July 2005, and to the Brussels 
Convention on 12 January 2006.  Viet Nam had conc luded bilateral agreemen ts on the protection of  WT/ACC/SPEC/VNM/5/Rev.2 
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 intellectual property with the United States and Swit zerland.  He expected Viet Nam to join the Rome 
Convention and the International Union for the Pr otection of New Varietie s of Plants (UPOV) 
Convention in late 2006.  He confirmed that Viet Nam's La w on Conclusion, Accession and 
Implementation of International Tr eaties of 2005 provided for the dire ct application of international 
treaties to which Viet Nam was a party (see paragraph [110]). 
366. Viet Nam had so far not taken any decision on accession to the IPIC Tr eaty, as the level of 
protection afforded by this international treaty w ould essentially be covered by Viet Nam's eventual 
adherence to the TRIPS Agreement.  Viet Nam had no plans to ratify and join the WIPO Copyright 
Treaty or the WIPO Performance and Phonograms Treaty (WPPT).   
(d) Application of national and MF N treatment to foreign nationals 
367. The representative of Viet Nam said that Viet Nam applied the national treatment principle in 
accordance with the Paris Convention for the Protection of Industrial Property, and applied no 
discrimination, including Most Favour ed Nation treatment between the nationals of other countries.  
Viet Nam applied the principle of reciprocity in other cases.   
368. A Member noted that Viet Nam appeared to  require foreign nationals not having a 
representative office in Viet Nam to use specially licensed agents to establish or enforce trademark, 
design and patent rights, and asked whether this requirement also a pplied to copyright protection.  
Concerned that these provisions might  impose a burden on foreign applicants, restrict access and hamper 
the development of an effective intellectual property system, this Member asked what steps Viet Nam 
would take to ensure equal treatment betw een foreign and domestic right holders.   
369. In reply, the representative of Viet Nam said th at existing laws did not re quire foreign natural or 
legal persons to establish and enforce copyright th rough intellectual property agents.  According to 
Decree No. 63/CP (Article 15.3.b)  and Decree No. 42/2003/ND-CP (Ar ticle 12.3), the requirement to 
use Vietnamese industria l property agents applied only to fo reign non-residents and foreign legal 
persons without legal representation or an effective indu strial or commercial presence in Viet Nam.  The 
requirement aimed at protecting the interests of the right holder and facilitating his/her communication 
with the competent State authorities and was, in his view, in conformity with international practice and 
exceptions to national treatment a llowed under the TRIPS Agreement.   
(e) Fees and taxes  
370. The representative of Viet Nam said that current regulations specified 10 ty pes of fees related to 
administrative procedures for the establishment, maintenance and protection of industrial property WT/ACC/SPEC/VNM/5/Rev.2 
Page 138  
 
 rights.  Most fees were in the US$ 1-60 range; fees related to the establishment of rights in respect of 
inventions amounted to US$ 100, and the annual main tenance fees ranged from US$ 16 to US$ 234.  He 
added that Viet Nam imposed a tax on income derive d from royalties.  The tax rate was 5 per cent for 
non-resident individuals and enterprises in Viet Nam.  For resident individuals and enterprises, income 
derived from royalties was subject to the provisions of the Ordinanc e on Income Tax for High Income 
Earners and the Law on Corporate Income Tax.   
371. A Member stated that if Viet Nam charged a fee on top of the application fee to enjoy a 
priority right, then this practice would be contrary  to the Paris Convention.  The representative of 
Viet Nam held the view that the Paris Convention prohibited the collection of fees for late filing of 
documents, but not the application of fees with respect to priority right claims.  He considered Viet Nam's fee justified by the additional work in volved in comparing the two applications, adding 
that some WTO Members appeared to apply similar provisions.   
372. Some Members noted that Viet Nam had reconsidered amending Circular No. 23 TC/TCT of 
the Ministry of Finance of 9 May 1997 to provide uniform fees and charges for both foreigners and 
Vietnamese, as Viet Nam had taken the view that f ees and charges levied in the area of industrial 
property were a matter of administrative proce dures and thus a permitted exception to the national 
treatment principle (Article 2 of the Paris Conventio n).  A Member pointed out that the exceptions to 
national treatment in Article 2 of the Paris Conve ntion referred only to judicial and administrative 
procedures, jurisdiction, and the designation of an address for service or appointment of an agent, 
adding that the national treatment provision of the TRIPS Agreement expressly included matters 
affecting the acquisition and maintenance of intell ectual property rights such as fees and related 
charges.  This Member urged Viet Nam to amend Circular No. 23 TC/TCT as early as possible. 
373. The representative of Viet Nam replied that di fferential fees and charges had been annulled 
by the Circular of the Ministry of Finance No. 132/2004/TT-BTC on industrial property fees and 
charges promulgated on 30 December 2004, replacing Circular No. 23/TC-TCT of 9 May 1997.   
2. Substantive standards of protection, incl uding procedures for the acquisition and 
maintenance of intellectual property rights 
(a) Copyright protection 374. The representative of Viet Nam said that accord ing to Article 747 of the 1995 Civil Code the 
literary, artistic, and scientific works in various fo rms subject to State copyright protection included 
written works; lectures and speeches; theatrical wo rks and other forms of artistic performance;  WT/ACC/SPEC/VNM/5/Rev.2 
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 cinematographic and video works; radio and television  works; press works; musical works; architectural 
works; applied art work and fine art works; phot ographic works; scientific works, text books and 
teaching materials; graphi cs, drawings, sketches and maps rela ted to topography, architecture or 
scientific projects; translated, adapted, rewritten, transformed, compiled, annotated, selected and anthological works, including comp ilations; computer soft ware, including databases; and other works 
prescribed by laws.  "Scientific wo rks" covered works referring to scie nces such as written theoretical 
works in the natural, social, tec hnological, and economic sciences.  "Press works" were works published 
in newspapers.  "Other works" wa s an open provision referring to othe r forms of works not mentioned in 
the list, but subject to copyright protection.  Protec tion would not be granted for the works above if they 
were found to be in violation of  Article 749 of the Civil Code. 
375. Copyright was provided for original works irresp ective of form, language used for expression, 
and the quality of the works.  Copyright arose from the moment the work was created in a certain 
material form.  Works existing prior to the entry into force of the Civil Code were protected in 
accordance with paragraph 3 of the National Assemb ly Resolution on the implementation of the Civil 
Code if their term of protection ha d not expired and were not in viol ation of Civil Code provisions.  
He confirmed that such works were protected in the same way as works created after the entry into 
force of the Civil Code.  Authorship was protected for the lifetime of the author and 50 years after his 
decease (in case of a co-authored work for 50 years after the death of the last surviving author).  
Cinematographic works; radio, television or vide o works; sound recording works; and works published 
posthumously were protected for a period of 50 years from the date of first publication.  In res ponse to a 
question concerning the application of the national treatment principle, he noted that the 2005 Intellectual Property Law guaranteed the implementa tion of Article 3 of the TRIPS Agreement and 
Article 3 of the Berne Convention.  Pursuant to Ar ticle 13 of the Law, nationals from any Member of 
the Berne Convention or the WTO would be elig ible for copyright protection in Viet Nam. 
376. The Civil Code also regulated the registration of  and application for the protection of author's 
right and the right to ownership of a work (Article 762); the rights of the author, owner of work and 
the time-limit for author's right protection (Articles 751,  752 and 766); and the rights of performers, 
individuals or organizations producing audio ta pes, video tapes and disks, and broadcasting 
organizations (Article s 775, 777 and 779); the rights of registratio n of and application for the protection 
of authorship/ownership of work (Articles 759 and 76 2); the rights of copyright transfer (Article 763); 
the rights of inheritance (Articles 764  and 765); and rental rights (Article 751).  Article 8.2 of 
Decree No. 76/CP regulated import rights of duplicates.  Phonogram producers were protected under the related rights provision (Artic les 776 and 777 of the Civil Code), and unfixed performances under 
Article 775 of the Civil Code.  Concerning radio an d television broadcasts, Vi et Nam had no specific WT/ACC/SPEC/VNM/5/Rev.2 
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 regulation covering pre-programme or encrypted signal s, or transmission by cable.  The definition of 
broadcasting included only transm ission by wireless means received directly by the public.   
377. The registration process was governed by Article 762 of the Civil Code and Articles 23, 24, 
25, 26 of Government Decree No. 76/CP of 29 December 1996 on Implementation of Certain 
Provisions Concerning Copyright of the Civil Code.  The author or the copyright owner of a work filed the application and related documents with the Copyright Office of Viet Nam (COV).  The COV 
decided on the granting of a Registration Certificate within 10 days from the date of receipt of the 
application. 
378. Copyright arose from the moment a work was created in a concrete material form irrespective 
of whether or not it was a registered work (Ar ticle 754 of the Civil Code and Article 6 of 
Decree No. 76/CP).  Unless the declaration in the application for copyright protection was false, an 
author or owner of a registered work would not be  obliged to justify his/her ownership right over the 
work in case of dispute.   
379. Pursuant to Article 836 of the Civil Code and Article 12 of Decree No. 60/CP of 6 June 1997, 
the works of foreign individuals or foreign organi sations which were protected in Viet Nam included 
(i) works created and displayed in a certain mate rial form in Viet Nam, (ii) works made known 
publicly or disseminated in Viet Nam for the first time, and (iii) works protected in Viet Nam under 
international treaties signed or adopted by Viet Nam.   
380. Right holders had the exclusive right of repr oduction (Article 751.1.d of the Civil Code) and 
translation (Articles 757 of the Civil Code).  Limitations to author's rights were laid down in 
Article 760 of the Civil Code, which provided that individuals and organizations could use works which had been made known public or disseminated if duplication of the works was not prohibited, 
for non-commercial use, did not affect the normal exploitation of the works, and did not infringe on other rights of the works' author or owner.  Indi viduals or organizations using these works would not 
be required to apply for permission or pay royalties to the author or owner of the work, but would be 
required to include the name of the work's author and the source of the works.   
381. Pursuant to Article 761 of the Civil Code and Article 12 of Decree 76/CP, free use of 
published works included duplication for personal use, archives or for use in libraries; quotation without 
falsifying the intent of the author for commentary or illustration in other works (reports, periodical 
publications, documentary films, broadcasts or tele vision programmes) or for teaching and educational 
purposes; performance of theatrical works and other fo rms of artistic performance in public; direct audio 
and visual recording of performances for newscast or educational purposes; introduction of works of  WT/ACC/SPEC/VNM/5/Rev.2 
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 publicly displayed sculptures, architecture, photograp hy and applied arts; transl ation and dissemination 
of works in Vietnamese into the languages of ethni c minorities in Viet Nam and vice versa; and the 
conversion of printed works into Braille charac ters (for the blind).  However, according to item 
1b, c and d of Article 761 of the Civil Code, a quotation from a published work should not become the 
main part of a new work, and quotations would be  limited only to the extent of introduction, 
commentary or clarification of issues raised in the work of the person making the quotation, and should 
spell out clearly the name of the author and th e source of the quoted work (Article 12.2 of 
Decree No. 76/CP).  He added that the Ordinance on Libraries No. 31/2000/PL-UBTVQH10 of 28 December 2000 required libraries and governmental offices to comply with Viet Nam's legislation 
on intellectual property (Article 13.2). 
382. Authors or owners of works whose rights were  being infringed were entitled to require the 
person having committed the acts of infringement to  apologize, rectify, compensate for damages and 
to stop his infringement acts, or to request the comp etent State authority to force the person to do so 
(Article 759).  Criminal remedies were stipulated in Article 131 of  the Criminal Code.  Violators 
could face a fine of 200 million Dong or up to thr ee years imprisonment.  Recourse to civil remedies 
would depend upon the level of damage caused by  the person making the infringement acts.  Eight 
copyright infringement cases had been brought before the civil courts so far.  Pursuant to Articles 57 
and 58 of the Customs Law (2001), the right holder could also request customs offices to halt clearance temporarily of infringing imported or exported goods. 
383. A Member had been informed by industry sources that the virtual absence of legally 
authorized distribution of first-run motion pictur es in Viet Nam created incentives and opportunities 
for piracy, and asked what steps Viet Nam intended to take to allow legal importation of first-run 
motion pictures. 
384. The representative of Viet Nam replied that all films on show in Viet Nam were legally 
authorized.  The Ministry of Culture and Info rmation approved all imports of motion pictures, 
videotapes and DVD.  Imports were effected th rough FAFIM under the Ministry of Culture and 
Information (Article 15 of Gove rnment Decree 48/CP of 17 July 1995).  However, Government 
Decree No. 26/CP of 3 August 2000 and Article 3 of Circular No. 28/2000/TT-BVHTT of the 
Ministry of Culture and Information authorized  cinema businesses possessing or having held using 
rights for cinema theatre motion pi ctures for minimum five years, a nd whose cinema theatres met the 
requirements set by the Ministry of Culture and In formation and the Ministry of Construction, to 
import motion pictures - not necessarily through FAFIM - to be shown in their cinema theatres.  The monopoly rights conferred to FAFI M extended only to the importation of video tapes and DVD.  In WT/ACC/SPEC/VNM/5/Rev.2 
Page 142  
 
 deciding the number of foreign films approved for im portation, the Ministry would take into account 
the number of films produced locally and the capacity of the domestic distribution network.  All 
locally-produced and imported films were screened pursuant to Decision No. 2455/QD-DA on movie 
inspection of 8 August 1997.  Viet Nam television coordinated importation of films for broadcasting 
with the Ministry of Culture and Information.   
385. Asked specifically about Viet Nam's regulation of digital copyright i ssues, the representative 
of Viet Nam said that the Civil Code, while provi ding protection to works in "determined physical 
forms", i.e. customary and traditional forms, did not specifically include the digital format and did not 
regulate temporary copies, nor did any other curre nt copyright legislation.  Digital copyright 
protection would be considered in the revision of Viet Nam's legislation on copyright and related 
rights.  The principles and forms of fair use exce ptions permitted according to Articles 760 and 761 of 
the Civil Code did not include copied computer software.  Viet Nam had no direct and specific 
regulation on technological protection measures for protected copyright.  As to Internet services, 
Article 6.1 of Decree No. 55/2001 required complia nce with the respective regulations under the Law 
on Newspapers, the Law on Publishing, the Ordinance on Protection of State Secrets, and other laws 
and regulations on intellectual prope rty and Internet information management.  The Decree prohibited 
strictly theft and unlawful use of passwords, code s and private information of individuals or entities 
on the Internet.   
386. [Some Members observed that it had been brought to  their attention that some agencies of the 
Government of Viet Nam used computer software th at had not been authorized by the right holder.  
They requested such a practice should be eliminated by Viet Nam in the context of its accession to the 
WTO and the implementation of the obligations in the WTO Agreement on TRIPS.  The representative of Viet Nam confirmed that prior to the date of accession, Viet Nam would issue appropriate legal instruments mandating that all government agencies use only legitimate computer 
software and only as authorized by the right holde r.  Such measures shall actively regulate the 
acquisition and management of all software for use by government agencies.  Such management may 
take the form of procedures, such as preparing and maintaining inventories of software present on 
agency computers, and inventories of existing so ftware licenses.  The Working Party took note of 
these commitments.]  
387. A Member noted that Article 7 of the Ordinance on Copyright Protection of 1 July 1994 
contained wide provisions for denial of copyri ght and wondered whether any amendment would be 
required to comply with Article 9.2 of the Bern e Convention.  Referring to the Berne Convention 
requirement for automatic protection free of forma lities, the Member also requested an explanation  WT/ACC/SPEC/VNM/5/Rev.2 
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 for the reference in Article 5 of the Ordinance to grant protection to authors who did not register but 
"have needs for copyright" , in contrast to the reference to protection granted on the basis of 
registration. 
388. The representative of Viet Nam replied that the Ordinance on Copyright Protection of 1994 
had expired on 1 July 1996 and that all copyright-rela ted provisions had been incorporated in the Civil 
Code of 1995 (Chapter 1, Part Six).  He adde d that implementation of the TRIPS Agreement and 
accession to the Berne Convention for the Protection of Literary and Artistic Works would require 
Viet Nam to amend and improve its  legislation on copyright protection in some areas.  Existing 
legislation was inadequate with respect to detailed regulations on the protec tion of computer programs 
and compilations of databases (Ar ticle 10); provisions on the term  of protection of performers 
(Article 14.1); provisions on the rights of fixati on and communication to the public of broadcasts 
(Article 14.3); provisions on rental rights of phonogram s (Article 14.4); and provisions on the right of 
communication to the public in respect of perform ance of dramatic, dramatic-music and musical 
works (Article 9.1).  Moreover, the limitations on the rights of authors of published works in respect 
of performance of dramatic, dramatic-musical, musical and the fixation of musical works in Sections 
774 and 776 of the 1995 Civil Code were inconsiste nt with the requirements of Article 9.1 of the 
TRIPS Agreement.  Amendments to the provisions on copyright, which aimed at bringing copyright 
legislation in line with the TRIPS Agreement and the Berne Convention, had been included in the 
2005 Law on Intellectual Property Rights. 
(b) Trademarks, including service marks 
389. The representative of Viet Nam said that trad emarks were protected in accordance with 
Article 785 of the Civil Code.  He noted that the sco pe of trademark protection in Viet Nam had been 
narrower than the requirement in Article 16.1 of the TRIPS Agreement, but had recently been extended by Decree No. 06/2001/ND-CP of 1 Febr uary 2001.  Trademarks for pharmaceutical 
products were regulated by the ge neral laws and regulations on trad emarks.  Mandatory registration 
was not required for any goods or services.   All trad emark registrations were published in the Official 
Gazette of Industrial Property. 
390. A trademark could be a word, an image or a comb ination of such elements represented in one 
or many colours.  A sign capable of distinguishing goods or services of the same kind, and not being 
objects excluded from protection in accordance with trademark laws and regulations, could be registered for protection as trademarks.  While Viet Nam's laws  did not list the signs pr otectable as trademarks, 
personal names were ex officio recogn ized as registerable signs.  App lications for registration of marks 
were filed with the competent State authority (the National Office of Intellectual Property).  Foreign WT/ACC/SPEC/VNM/5/Rev.2 
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 natural and legal persons filed a pplications for trademark registra tion through a legally operating 
industrial property representative of their choice, or  through their branches or wholly-owned companies 
in Viet Nam.  Use was not a condition for entitlem ent to file an application for registration of a 
trademark.  A sign which did not possess distinctive character could be protecte d if it had been used 
widely and had a good reputation in Viet Nam.  Curr ent laws and regulations also applied to service 
marks.  Well-known marks were protected in  accordance with the Paris Convention. 
391. Examination of marks was mandatory, and include d examination as to form and substance.  
The National Office of In tellectual Property conducted ex officio  substantive examination of 
trademark applications and decided on refusal of  registration if a trademark failed to meet the 
protection requirements.  Prevailing Vietnamese laws had provisions on opposition to a trademark 
application prior to registration.  Not recogni zed as marks were signs not possessing distinctive 
character; signs describing goods in terms of quality, property, utility etc.; signs that could mislead the 
public; signs representing State flags, armorial beari ngs or emblems of Viet Nam or other countries 
(unless authorized by the relevant persons or authorities); names or emblems of international 
organizations (per Article 6 ter of the Paris Convention); signs cont rary to public order and morality; 
and signs identical or similar to marks previously re gistered in Viet Nam or protected in Viet Nam by 
an international convention to  which Viet Nam was party. 
392. The owner of a trademark had the exclusive right to use, transfer, and licence the trademark to 
other persons.  He had the right to request a th ird party to stop infringement or to request the 
competent authority to handle such infringements.  A trademark was protected for ten years counted 
from the filing date and was renewable for periods of ten years without limitation.  The owner of a 
trademark was obliged to use the registered mark.  Fa ilure to use a trademark fo r five consecutive years 
without plausible reason would lead, upon request of a third party, to the termination of the protection 
certificate.  Examples of justifiable reasons were na tural disasters, war, governm ental restrictions on use, 
etc.  Licensing of a trademark would not be considered  effective use, but the use of the trademark by the 
licensee would be considered an act of use (Section 46(3) of Decree No. 63/C P).  A registration would 
not be terminated in the absence of a request for term ination of validity, or if the owner had begun use of 
the trademark when such a request was made, even if the period of non-use had been longer than 
five years.  Applications reques ting termination or cancellation of a Trademark Registration Certificate 
were processed in accordance with procedures laid down in Section 27 of Decree No. 63/CP. 
393. Any contract of assignment of a trademark right needed to be registered with the National 
Office of Intellectual Property.  An assignment contract which had not been registered would be invalid.  In response to a specific question, he noted  that Viet Nam's laws did not oblige a trademark  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 145 
 
 
 assignor to transfer, together with the trademark, the business to which the trademark belonged.  Thus, 
the trademark owner had the right to assign his trademark without the transfer of business in 
compliance with Article 21 of the TRIPS Agreement.   
394. Legal entities, including charitable organizations , could apply for trademark registration only 
if legally engaged in commercial activities.  However, charitable entities not engaged in commercial activities were protected against non- authorized registration of signs a nd designations identical to or 
similar to their emblems or designations according to Decree No. 63/CP, Section 6, subsection 2(g). 
395. Concerning co-ownership of trademarks, a Member  noted that Viet Nam appeared not to allow 
a trademark to have more than one owner.  Several countries allowed joint ownership of trademarks, not 
to be confused with collective trademark rights,  and against this background Viet Nam's provisions 
would seem unduly restrictive – possibly due to a mi sinterpretation of Artic le 5(c) of the Paris 
Convention – and could provide a limitation on the rights of foreign trade mark owners to seek 
protection in Viet Nam. 
396. In reply, the representative of Viet Nam said that neither the TRIPS Agreement nor the Paris 
Convention required recognition of jo intly owned trademarks.  Neverthe less, provisions on the right to 
register such marks had been included in Article 57.5 of th e 2005 Intellectual Property Law.   
397. A Member requested information about the right of appeal of administrative decisions 
provided for in the TRIPS Agreement, as Viet Na m appeared not to be in compliance with the 
requirement for judicial review of administrative decisions.  The representative of Viet Nam replied 
that decisions relating to the establishment, mainte nance, invalidation and cancellation of trademarks, 
having been appealed to the Director General of th e National Office of Intell ectual Property, could be 
appealed further, at the appellant's discretion, either to the Administra tive Court according to the 
Ordinance on the Judgement of Admi nistrative Cases, or to the Mini ster of Science and Technology 
according to Article 27(4) of Decree No. 63/CP.  Decisions of the Minister of Science and 
Technology on the legal effect of the decision unde r appeal were final and could not be further 
appealed to the Administrative Court.  As such, in  his view, existing laws a nd regulations provided an 
opportunity for both judicial and administrative review in compliance with the TRIPS Agreement.  Procedures for the judgement of administrative ca ses relating to the establishment, maintenance, 
cancellation and invalidation of tradem arks in particular, and of industr ial property rights in general, 
were provided for in the Ordinance on Procedures fo r Judgement of Administrative Cases of 1996.   
398. He added that on 1 February 200 1 his Government had promulgated 
Decree No. 06/2001/ND-CP on amendments to Decree No. 63/CP of 24 October 1996.  WT/ACC/SPEC/VNM/5/Rev.2 
Page 146  
 
 Decree No. 06/2001/ND-CP broadened the scope of pr otection of trademark rights in compliance with 
the TRIPS Agreement.  In particular, the Decree stipulated as infringement of a trademark owner's 
rights "the use of signs which are identical with the trademark protected by a Trademark Registration 
Certificate or by an International Registration for goods or services similar to, or related to goods or 
services in the list registered with the trademark and/or the use of signs which are similar to the 
protected trademark for goods or services identical w ith, or similar to, or related to goods or services 
in the list registered with the trademark, if such us e is liable to create confusion of the origin of goods 
or services".  He further noted that Article 8 of the 1997 Commercial Law prohibited acts infringing trademarks and industrial property rights of other tr aders and Article 9 of the Law acts deceiving and 
confusing customers, as well as acts of displaying false advertisements or  selling counterfeit goods. 
399. The definition of a well-known mark as "a ma rk widely known to consumers throughout the 
territory of Viet Nam" and the criteria for the recognition of well-known marks were provided in the 
2005 Intellectual Property Law.  Pursuant to the Law, requests for recognition would need to be accompanied by documents proving the well-known status of the trademark, including information on the number of relevant consumers knowing the ma rk by purchasing or using the goods or services 
bearing the trade mark; the number of countries in  which the trade marked goods and services were 
being sold, providing trademark protection or r ecognizing the trademark as well-known; generated 
sales revenue; period of continuous use; indications  of widespread reputation; the value of the 
trademark in terms of licensing, contribution to an investment asset, etc.  Pursuant to Decree 
No. 06/2001/ND-CP of 1 February 2001, well-known marks did not need to be registered or used 
within the territory of Viet  Nam to be protected .  The industrial property rights of trademarks were 
protected without time limit from the date on wh ich the trademark had been recognized by a 
competent State authority as a well-known trademark.  He confirmed that in drafting the Intellectual Property Law, Viet Nam had taken account of the provisions of the Joint Recommendation 
concerning the Provisions on the Protection of Well- Known Marks adopted by the Assembly of the 
Paris Union and the General Assembly of the Wo rld Intellectual Property Organization (WIPO) in 
September 1999.  He considered Viet Nam's syst em for the recognition of well-know marks to be 
fully consistent with the TRIPS Agreement,  as well as with paragraph 1 of Article 6 bis of the Paris 
Convention.   
(c) Geographical indications, including appellations of origin 
400. The representative of Viet Nam said that geogra phical indications in general were protected 
under Government Decree No. 54/2000/ND-CP on the protection of industrial property rights of business secrets, geographical indications, trade na mes and protection against unfair competition,  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 147 
 
 
 notably Articles 10-13 and 19.  Article 5 of this D ecree stipulated that industrial property rights of 
geographical indications would be established automa tically if all prescribed conditions were fully 
satisfied without requirement for registration with  any competent State authority.  Article 10 of 
Decree No. 54/2000/ND-CP, which specified the criteria for protection of geographical indications, allowed protection for geographical indications othe r than geographical names.  Regions and localities 
within a country, as well as territories crossing intern ational borders, were protected if they complied 
with all requirements stipulated by laws.  The provisions were, in his view, in compliance with 
Article 22.1 of the TRIPS Agreement.  According to Article 23 of Decree No. 54/2000/ND-CP, acts 
infringing geographical indications would be handled  in accordance with the procedures for handling 
infringement of other industrial property rights.  Civil remedies for wrongfu l use of a geographical 
indication were provided for in paragraph 1 of Arti cle 21 of Decree No. 54/2000/ND-CP, and criminal 
penalties were stipulated in Article 171 of the Criminal Code of 1999.  He confirmed that administrative 
and criminal laws and regulations provided for ex-o fficio protection of geogr aphical indications.  In 
response to a question, he added that a geographical indication would be considered generic pursuant to 
Article 10.3 of Decree No. 54/2000/ND-CP if it had become a popular name of a good and had lost its 
geographical indica tion character. 
401. Geographical indications of a special kind, namely appellations of origin, were protected 
under Decree No. 63/CP of 24 October 1996  as amended by Decree No. 06/2001/ND-CP of 
1 February 2001.  Appellations of  origin had to be registered to enjoy protection.  The term of 
protection was indefinite.  The right to use appellati ons of origin was subject to certification by the 
National Office of Intellectual Property pursuant to the procedures provided for in Circular No. 3055/TT-SHCN, dated 31 December 1996, of the Ministry of Science, Technology and 
Environment.  The time-limit for formality examinat ion was three months from the filing date and six 
months for substantive examination.  A person having the right to use an appellation of origin could 
request the competent State authorities to stop unlawful use of such appellation, and demand 
compensation from unlawful users for the damage caused.  However, he would not have exclusive right to such appellation of origin, and could not transfer the right of use to other persons.  Three appellations of origin were currently protected in Viet Nam.   
402. Article 19.3 of Decree No. 54/2000/ND-CP of 3 October 2000 provided additional protection 
for wines and spirits.  Provisions on the protection of  appellations of origin a pplied generally to goods 
of all kinds, prohibiting "the illegal use of an appellati on of origin or signs confusingly similar thereto, 
including the case where the true origin of the product or  the appellation of origin is indicated, used in 
translation, or accompanied by word ings such as ""kind", "type", "imita ting", or similar words to that 
effect" (Section 47(1)(b) of Decree No. 63/CP).  Infringements could be dealt with under civil, WT/ACC/SPEC/VNM/5/Rev.2 
Page 148  
 
 administrative or criminal procedures and the prov isions were, in his view, consistent with the 
requirements of Article 23.1 of the TRIPS Agreement.   
403. As to the relationship between the protection of geographical indications and trademarks, 
Article 785 of the Civil Code and Article 6.1(f) of  Decree No. 63/CP of 24 October 1996 prohibited 
the registration of a trademark identical with or  confusingly similar to protected geographical 
indications, including appellations of origin.  Th e time to be taken into consideration for the 
protection of geographical indications was the priority date of the trademark application, or the date of 
requesting recognition of a well-known trademark.  Asked how Viet Nam could confer exclusive 
rights to trademark owners consistent with the TRI PS Agreement if its legislation appeared to allow 
trademarks to coexist with confusingly similar a nd later-in-time geographical indications, he replied 
that Viet Nam had included a provision in the 2005 Intellectual Property Law to exclude the 
protection of geographical indications identical with  or confusingly similar to an already protected 
trademark where actual use thereof would create confusi on as to the origin of the goods (Article 80.3).   
 (d) Industrial designs 
404. The representative of Viet Nam said that indus trial designs - a specific appearance of a 
product embodied by lines, three-dimensional forms, colours or a combination thereof of world-wide 
novelty capable of serving as a pattern for a product of industry or handicraft – were protected in  accordance with Article 784 of the Civil Code.  Tex tile designs were protected in the same manner as 
other industrial designs.  Applications for registration of i ndustrial designs were filed with 
the competent State authority (the National Office of Intellectual Property) and subject to examination as 
to form and substance.  The initial term of protectio n of an industrial design was five years, counting 
from the filing date, and it could be renewed for two consecutive terms of five years (Section 9(2)(c) of Decree No. 63/CP). 
405. The owner of a protected industrial design had the exclusive right to use, transfer or licence 
the right to use such industrial design to other persons, the right to request the competent State 
authority to compel other persons to stop infringe ments, and the right to claim compensation for 
damages caused by such acts of infringement (Article 796 of the Civil Code).  In his view, the current 
laws and regulations of Viet Nam were in complia nce with the requirement of Article 26.1 of the 
TRIPS Agreement.  Although the relevant provisions had not been phrased in the exact same wording 
as the TRIPS Agreement, the provisions also cove red the making, selling or importing of articles 
embodying designs which were "substantially a copy" of a protected design.   WT/ACC/SPEC/VNM/5/Rev.2 
 Page 149 
 
 
 406. The rights were restricted when provisions on prior user were applied.  The rights of prior 
users were provided in Article 801 of the Civil Code.  As for compulsory licensing, he noted that the 
new Intellectual Property Law no longer provided fo r compulsory licensing in respect of industrial 
design.   
(e) Patents   
407. The representative of Viet Nam said that inve ntions (involving novelty, inventive step and 
industrial applicability) were protected in accordan ce with Article 782 of the Civil Code.  Patent 
applications were subject to examination as to fo rm and substance.  The time-limit for formality 
examination was one month and 12 mo nths for substantive examination as stipulated in Sections 16.1 
and 30.1 of Circular No. 30/2003/TT-BKHCN.  By  31 December 2003, 4,021 invention patents had 
been granted, and the National Office of Intellectual Property had a staff of 148. 
408. Subject matter excluded from protection fell with in three main categories, i.e. (i) those not 
considered as inventions, including scientific ideas, principles and discoveries, theories and mathematical methods; aesthetic creations; economi c management methods and systems; educational, 
teaching, training methods and systems; comput er programs; designs a nd planning schemes for 
construction works; projects for regional development and planning; (ii) subjec t matter which should be 
protected under other forms of protecti on than patents, e.g. layout desi gn of integrated circuits, or plant 
and animal varieties; and (iii) th ose not industrially applicable such  as methods for the prevention, 
diagnose, and treatment of human or  animal diseases, esse ntially biological proc esses for the production 
of plants or animals other than non-biological and microbiological processes (Section 4(4) of 
Decree No. 63/CP as amended by  Decree No. 06/2001/ND-CP of 1 February 2001).  Pharmaceutical 
products and processes to manufacture pharmaceutical  products were protectable under Vietnamese 
law as they did not fall under the list of the objects excluded from protection under Section 4(4) of Decree No. 63/CP.  Responding to a Member, who c onsidered Viet Nam's exclusions from protection 
far exceeded the exceptions permitted under Article 27.3 of the TRIPS Agreement, the representative of 
Viet Nam said that the exclusions in Section 4(4) of  Decree 63/CP were essent ially equivalent to those 
of the European Patent Convention and did not, in his view, go well beyond the provisions of Article 27.3 of the TRIPS Agreement.  Inventions could also be excluded from patentability for reasons 
of public order and morality in accordance with Arti cle 787 of the Civil Code.  This provision applied 
irrespective of whether the commercial exploitation of such inventions was prohibited by law.   
409. The owner of the invention (patent) had the ex clusive right to use, transfer, and license the 
right to use the invention to other persons.  He  had the right to demand that other persons stop 
infringements, and he could seek compensation for damages caused by acts of infringement.  The WT/ACC/SPEC/VNM/5/Rev.2 
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 term of a Patent for Invention began on the grant date and expired at the end of 20 years counting 
from the official filing date according to Section 9 of Decree No. 63/CP and was, in his view, in 
compliance with Article 33 of the TRIPS Agreement.   He added that utility solutions, which did not 
require protection under the TRIPS Agreement, were protected in Viet Nam.  Any technical solution 
possessing world-wide novelty with industrial appli cability in any economic or social area could be 
protected by a utility solution patent valid for ten years. 
410. The owner of an invention was obliged to use the invention (or transfer the right of use) 
in conformity with the requirements of soci o-economic development of  Viet Nam, and pay 
remuneration to the author of the invention if the ow ner was not the same as the author.  The rights to a 
patent (invention) could be  restricted by provisions on prior use right (Article 801 of the Civil Code) and 
compulsory licensing (Article 802 of the Civil Code).  The transferee of an invention by compulsory 
licensing was required to pay royalty to the owner.  Compulsory licensing coul d only be applied (i) for 
reason of non-use or improper use; (ii) if the propo sed user had failed to reach an agreement with the 
owner on reasonable comm ercial terms and conditions to no avail w ithin a reasonable period of time; or 
(iii) for reasons of national defence and security, the prevention and treatment of diseases or other urgent 
needs of the society.  He confirmed that importati on would satisfy the "use" requirement stipulated in 
Viet Nam's legislation.   
411. Conditions and procedures for granting non-voluntar y licences were laid down in Section 51 of 
Decree No. 63/CP, as amended and supplemented  by Decree No. 06/2001/ND-CP of 1 February 2001.  
Pursuant to Section 51, compulsory licences could no t be granted before the expiration of a four year 
period after the filing of an application for a Protecti on Title or three years after a Protection Title had 
been granted.  The patent owner was entitled to re quest the termination of the use of a non-voluntary 
licence if the circumstances which led to it had ceased or were unlikely to recur, provided such termination would not prejudice the grantee of the non-voluntary licence.  The Ministry of Science and 
Technology was responsible for granting and suspendi ng non-voluntary licences.  The Ministry notified 
the patent owner within 15 days upon receipt of a request for a compulsory licence, and the owner then 
had 30 days to give his opinion.  The Ministry could request the parties to renegotiate with a view to 
agreeing to a voluntary contractual licence, but if no agreement could be reached the Ministry had three 
months to issue a decision.  Th e decision to grant a non-voluntary licence had to published in the 
Official Gazette on Industrial Prop erty within one month from the date  of issuance of the licence.  
Specific conditions, corresponding to the provisions of Ar ticle 31 paragraphs (c), (d ), (e), and (h), were 
attached to the licence and the right holder had one month to comply with the conditions.  The patent 
owner and the transferee could appeal against the Mi nistry's decision to the Minister of Science and 
Technology and, in last instance, to the Prime Minist er or initiate an administrative court case.    WT/ACC/SPEC/VNM/5/Rev.2 
 Page 151 
 
 
 412. Compulsory licences for an invention could only be granted under the circumstances prescribed 
in Article 802 of the Civil Code − no compulsory licence had been granted in Viet Nam thus far.  He 
noted that the conditions prescribed in Articles 31 (f), (k) and (l) of the TRIPS Agreement were not 
provided for expressly in legal documents.  Ho wever, provisions on conditions for granting 
compulsory licenses in compliance with Articles 31 (f), (k) and (l) of the TRIPS Agreement had been 
introduced in the 2005 Intellectual Property Law.  In response to a question, he noted that judicial 
review of the use of inventions under compulsory licenses was guaran teed by the Law on Complaints 
and Denunciations and the Ordinance on Procedures  for Settlement of Administrative Cases, and 
provisions on notification had been included  in the 2005 Intellectual Property Law. 
413. The patentee's right to assign or inherit hi s patent and to conclude a licence contract 
(Article 28.2 of the TRIPS Agreement) was ensure d by Article 796 of the Civil Code, Section 1, 
item b and Section 2.  The assignment or licensing of a patented invention was subject to certain 
restrictions permitted by Articles 30 and 40 of the TRIPS Agreement.  The approval procedure of the 
Ministry of Science, Technology and Environment applicable to licensing and assignment contracts 
provided for in Decree No. 63/CP had been abo lished through Decree No. 06/2001/ND-CP.  In 
response to concerns expressed by a Member ab out limitations on royalty payments applied by 
Viet Nam, the representative of Viet Nam said ce ilings on royalty payments for intellectual property 
rights had been abolished by Decree No. 11/ 2005/ND-CP of 2 February 2005 on Technology 
Transfer, amending Decree No. 45/1998/ND-CP of 1 July 1998. 
414. In exceptional cases, the use of a protected inve ntion would not be considered infringement, 
i.e. use for non-commercial purposes; distribution,  circulation and use of products having been 
marketed by the owners, prior users or persons to whom  the right of use had been transferred; or when 
use of the invention took place on foreign means of tr ansportation in transit or temporarily staying in 
the territory of Viet Nam and such use was aimed so lely at maintaining the operation of such means. 
415. Procedures for the termination and invalidation of invention patents were regulated by the 
provisions of Section 27 of Decree No. 63/CP as well as by the Ordinance on the settlement of administrative cases.  There were two routes to appeal against decisions of the National Office of Intellectual Property, and as which route to choose w as up to the interested parties, "an opportunity 
for judicial review", i.e. by the Administrative Court, was fully ensured.  Minister's decisions could be 
reviewed by the Administrative Court under Law No. 58/2005/QH11 on Amendments and Supplements to the Law on Appeal and Denounce of 1998 (Articles 1.19 and 2.2).  He considered Viet Nam to be in full compliance with  Article 32 of the TRIPS Agreement.  WT/ACC/SPEC/VNM/5/Rev.2 
Page 152  
 
 416. Asked about procedures for patent applications in respect of micro-organisms, he said that the 
Ministry of Science and Technology had pr omulgated Circular No. 30/2003/TT-BKHCN of 
5 November 2003 containing provisions on patent applications for micro-organisms and the 
examination thereof.   
417. Concerning the reversal of the burden of proof in  process patent infringement actions, he said 
that provisions shifting the burden of proof from the pl aintiff to the defendant had been included in the 
2005 Intellectual Property Law.   
(f) Plant variety protection 
418. The representative of Viet Nam said that Decree No. 31/CP on Innovations and Inventions, 
Inter-ministerial Circular No. 01/NN-KCM on the Rem uneration to the Authors of Plant Varieties and 
Animal Species, and Decree No. 07/ND-CP of 1996 on  the Management of Plant Varieties constituted 
the legal basis for the protection of plant varieties.  A plant variety needed to be novel, stable, uniform 
and useful to obtain protection, and only the creator  of a plant variety was entitled to be registered 
with the Ministry of Science, Technology and Environment for author's rights.  Authors were protected by a system of Plant Variety Author Certificates delivered by the new Plant Variety 
Protection Office.  Certificates were valid for 20 y ears for new plant varieties and 25 years for woody 
and vine plants from the date of filing of the app lication.  Apart from moral rights, the author of a 
protected plant variety had the right to remuneration paid by the users.  The exclusive right over the plant variety belonged to the Government. 
419. Having studied the compliance of its laws and regulations on the protection of plant varieties 
with the requirements of the TRIPS Agreement,  his Government had decided to promulgate 
provisions on the protection of new plant varie ties in accordance with UPOV standards.  His 
Government had issued Decree No. 13/2001/ND-CP on the protection of new plant varieties on 20 April 2001.  The Government Decree had been  supplemented by Circular No. 119/2001/TT-BNN 
of the Ministry of Agriculture and Rural Development.  These provisions, as well as 
recommendations of the UPOV Council, had been incor porated into the Ordinance on Plant Varieties, 
issued by the Standing Committee of the National Assembly on 24 March 2004.  The Ordinance had a 
higher legal effect than the earlier Government Decr ee.  Provisions on the protection of plant varieties 
had also been included in the new Intellectual Property Law.  WT/ACC/SPEC/VNM/5/Rev.2 
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 (g) Layout designs of integrated circuits 
420. The representative of Viet Nam said that his Government had promulgated 
Decree No. 42/2003/ND-CP on Protection of Industrial Property Rights in respect of Layout Designs 
of Semiconductor Integrated Circuits on 2 May 2003 .  Provisions on layout designs of semiconductor 
integrated circuits had also been  included in the 2005 Intellectual Property Law.  Viet Nam would 
also promulgate a Decree Guiding the Implementati on of the Provisions on Industrial Property Rights 
of the Intellectual Property Law, including those rela ted to layout designs of semiconductor integrated 
circuits. 
421. Asked about intentions to join to the Treaty on  Intellectual Property in Respect of Integrated 
Circuits, he said that Viet Nam had not yet taken a decision on accession to the IPIC Treaty.  Viet Nam believed that such accession would not be  necessary, because the standards provided for in 
the TRIPS Agreement were almost equivalent to or  higher than those of the Treaty, and the WTO had 
far more members than the IPIC Treaty. 
(h) Requirements on undisclosed information,  including trade secrets and test data 
422. The representative of Viet Nam said that Government Decree No. 54/2000/ND-CP of 
3 October 2000, in particular Articles 6-9 and 18,  provided protection for business secrets, including 
trade secrets and test data.  Business secrets would be protected as long as they satisfied fully all prescribed conditions without being required for registration.  As provided for in 
Decree No. 54/2000/ND-CP, owners of business secrets had the right to demand injunctions from the 
State competent authorities to stop infringements and to claim damages (Article 21).  The protection 
of undisclosed test or other data submitted as a condition for approving the marketing of 
pharmaceutical or agricultural chemical pr oducts was addressed in Article 18.4 of 
Decree No. 54/2000/ND-CP, and the authorities concerned – the Office of Pharmaceutical Administration under the Ministry of Public Hea lth and the Office of Plant Protection under the 
Ministry of Agriculture and Rural Development – we re required to keep test data secret in accordance 
with regulations on data protection by State agenci es as long as the data would satisfy the criteria for 
the protection of undisclosed information.   
423. Some Members were of the opinion that Artic le 18.4 of Decree No. 54/2000/ND-CP did not 
specify how Viet Nam's Government itself would protect pharmaceutical or agricultural chemical test 
data provided to it for marketing approval purposes.  The representative of Viet Nam replied that the 
competent authorities were required to ensure the secrecy of test data submitted under the secret- 
keeping rules of the administrative authorities.  St aff of competent authorities were not allowed to WT/ACC/SPEC/VNM/5/Rev.2 
Page 154  
 
 disclose or provide any information or documents submitted for marketing approval purposes to third 
parties, except to other competent authorities at their request and with written permission of their 
heads.  Moreover, pursuant to the new Intellectual Property Law, the State authority was not allowed 
to approve the products of an applicant whose app lication used the test data submitted by a prior 
applicant (Article 128).  He added that a new La w on Competition had been adopted by the National 
Assembly on 3 December 2004 (Law No. 27/2004/QH11).  The Law included provisions on the 
protection of industrial property against unfair comp etition (Article 39) and infringement of business 
secrets, including accessing and acquiring information on business secrets of others, such as procedures for marketing approval of products, us ing such information for business purposes or for 
obtaining business-related licenses or marketing appr oval of products, or acting against secret-keeping 
measures of State agencies (Article 41.4).   
3. Measures to control abuse of intellectual property rights 
424. The representative of Viet Nam said that violations of the regulations or procedures 
establishing a right in relation to an object of indus trial property could lead to the annulment of the 
granted protection certificate.  Non-performance of the owner's obligations such as failure to pay 
maintenance fees or remuneration to the author, or us e or transfer of an objec t already protected could 
result in annulment of the protection certificate or the competent authority could decide to compel the 
owner of the protection certificate to fulfil hi s/her obligations as stipulated by law. 
425. He added that legal provisions ha d been promulgated to enable Viet Nam to take appropriate 
measures to prevent or control anti-competitive prac tices in contractual licences.  Section 17.4 of 
Circular No. 3055/TT-SHCN stipulated restrictions on the contractual licensing of industrial property between the right owners and the licensees (industrial property licensing contracts), applicable to both 
Vietnamese and foreigners. 
426. While acknowledging that Article 8 of the TR IPS Agreement allowed appropriate measures 
to prevent the abuse of intellectual property rights, unreasonable restraints on trade, or adverse effects 
on the international transfer of technology, some  Members noted that Viet Nam had established a 
system of controlling technology transfer ag reements in Circular No. 3055/TT-SHCN and 
Articles 32-37 of Government Decree No. 45/1998/ ND-CP of 1 July 1998 which might slow the 
transfer of technology to Viet Nam, while the li nk to any abuse of intellectual property rights was 
unclear.  The system introduced limitations on the duration of royalty payments for patents and know-how, and capped royalty payments for trademark licences.  A Member requested Viet Nam to set terms for technology transfer agreements that woul d reflect the minimum term for the duration of a 
patent stipulated in Article 33 of the TRIPS Agreement.    WT/ACC/SPEC/VNM/5/Rev.2 
 Page 155 
 
 
 427. The representative of Viet Nam replied that th e duration of technology transfer agreements 
were agreed among the related parties, in which th e time period for royalty payments for intellectual 
property rights should be within the relevant protection term.  Ceilings on royalty payments for 
intellectual property rights had been abolis hed by Decree No. 11/2005/ND-CP on Technology 
Transfer, promulgated on 2 February 2005.  
4. Enforcement (a) Civil judicial procedures and remedies   
428. The representative of Viet Nam said that People's Courts (Civil Court), at district and 
provincial level, had the authority of jurisdiction over disputes or infringement relating to industrial 
property rights.  The People's Court could adjudicate cases with respect to claims of abuse of industrial 
property rights, disputes concerning royalty or remuneration, claims on application right and the right of 
authorship, and disputes relating to contracts concerning transfer of owne rship right or licensing contract 
for the right to use objects of industrial property.  Lodging a claim or bringing a suit before the Court, the plaintiff or his/her lawful representative woul d need to provide evidence of his/her industrial 
property right as well as evidence of infringement of the rights.  The defendant had the right to refute 
the evidence and arguments of the plaintiff before the Court.  The Court had the right, upon request of 
either party or on its own initiative, to demand furt her evidence or documentation and, if necessary, to 
collect evidence itself (Articles 85 and 94 of th e 2004 Civil Procedure Code).  The persons or 
institutions requested to provide evidence had 15 da ys to present such evidence.  Concerned parties 
could appeal the Court's collection of evidence to  the People's Prosecutor, which could request the 
Court to verify and collect evidence according to th e concerned parties' request.  People's Prosecutors 
were responsible for controlling an d supervising civil courts' judgeme nts and decisions and ensuring 
their timely settlement and conformity with Viet  Nam's laws and regulations (Article 21 of the 
2004 Civil Procedure Code).  All Court decisions were provided in written form to the concerned 
parties and the People's Prosecutor within 10 days  (Article 241 of the Civil Procedure Code).  
Detailed provisions on necessary evidence had been in cluded in the 2005 Intell ectual Property Law.  
Under the Law, documentation to be submitted to pr ove ownership of an intellectual property right 
could include, for registered rights, a legitimate copy of Protection Titles, any extract of Register on 
patents, industrial designs, etc., a certificate of copy right registration, or a certificate of related right 
registration.  For unregistered rights, any document proving the existence of copyright, related rights, 
well-known marks etc. could be accepted.  He confirmed that the plaintiff was not required to submit an affidavit of ownership to the court.  Procedur es existed for amicable settlement of disputes over 
royalty, remuneration, licensing contracts a nd contracts to transfer ownership rights. WT/ACC/SPEC/VNM/5/Rev.2 
Page 156  
 
 429. The Court could rule that the act of infringement  be stopped, recognize the legitimate rights to 
objects of industrial property, request that the competent State authorities undertake procedures for 
the purpose of acquisition of rights, and award damages.  The compensation amount was determined 
based on the "actual material damage" or profit obtai ned illegally by the infringing party, and "mental 
damages".  The calculation of "actual material da mages" took into account property losses, costs of 
preventing or minimizing the damages, and lost inco me (Article 310.2 of the Civil Code).  "Mental 
damages" related to damages to the life, health, honour , dignity and prestige of the victim (Article 310.3 
of the Civil Code).  Detailed provisions on calcul ation of damages, compensation of right holders, 
remedies, provisional measures, and burden of proof had been included in the 2005 Intellectual Property 
Law.  People's Courts could orde r that provisional measures be applied.  The Court would decide upon 
the apportioning of legal costs based on the rights and faults of the parties concerned.  The parties 
could appeal decisions of the first instance civil j udgment and request a hearing at higher instance.   
430. He added that detailed provisions concerning in demnification of the defendant in the case of 
abuse of civil enforcement procedures by the complainant had been stipulated in the Civil Procedure Code and in the Intellectual Property Law.  He noted that the intellectual property right owner, when 
requesting the suspension of customs procedures, was re quired to deposit an amount  equal to 20 per cent 
of the value of the goods at the State Treasury or, in case of unknown value of the good, a sum of at 
least VND 20 million, or provide a guarantee ensuring compensation to the owner of the goods 
(Article 14.1.b of Decree No. 101/ 2001/ND-CP of 31 December 2001 a nd Paragraph 1.2.3.1. of Joint 
Circular No. 58/2003/TTLT-BVHTT-BTC) .  In the case of a request for long-term protection, the 
deposit amounted to at least VND 50 million or a gu arantee ensuring the payment of all expenses and 
damages that could arise had to be provided.  In re sponse to a Member who noted that the requirement 
to deposit 20 per cent of the value of the good c ould place an unreasonable burden on effective border 
enforcement and enquired about the alternative guarantee, the repres entative of Viet Nam said the 
guarantee should cover all the expe nses and damages that could aris e from the temporary suspension of 
customs clearance procedures. 
431. Referring to Article 41.2 of the TRIPS Agreemen t, a Member asked Viet Nam to extend the 
period to file a suit for the settlement of an econo mic dispute involving infringement of intellectual 
property rights to minimum three years in order to pr ovide sufficient protection.  The representative of 
Viet Nam replied that Article 159.3 of the 2004 Civil Procedure Code, enacted on 15 June 2004, 
provided for a two-year period for filing suits for the settlement of civil disputes, including those 
involving infringement of intellectual property right s, except otherwise provided by laws.  The Code 
had entered into force on 1 January 2005.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 157 
 
 
 432. He added that Viet Nam had attached increasing importance in recent years to the 
strengthening of the judicial system, in particular  the civil judicial system.  In addition to the 
promulgation of the new Intellectual Property Law,  specialized short-term courses on intellectual 
property had been organized for judges with  the assistance of several WTO Members. 
(b) Provisional measures 
433. The representative of Viet Nam said that the Courts having authorit y of jurisdiction over 
violations and disputes in relation to industrial pr operty rights could decide on the application of 
provisional measures.  Detailed provisions were  laid down in the Ordinance on procedures for 
judgement of civil cases of 1989.  The competent State bodies could also impose temporary administrative measures.  Provisional measures included the search and detention of material evidence or the facilities of infringement; compelling the infr inging party to stop the infringement; confiscation of 
infringed goods; and temporary seizure of goods fo r the purpose of ensuring proper compensation.  
Provisional measures could be lifted when no longer considered ne cessary by the imposing authority.   
434. The Court could order provisional measures to be taken on its own initiative or at the request of 
the Prosecution Institute or the parties concerned.  Having heard the opinion of the parties, the Court 
could take an immediate decision which would also be effective immediately.   The decision could be 
appealed by either party, in whic h case the Prosecution Institute woul d have the right to make a proposal 
to Court or to the Chief of Justice, who was requi red to respond within three days.  Further detailed 
provisions on provisional m easures had been included in the Ci vil Procedures Code or in the new 
Intellectual Property Law.   
(c) Administrative procedures and remedies 
435. The representative of Viet Nam said that Viet Nam had no special agency for the enforcement 
of Intellectual Property Rights.  The bodies competent to take administrative action in relation to infringement of intellectual property rights were the market control agencies of the trade administration 
(Market Control Department and Market Control Branch Offices), customs agencies (Customs 
Department, Customs branch offices, anti-smugg ling inspection office), specialized inspection 
authorities such as the Culture and Information Insp ectorates at the national and provincial levels and 
the Science and Technology Inspectorates at the natio nal and provincial levels, the People's Committees 
at the district and provincial levels, and public security agencies (District Police, Provincial Police, and 
the Economic Police).  He added that the 2005 Inte llectual Property Law limited the administrative 
handling of IPR infringement to c ounterfeiting, pirating and infringeme nts of remarkable social effect 
(Article 211). WT/ACC/SPEC/VNM/5/Rev.2 
Page 158  
 
 436. The responsibilities of each agen cy depended on their area of administration and jurisdiction.  
Market control agencies could impose administ rative remedies and other measures against 
infringements of industria l property rights and trade in cultural- informational products and services 
occurring in the country.  Customs agencies had the competence to impose administrativ e remedies 
against infringements of intellec tual property rights in the cour se of exportation and importation, 
Science and Technology Inspectorates against infrin gements of industrial property rights, Culture and 
Information Inspectorates against infringements of copyright, and Peopl e's Committees against 
infringements of intellectual proper ty rights occurring within their jurisdiction.  As for public security 
agencies, these were responsible for handling infringe ments of intellectual prope rty rights in the course 
of production and trade.  The Economic Police − composed of the heads of the District Police and 
Economic Police Division, of the Director of the Provincial Police, and of the Director General of the 
Economic Police Department − had the competence to investigate and handle infringements of 
intellectual property rights in all areas of production and business.  The Economic Police could search 
the houses of persons deemed to hi de instruments involved in or evidence of infringement cases, and 
suspend business licenses in case of  serious violation of the provisi ons regulating the use of business 
licenses.  It could impose administrative remedies agains t acts of industrial prop erty infringement related 
to business and production activiti es (Article 12 of Governme nt Decree No. 12/1999/ND-CP of 
6 March 1999) and acts of copyright infringement associated with public order and security (Article 31 
of Government Decree No. 31/2001/ND-CP of 26 June 2001).  The Economic Police received 
specialized training on intellectual pr operty enforcement.  It had the sa me jurisdiction and resources as 
other police forces.   
437. From January 2001 to June 2003, market cont rol agencies had handled 1,500 cases of 
intellectual property infringement, mainly related to trademarks and industrial designs.  Between 1999 
and 2003, Vietnamese Customs had conducted around 400 intellectual property infringement cases and 
Science and Technology Inspecto rates had imposed 111 monetary fines up to 750 million Dong and 
issued 141 warnings.  As for the Culture and Informat ion Inspectorates, from 1996 to the first quarter of 
2004, these had carried out 746,307 inspections, discov ered 166,887 cases of infringement, transferred 
788 cases to the criminal courts, seized 1,701, 074 video tapes, 1,270,503 CDs, VCDs and DVDs, 
751,616 cultural publications, and 4,133  television sets and receivers, suspended the business activities 
of 7,970 establishments, and imposed fines up to 120 million Dong.  The Economi c Police had assisted 
other administrative agencies actively in inspec ting, discovering and combating infringement of 
industrial property rights. 
438. Asked about the allocation of staff to fight IPR crime and plans, if any, to create and/or 
designate specialized staff or  units, he said that Viet Nam entruste d this task to general law enforcement  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 159 
 
 
 agencies and had no officials specialized in this area.  No particular incentives were available to these 
officials to encourage investigation and prosecutio n of IPR infringements.  He noted that the new 
Intellectual Property Law and its implementing regulations included de tailed provisions clarifying the 
scope of duties, responsibilities and jurisdiction of e ach enforcement agency.  In order to avoid overlaps, 
the Economic Police was only empowered to investig ate intellectual property infringement, not to 
impose administrative remedies and prosecute or adjudicate crimes.  In such cases, the Economic Police 
was be required to inform the competent agencies.  In addition, with a view to further improving the 
efficiency of law enforcement staff, specific provisi ons on training had been in cluded in the new Law.  
He noted that capacity building had been one of the ma in concerns of his Government in recent years.  
A "Project on enhancement of intellectual property enforcement efficiency" was also being prepared.  The Project would establish a system  of information to assist competent agencies in investigating, 
controlling and handling violations of intellectual property rights,  as well as an inter-agency 
communication channel and fora to provide and exchange information and experiences in the 
application of remedies and modes of infringement.  His authorities were also considering plans to 
develop statistics and a general asse ssment system of infringements of intellectual property rights to 
ensure a good coordination betw een enforcement agencies.  
439. Administrative measures  and remedies were re gulated by Government 
Decree No. 12/1999/ND-CP of 6 Ma rch 1999 on administrative measures ag ainst violations in the field 
of industrial property, Circular No. 825/2000/ TT-BKHCNMT of 3 May 2000 of the Ministry of 
Science, Technology and Environmen t as amended a nd supplemented by 
Circular No. 49/2001/TT-BKHCNM T of 14 September 2001, Ordinance No. 44/2002/PL-UBTVQH10 
of 2 July 2002 of the Standing Committee of th e National Assembly on handling administrative 
violations, and Government Decree No. 31/2001/ND -CP of 26 June 2001 on administrative measures 
against violations in the field of culture and information.  Any natural or legal person, including 
non-resident foreigners or foreign legal entities w ithout a representation in Viet Nam, had the right 
and obligation to denounce a violation by informing the competent authorities in writing or by other means.   
440. Administrative measures included the issu e of warnings or monetary fines up to 
100 million Dong (about US$6,700); the obligation to remove infringing elements from goods and 
instruments; seizure of material evidence or the faci lities of infringement; dest ruction of infringement 
articles and counterfeits and relate d materials (such as product labels  and packaging); and revocation of 
business licences and professi onal licences (with or without time-limit).  The imposition of a 
compensation - up to 1 million Dong - for administ rative damages had been abolished in 2002 by 
Ordinance No. 44/2002/PL-UBTVQH10.  Compensation for damages was now c onducted only under WT/ACC/SPEC/VNM/5/Rev.2 
Page 160  
 
 civil procedures.  The procedures to be followed in the confiscation and subsequent treatment of 
material evidence were laid dow n in Articles 18 and 19 of Decree No.12/1999/ND-CP.  Provisions on 
additional administrative remedies had been include d in the 2005 Intellectual Property Law.  Customs 
procedures for imports and exports  could be suspended to protect intellectual property rights in 
accordance with Articles 57, 58, 59 of the Customs Law of 29 June 2001 and 
Decree No.101/2001/ND-CP of 31 December 2001.   
441. Asked about the level of administrative fin es and their calculation, he noted that fines 
depended on the nature and gravity of the viola tions and the existence or not of extenuating or 
aggravating elements.  Administrative fines were determined in accordance with Article 3.1 of 
Government Decree No. 12/1999/ND-CP of 6 Marc h 1999 on administrative violations in the 
industrial property field and Article 5.2 of G overnment Decree No. 31/2001/ND-CP of 26 June 2001 
on administrative violations in the field of culture and information.  Differences between 
administrative enforcement agencies in handling the same violation were, in his view, inevitable.  
However, in order to overcome this drawback, a pr ovision specifying that monetary fines should at 
least equal the value of the discovered infringing go ods and not exceed five times their value had been 
included in the 2005 Intellectual Property Law.  Detailed provisions on the types and levels of 
administrative remedies applicable  to intellectual property infringing acts would be included in the 
regulations guiding the implementation of the Law. 
442. Decisions to impose an administrative measure were  issued in writing within ten days following 
the reporting of the violation, or 30 days in complicated cases.  Appeals procedures were regulated 
according to the 1995 Ordinance on procedures for judgement of administrative cases, as amended and supplemented by the Appeal and Denounce La w of 1998 as amended by Law No. 58/2005/QH11 
(Articles 1.19 and 2.2).  Administrativ e decisions could be appealed by either party, first to the authority 
having issued the decision and subsequently either  to the administrative court or to a superior 
administrative body.  Decisions of the superior ad ministrative body could be further appealed to the 
administrative court.  
443. In his view, administrative procedures were speed y, simple, inexpensive,  and equitable, and 
right owners relied heavily on the administrative au thorities, especially the ma rket control agencies.  
The injunctions were powerful enough to prevent further infringement as most infringements were 
minor and unintentional.  The combination of administrative procedures and remedies and compensation under civil procedures pr ovided, in his view, the deterrent effect foreseen in Article 41 of 
the TRIPS Agreement and the indemnification of the de fendant stipulated in Article 48.  However, the 
administrative system had been further strengthened under the 2005 Intellectual Property Law.  In  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 161 
 
 
 particular, the scope of application of administrativ e remedies had been limited and emphasis had been 
shifted to civil remedies, administ rative procedures had been further elaborated, the principle of 
administrative fines exceeding the benefit gained fro m infringement had been established, the functions 
of enforcement authorities had been more clear ly defined to avoid overlapping and cumbersome 
procedures, and a coordinating au thority had been established. 
(d) Special border measures 
444. The representative of Viet Nam said that Cust oms Departments had the authority to detain 
imported or exported goods temporarily upon request of  the right holder.  Pursuant to Article 14 of 
Decree No. 101/2001/ND-CP of 31 December 2001, request s for temporary detention of goods had to 
be filed with the Head of the customs Sub-depa rtment where the goods were imported or exported, 
accompanied by evidence to substantiate lawful ownership right and use right to the object, and 
evidence testifying the infringement.  The right ho lder would also be required to deposit an amount 
equal to 20 per cent of the contractual value of the goods or provide a guarantee ensuring 
compensation in case of a wrongful request.  Decisi ons to suspend the release of goods from customs 
were issued by the Chief of the Cust oms Bureau pursuant to Article 14 of 
Decree No. 101/2001/ND-CP of 31 December 2001, a nd the parties concerned would be notified 
accordingly.  Goods could be suspended from rele ase for ten days from the date the decision was 
issued, and an additional ten days in certain circ umstances.  Evidence of infringement would need to 
be produced during this period.  The owner of the seized goods would also be given an opportunity to 
provide evidence or justifications relating to the in dustrial property right of the detained goods.  The 
Customs office would take a decision to release or prohibit circulation of the goods in consultation with 
the State management bodies for Intellectual Propert y (the National Office of Intellectual Property and 
the Copyright Office).  He added that Jo int Circular No. 58/2002/TTLT-BVHTT-BTC of 
17 October 2003 contained detailed provisions on the implementation of border  control measures for 
copyright.  Specific provisions on the implementation of border contro l measures concerning industrial 
property had also been included in the Joint Ci rcular No. 129/2004/TTLT/BTC- BKHCN of the Ministry 
of Finance and Ministry of Science and Technology on border control measures in respect of industrial 
property rights for imports and expor ts, promulgated on 29 December 2004. 
445. A Member was concerned that the provisions on suspension of customs clearance included in 
the draft Intellectual Property Law required the ri ght holder to submit extensive information, which 
could impede many right holders from filing an application.  This Member  was also of the view that the 
time period for right holders to respond to the detecti on of infringing goods (one day) was too short.  In 
response, the representative of Viet Nam said that, under the new Intellectual Property Law, which had WT/ACC/SPEC/VNM/5/Rev.2 
Page 162  
 
 been adopted in November 2005, the right holder was only required to provide in formation sufficient to 
identify the suspected goods.  Other types of informat ion, such as the name and address of the importer 
and exporter, a photo of the goods or  information on the predicted ti me and venue of arrival of the 
goods, should be submitted only if av ailable.  He considered this provision in full compliance with 
Article 51 of the TRIPS Agreement.  The time period for responding to the detection of infringing goods 
had been increased to three working days in the new Intellectual Property Law.  
446. In response to specific questions, he said that the Joint Circular 
No. 129/2004/TTLT/BTC-BKHCN of the Ministry of Finance and Ministry of Science and Technology on border enforcement of  industrial property rights provided customs authorities with the 
right to check, detect, and suspend customs cleara nce of counterfeit trademark goods at their own 
initiative or at the request of the trademark holder,  and included provisions allowing right holders or 
importers to inspect the detained goods to reinforce their claims.  The exemption for de minimis  
imports allowed under Article 60 of the TRIPS Agre ement was addressed in Article 760 of the Civil 
Code which referred to "usage for non-business purposes that does not conflict with the normal 
exploitation of the works and does not unreasonably pr ejudice the legitimate interests of the author" 
as not being considered infringement of copyright.   Provisions covering goods imported or exported 
for non-commercial purposes, goods exempted under di plomatic procedures, gifts, souvenirs, personal 
luggage etc. had been included in the joint Circular of the Ministry of Finance and the Ministry of Science and Technology.   
447. Asked whether Viet Nam's Customs Code or related laws and regulations contained a 
definition of "counterfeit of trademark" and "pirati cal acts", the representative of Viet Nam said that 
these notions had been included in the Law on Custom s (Articles 57 to 59), Interministerial Circular 
No. 58/TTLT-BVHTT-BTC of 17 October 2003 of the Ministry of Culture and Information and 
Ministry of Finance guiding the protection of copyright at customs agencies for imported and 
exported goods, and Interministerial Ci rcular No. 129/2204/TTLT-BTC-BKHCN of 
29 December 2004 of the Ministry of Finance a nd Ministry of Science and Technology on border 
controls in respect of industrial property rights.  Pursuant to Interministerial Circular No. 129, 
"counterfeit trademark goods" were imported or exported goods, in cluding packaging, labels and 
decals, bearing a trademark which was identical w ith or which could not be distinguished in its 
essential aspects from a protected trademark without th e authorization of the trademark's owner.  
Interministerial Circular No. 58 did not include the definition of "piratical acts", but defined 
"copyright infringing imported and exported goods" as  imported and exported go ods, including copies 
of work infringing the moral rights or economic rights of the author or owner of the work.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 163 
 
 
 (e) Criminal procedures  
448. The representative of Viet Nam said that the crimin al courts of the People's Courts, at district 
and provincial level, had the authority of jurisd iction over crimes relating to intellectual property 
rights.  The Criminal Code of 1999 included provi sions on copyright infringement (Article 131), 
production and trade in counterfeits (Article 156), deceptive practices (A rticle 162), false advertising 
(Article 168), and infringem ent of industrial property rights (Art icle 171).  Any person misappropriating 
copyrights, wrongfully assuming an author's name, or illegally amending, publ ishing or disseminating 
copyrighted works was subject to a fine of 20 to  200 million Dong or non-custodial probation of up to 
two years (Article 131).  Infringemen ts of organized character or ca rrying very serious consequences, 
and repeated offence were punishable by imprisonment  from six months to three years.  Offenders also 
risked fines from 10 to 100 million Dong and being ba nned from holding certain po sitions or practising 
certain professions during one to five years.  Persons  manufacturing or trading counterfeits valued up to 
150 million Dong risked six months to five years impr isonment, or three to ten years for organized or 
professional counterfeiting, recidivism, abuse of posit ion, abuse of names of organizations, counterfeits 
priced between 150 to 500 million Dong, large illici t profits, and acts resulting in very serious 
consequences (Article 156).  In  case of counterfeited value exce eding 500 million Dong, very large 
illicit profits and extremely serious consequences, th e penalty would be increased to seven to 15 years 
imprisonment.  Offenders would also  face a fine of 5 to 50 milli on Dong, possible confiscation of 
property, interdiction to hold certain positions and practise ce rtain professions during one to five years.  
Any person causing losses to customers due to fraudulen t behaviour could receive a warning or a fine of 
5 to 50 million Dong, and be liable to non-custodial  probation for up to three years or imprisonment 
ranging from three months to three ye ars (Article 162).  Repeated offe nce or large illegal gains were 
punishable by seven to 15 years imprisonment.  Offe nders could also be fined 3 to 30 million Dong.  
Persons falsely advertis ing goods or services were subjec t to a fine ranging from 10 to 
100 million Dong, non-custodial probation for up to thre e years or imprisonment of six months up to 
three years (Article 168).  They also risked a fine of 5 to 50 mill ion Dong and an interdiction to practise 
certain professions during one to five years.  A ccording to Article 171, in fringements of industrial 
property rights constituting criminal acts would be subject to a fine of 20 to 200 million Dong or 
non-custodial probation of up to two years.  Violations of organized character or carrying very serious 
consequences, and repeated infringements, were punishab le by six months to th ree years imprisonment.  
Offenders also risked a fine of 10 to 100 million Do ng and an interdiction to hold certain posts and 
practise certain professions during one to five years.  He considered  these provisions effective deterrents 
and in compliance with Article 61 of the TRIPS Agreem ent.  He confirmed that acts of wilful trademark 
counterfeiting and copyright piracy on a comm ercial scale were considered crimes under 
Articles 155-157 of the Criminal Code and Article 21 3 the 2005 Intellectual Property Law.  This would WT/ACC/SPEC/VNM/5/Rev.2 
Page 164  
 
 be further clarified in the regulations on the impl ementation of the Intellec tual Property Law and the 
Criminal Code.  He added that criminal intellectual property enforcement officials were entitled to take 
ex-officio actions against criminal  infringement of intellectual prope rty rights.  In 2002, one person had 
been convicted to a prison sentence under the provi sions of Article 171 of the 1999 Criminal Code. 
449. Pursuant to Article 170 of the Criminal Proce dure Code, as amended in 2003, People's Courts 
had the jurisdiction as the first instance over offences  subject to less than 7 years imprisonment, except 
offences harmful to national security and peace, war crimes, crimes against humanity, and other specific 
cases as specified by law.  District People's Courts  therefore had jurisdiction as the first instance over 
offences in respect of intellectual property right s.  Criminal proceedings for intellectual property 
infringement cases were identical to procedures for other criminal cases and involved the denouncement 
of the crime before the competent police, an investig ation, the transfer of the file to the prosecution 
agency (Supreme People's Prosecution Institute), criminal proceedings at the competent court, 
judgement and enforcement of the judgement.  
450. Some Members considered the application of  death penalty for serious counterfeiting of 
trademarks unacceptable and reques ted Viet Nam to eliminate this provision as soon as possible.  A 
Member also noted that the criminal remedies against infringements of organized character or carrying 
out very serious consequences appeared to be stricter than the standards set by the TRIPS Agreement.  This Member was of the view that criminal pros ecution should be available when commercial intent 
could be proven and asked Viet Nam to clarify the meaning of "organized character" and "serious 
consequences".  The representative of Viet Nam replied that the Crim inal Code of 1999 only authorized 
death penalty for production and trade in counterfei ted foodstuff, medicines and prophylactics having 
extremely serious consequences.  He considered thes e provisions necessary to protect public health and 
nutrition, and consistent with the principle provided for in Article 8.1 of the TRIPS Agreement.  Concerning criminal remedies against infringements of  "organized character" or "causing very serious 
consequences", he noted that the commercial objecti ve of an infringement act was one of the factors 
constituting a crime pursuant to Articles 156, 157, 158, and 171 of  the 1999 Criminal Code.  An 
infringement of organized character had an intentio nal nature, not an infringement causing serious 
consequences. 
451. Asked about the relationship between administra tive penalties and criminal enforcement, the 
representative of Viet Nam said that any infringement of copyright and industrial property rights dealt 
with administratively and subsequently repeated would be considered a crime in accordance with 
Articles 131 and 171 of the Crimin al Code of 1999.  Administrative remedies thus served as a 
deterrent tool and, in the event of non-complianc e with administrative penalties, compelling measures  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 165 
 
 
 could be taken pursuant to Article 64 of the 2002 Ordinance on the handling of administrative 
measures against violations.  The Criminal Code did not contain provisions providing for criminal 
penalties in case of violation of an administrative orde r, except in the event of recidivism as stipulated 
in Articles 131 and 171.  He added that the 2002 Ordinance provided for the immediate transfer of administrative cases including a criminal element to the competent criminal authorities and, in the event an administrative decision ha ving already been issued, the nullificati on of that decision and the transfer 
of the case within three days, unless the time-limit for criminal prosecution ha d expired (Articles  62.1 
and 62.2).  Evidence collected during an administrative procedure could be used by the civil court if 
necessary in accordance with Article 3 of the Ordinance on procedures for handling civil cases of 1989.  In response to a Member, he noted that infringers c ould be prosecuted either for administrative remedies 
or for criminal penalties, not both simultaneously.  Administrative meas ures only applied to acts of low 
gravity.  Any person involved in an act including a criminal element or having repeated an offence 
sanctioned administratively was subj ect to criminal prosecution. 
452. A Member urged Viet Nam to implement the TRIPS Agreement upon accession without 
recourse to a transitional period, stressing the importance of establishi ng appropriate laws and 
regulations, and adequate enforcem ent mechanisms.  Some Members noted that although Viet Nam had 
implemented many intellectual proper ty laws, Viet Nam also needed adequate enforcement mechanisms 
and sanctions to ensure protection of intellectual property rights, including civil procedures allowing 
plaintiffs to bring forward actions regarding in fringement, enforcement by the police, and border 
measures by the customs authorities.   
453. In reply, the representative of Viet Nam referr ed to the Action Plan on the Implementation of 
the TRIPS Agreement provided in document WT /ACC/VNM/21, and re vised in documents 
WT/ACC/VNM/21/Rev.1 and Rev.2.  He emphasized that his Government would endeavour to 
complete its intellectual property re gulations, in particular those relate d to dispute settlement, remedies, 
and border measures, and strengthen  the enforcement mechanisms.   
454. The representative of Viet Nam confirmed that  his Government woul d apply fully all the 
provisions of the Agreement on Trade-Related Aspect s of Intellectual Property Rights from the date 
of accession to the WTO, without recourse to any tran sitional period.  The Working Party took note of 
this commitment. WT/ACC/SPEC/VNM/5/Rev.2 
Page 166  
 
 POLICIES AFFECTING TRADE IN SERVICES 
455. The representative of Viet Nam said that most se rvices sectors were still in the early stages of 
development in Viet Nam.  According to the Gene ral Statistical Office, services had accounted for 
42.5 per cent of Viet Nam's GDP in 1995.   
456. The main Ministries and agencies involved in the regulation of services activities were the 
Ministries of Agriculture and Rural Development; Tr ade; Planning and Investment; Transportation; 
Information and Culture; Finance; Construction;  Science, Technology and Environment; Labour, War 
Invalids and Social Affairs; and Industry; the Stat e Bank; the Ministry of Posts and Telematics; the 
General Department of Tourism; the Directorate for Standards and Quality; the Broadcasting and 
Television Authorities; and the Cinematography Office.  In addition to governmental agencies, provincial level people's committees we re also authorized to administer local services industries in 
conformity with the national legal system.  Information on the existing regime in the area of services in 
the format of document WT/ACC/5 was provided in document WT/ACC/VNM/5 of 24 August 1998. 
457. Viet Nam was in the process of equitizing its  State-owned enterprises (see the section on 
"Privatization").  The participation of foreign inv estors in equitized enterpri ses in the services sector 
could not exceed 30 per cent of the registered capita l.  Foreign suppliers were free to choose their 
partners unless otherwise specified in Viet Nam's Schedule of Specific Commitments.  In response to 
a question, he added that investors were not oblig ed to establish a representative office in Viet Nam. 
458. Concerning professional services, he said that th e requirements for establishment, operation, 
rights and obligations of legal professionals practising in Viet Nam were specified in 
Decree No. 87/2003/ND-CP of 22 July 2003.  Pursuant  to this Decree, foreign lawyers and foreign 
lawyer organizations could practice in Viet Nam in the form of a branch of a foreign lawyer organization, a foreign law firm, or a foreign-Vietnamese law partnership.  To work as a lawyer in Viet Nam, foreigners were required to hold a pr actising certificate issued by a competent foreign 
agency or organization, show goodwill towards the st ate of Viet Nam, and be employed by a foreign 
law practice or a Vietnamese lawyer organi zation.  Pursuant to Government Decree 
No. 92/1998/ND-CP of 10 November 1998 on legal cons ultancy of foreign lawyers in Viet Nam, 
minimum five years of experience in legal consulta ncy was required for the heads of foreign law firm 
branches in Viet Nam.  The experience could be  obtained in any country.  Foreign lawyers in 
Viet Nam were not allowed to advise on Vietna mese laws, and were only permitted to advise on 
foreign and international law in the areas of busin ess, investment, and commerce.  Foreign law firms 
could enter into legal consulting cooperation cont racts with Vietnamese legal services suppliers to 
receive advice on Vietnamese laws.  Foreign auditing firms could operate in Viet Nam in the form of  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 167 
 
 
 a joint-venture with a Vietnamese auditing firm.  Wholly foreign-owned auditing firms had to be 
licensed as provided for in the Foreign Investment La w and other related legal acts.  Advertising was 
a new activity in Viet Nam, and the ma rket would be liberalized gradually. 
459. Domestic and foreign engineers and architect s had to be certified in accordance with the 
Regulation on Granting Certificate for Design Practice of Construction Work, as amended by 
Decree No. 16/2005/NP-CP of 7 February 2005, and Decision No. 15/2005/QD-BXD.  Renewable 
certificates valid for five years were delivered by the Construction Departments of cities and 
provinces.  The Ministry of Construction was respons ible for supervising the granting of certificates.  
Works covered by the Regulation included general la yout design, architectural design, exterior and 
interior design, structural design, electrical and mechanical design, as well as design relating to water 
supply and sewage, energy supply, ventilation and air conditioning, communications, and fire 
protection.  Engineering and architectural servi ces providers, including fo reign providers, were 
required to hold a Bachelor or higher degree, have  minimum five years' experience in the design of 
construction works, and have participated in the d esign of minimum five projects.  He added that the 
Vietnamese authorities recognized practicing certificat es granted by competent foreign organizations.  
Foreign architects holding such certificates were allo wed to practice in Viet Nam without applying for 
a Vietnamese certificate in accordance with the requirements of Vietnamese laws and regulations.  Foreign architects could also practice architectur al design and/or planning in Viet Nam through 
bilateral or multilateral Mutual Recognition Agre ements on professional qualifications to which 
Viet Nam was a party.   
460. The Ordinance on Posts and Telecommunications had been enacted in October 2002, being 
the highest legal normative document passed by th e Standing Committee of the National Assembly.  
The Ordinance governed the regulatory, op erational and business activities in posts, 
telecommunications and radio frequency management, and created an important legal framework for 
market liberalization and a level playing field for co mpetitors.  Together with this Ordinance, several 
governmental decrees, Ministerial circulars and deci sions had been promulga ted on interconnection, 
tariffs and pricing, frequency and numbering, in spection, the settlement of disputes, and illegal 
services.  The use of telecommunications gateways and networks was regulated by Article 43 of the 
Ordinance and Articles 27 to 33 and 60 of the implem enting Decree.  These Articles were designed to 
ensure the rights and obligations of telecommunicatio ns providers to access a nd use each other's public 
telecommunications transport networks.  Non- discrimination of access and use of public 
telecommunications transport networks was guaranteed by Article 43.2 of the Ordinance.  Under this 
Article, public telecommunications services provi ders had the obligation to allow other public 
telecommunications services providers to interc onnect with their own network under equitable and WT/ACC/SPEC/VNM/5/Rev.2 
Page 168  
 
 reasonable conditions.  Long-term development plans and strategies had been approved and published.  
The regulatory and business environment had been impr oved to become more transparent, predictable 
and pro-competitive.   
461. The organization and operation of credit ins titutions and the banking activities of other 
organizations were governed by the Law on Credit In stitutions and some othe r legal documents.  The 
State Bank of Viet Nam had issued regulations to  guide the implementation of the Law on Credit 
Institutions.  The Law specified the licensing re quirements for the establishment and operation of 
credit institutions in Viet Nam.  Foreign credit institu tions could operate in Viet Nam in the form of a 
representative office, a bank branch, a joint-ventur e bank, a joint-venture finance company, or a 
wholly owned foreign finance company, a joint vent ure financial leasing company, or a wholly owned 
financial leasing company.  Asked about the diffe rence between a branch and a representative office, 
he noted that pursuant to Article 13 of Decree  No. 45/2000/ND-CP representative offices were not 
allowed, unlike branches, to engage in any direct profit-making activity.  The scope of operations of 
branches had to be specified in the license establishi ng the branch.  Pursuant to Article 32 of the Law 
on Credit Institutions, credit institutions were permi tted to establish subsidiaries.  However, up to 
now, only State owned commercial banks, joint-ve nture banks and share holding commercial banks 
had been allowed to establish subsidiaries.  Op erating licences for representative offices were valid 
for five years, 20 years for branches of foreign banks, 30 years for joint-venture banks, and 50 years 
for joint-venture finance companies, wholly forei gn-owned finance companies, joint-venture financial 
leasing companies and wholly foreign-owned fi nancial leasing companies, and these operating 
licences could be extended.  Minimum capital requi rements had been established for Joint-Venture 
banks (US$ 10 million), branches of foreign banks (US$ 15 million), and joint-venture or wholly 
foreign-owned non-banking credit institutions (US$ 5 million).  The contribution of the foreign party 
in a joint-venture bank acting as a commercial bank could not exceed 50 per cent of the bank's 
registered capital, while the foreign party in a joint venture non-banking credit institution needed to 
account for at least 30 per cent of the registered cap ital.  A foreign legal entity or foreign individual 
was not allowed to own more than 10 per cent of the registered capital of a Vietnamese joint-stock 
commercial bank or joint-stock financial company, and the aggregate share of foreign shareholders 
could not exceed 30 per cent of the registered capital.   
462. The establishment of foreign insurance companies in the Vietnamese market was subject to an 
economic needs test.  Vietnamese individuals a nd organizations were not allowed to purchase 
insurance abroad for risks arising in Viet Nam.  The National Assembly had approved the Law on Insurance Business on 9 December 2000.  The Law had entered into force on 1 April 2001.  A 
securities trading centre had been established in Ho  Chi Minh City, and plans existed to establish a  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 169 
 
 
 centre also in Hanoi.  Foreign securities companies wishing to trade securities in Viet Nam would be 
required to set up joint-ventures with Vietnamese partners and operate in conformity with the 
Enterprise Law and Government Decree No. 114/20 03/ND-CP on securities and stock exchange, and 
other applicable laws and regulations. 
463. In response to a specific question on the el ectronic games business, the representative of 
Viet Nam said that Circular No. 08/2000/TT-BVHT T of 28 April 2000 of the Ministry of Culture and 
Information defined the electronic game business as the provision by an organization, enterprise, 
private individual, or household of electronic ga mes between human beings  and machines with a 
built-in electronic game programme.  Individuals  or organizations using or commercializing 
electronic games were required to use machines,  tapes, disks and accessories with a healthy 
entertainment content.  The number of enterpri ses licensed to conduct business in electronic games 
with prizes was limited, and any application for a licence to conduct such a business was subject to 
approval by the Prime Minister pursuant to D ecision No. 32/2003/QD-TTg of 27 February 2003. 
464. As a member of the Association of Southeast Asia Nations (ASEAN) and the Asia-Pacific 
Economic Cooperation Forum (APEC), Viet Nam was pa rticipating in negotiations to liberalize trade 
in services.  Viet Nam had offered certain co mmitments in some services sectors such as 
telecommunications, tourism, transportation, and financial services under the ASEAN Framework 
Agreement on Services (AFAS).   
465. A Member noted that Viet Na m had introduced new measures on 25 August 2005, retroactive 
to 1 August 2005, setting a price floor for internationa l calls into Viet Nam and a system of allocation 
of calls by quota among six Vietnamese carriers (Decision No. 8/2005/QD-BBCVT and Official Letter No. 1683/BBCVT-KHTC).  These measures did not appear to be consistent with Viet Nam's 
WTO commitments, nor with Viet Nam's competition policies as described in paragraphs [97-102].  
Viet Nam was invited to confirm that it would abolish these measures prior to accession.  Noting that 
these measures had been introduced without prior notice nor possibilities for comment, this Member 
asked Viet Nam to confirm that an y future measure of this sort would be subject to advance notice 
and comment procedures as described in paragraphs [471-473].  Viet Nam was also invited to explain 
how an Official Letter, which was not recogni zed as a legal normative document according to the 
information provided in paragraph [477], could set a price floor or establish a system for allocating 
calls by quota.  In response, the representative of Viet Nam said that the Official Letter only specified 
the quota policy set out in Article 2.1 of the Decisi on.  The Letter was available on the website of the 
Ministry of Post and Telecommunications.  He noted that the quota allocation system had been agreed 
beforehand by consensus among the six carriers and s ubmitted to the Ministry.  By limiting the traffic WT/ACC/SPEC/VNM/5/Rev.2 
Page 170  
 
 of traditional services providers, the measure aimed at facilitating the development of new providers, 
thereby fostering competition on the whole market.  Providers would meet periodically to discuss and 
review the allocation of quotas.  He confirmed that these measures would be eliminated prior to 
accession. 
466. In response to requests from Members that Viet Nam phase out business co-operation 
contracts (BCC) in favour of more attractive arrange ments for foreign investors, as well as the lifting 
of limitations on foreign participa tion in joint ventures in several services sectors, the representative 
of Viet Nam said that these matters could be di scussed further in the bilateral market access 
negotiations.   
467. A Member observed that licensing procedures a nd conditions should not act as a barrier to 
market access and requested Viet Nam to guara ntee transparency of licensing requirements and 
procedures, qualification requirements and procedur es as well as of other licensing requirements.  In 
particular, this Member requested Viet Nam to publish a list of all organi zations responsible for 
authorizing, approving or regulating services, includi ng those organizations th at had been delegated 
such authority from national authorities, as well as Viet Nam's licensing procedures and conditions.  
Viet Nam was asked to ensure that its licensing procedures and conditions were pre-established, 
publicly available, based on objective criteria; iden tified activities terms and conditions; included all 
critical information for valid completion of applic ations; included relevant  timeframe and critical 
deadlines; and identified the competent authority.  This Member also requested Viet Nam to ensure 
that licensing procedures and conditions would be pub lished prior to becoming effective; a reasonable 
timeframe for review and decision would be include d in that publication; any fees charged would be 
commensurate with the administrative cost of pr ocessing an application; the applicant would be 
informed whether the application was complete or, in case of incomplete application, what additional 
information was required; decision be taken promptly; if an application was terminated or denied, the 
applicant would be informed in writing and with out delay of the reasons for such action; and 
examinations to licence professionals be scheduled at reasonable intervals.  This Member also invited 
Viet Nam to provide information on subsidies related to trade in services. 
468. In response, the representative of Viet Nam said he understood these issues were covered by 
Articles III and VII of the GATS.  He confirmed that Viet Nam would comply fully with the 
provisions of these Articles without prejudice to the conditions specified in its Schedule of Specific 
Commitments on Services. 
[to be completed]  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 171 
 
 
 TRANSPARENCY 
Publication of information on trade 469. Some Members requested information on Viet Nam’s implementation of the transparency 
requirements prescribed in Article X of the GATT 1994, Article III of  the GATS and other 
WTO  Agreements.  These Members asked whether a le gal obligation existed in Viet Nam to publish 
in an official journal all laws, regulations, decrees, judicial decisions and administrative orders or 
rulings of general application or  other measures having similar effect relating to trade or economic 
policy "in such a manner as to enable governments a nd traders to become acquainted with them"; to 
what extent publication occurred prior to entry into  force; and whether any such measures could enter 
into force without being published in the Official Gazette. 
470. A Member also noted that Viet Nam was considering a bill to amend the Law on the 
Promulgation of Legal Documents to include pro cedures for publication and public comment.  This 
Member urged Viet Nam to adopt the bill promp tly, and thereby develop a system for easy and 
prompt access to relevant legal documents.  So me WTO Agreements required the provision of an 
opportunity for transparent review and comment on the regulations and rulings of government 
agencies, and generalized to other sectors, in par ticular those relating to international trade and 
customs, services and intellectual property, would be an immense step forward for Viet Nam.  This 
Member also encouraged government agencies and people's committees to respond in a prompter and 
more reliable manner in the future to queries rega rding the interpretation of legal documents.   
471. The representative of Viet Nam said that provi sions on publication of  legal acts and the 
opportunity for public comment had been included in  the Law on the Enactment of Legal Normative 
Documents of 12 November 1996 together with its amendment approved by the National Assembly on 16 December 2002.  Detailed rules and proce dures had been established through Government 
Decree No. 161/2005/ND-CP of 27 December 2005 impl ementing the Law on the Enactment of Legal 
Normative Documents, Government Decree No. 104/2004/ND-CP on the Official Gazette, 
Circular No. 04/2005/TT-VPCP guiding the implementation of Decree No. 104/2004/ND-CP, and the Prime Minister's Directive No. 28/2001/CT-TTg of 28 November 2001 on the Continuous Improvement of the Business Environment.   
472. The general procedures for soliciting public comme nt on draft legal instruments were laid 
down in Articles 40, 62, 65, 66 and 70 of the Law on the Enactment of Legal Normative Documents 
(as amended).  In practice, the drafting entities circul ated the draft legal instruments to organizations 
and individuals potentially affected by them or published the drafts in newspapers to inspire WT/ACC/SPEC/VNM/5/Rev.2 
Page 172  
 
 comments from the general public.  The entities c ould also organize workshops and seminars to 
discuss the drafts with those interested.  He conf irmed that Article 47 of the Law authorized the 
Standing Committee of the National Assembly to invite  relevant agencies or individuals to address the 
Committee on a draft ordinance.  Although the Law di d not provide similar authority to the National 
Assembly or to his Government, Article 32.2 allo wed the lead examination committee of the National 
Assembly to conduct surveys and study "the reality of the issues belonging to the contents of the 
draft" and agencies, organizations and individuals  contacted by the committee were required to 
provide information and materials to serve this ex amination.  Directive No. 28/2001/CT-TTg required 
Ministries and agencies to seek comments from the business community through the Viet Nam 
Chamber of Commerce and Industry in the drafti ng of any policies or rules affecting business 
operations.  The obligation to seek the opinions of th ose directly affected by the legal documents, and 
the possibility to take account of these opinions in the drafting process, was laid down in Articles 3, 
26.4 and 61.4 of the amended Law on the Enactment of  Legal Normative Documents.  Article 3.3 of 
the Law required the drafting agency to synthesize,  analyse and evaluate the comments received and, 
as necessary, to propose adjustments to the origin al draft.  The comments received by the drafting 
agency were attached to the draft legal instrument  when forwarded to the appropriate decision-making 
body.   
473. The Law did not specify how many times a draf t legal instrument would be available for 
public comment.  The drafts were normally availa ble for comment only once, although specific cases 
could arise that would allow multiple opportunity fo r public comment.  The Law did not stipulate any 
timeframe for the solicitation and provision of comments.   Such issues were left to the discretion of 
the drafting entity, taking into account the complexity and importance of the proposed legal instrument.  Asked about five-day or seven-day  time limits specified in a new Law on the 
Promulgation of Legal Documents of People's Counc ils and People's Committees, he added that the 
limits stipulated in Articles 23, 30 and 41 of this Law were minimum, and not  maximum, timeframes.  
The Law had been drafted to be fully consis tent with WTO rules on transparency, and the 
implementing regulations for the Law would ensure uniform and consistent implementation of this 
Law throughout Viet Nam.   
474. He noted that Articles 62.2 and 65.4 of the amended Law on the Enactment of Legal 
Normative Documents required the Office of the Government to publish draft Government Resolutions and Decrees and Decisions and Instructions of the Prime Minister in the mass media and on the Internet for comment by agencies, organizatio ns and individuals.  A draft Resolution or Decree 
would not be published for comment if it related to national security, State secrets or its nature or 
contents did not require such publication.     WT/ACC/SPEC/VNM/5/Rev.2 
 Page 173 
 
 
 475. As for the publication of legal instruments, the Law on the Enactment of Legal Normative 
Documents required that these documents be published in the Official Gazette or made known to the 
public through the mass media.  As the effective date s of most legal documents were attributed to the 
time of publication in the Official Gazette as regulat ed by the Law, the Official Gazette was published 
almost daily.  According to the amended Law, lega l documents were required to be published in the 
Official Gazette and would only become effective 15 days  thereafter, or at a later date if so specified.  
Pursuant to Article 8.1(b) of Decree No. 161/ 2005/ND-CP of 27 December 2005, legal normative 
documents issued by State bodies at the central leve l had to be sent to the Office of the Government 
no later than two working days from the date of prom ulgation or signing for publication in the Official 
Gazette.  He added that legal documents were accessible on the Internet, for the time being in 
Vietnamese only.  Legal normative documents issued  by local authorities and provincial People's 
Councils were put up in notice on their premises.  Asked whether laws, regulat ions or administrative 
orders could take effect prior to publication, the representative of Viet Nam said that according to the 
Law on the Enactment of Legal Normative Documents,  Viet Nam's legislation applied retroactively 
only in extreme cases.  The Law also stipulated non -retroactivity in case of (i) new legal obligations 
imposed on actions happening at a time when such legal obligations had not been provided by law; 
and (ii) new legal obligations whic h were higher than those applied at the time when such actions took 
place.   
476. A Member noted that Vietnamese Ministries appeared to use documents called "official 
letters" - not defined as legal normative documents in Viet Nam's legislation - to set policy, and that 
most Ministries would deny requests to provide th ese documents.  Viet Nam was requested to update 
the Working Party on measures taken to bring th is practice into conformity with WTO rules on 
transparency.  This Member also sought confirma tion that the Government of Viet Nam would no 
longer use "official letters" as policy-setting documen ts, and that the policies contained in existing 
"official letters" would be disconti nued or, if adhered to by Ministri es, would be followed in a manner 
consistent with WTO rules on transparency. 
477. In reply, the representative of Viet Nam said that "official letters" were not recognized as 
legal normative documents neither under the Law on  the Enactment of Legal Normative Documents 
nor under the Law on the Promulgation of Legal Documents of People's Councils and People's 
Committees.  The Prime Minister had issued Circular No. 04/2005/TT-VPCP and Directive No. 08/2005/CT-TTg to ensure full implementation of the two Laws and to make the use of "official 
letters" more transparent and consistent with WTO ru les.  Pursuant to Article 3 of Government Decree 
No. 161/2005/ND-CP of 27 December 2005, any document providing for legal normative rules but WT/ACC/SPEC/VNM/5/Rev.2 
Page 174  
 
 not adopted in the form prescribed for legal norma tive documents, such as official letters, notice and 
guidelines, should be considered invalid a nd handled in accordance with the law.  
478. [The representative of Viet Nam confirmed that from the date of accession his Government 
would fully implement Article X of the GATT 1994, Article III of the GATS and the other WTO 
transparency requirements, including those requiring no tification, prior comment and publication.  As 
such, all laws, regulations, decrees, judicial decisi ons and administrative rulings of general application 
pertaining to or affecting customs issues, trade in  goods, services, intellectua l property and the control 
of foreign exchange would be published promptly in the Official  Gazette in a manner that fulfils the 
WTO requirements and no such law, regulation or other normative act or measure would become 
effective or be enforced prior to such publication.   He further confirmed that his Government had 
decided to expand the transparency provided with regard to legislation a nd measures having similar 
effect in the areas of trade and investment.  In this regard, Viet Nam would, from the date of 
accession, establish or designate an official website (and possibly a supplemented official journal or an expanded Official Gazette), updated on a regular  basis and readily available to WTO Members, 
individuals, associations and enterprises, dedicated  to the publication of all regulations, decisions, 
orders, administrative rulings of general applicati on, and other measures pe rtaining to or affecting 
trade in goods, services, and TRIPS prior to enactment .  The publication of such regulations and other 
measures would include, as appropriate, the names of the authorities (including contact points) responsible for implementing a particular measure a nd the effective date of the measure.  Also, it 
would list the products and services affected by the pa rticular measure, identified by appropriate tariff 
line and classification.  The representative of Vi et Nam confirmed that with respect to proposed 
measures Viet Nam would provide a reasonable period[, i.e. no less than 60 days,] for members, individuals, associations and enterprises to provide  comments to the appropriate authorities before 
such measures are adopted , except for those regulations and other measures involving national 
emergency or security, or for which the publication would impede law enforcement.  He added that 
Viet Nam intended to post the contents of current and past editions of the Official Gazette on this 
website as well, and keep them current.  The Working Party took note of these commitments.] 
Notifications 
479. The representative of Viet Nam sa id that, at the latest upon entry into force of the Protocol of 
Accession, Viet Nam would submit all initial notif ications required by any Agreement constituting 
part of the WTO Agreement.  Any regulations sub sequently enacted by Viet Nam which gave effect 
to the laws enacted to implement any Agreement constituting part of the WTO Agreement would also 
conform to the requirements of that Agreement.  The Working Party took note of this commitment.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 175 
 
 
 TRADE AGREEMENTS 
480. The representative of Viet Nam said that, as of April 1995, Viet Nam had acceded to 
73 multilateral agreements and treaties.  He provide d a list of 55 foreign trade agreements, 17 general 
treaties and 17 tax treaties in document WT/ACC/VNM /3/Add.1, Annex 8.  The trade agreements 
provided for MFN treatment, granted on a reciprocal basis.  At present, preferential rates of import 
duty were applicable only to ASEAN countries and on 243 tariff lines of textile items imported from 
the European Union (in return for increased impor t quotas on Vietnamese exports of textiles to the 
EU).  Viet Nam had become member of ASEAN in July 1995 and as part of its membership 
commitments, Viet Nam had signed 21 ASEAN Agre ements and two Memoranda  of Understanding.  
As of 2000, the Inclusion List of Viet Nam compri sed 4,233 tariff lines, the Temporary Exclusion List 
contained approximately 1,900 tariff lines, the Gene ral Exclusion List covered 131 products and the 
Sensitive List of Unprocessed Agricultural Products included 51 tariff lines.  Viet Nam did not have a 
list of highly sensitive products.  Viet Nam had not  entered into any labour market integration 
agreements. 
481. Some Members noted that Viet Nam, in the context of its commitments under the Agreement 
on a Common Effective Preferential Tariff (CEPT)  implementing the ASEAN Free-Trade Area, had 
referred to its list of sensitive agricultural products to be fully phased into the inclusion list by 2013 
with final bound rates at 5 per cent.  Viet Nam was requested to provide a copy of the list of sensitive 
products to the Working Party, and to indicate whet her the list overlapped with  imports subject to line 
management or other forms of import restriction.  Viet Nam was also invited to provide a description 
of its goods and service commitments as part of the AFTA/China Free Trade Agreement. 
482. The representative of Viet Nam replied that  sensitive unprocessed agricultural products and 
highly sensitive products had not b een included in the CEPT/AFTA framework prior to 1995.  Since 
then, ASEAN members had established a special m echanism for tariff reduction and elimination of 
non-tariff barriers on these products.  Viet Nam ha d signed a Protocol in September 1999, according 
to which Viet Nam was committed to reducing its tariffs on sensitive unprocessed agricultural 
products to 0-5 per cent for other members of ASEA N by 2013.  As for the AFTA/China Free Trade 
Agreement, the specific commitments on goods and services had not been finalized yet.  Viet Nam 
was therefore not in a position to provide any description.  However, Viet Nam would provide a 
description of Viet Nam's commitments under the Agreement as soon as the Agreement had entered 
into force and would notify the agreemen t in conformity with WTO rules.  
483. Some Members noted that Viet Nam was requi red – under a bilateral agreement on textiles 
and clothing - to reduce its tariffs on a number of textile products imported from the EU during a WT/ACC/SPEC/VNM/5/Rev.2 
Page 176  
 
 period of ten years starting from 1 January 1996.  These Members asked whether the tariff reductions 
were implemented on an MFN basis and, if not, ho w Viet Nam would abide by Article I of the GATT 
as a Member of the WTO.  Some Members requested that Viet Nam provide a copy of its bilateral 
trade agreement with the United St ates to the Working Party.  A Member requested Viet Nam to 
clarify how provisions in this agreement would be ap plied in relation to other Members of the WTO.   
484. The representative of Viet Nam replied that Viet Nam would comply with the MFN principle 
within the meaning of Article I of the GA TT 1994 upon accession to the WTO.  The bilateral 
agreement with the United States had come  into force at the end of 2001.   
485. The representative of Viet Nam confirmed that Viet Nam would observe all WTO provisions, 
including those of Article XXIV of the GATT 1994 and Article V of the GATS in the trade agreements to which it belongs, and would ensure that the provisions of these WTO Agreements for 
notification, consultation and other requirements concerning free trade areas and customs unions of 
which Viet Nam was a member were met from the date of accession.  He confirmed that Viet Nam would submit notifications and copies of the Free Trade Area and Customs Union Agreements to 
which it belongs to the Committee on Trade in G oods for transmittal to the Committee on Regional 
Trade Agreements (CRTAs) for review.  The Wo rking Party took note of this commitment. 
CONCLUSIONS 
486. The Working Party took note of the explanati ons and statements of Viet Nam concerning its 
foreign trade regime, as reflected in this Report.  The Working Party took note of the commitments 
given by Viet Nam in relation to certain speci fic matters which are reproduced in paragraphs 
[... and ...] of this Report.  The Working Pa rty took note that these commitments had been 
incorporated in paragraph 2 of the draft Protocol of Accession of Viet Nam to the WTO.   
487. Having carried out the examination of the foreign trade regime of Viet Nam and in the light of 
the explanations, commitments and concessions made by the representative of Viet Nam, the Working 
Party reached the conclusion that Viet Nam be  invited to accede to the Marrakesh Agreement 
Establishing the WTO under the provisions of Article  XII.  For this purpose, the Working Party has 
prepared the draft Decision and Protocol of Accessi on reproduced in the Appendix to this Report, and 
takes note of Viet Nam's Schedule of Concessions and Commitments on Goods (document 
WT/ACC/VNM/../Add.1) and its Schedule of Specific Commitments on Services (document 
WT/ACC/VNM/../Add.2) that are annexed to the draft Protocol.  It is proposed that these texts be adopted by the [General Council] [Ministerial C onference] when it adopts the Report.  When the 
Decision is adopted, the Protocol of Accession would be open for acceptance by Viet Nam which  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 177 
 
 
 would become a Member thirty days after it accepts  the said Protocol.  The Working Party agreed, 
therefore, that it had completed its work concer ning the negotiations for the accession of the Socialist 
Republic of Viet Nam to the Marrak esh Agreement Establishing the WTO. WT/ACC/SPEC/VNM/5/Rev.2 
Page 178  
 
 ANNEX 1 
Laws, Regulations and Other Information Pr ovided to the Working Party by Viet Nam
 
- Directive of the Prime Minister No. 08/ 2005/CT-TTg "On Advancing the Process of and 
Improving  the Quality of the Drafting of La ws and Ordinances in the Year of 2005 in 
Support of WTO Negotiations and Accession" dated 4 April 2005; 
- National Assembly's Resolution No. 51/200 1/QH10 on amendment of and supplement to 
some Articles of the 1992 Constitution of th e Socialist Republic of Viet Nam of 
25 December 2001; 
- Law on Profit Tax of 1 October 1990; - Law on Enterprise Income Tax (1997) of 10 May 1997; 
- Law on Agricultural Land Use Tax (1993) of 10 July 1993; 
- Law on Transfer of Land use Right Tax of 22 June 1994; - Ordinance on Income Tax on High-Income Earners of 19 May 2001; - Ordinance of the Standing Committee of th e National Assembly on Income Tax of High 
Income Earners (1994) of 19 May 1994, as amended; 
- Order of the President No. 06/2004/L/CTN "On Promulgation of the Ordinance of the 
National Assembly Standing Committee" of 12 May 2004; 
- Ordinance of the State Council on Royalties of 30 March 1990; - Decision No. 396/TTg dated 4 August 1994 On Amendments of and Additions to Foreign 
Currency Control in the Prevailing Circumstances; 
- Circular No. 08/1998/TT-NHNN7 of 30 September 1998 on Guiding the Implementation of 
Decision 173/1998/QD/TTg on the obligation to sell and rights to buy foreign currencies from 
Residents which are organizations (the State Bank of Viet Nam (SBV) provides guidance for 
this Decision); 
- Decree No. 63/1998/ND-CP of 17 August 199 8 on Foreign Exchange Management of the 
Government; 
- Decision of Compulsory Selling Rage of Fore ign Currency with Respect to Current Sources 
of Income of Residents Being Economic or Social Organizations (Decision No. 46-2003-QD-TTg of 2 April 2003); 
- Law on Cooperatives (1996); - Law on Companies of 21 December 1990, as amended 1 July 1994; - Law on Private Enterprises of 21 December 1990, as amended 1 July 1994; 
- Commercial Law No. 05/1997/QH9 of 10 May 1997; 
- Draft Commercial Law; - Law on Business Bankruptcy of 30 December 1993; - Law No. 13/1999/QH10 – The Enterprise Law; - Draft Law " On Investment"; 
- Law on Promotion of Domestic Inv estment (1994) of 22 June 1994; 
- Law on Foreign Investment in Viet Nam of 12 November 1996; - Law on amendment of and addition to a number of articles of the Law on Foreign Investment 
In Viet Nam of 9 June 2000; 
- Governmental Decree No. 12/CP of 18 Fe bruary 1997 Providing Regulations on Foreign 
Investment in Viet Nam (1997); 
- Circular No. 74 TC/TCT of 20 October 1997 Providing Guidance On the Implementation of 
Tax Provisions Applicable to Various Form s of Investment Under the Law on Foreign 
Investment in Viet Nam; 
- Government Decree Providing Detailed Regula tions on the Implementation of the Law on 
Foreign Investment in Viet Nam (Decree No. 24-2000-ND-CP of 31 July 2000); 
- Ordinance on Price of 26 April 2002; 
- Petroleum Law of 6 July 1993;  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 179 
 
 
 - The Law on amendment of and addition to a number of articles of the Law on Petroleum of 
9 June 2000; 
- Decree No. 76-2000-ND-CP "On Making Detaile d Provisions on the Implementation of the 
Mineral Law" dated 15 December 2000; 
- Law No. 46/2005/QH11 "On Amendment and Supplement of Some Articles of the Mineral 
Law" dated 14 June 2005; 
- Law on Land of 31 May 2001; - Law No. 10/1998/QH10 mending and complementing a number of Articles of the Land Law 
dated 2 December 1998; 
- Labour Code (1994) of 23 June 1994;  
- Law on the amendment of and supplement to a number of Articles of the Labour Code of 
2 April 2002; 
- Law on State Enterprises of 20 April 1995 (Presidential Order No. 39-L/CTN of 
30 April 1995 to promulgate the Law on State Enterprises and the Law on Amendments and Supplements to a number of Articles of the Law on Viet Nam Civil Aviation); 
- Draft Law "On the Conclusion, Accession and Implementation of International Treaties"; 
- Law on the Promulgation of Legal Documents of 12 November 1996; - Law on Amendment and Addition to a Number of Articles of the Law on Promulgation of 
Legal Instruments (Law No. 02-2002-QH11 of 16 December 2002); 
- Ordinance on Commercial Arbitration (No. 08-2003-PL-UBTVQH11 of 25 February 2003); 
- Ordinance on Procedure for Settlement of Economic Disputes of 1 July 1994; 
- Ordinance on Most-Favoured-Nation and Nati onal Treatment in International Trade of 
7 June 2002; 
- Draft Law Amending and Supplementing a Number  of Articles of the Law on Complaints and 
Denunciations; 
- Law on Customs (Law No. 29-2001-QH10 of 29 June 2001); 
- Draft Law amending and supplementing some articles of the Customs Law dated 
29 June 2001; 
- Decision No. 46/2005/QD-TTg "On Revisions of th e List of Imported Goods Subject to Tariff 
Rate Quotas" dated 3 March 2005; 
- Decree on Customs Procedures, Customs Inspection and Control, Making Detailed Provisions 
for Implementation of a Number of Articles of the Law on Customs (Decree No. 101-2001-
ND-CP of 31 December 2001); 
- Decision No. 79/TCHQ-GQ of 14 June 1998 On Customs Procedure of Border Imports-
Exports; 
- Decision No. 50/1998/QD-TCHQ of 10 March 1998 of the Director General of the General 
Department of Customs on Handbook and Guideline on Customs Procedure 1995; 
- Decision No. 299/1998/QD-TCHQ of 12 Septem ber 1998 On Amendment and Addition to 
Instruction of the Customs Procedures for Import-Export of Goods (1998) (issued in conjunction with Decision No. 50/1998/QD- TCHQ of 10 March 1998 of the General 
Department of Customs); 
- Decision No. 287/TCHQ/KTTT of 19 December 1995 of Director General of the General 
Department of Customs on the Issuance of New Form of Customs Declaration for Import-
Export Commodities; 
- Instruction No. 224/TCHQ-GSQL of 10 N ovember 1994 On Measures of Import-Export 
Inspection for Customs Superv ision and Management (1994); 
- Decision No. 189/TCHQ-GSQL of 7 October 1994  On Issuing Regulation On Inspection of 
Exported and Imported Goods (1994); 
- Regulations No. 296-TMDL/XNK of 9 April 1992 on the Issuance of Import-Export Business 
Permit; 
- Viet Nam's List of Effective Import Tariff (MFN Rates); - Ordinance on Levies and Fees of 30 August 2001; WT/ACC/SPEC/VNM/5/Rev.2 
Page 180  
 
 - Law on Export and Import Duties (1991) of 26  December 1991, as amended 16 January 1992 
and 5 July 1993; 
- Comparison Between the Proposed Law "On E xport and Import Duties" and "The Provisions 
of the Existing Law on Export and Import Duties"; 
- Governmental Decree No. 54-CP of 28  August 1993 on Export-Import Duty (1993); 
- Law No. 02/1997/QH9 of 10 May 1997 on Value Added Tax; 
- Schedule of VAT on Imports (2003); - Law on Turnover Tax (1993) of 30 June 1990, as amended 5 July 1993; - Law on Special Sales Tax of 30 June 1990, as amended 5 July 1993 and 28 October 1995; 
- Circular No. 98-TC/TCP Providing Guidance on the Implementation of Governmental Decree 
No. 97/CP of 27 December 1995 which provides detailed provisions for the implementation 
of the Law on Special Sales Tax and the Law on the Amendments of and Additions to a 
number of Articles of the Law on Special Sales Tax; 
- Detailed Guidance on the Application of Speci al Sales Tax (1995) (Appendix attached with 
Circular of the Ministry of Finance No. 98-TC/TCP of 30 December 1995); 
- Special Consumption Tax Schedule for Imports (with HS Code reference); 
- List of the Commodities Banned from Export and Import in 1997 (Decision of the Prime 
Minister No. 28-TTg of 13 January 1997); 
- Decision of the Prime Minister No. 28-TTg of 13 January 1997 on Import-Export 
Management Policy (1997); 
- Circular of the Ministry of Trade No. 02-TM/XNK of 21 February 1997 Guiding the 
Implementation of Decision No . 28-TTg of 13 January 1997; 
- Decree No. 89 of 4 April 1996 on Revoking the Procedures for Granting Export or Import 
Permits for Each Consignment; 
- Decision of the Prime Minister No. 864-TTg of 30 December 1995 Regarding the Policy on 
Commodities and the Regulation on Import-Export in 1996; 
- Regulations of the Ministry of Commerce and Tourism No. 297-TMDL-XNK of 9 April 1992 
on Export-Import Licence; 
- List of Second Hand Consumer Goods Subject to Import Prohibition (issued together with 
Circular 11/2001/TT-BTM of 18 April 2001 of the Ministry of Trade); 
- Decree on Prescribing the Determination of Tax Calculation Values of Imported Goods 
According to the Principles of the Agreement Implementing Article VII of the GATT (Decree 
No. 60/2002/ND-CP of 6 June 2002); 
- Decision No. 155/1998/QD-TTg of 27 May 1998 On Issuing the Regulations On 
Determination of Dutiable Va lue of Imports and Exports; 
- Decision No. 590A/QD/BCT of 29 April 1998 On  Promulgation of the Table of Dutiable 
Values; 
- Regulation No. 192/TCHQ/KTTH of 15 May 199 5 On Promulgating Application of Dutiable 
Value of Goods for Import and Export Duties (1998); 
- Decision No. 918-TC/QD/TCT of 11 November 1997 on the Promulgation of the Minimum 
Purchase Price Table at Border Gates for Import Duty Calculation; 
- Ordinance No. 20-2004-PL-UBTVQH11 "Again st Dumping of Imported Goods into Viet 
Nam" of 29 April 2004; 
- Revised unofficial English translation of the Ordinance No.
 20-2004-PL-UBTVQH11 "On 
Anti-Dumping of Imported Products into Viet Nam" dated 29 April 2004; 
- Ordinance No. 22-2004-PL-UBTVQH11 "On Measures against Subsidized Products 
Imported into Viet Nam of 20 August 2004; 
- Government Decree No. 89-2005-ND-CP "On Detailing the Implementation of a Number of 
Provisions of the Ordinance on Measures Against Subsidized Goods Imported into Viet Nam" 
dated 11 July 2005; 
- Ordinance on Safeguards in the Import of Foreign Goods into Viet Nam 
(No. 42/2002/PL-UBTVQH10 of 1 September 2002);  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 181 
 
 
 - Decree No. 179/2004/ND-CP "On Providing St ate Management Over Product and Goods 
Quality" dated 21 October 2004; 
- Draft Ordinance "On Standardization"; - Decision No. 114/2005/QD-TTg "On Establis hing and Promulgating the Regulation on 
Organization and Operation of Viet Nam's Ne twork of Notification Authorities and Enquiry 
Points on Technical Barrier to Trade" dated 26 May 2005; 
- Decision No. 444/QD-TTg "On Approving the Sc heme on Implementation of the Agreement 
on Technical Barriers to Trade" dated 26 May 2005; 
- - Decision No. 2424/2000/QDD-BKHCNMT of the Minister of Science, Technology 
and Environment "On Temporary Regulations on Declaration of Goods Conformity with 
Standards" dated 12 December 2000; 
- Ordinance on the Quality of Goods of 27 December 1990; - Ordinance on Weights and Measures (1990) of 16 July 1990; - Ordinance No. 12/2003/PL-UBTVQH11 "On Food Hygiene and Safety" of 26 July 2003; - Order No. 20/2003/L-CTN Promulgating the Or dinance on Food Hygiene and Safety (passed 
on 26 July 2003) of 7 August 2003; 
- Decree No. 163/2004/ND-CP of the Government of the Socialist Republic of Viet Nam "On 
Implementation of some Articles of the Food Hygiene and Safety Ordinance" of  7 September 2004; 
- Decision No. 1091/1999/QD-BKHCNMT Promul gating the Regulation on the State Control 
of Import-Export Goods Quality of 22 June 1999; 
- Inter-Circular No. 37/2001/TTLT/BKHCNMT-TC HQ "On Guiding the Customs Procedures 
for and Quality Inspection of Export and Import Goods Subject to the State Quality Inspection" dated 28 June 2001; 
- Ordinance on Veterinary Activities (1993) of 27 November 1993; - Decision No. 389 NN-TY/QD of 15 April 1995 On Promulgating the Regulation On 
Procedures for Animal Quarantine, Veterinary  Control for Animal Slaughtering, Animal 
Products and Hygienic Inspection (1995); 
- Veterinary Quarantine and Inspection Subject s List Attached to Decision No. 607 NNTY/QD 
of 9 June 1994 by the Minister for Agriculture and Food; 
- Ordinance on Plant Protection and Inspection of 25 July 2001; - Decree on Tendering (Decree No. 88-1999-ND-CP of 1 September 1999, amended on 
5 May 2000); 
- Decree on Amendments and Additions to a Nu mber of Articles of the Regulations on 
Tendering Issued with Decrees of the Government No. 88-1999-ND-CP dated 1 September 1999 and No. 14-2000-ND-CP Da ted 5 May 2000 (Decree No. 66-2003-ND-CP 
of 12 June 2003); 
- Decree No. 43/CP of 16 July 1996 on Procurement; 
- Draft Law "On Intellectual Property"; - Part VI of the Civil Code – Intellectual Property Rights and Technology Transfer; - Part VI of the draft Law "On Intellectual Property Rights and Technology Transfer; - Decree No. 63/CP of October 1996 on Detaili ng the Regulations on Industrial Property; 
- Governmental Decree on Detailed Regulations  Concerning Industrial Property (Decree 
No. 63/CP of 24 October 1996, amended and supplemented by Governmental Decree 
No. 06/2001/ND-CP of 1 February 2001); 
- Circular No. 3055-TT/SHCN (1996) of 31 Dece mber 1996 Guiding the Implementation of the 
Regulations on the Procedures for Establishi ng Industrial Property Rights and Other 
Regulations in Decree No. 63/CP; 
- Decree on Amendment and Addition of a Number of Articles of Decree 63-CP of the 
Government Dated 24 Octobe r 1996 on Industrial Property (Decree No. 06-2001-ND-CP of 
1 February 2001); 
- Circular No. 23-TC/TCT dated 9 May 199 7 Guiding the Collection, Payment and 
Management of Industrial Property Service Charges and Fees; WT/ACC/SPEC/VNM/5/Rev.2 
Page 182  
 
 - Decree on Penalties for Administrative Offences  in Relation to Industrial Property (Decree 
No. 12-1999-ND-CP of 6 March 1999); 
- Ministry of Science, Technology and E nvironment's Circular No. 825/2000/IT-BKHCNMT 
of 3 May 2000, as Amended and Supplemented by the Ministry's Circular No. 49/2001/TT-BKHCNMT of 14 September 2001, Guides the Implementation of Decree 
No. 12/1999/ND-CP of 6 March 1999 on the Handling of Administrative Violations in the 
Field of Industrial Property; 
- Decree on Copyright Providin g Guidelines for the Implementation of a Number of the 
Provisions of the Civil Code with Respect to Copyright (Decree No. 76-CP of 29 November 1996); 
- Circular of the Ministry of Science and Technology No. 30/2003/TT-BKHCN "Guiding the 
carrying out of the Procedures for Establishment of Industrial Property Rights over Inventions/Utility Solutions" of 5 November 2003; 
- Decree on the Protection of New Plant Varieties (Decree No. 13/2001/ND-CP) of 
20 April 2002; 
- Circular on the Implementation of Gove rnment Decree No. 13/2001/ND-CP dated 
20 April 2001 on the Protection of New Plant Varieties; 
- Decree on Protection of Industrial Property Rights with Respect to Trade Secrets, 
Geographical Indications and Trade Names and Pr otection of Rights to Fight Against Unfair 
Competition Relating to Industrial Property (Decree No. 54-2000-ND-CP) of 3 October 2000; 
- Ordinance on Advertisement of 16 November 2001; 
- Ordinance on Post and Telecommunication of 7 June 2002; 
- Draft Law "On E-Transactions"; - Law on Insurance Business of 9 December 2000; - Decree No. 64-CP dated 9 October 1995 On Or ganization and Operation of Finance Leasing 
Companies; 
- Circular No. 03-TT-NH5 dated 9 February 1996 On Finance Leasing Companies (providing 
guidelines for the implementation of the tempor ary regulations on orga nization and operation 
of finance leasing companies in Viet Nam); 
- Ordinance on Lawyer Organization of 25 July 2001; - Decree No. 42-CP dated 8 July 1995 On Lega l Consultancy Practices of Foreign Law Firms 
in Viet Nam; 
- Circular No. 791-TT-LS-TVPL dated 8 Septembe r 1995 On Foreign Law Firms (providing 
guidelines for the implementation of the Regulati ons on legal consultancy practices of foreign 
law firms in Viet Nam); 
- Decree on Management, Provision and Use of Internet Services (Decree No. 55-2001-ND-
CP); 
- Decree on Dealing with Administrative Offences in the Sector of Culture and Information 
(Decree No. 31-2001-ND-CP of 26 June 2001); 
- Decree on Cinematographic Organizati ons and Activities (Decree No. 48-CP of 
17 July 1005); 
- Decree on Amendment and Addition to Decree 48- CP of the Government Dated 17 July 1995 
on Cinematographic Organizations and Activities (Decree No. 26-2000-ND-CP); 
- Circular No. 04/2005/TT-VPCP "On Guiding the Implementation of the Government's 
Decree No. 104/2004/ND-CP of 23 March 2004 on th e Cong Bao of the Socialist Republic of 
Viet Nam Regarding activities related to Cong Bao (the Official Gazette) of the Central 
Government" dated 21 March 2005; 
- Ordinance on the Conclusion and Implementa tion of International Treaties (1989) of 
17 October 1989; 
- Decree No. 18-CP of 4 April 1996 of the Government Issuing the List of Commodities and 
Import Tariffs in Implementing the Programme  of Reducing Tariffs on Goods Imported from 
the European Communities in the years 1996-1997;   WT/ACC/SPEC/VNM/5/Rev.2 
 Page 183 
 
 
 - Decree No. 12/2000/ND-CP "On Amending and Supplementing a Number of Articles of the 
Investment and Construction Mana gement Regulation Issued Together with the Government's 
Decree No. 52/1999/ ND-CP of 8 July 1999" dated 5 May 2000; 
- Decree No. 07/2003/ND-CP "On Amendment of a Number of Articles of Regulations on 
Management of Investment and Construction I ssued with Decree No.52/1999/ND-CP of the 
Government dated 8 July 1999 and Decree 12/2000/ND-CP of the Government dated 
5 May 2000" dated 30 January 2003; 
- Import-Export Statistics for 1997;  - Import-Export Statistics for 2003; and - Ordinance on Entry, Exit, Residence and Travel of Foreigners in Viet Nam of 28 April 2000. 
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 184  
 
 ANNEX 2 
Table 1: Prohibited Business Sectors
 
 
Prohibited business sectors/li nes Justification/Rationale 
Conducting business in weapons, ammunition, military 
equipment, military items and specialized military technical 
equipment of the armed forces. Justifiable on the grounds of security necessity.  
Conducting business in explosives, toxic chemicals1, and 
radioactive substances. Justifiable on the grounds of security and safety necessity: 
The use of these items needs to be restricted/regulated due to 
their high fatal risk. 
Conducting business in drugs of addic tion. Justifiable on the grounds of hu man health and social order.  
Prostitution, organizing prostitution services and trading in 
women and children. Justifiable on the grounds of cultural and moral necessity 
(such activities are considered as immoral and criminal).  
Providing gambling services or operati ng gambling venues. Justifiable on the grounds of security, public order and 
cultural necessity. 
Conducting business in chemic al substances of high 
toxicity. Justifiable on the grounds of human health.  
Conducting business in any items which belong to the 
historical, cultural or museum heritage. Justifiable on the grounds of cultural preservation necessity. 
Conducting business in reacti onary cultural products2, 
pornographic or superstitious items3, or items which have an 
adverse effect on personal development.4 Justifiable on the grounds of security and cultural necessity.   
Conducting business in all types of firecrackers. Justifiable on the gr ounds of human health: Firecrackers 
cause numerous accidents and injuries. 
Conducting business in wild plants and animals which are 
listed in international treaties to which Viet Nam is a 
signatory or a participant, and trading in other rare and 
precious species of flora and fa una which require protection. Justifiable on the grounds of natural and environment 
protection. 
Conducting business in toys which have an adverse effect on personal development or health of children or which 
have an adverse effect on soci al order, security and safety.
5 Justifiable on the grounds of human health, safety, education, 
public order and security. 
 
                                                      
1 A "toxic chemical" is any chemical which through its chem ical action on life processes can cause death, temporary 
incapacitation or permanent harm to humans or  animals. This includes all such chemicals,  regardless of their origin or of their  method of 
production, and regardless of whether they ar e produced in facilities, in munitions or el sewhere.  Chemical substances of high toxicity 
include those specified in the list attach ed to the Circular No. 08/2001/TT-BCN date d 14 September 2001 of the Ministry of Indu stry (see 
list in Table 11(a)).  
2 See paragraph [198] for a definition of "reactionary cultural products".  
3 Superstitious cultural products" could be de fined, inter alia, as cultural products (i nclusive of books, newspapers, magazines,  
tapes, discs, etc. under HS 9701, 9703, 9706, 9705, 4901, 4902, 4903, 4904, 4909, 4910, 4911, 8524, 3706) containing images and /or sound 
with displayed content not based on science or facts and are inte nded to make people blindly believe  in mystical things, in sto ries of ghosts, 
devils and evil spirits, in delusion, etc. that are detrimenta l to public or national security.  All cultural products identifi ed as superstitious, 
depraved and reactionary cultural products were banned from production, exportation, importation, bus iness and circulation in V iet Nam, 
whether they were for commercial purposes or not.  This regul ation applied on a non-discriminato ry basis to all organizations, individuals, 
domestic and foreign economic entities.  
 
4 "Cultural products which have an adverse effect on personal deve lopment" could be defined, inter alia, as cultural products 
containing images and/or sound w ith ill-spirit content that are detrimental to  the Vietnamese people’s morals, virtues, dignit y, fine character 
and lifestyle, fine customs and habits, national cultural charact eristics and human advancement.  For example, cultural product s containing 
pornography, violence, reacti onary or anti-Viet Nam propagation,  or superstitious cultural products , etc. could be claimed as c ultural 
products which have an adverse effect on personal development.  
5 "Toys which have an adverse effect on personal development or h ealth of children or which have an adverse effect on personal 
development or health of children or which have an adverse effect on social order, s ecurity, and safety" c ould be defined, inte r alia, as toys 
having unsafe shapes, dangerous usage functi ons and/or containing images , sound, content detrimental to children’s morals, virt ues, dignity, 
physical and intellectual development, advers ely affecting children’s education and aesth etic sense and/or social security and safety. For 
example, toys containing images, sound, ac tions describing brutal and murderous acts,  stimulating lewdness,  inciting crimes, so cial evils, 
reactionary or superstitious propagation, etc.; toys having violen t functions and/or able to be used in fights, shootings of ri sk to human 
health and lives or damaging ecological  environment, social safety, etc.   
  
  WT/ACC/SPEC/VNM/5/Rev.2
 Page 185Table 2:  Illustrative List of Conditional Business Sectors Subject to Licensing  
I. List of Conditional Business Lines and Respective Business Conditions  
No. Business lines Legisl ation Business conditions 
1 Conducting business in fresh, raw 
and processed food 
 - Decree No. 11/1999/ND-CP dated 
3 March 1999 of the Government. 
- Circular No. 16/1999/TT-BTM dated 
15 June 1999 of the Ministry of Trade 
providing guidance on conditions for 
buying, selling and transporting fresh, 
raw and processed foods. 
 1. Condition on subject of the business 
A trader is required to have the Certification of Business Registration which stipulates buying, selling 
or conducting the transport service of fresh, raw a nd processed food as one of the trader's business 
lines. 
2. Conditions on material and tech nical establishment and equipment: 
 
2.1 Requirements on plac e of doing business: 
 - The place of doing business must be stable  and conform to the arrangement of the local 
common trading network; 
 - The buying and selling place must be at least 50 meters away from the public 
conveniences, garbage dumps, dusty pl aces of production and hospitals. 
 
2.2 Minimum require ments on material establis hments and equipment: 
 - Traders dealing in food must have necessary instruments such as verified scales, tanks and 
trays, tables (stalls or stands), knives, c hopping blocs... The places for processing and 
selling food must have necessary  instruments for processing a nd maintenance and covers to 
ensure hygiene and quality of food after processing; 
 - Traders engaged in the transportation of food must have appropriate means of transport to 
ensure safety and quality of products during the transportation. 
 
3. Conditions on environment: 
 - A hygienic drainage system for wastewater is required; 
 - Covered pails and baskets for garbage and waste are required. 
 
4. Conditions on health: 
Processors and salesperson must be in appropriate h ealth condition to the busines s as stipulated by the 
Ministry of Health, and free from infectious diseas es and must have a health check every 12 months.  
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 186 No. Business lines Legisl ation Business conditions 
2 Conducting business in pawnage 
service - Decree No. 11/1999/ND-CP dated 
3 March 1999 of the Government. 
- Circular No. 18/1999/TT-BTM dated 
19 May 1999 of the Ministry of Trade 
guiding pawnage service business.  1. A trader must have the Certification of Busi ness Registration which stipulates pawnage service 
as one of his/her business lines. 
 
2. The trader must have a fixed pawnshop with de finite address; have wa rehouses for keeping and 
preserving the pawned goods and property safely against damage or loss thereof during the time 
of keeping.  
3 Conducting business in restaurant 
and popular food-and-drink stall 
 - Decree No. 11/1999/ND-CP dated 
3 March 1999 of the Government. 
- Circular No. 13/1999/TT-BTM dated 
19 May 1999 guiding conditions for 
restaurant and popular food-and-drink 
stall business. 
 Condition on subject of the business: 
 
A trader must have Certification of Business Regi stration, which stipulates  restaurant, and popular 
food-and-drink stall business as one of his/her business lines. 
 
Conditions on material and techni cal establishment and equipment: 
 
Requirements on place of doing business: 
 
- The place of doing business must be stable and be legitimately used; 
- The place of doing business must be at least 100 meters away from the public conveniences, 
garbage dumps, and dusty places of produc tion that may cause infectious diseases. 
 
Minimum requirements on material establishments and equipment: 
 
- Restaurants must conform to the requireme nts specified in Appendix 1 of Circular 
No. 18/1999/TT-BTM; 
- Popular food-and-drink stalls must conform to  the requirements specified in Appendix 2 of 
Circular No. 18/1999/TT-BTM. 
 
Conditions on environmental protecti on and fire prevention and fighting: 
- There must be a hygienic drainage system for wastewater; 
- There must be covered pails and baskets for garbage and waste; 
- They must have minimum equipments to ensure  the safety in terms of fire prevention and 
fighting. 
 Conditions on health: 
 
Those who work in restaurants and popular food-and-dr ink stalls must have the health condition suited 
to the business as stipulated by the Ministry of Health. Before being recruited, they must have a health 
check, and then do it again every 12 months to ensure being free from infectious diseases. 
Note:  1. Traders who deal in business lines of above-mentioned list mu st not have the Certificate of Competence in Doing Business. 
 2. Traders must fully meet the above-mentioned business conditio ns before and during their business operation. If there is any  violation, the trader shall be 
penalized as regulated by law.  
  WT/ACC/SPEC/VNM/5/Rev.2
 Page 187II. List of Business Lines Which Require a Business License *  
No. Business lines Legal framework Conditions to be considered and granted 
Business license Authorized bodies 
issuing Business license Procedure 
I. Restricted business lines  
1 Liquor trading - Decree No. 11/1999/ND-CP 
dated 3 March 1999 of the 
Government. 
- Circular 
No. 12/1999/TT-BTM dated 
19 May 1999 guiding the 
liquor trading. Traders who fully meet the following conditions 
shall be considered and granted liquor trading 
licenses: 
 
1. They must have Ce rtification of Business 
Registration (clearly  stating goods range 
and business lines and trades that cover 
liquor items); 
2. They must have fixed trading places and 
identified addresses; 
3. They must ensure the environmental 
hygiene at the liquor  trading places. The provincial or 
municipal Trade 
Services/Trade 
Departments. 1. The dossier comprises:  
 
- An application for liquor trading licence 
(complying with the sample in Circular 
No. 12/1999/TT-BTM); 
- The valid copy of the Certification of 
Business Registration - The documents on 
liquor trading places and environmental 
hygiene; 
- The list of liquors to be traded and sources 
from which such liquors can be purchased. 
 
Within 15 days after receiving complete and 
valid dossiers, the provincial/municipal Trade 
Services/ Trade Departments shall decide the 
granting or non-granting of liquor trading 
licenses to such traders.  
2 Cigarette trading - Decree No. 11/1999/ND-CP 
dated 3 March 1999 of the 
Government. 
- Decree No. 76/1999/ND-CP 
dated 22 October 2003 of the 
Government. 
- Circular 
No. 30/1999/TT-BTM 
guiding the trading in home-
made cigarettes. 
 1. Requirements concerning traders who 
purchase cigarettes from cigarette business 
and production enterprises for organizing 
the cigarette circulation and consumption 
on the market: 
 
- They must be enterprises established 
according to the provisions of law and have 
the Certification of Business Registration 
stating that cigarette is a goods included in 
their business lines; 
- They are financially capable of trading in 
cigarettes; 
- They own stable cigarette distribution and 
consumption outlets in their business 
localities. 1. Ministry of Trade 
has authority to 
grant Business 
Licence to traders 
who deal in 
cigarettes in two or 
more provinces 
and/or cities. 
 
2. The provincial 
/municipal Trade 
Services/Trade 
Departments has 
authority to grant 
Business licence to 
traders who deal in 
cigarettes in only 
one province or 
city. The dossier comprises: 
 
- An application for permission to purchase 
cigarettes from cigarette business and 
production enterprises. 
- A valid copy of the Certification of 
Business Registration. 
- The clearly and fully cigarette trading plan 
specified in Circular 
No. 30/1999/TT-BTM.   
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 188 No. Business lines Legal framework Conditions to be considered and granted 
Business license Authorized bodies 
issuing Business license Procedure 
   2. Provisions on cigarette retail/wholesale and 
retail/wholesale agency. 
 2.1 Wholesale businesses of cigarette: 
  
- They must be enterprises established 
according to the provisions of law and have 
the Certification of Business Registration 
stating that cigare tte is a goods item 
included in their business lines; 
- They must have a fixed trading place with 
a clear address; 
- They must have a cigarette distribution and 
consumption outlets; 
- They must comply with regulations on 
environmental protection and fire 
prevention and fighting. 
 
2.2 Retail businesses of cigarette: 
 - Traders must have the Certification of 
Business Registration which state that 
cigarette is a goods item included in their business lines; 
- They must have separate and fixed 
business places or stalls with clear addresses for retailing cigarettes to 
consumers for cigarett e retail or retail 
agency according to the provisions of this Circular. The provincial/municipal 
Trade Services/Trade 
Departments grant 
Business licenses to 
wholesale/ retail 
cigarettes. The dossier comprises: 
- An application cigarette trading licence 
(complying with the sample in Circular 
No. 30/1999/TT-BTM); 
- A valid copy of the Certification of 
Business Registration; 
- A cigarette trading plan with some 
principal contents (In case of wholesale 
businesses of cigarette); 
- Within 15 days after receiving complete 
and valid dossiers, the 
provincial/municipal Trade Services/ Trade Departments shall decide the 
granting or non-granting of cigarette 
trading licenses to such traders. 
  
  WT/ACC/SPEC/VNM/5/Rev.2
 Page 189No. Business lines Legal framework Conditions to be considered and granted 
Business license Authorized bodies 
issuing Business license Procedure 
II. Conditional business lines 
1 Trading in oil and 
petrol - Decree No. 11/1999/ND-CP 
dated 3 March 1999 of the 
Government. 
- Circular 
No. 14/1999/TT-BTM dated 
7 July 1999. 
- Decision 187/2003/QD-TTg. 
 1. Subject of the business: 
 
- He/she must be a trader with the 
Certification of Business Registration 
which stipulates trading in oil and petrol as 
one of his/her business lines; 
- As to traders who deal in oil and petrol 
wholesale, warehouses, ports, parking 
place, they must be enterprises established 
according to the provisions of law. 
 
2. Conditions on mate rial and technical 
establishment and equipments and other 
related conditions must comply with the 
requirements stipulated in Circular 
No. 14/1999/TT-BTM. 
 The provincial/municipal 
Trade Services/Trade 
Departments 1.  The dossier comprises: 
 
- An application for the Certificate of 
competence in oil and petrol trading (complying with the sample in Circular 
No. 14/1999/TT-BTM); 
- A valid copy of the Certification of 
Business Registration which stipulates 
trading in oil and petrol as one of his/her 
business lines; 
- Certificate of oil and petrol trading 
locations (including retail stores, 
warehouses; ports, park ing place..) issued 
by authorized bodies; 
- A valid copy of Certificate of fire security 
issued by city police 
-  A valid copy of Certificate of environment 
sanitation issued by Science, Technology and Environment Office. 
 
2. Within 15 days after receiving complete 
and valid dossiers, the 
provincial/municipal Trade Services/ 
Trade Departments shall decide the 
granting or non-granting of Certificate of 
competence in oil and petrol business to 
such traders. 
2 Gas trading  - Decree No. 11/1999/ND-CP 
dated 3 March 1999 of the 
Government. 
- Circular 
No. 15/1999/TT-BTM 
19 May 1999. 1. Conditions on gas storehouses:  
 
Gas storehouses must comply with the 
specific requirements stipulated in 
Circular No. 15/1999/TT-BTM: 
 
- Conditions on subject of the business; 
- Conditions on material and technical 
establishment and equipment; 
- Condition on educational level of 
employees; 
- Condition on health; 
- Condition on fire prevention and fighting. 
 The provincial/municipal 
Trade Services/Trade 
Departments. 1. The dossier comprises: 
 
- An application for the Certificate of 
competence in gas trading (complying 
with the sample in Circular 
No. 15/1999/TT-BTM); 
- A valid copy of the Certification of 
Business Registration; 
- A valid copy of Certificate of fire security. 
 
2. 2 Within 15 days after receiving complete 
and valid dossiers, the 
provincial/municipal Trade Services/ 
Trade Departments shall decide the  
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 190 No. Business lines Legal framework Conditions to be considered and granted 
Business license Authorized bodies 
issuing Business license Procedure 
2. Conditions for warehouse service 
maintaining gas-tank:  
 
- As 5 above-mentioned conditions in 
Item 1.  
- As to conditions on ma terial and technical 
establishment and equipment, they must 
comply with the requirements stipulated in 
Section 5.6, Items 5, Viet Nam Standard – 
TCVN 6223:1996 (Appendix 2 of Circular 
No. 15/1999/TT-BTM) granting or non-granting of Certificate of 
competence in gas trading to such traders. 
* List of business lines subject to additional licensing other than business registration. 
 
Note:  Valid time-limit of Business license, Cer tificate of competence in doing business of  4-above-mentioned fields shall expire wit hin three years from  the issuing day. 
  (As stipulated in Announcement No. 5603/TM-CSTNTN, dated 9 November 1999).   WT/ACC/SPEC/VNM/5/Rev.2 
 Page 191 
 
 
 Table 3:  Statistics on Industrial Production, Import and Export Values by Form of Enterprises  
Number of Vietnamese Enterprises Engaged in Import and Export Activities as of December 2004 
Forms of Enterprises Import Export 
State-owned enterprises 1,740 1,265 
Joint-stock companies 1,577 752 
Limited liability companies 9,726 5,101 
Collectives 50 80 
Private companies 995 951 
Companies under social organisations 67 45 
Other domestic enterprises 425 266 
100% foreign-invested companies 2,075 1,717 
Foreign-invested Joint-ventures  650 440 
Total 17,305 10,617 
* Note : The total number of enterprises above include those engaging in both import and export activities. 
 
Import and Export Values of Vietnamese Enterprises by 30 November 2004  
Export Import 
Forms of Enterprises Value 
( in million US$) % Value 
(in million US$) % 
Companies under social 
organisations 74.2 0.40 421 1.67 
100% foreign-invested enterprises 6,706.4 36.37 6,747.8 26.75 
Other forms of foreign invested 
enterprises 3.21 0.02 6.43 0.03 
Joint-stock companies 1,270.5 6.89 2,156.1 8.55 
Collectives 30.3 0.16 16.7 0.07 
Foreign-invested Joint-ventures 1,135.2 6.16 3,156.2 12.51 
State-owned enterprises* 5,125.7 27.79 7,149.2 28.34 
Private enterprises 386.4 2.10 321.1 1.27 
Limited liability companies 3,676.4 19.93 5,020.4 19.90 
Other domestic companies 32.8 0.18 228.1 0.91 
Total 18,441.11 100 25,223.03 100 
* Note:  The trade data of State-owned enterprises excludes those in crude oil and other oil products. 
 
Import-Export Estimated Data of  2004 by Form of Enterprise  
Export Import 
 Number of 
exporting 
enterprises (%) Export value 
(%) Number of 
importing 
enterprises (%) Import value 
(%) 
State-owned enterprises 13,6 44 11 37,2 
Limited liability 
enterprises 55 16,1 61,6 18,7 
Joint-Stock enterprises 8,1 5,7 10 8,1 
Enterprises with foreign 
invested capital 23,3 34,2 17,4 36 
Source: Ministry of Trade 
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 192  
 
 Value of Industrial Production by Economic Sectors (Real Price)
 
Source: General Statistics Office of Viet Nam 
 Billion VND  
 1996 1997 1998 1999 2000 2001 2002 
Total 149,432.5 180,428.9 208,676.8 244,137.5 336,100.2 395,809.3 476,350.0 
Domestic 
economic 
sectors 109,843.3 128,041.2 139,320.0 151,076. 1 197,298.9 231,400.4 278,041.4 
State-owned 
economic 
sector 74,161.1 85,290.3 94,727.5 97,472. 1 114,799.9 124,379.7 149,651.5 
- Central 49,493.4 56,862.7 64,287. 0 65,473.6 78,586.5 85,947.4 104,626.7 
- Local 24,667.7 28,427.6 30,440.5 31,998.5 36,213.4 38,432.3 45,024.8 
Non 
State-owned 
economic sectors 35,682.2 42,750.9 44,592.6 53,604. 0 82,499.0 107,020.7 128,389.9 
- Collectives 836.4 970.5 1,086. 0 1,331.3 2,165.6 2,162.0 2,727.0 
- Private 11,758.3 16,472.8 19,109. 6 22,262.7 47,861.0 64,608.0 79,402.7 
- Households 23,087.5 25,307.6 24, 397.0 30,010.0 32,472. 4 40,250.7 46,260.2 
Foreign 
investment 
sector 39,589.2 52,387.7 69,356.8 93,061. 4 138,801.3 164,408.9 198,308.6 
 STRUCTURE (%) 
Total 100.00 100.00 100.00 100.00 100.00 100.00 100.00 
        
Domestic 
economic 
sectors 73.51 70.96 66.76 61.88 58.70 58.46 58.37 
State-owned 
economic 
sector 49.63 47.27 45.39 39.93 34.16 31.42 31.42 
- Central 33.12 31.52 30. 81 26.82 23.38 21.71 21.96 
- Local 16.51 15.76 14. 59 13.11 10.77 9.71 9.45 
Non 
State-owned 
economic 
sectors 23.88 23.69 21.37 21.96 24.55 27.04 26.95 
- Collectives 0.56 0.54 0.52 0.55 0.64 0.55 0.57 
- Private 7.87 9.13 9.16 9.12 14.24 16.32 16.67 
- Households 15.45 14.03 11.69 12.29 9.66 10.17 9.71 
Foreign 
investment 
sector 26.49 29.04 33.24 38.12 41.30 41.54 41.63  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 193 
 
 
 Table 4: Classification of State-Owned Enterprises  
(Decision No. 155/2004/QD-TTg dated 24 August 2004)  
 
Group 1: 100 per cent State-Owned Enterprises 
1. Companies engaged in a number of important sectors: 
- Production and supply of explosives; 
- Production and supply of toxic chemicals; 
- Production and supply of radioactive substances; 
- The national power transmission system; 
- International and national communication backbone networks; 
- Production of cigarettes; 
- Flight control; 
- Navigation direction; 
- Manufacture and repair of weapons, military equipment and specialized equipment used for 
national defence and security; equipment and tec hnical documents and provision of services for 
keeping confidentiality of information by coding techniques; 
- Companies which are assigned to perform duties of national defence or security, and companies 
located in strategic areas importa nt in both economic and national defence aspects as decided by 
the Prime Minister; 
- Printing of currency and valuable papers; production of coins; 
- Construction lotteries; 
- Publishing houses; 
- Production of scientific films, newsreel s, documentaries and films for children; 
- Mapping; 
- Management and maintenance of the national network of railways or airports and seaports of a 
large size in important locations as decided by the Prime Minister; 
- Management and operation of upstream irrigation works or irrigation works of a large size; 
- Afforestation and protection of upstream forests,  protective forests or specialized forests; 
- Drainage in large urban areas; 
- Urban lighting; and 
- Other important sectors as decided by the Prime Minister.6 
2. Companies ensuring essential needs for development of production and improvement of the material 
and spiritual life of ethnic minoritie s living in mountainous, remote or  distant areas (supply of text 
book, cultural products; supply of salt for human consumption and other essential commodities; supply 
of materials for agriculture  and forest development). 
3. Companies satisfying all of the following conditions: possessing 30 billion or more Dong of State 
owned capital; having made an average annual payment of three billion or more Dong to the State Budget in the last three years; leading in the application of cutting edge technology or high-technology 
(except for wholesale trade in foods, printing of po litical books or newspapers, and wholesale trade of 
petrol and oil – see below); making an important contribution to stabilization of the macroscopic economy and operations in the fo llowing industries and sectors: 
-  Processing of petroleum; 
-  Exploitation of ores containing radioactive substances; 
-  Building and repair of means of transportation by air; 
-  Printing of political books or newspapers; 
-  Wholesale trade of medicines for disease preven tion and treatment and ph armaceutical chemistry; 
-  Wholesale trade of foods; 
-  Wholesale trade of petrol and oil; and 
- Transportation by air or rail.  
                                                      
6 Sectors that may emerge during the process of econom ic development and affect  the stability and common 
interest of the society, and in which other economic entities w ould not be interested or found it difficult to operate.  In the se 
particular cases, the Prime Minister could decide to maintain a 100 per cent State ownership.  WT/ACC/SPEC/VNM/5/Rev.2 
Page 194  
 
 Group 2: Enterprises with a Majority of State-Owned Shares 
1. Companies possessing 20 billion Dong or more of State owned capital; having made an average annual 
payment of 2 billion Dong or more to the State Bu dget in the last three years; operating in the 
industries and sectors specified in clause 3 of Section I mentioned above and in the following industries 
and sectors: 
- Generation of electricity; 
- Exploitation of important minerals: coal, bauxite, copper ores, iron ores, tin ores, gold and precious 
stones; 
- Manufacture of the followi ng mechanical products: electrical e quipment and materials; specialized 
industrial machinery; m achinery and equipment serving agricultu re, forestry and fishery; building 
and repair of means of tr ansportation by sea or rail; 
- Provision of infrastructure of telecommunications networks; 
- Manufacture of ferrous metals ( cast iron and steel) with a capac ity of more than 100,000 tons 
per annum; 
- Manufacture of high-quality cement by a modern technology with a designed capacity of more 
than 1.5 million tons per annum; 
- Production of fertilizers and pesticides; 
- Production of the following consumer goods and fo ods: table salt; milk; beer with a capacity of 
more than 50 million litres per an num; alcohol and spirits with a cap acity of more than 10 million 
litres per annum; 
- Exploitation, filtering and supply of clean water in large cities; 
- Maritime transportation; and 
- Monetary or insurance business. 
2. Other companies: 
-  Production of domestic animal breeding stock, cultivated plant seeds and frozen sperm; 
-  Services for deep-sea fishing; 
-  Management and maintenance of networks of important roads and waterways; 
-  Management and operation of irrigation works; 
-  Services for labour cooperation; and 
- Operation of floors of fairs or exhibitions.  
  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 195 
 
 
 Table 6: Number of Enterprises Equitized by Stages  
 
Stage Number of enterprises 
Pilot stage (1992 – mid 1996) 5 
Extended pilot stage (mid  1996 - mid 1998) according to Decree No. 28/CP 25 
Accelerated stage (mid 1998 - 2001) acc ording to Decree No. 44/1998/ND-CP 745 
Speed-up stage according to the Resolu tion of the Central Executive Committee 
of the Party (2002-2004) 1,467 
Total up to 31 December 2004 2,242 
Equitization plan for 2005 736 
Equitization plan for post-2005 period 736 WT/ACC/SPEC/VNM/5/Rev.2 
Page 196  
 
 Table 7:  Authorities Responsible for Granting Investment Licenses 
 
Authority Responsible for Granting 
Investment Licences Type of project 
Prime Minister (upon recommendation 
of the Ministry of Planning and 
Investment) Group A projects 
- Projects in the following sect ors, irrespective of invested 
capital: 
 
 - Infrastructure construction of Industrial Zones, Export 
Processing Zones, High-Tech Zones, urban areas, BOT, BTO and BT projects; 
 - Construction and operation of sea ports and airports; 
operation of sea and air transportation; Oil and Gas; 
 - Post and telecommunication services; 
 - Publishing, printing services (except projects for printing 
of technical materials, printing of packaging, printing of labels of goods, and printing of normal patterns on 
textiles and garments, leather and footwear), press; radio 
and television broadcasting; advertising services together 
with publication of advertisements; cinematographic 
activities, artistic performance; conducting games with prizes; medical examination and treatment 
establishments; pre-tertia ry education, college, 
undergraduate and postgraduate training or equivalent levels; scientific research and production of medicine for 
humans, 
 - Insurance, finance, auditing and valuation,  - Exploration and exploitation of rare and precious natural 
resources; 
 - Construction of residential houses for sale;  - National defense and security projects. 
- Projects with invested capital of at least forty (40) million US$ 
in the following fields: electricity, mining, metallurgy, cement, mechanical engineering manuf acturing, chemicals, hotels, 
apartments for lease, or tourism-entertainment areas; 
 - Projects using at least five (5) h ectares of urban land or at least 
fifty (50) hectares of land of other categories. 
Ministry of Planning and Investment Group B projects, i.e. projects not stipulated within the authority of 
the Prime Minister, except for proj ects referred to the authority of 
provincial people's committees.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 197 
 
 
 Provincial people's committees Projects satisfying the following criteria and conditions:  
 (a) Being consistent with the Government's approved planning and 
plan for socio-economic development; (b) Not being included 
on the list of Group A projects stipulated within the authority 
of the Prime Minister and having the amount of invested 
capital as stipulated by the Prim e Minister of the Government. 
Provincial people's committees shall not be delegated with the 
authority to issue investment licenses to the following projects 
(irrespective of the amount of invested capital): 
(a) Construction of national roads or railways; 
(b) Production of cement, metallur gy, electricity, sugar, alcohol, 
beer and cigarettes;  
(c) Travel tours; 
(d) Projects in the sectors of cu lture, education and training; and 
(e) Construction and the operation of supermarkets. WT/ACC/SPEC/VNM/5/Rev.2 
Page 198  
 
 Table 8:  Commitments on Trading Rights (proposed by Viet Nam)
 
1 Viet Nam confirms that wholly Vietnamese-invested enterprises have been granted full right to trade since 
1 January 2002. 
2 Not later than 1 January 2007, enterprises with foreign-invested capital shall be allowed to be 
importers/exporters of record and shall: 
- be entitled to import and export all kinds of goods, except for those subject to  state trading enterprises  (as listed in the attached Table 3) and the restri ctions listed in the attached Tables 1 and 2; and 
- register their business lines with th e relevant State's re gistration agencies. 
3 The registration procedures for enterprises with foreign-invested capital to engage in import and export 
activities shall in no case be made more restrictive than those applied to domestic enterprises. 
4 Not later than 1 January 2007, subject to Vietnam's a pplicable laws and regulations, foreign enterprises shall 
be allowed to establish branches in Viet Nam to engage in import and export activities as 
importers/exporters of record. These branches sha ll also be subject to the provisions specified in 
paragraphs 2 and 3 above.  
5 Not later than 1 January 2007, foreign individuals shall be granted trading rights no less favourable than 
those applied to Vietnamese individuals. 
6 The trading rights referred herein sh all only accord the right to be the impor ter/exporter of record and, in the 
case of importation, shall only accord the right to impor t and sell the imported products to enterprises who 
have the right to distribute such products in Viet Na m. Commitments on trading rights shall not, in any case, 
automatically grant the importers the right to distribute goods in Viet Nam. The distribution of goods and 
the provision of distribution services shall be subject  to Viet Nam's Specific Sc hedule of Commitments in 
Services. 
7 The trading rights referred herein shall in no case affect the rights of the Government of Viet Nam to: 
- adopt or enforce requirements for customs and fiscal purposes; and  
- adopt or enforce regulations with respect to the importation, exportation, re-importation, 
re-exportation, and transit of goods in consistence with relevant provisions of the WTO Agreements 
and with Viet Nam's commitments upon accession to  the WTO, such as those relating to import 
licensing, state trading, TBT and SPS. 
  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 199 
 
 
 Table 8 (a):  Schedule of Commitments On Import Trading Rights  
 
HS Description Schedule Rationale 
  Pharmaceutical products 
3003 Medicaments nesoi of mixtures, not dosage etc form... 2009 Essential to human life 
3003.10. 10 - - Containing amoxicillin (INN) or its salts    
3003.10. 20 - - Containing ampicillin (INN) or its salts    
3003.10. 90 - - Other    
3003.20. 00 - Containing other antibiotics    
3003.31. 00 - - Containing insulin   
3003.39. 00 - - Other   
3003.40. 10 - - Antimalarial    
3003.40. 90 - - Other    
3003.90. 10 - - Containing vitamins   
3003.90. 20 - - Containing analgesics or antipyretics, whether or not 
containing antihistamines    
3003.90. 30 - - Other preparations fo r the treatment of coughs and 
colds, whether or not c ontaining antihistamines   
3003.90. 40 - - Antimalarial    
3003.90. 90 - - Other    
3004 Medicaments nesoi, mixed or not, in dosage etc fm... 2009 ditto 
3004.10. 11 - - - Containing penicillin G or its salts (excluding 
penicillin G benzathin)   
3004.10. 12 - - - Containing phenoxymethyl penicillin or its salts     
3004.10. 13 - - - Containing ampicillin or  its salts, for taking orally    
3004.10. 14 - - - Containing amoxycillin or its salts, for taking orally   
3004.10. 19 - - - Other    
3004.10. 21 - - - Ointment   
3004.10. 29 - - - Other      
3004.20. 11 - - - For taking orally    
3004.20. 12 - - - Ointment   
3004.20. 19 - - - Other                 
3004.20. 21 - - - For taking orally     
3004.20. 22 - - - Ointment   
3004.20. 29 - - - Other     
3004.20. 31 - - - For taking orally    
3004.20. 32 - - - Ointment   
3004.20. 39 - - - Other      
3004.20. 41 - - - Containing gentamycin es or derivatives thereof, for 
injection    
3004.20. 42 - - - Containing lincomyci ns or derivatives thereof, for 
taking orally    
3004.20. 43 - - - Ointments   
3004.20. 49 - - - Other       
3004.20. 51 - - - For taking orally   
3004.20. 52 - - - Ointments   
3004.20. 59 - - - Other    
3004.20. 60 - - Containing isoniazide, pyrazinamide or derivatives 
thereof, for taking orally     
3004.20. 90 - - Other      
3004.31. 00 - - Containing insulin   
3004.32. 10 - - - Containing hydroc ortisone sodium succinate   
3004.32. 20 - - - Containing dexamethasone or its derivatives   
3004.32. 30 - - - Containing fluocinolone acetonide   
3004.32. 90 - - - Other    
3004.39. 10 - - - Containing adrenaline    
3004.39. 90 - - - Other    
3004.40. 10 - - Containing morphine or  its derivatives, for injection   
3004.40. 20 - - Containing quinine hydrochloride or dihydrochloride, 
for injection   WT/ACC/SPEC/VNM/5/Rev.2 
Page 200  
 
 HS Description Schedule Rationale 
3004.40. 30 - - Containing quinine sul phate or bisulphate, for taking 
orally   
3004.40. 40 - - Containing quinine or its salts and anti-malarial 
substances, other than goods of subheadings 3004.10 to 
30    
3004.40. 50 - - Containing papaverine or berberine    
3004.40. 60 - - Containing theophylline     
3004.40. 70 - - Containing atropin sulphate    
3004.40. 90 - - Other    
3004.50. 10 - - Syrups and drops of vitamins, of a kind suitable for 
children    
3004.50. 20 - - Containing vitamins A, other than goods of 
subheading 3004.50.10 and 3004.50.79    
3004.50. 30 - - Containing vitamins B1, B2, B6 or B12 , other than 
goods of subheadings 3004.50.10, 3004.50.71 and 
3004.50.79    
3004.50. 40 - - Containing vitamins C, other than goods of 
subheadings 3004.50.10 and 3004.50.79    
3004.50. 50 - - Containing vitamins PP, other than goods of 
subheadings 3004.50.10 and 3004.50.79    
3004.50. 60 - - Containing other vi tamins, other than goods of 
subheadings 3004.50.10 and 3004.50.79      
3004.50. 71 - - - Containing B complex vitamins    
3004.50. 79 - - - Other    
3004.50. 90 - - Other    
3004.90. 10 - - Specialised medicines for cancer, AIDS or other 
intractable diseases      
3004.90. 21 - - - Sodium chloride solution   
3004.90. 22 - - - 5% glucose solution    
3004.90. 23 - - - 30% glucose solution     
3004.90. 29 - - - Other    
3004.90. 30 - - Antiseptics   
3004.90. 41 - - - Containing procaine hydrochloride   
3004.90. 49 - - - Other    
3004.90. 51 - - - Containing acetylsalicylic acid, paracetamol or 
dipyrone (INN)   
3004.90. 52 - - - Containing chlorpheniramine maleate   
3004.90. 53 - - - Containing diclofenac     
3004.90. 54 - - - Analgesic balm oil, solid or liquid     
3004.90. 59 - - - Other     
3004.90. 61 - - - Containing artemisi nin, artesunate or chloroquine 
(INN)   
3004.90. 62 - - - Containing primaquine    
3004.90. 69 - - - Other     
3004.90. 71 - - - Containing pipera zine or mebendazole (INN)   
3004.90. 72 - - - Containing dichlorophen (INN)    
3004.90. 79 - - - Other   
3004.90. 80 - - Transdermal therapeutic systems (TTS) patches for 
cancer or heart diseases      
3004.90. 91 - - - Containing sulpiride (INN), cimetidine (INN), 
ranitidine (INN), aluminium hydroxide or magnesium hydroxide or oresol        
3004.90. 92 - - - Containing piroxicam (INN) or ibuprofen (INN)   
3004.90. 93 - - - Containing phenobarbital, diazepam, 
chlorpromazine     
3004.90. 94 - - - Containing salbutamol (INN)   
3004.90. 95 - - - Closed sterile wate r for inhalation,  pharmaceutical 
grade   
3004.90. 96 - - - Containing o-methoxyphenyl glyceryl ether 
(Guaifenesin)     WT/ACC/SPEC/VNM/5/Rev.2 
 Page 201 
 
 
 HS Description Schedule Rationale 
3004.90. 97 - - - Nose-drop medicamen ts containing naphazoline, 
xylometazoline or oxymetazoline      
3004.90. 98 - - - Sorbitol    
3004.90. 99 - - - Other    
3006 Pharmaceutical goods in note 4 to chapter 30... 2009 ditto 
3006.10. 00 - Sterile surgical catgut, similar sterile suture materials 
and sterile tissue adhesivesf or surgical wound closure; 
sterile laminaria and sterile laminaria tents; sterile 
absorbable surgical or dental haemostatics   
3006.20. 00 - Blood-grouping reagents   
3006.30. 10 - - Barium sulfate (for taking orally)    
3006.30. 20 - - Reagents of microbial origin for veterinary biological 
diagnosis    
3006.30. 30 - - Other microbial diagnostic reagents     
3006.30. 90 - - Other    
3006.40. 10 - - Dental cements and other dental fillings    
3006.40. 20 - - Bone recons truction cements    
3006.50. 00 - First-aid boxes and kits   
3006.60. 00 - Chemical contracep tive preparations based on 
hormones, on other products of heading 29.37 or on 
spermicides   
3006.70. 00 - Gel preparations designed to be used in human or 
veterinary medicine as a l ubricant for parts of the body 
for surgical operations or physical examinations or as a 
coupling agent between the body and medical 
instruments    
3006.80. 00 - Waste pharmaceuticals    
  Cinematographic film  
3706 Motion-picture film, exposed and developed... 2009 Sensitive to public morals 
3706.10. 10 - - Newsreels, travelogues, t echnical and scientific films    
3706.10. 20 - - Consisting only of sound track    
3706.10. 91 - - - With picture taken abroad    
3706.10. 99 - - - Other    
3706.90. 10 - - Newsreels, travelogues, t echnical and scientific films    
3706.90. 20 - - Consisting only of sound track    
3706.90. 90 - - Other    
  Unused postage, printed cards, calendars...  
4907 Unused postage, check forms, banknotes, stock, etc... 2009 ditto 
4907.00. 10 - Banknotes, being legal tender    
4907.00. 20 - Unused postage stamps    
4907.00. 30 - Revenue or similar stamps    
4907.00. 40 - Stock, share or bond cer tificates and similar documents 
of title; cheque forms    
4907.00. 90 - Other    
4909 Printed or illustrated post cards, greeting cards, etc.... 2009  ditto 
4909.00. 00 Printed or illustrated postcards; printed cards bearing 
personal greetings, messa ges or announcements, 
whether or not illustrated, w ith or without envelopes or 
trimmings.   
4910 Calendars, calendar blocks of any kind, printed... 2009  ditto 
4910.00. 00 Calendars of any kind, printed, including calendar 
blocks.   
4911 Printed matter nesoi, incl print pictures & photos... 2009  ditto 
4911.10. 00 - Trade advertising mate rial, commercial catalogues and 
the like    
4911.91. 10 - - - Anatomical or bot anical instruction charts and 
diagrams and the like    
4911.91. 20 - - - Other wall pictures  and diagrams for instructional 
purposes; pictures, designs and photographs for 
incorporation into books, advertising circulars or 
commercial catalogues    WT/ACC/SPEC/VNM/5/Rev.2 
Page 202  
 
 HS Description Schedule Rationale 
4911.91. 90 - - - Other    
4911.99. 10 - - - Printed cards for je wellery or for small objects of 
personal adornment or for articles of personal use 
normally carried in the pocket, in the handbag or on the 
person    
4911.99. 20 - - - Printed stickers for explosives    
4911.99. 90 - - - Other   
  Industrial printers  
8442 Machinery etc nesoi for type-setting, making printing 
plates etc... 2009 Sensitive to public order 
8442.10. 10 - - Electrically operated   
8442.10. 20 - - Not electrically operated   
8442.20. 10 - - Electrically operated   
8442.20. 20 - - Not electrically operated   
8442.30. 11 - - - Impressed fl ongs and matrices    
8442.30. 12 - - - Machinery for type founding machines    
8442.30. 19 - - - Other    
8442.30. 21 - - - Impressed fl ongs and matrices    
8442.30. 22 - - - Machinery for type founding machines    
8442.30. 29 - - - Other    
8442.40. 10 - - Of electrically operated machines, apparatus or 
equipment    
8442.40. 21 - - - Of type-founding or type-setting machinery    
8442.40. 29 - - - Other    
8442.50. 10 - - Printing type of all kinds    
8442.50. 90 - - Other   
8443 Print machinery excluding ink-jet printers 
(HS 84435100), machinery for used ancillary to printing 
nesoi... 2009 ditto 
8443.11. 10 - - - Electrically operated    
8443.11. 20 - - - Not electrically operated    
8443.12. 10 - - - Electrically operated    
8443.12. 20 - - - Not electrically operated    
8443.19. 10 - - - Electrically operated    
8443.19. 20 - - - Not electrically operated    
8443.21. 10 - - - Electrically operated    
8443.21. 20 - - - Not electrically operated    
8443.29. 10 - - - Electrically operated    
8443.29. 20 - - - Not electrically operated    
8443.30. 10 - - Electrically operated    
8443.30. 20 - - Not electrically operated    
8443.40. 10 - - Electrically operated    
8443.40. 20 - - Not electrically operated    
8443.59. 10 - - - Platen presses   
8443.59. 20 - - - Screen printing machinery for the manufacture of 
PCB/PWBs [ITA/2 (AS2)]    
8443.59. 90 - - - Other   
8443.60. 10 - - Electrically operated   
8443.60. 20 - - Not electrically operated   
8443.90. 10 - - Of screen printing machinery for the manufacture of 
PCB/PWBs [ITA/2 (AS2)]   
8443.90. 20 - - Other, for electri cally operated machines   
8443.90. 90 - - Other    
  Other machinery  
8525 Transmission apparatus fo r radio-telephony etc; TV 
camera & other video camera recorders excluding 
mobile phones (HS 852520) and consumer cameras 
(HS 85254010) 2009 Sensitive to national 
security 
8525.10. 10 - - For radio-broadcasting    
8525.10. 21 - - - Video senders   
8525.10. 22 - - - Central monitoring systems     WT/ACC/SPEC/VNM/5/Rev.2 
 Page 203 
 
 
 HS Description Schedule Rationale 
8525.10. 23 - - - Telemetry monitoring systems    
8525.10. 29 - - - Other    
8525.10. 30 - - Data compression tools    
8525.10. 40 - - Set top boxes which have a communication function 
[ITA1/B-203]    
8525.10. 50 - - For radio telephony or radio-telegraphy 
[ITA1/A-048]    
8525.30. 90 - - Other    
8525.40. 20 - - Other still image video cameras    
8525.40. 30 - - Digital cameras    
8525.40. 40 - - Other video camera recorders   
8526 Radar apparatus, radio na vigational aid apparatus & 
radio remote control apparatus 2009 ditto 
8526.10. 10 - - Radar apparatus, ground base, or of a kind for 
incorporation in civil aircraft, or of a kind used solely on 
sea-going vessels [ITA/2]    
8526.10. 90 - - Other    
8526.91. 10 - - - Radio navigational aid apparatus, of a kind for used 
in civil aircraft, or of a kind used solely on sea-going 
vessels [ITA/2]    
8526.91. 90 - - - Other    
8526.92. 00 - - Radio remote control apparatus   
Note:  For the purpose of this Table, schedule st arts from 1 January of  the specified year. 
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 204  
 
 Table 8 (b):  Schedule of Commitments On Export Trading Rights
 
HS Description Schedule Rationale 
  Cereals   
1006 Rice 2011 Food security 
1006.10.10  - - Suitable for sowing     
1006.10.90  - - Other     
1006.20.10  - - Thai Hom Mali rice     
1006.20.90  - - Other    
1006.30.11  - - - Whole   
1006.30.12  - - - Not more than 5% broken    
1006.30.13  - - - More than 5% but not more 
than 10% broken    
1006.30.14  - - - More than 10% but not more 
than 25% broken     
1006.30.19  - - - Other    
1006.30.20  - - Parboiled rice   
1006.30.30  - - Glutinous rice (pulot)   
1006.30.40  - - Basmati rice   
1006.30.50  - - Thai Hom Mali rice                 
1006.30.61  - - - Whole   
1006.30.62  - - - Not more than 5% broken    
1006.30.63  - - - More than 5% but not more 
than 10% broken   
1006.30.64  - - - More than 10% but not more 
than 25% broken    
1006.30.69  - - - Other    
1006.40.00  - Broken rice    
Note:  For the purpose of this Table, schedule st arts from 1 January of the specified year. 
 
  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 205 
 
 
 Table 8 (c):  List of Goods Subject to State Trading Enterprises  
No HS Description Rationale 
2402 Cigars, cheroots, cigarillos and cigarettes... Both domestic 
production and 
consumption are 
restricted. 
2402.10.00  - Cigars, cheroots and cigarillos, containing tobacco  
2402.20.10  - - Beedies  
2402.20.90  - - Other  
2402.90.10  - - Cigars, cheroots and cigarillos of tobacco substitutes   
2402.90.20  - - Cigarettes of tobacco substitutes   
2403 Other manufactured tobacco and manufactured tobacco ...  
2403.10.11  - - - Blended tobacco  
2403.10.19  - - - Other              
2403.10.21  - - - Blended tobacco  
2403.10.29  - - - Other  
2403.10.90  - - Other  
2403.91.00  - - "Homogenised" or "reconstituted" tobacco  
2403.99.10  - - - Tobacc o extracts and essences  
2403.99.30  - - - Manufactured tobacco substitutes  
2403.99.40  - - - Snuff  
2403.99.50  - - - Smokeless tobacco, including chewing and sucking 
tobacco  
2403.99.60  - - - Ang Hoon    1. 
2403.99.90  - - - Other  
2709 Crude oil from petroleum and bituminous minerals... Natural monopoly 
2709.00. 10 - Crude petroleum oil   
2709.00. 20 - Condensate    
2709.00. 90 - Other    
2710 Oil (not crude) from petrol & bitum mineral etc....  
2710. 11. 11 - - - Motor spirit, premium leaded   
2710. 11. 12  - - - Motor spirit, premium unleaded   
2710. 11. 13  - - - Motor spirit, regular leaded   
2710. 11. 14  - - - Motor spirit, regular unleaded   
2710. 11. 15  - - - Other motor spirit, leaded   
2710. 11. 16  - - - Other motor spirit, unleaded   
2710. 11. 17  - - - Aviation spirit   
2710. 11. 18  - - - Tetrapropylene   
2710. 11. 21  - - - White spirit   
2710. 11. 22  - - - Low aromatic solvents containing by weight less than 
1% aromatic content   
2710. 11. 23  - - - Other solvent spirits   
2710. 11. 24  - - - Naphtha, reformate or preparations for preparing spirits  
2710. 11. 25  - - - Other light oil   
2710. 11. 29  - - - Other   
2710. 19. 11  - - - - Lamp kerosene   
2710. 19. 12  - - - - Other kerosene, including vaporising oil   
2710. 19. 13  - - - - Aviation turbine fuel (jet fuel) having a flash point of 
not less than 23o C   
2710. 19. 14  - - - - Aviation turbine fuel (jet fuel) having a flash point of 
less than 23oC   
2710. 19. 15  - - - - Normal paraffin   
2710. 19. 19  - - - - Other medium oils and preparations   
2710. 19. 21  - - - - Topped crudes   2. 
2710. 19. 22  - - - - Carbon black feedstock oil   WT/ACC/SPEC/VNM/5/Rev.2 
Page 206  
 
 No HS Description Rationale 
2710. 19. 23  - - - - Lubricating oil basestock   
2710. 19. 24  - - - - Lubricating oils for aircraft engines   
2710. 19. 25  - - - - Other lubricating oil   
2710. 19. 26  - - - - Lubricating greases   
2710. 19. 27  - - - - Hydraulic brake fluid   
2710. 19. 28  - - - - Oil for transformer or circuit breakers   
2710. 19. 31  - - - - High speed diesel fuel   
2710. 19. 32  - - - - Other diesel fuel   
2710. 19. 33  - - - - Other fuel oils   
2710. 19. 39  - - - - Other   
2710. 91. 00  - - Containing polychlorinated biphenyls (PCBs), 
polychlorinated terphenyls (PCTs) or 
polybrominated biphenyls (PBBs)   
2710. 99. 00  - - Other  
4902 Newspapers, journals & periodicals... Cultural products 
affecting to society morals  
4902. 10. 00 - Appearing at least four times a week   
4902. 90. 11  - - - Scientific, technical or economic   
4902. 90. 19  - - - Other   
4902. 90. 21  - - - Scientific, technical or economic  
4902. 90. 29  - - - Other   
4902. 90. 91  - - - Scientific, technical or economic  3. 
4902. 90. 99   - - - Other  
8524 Records, tapes and other recorded media for sound or ... 
excluding 852410, 852431, 852432, 85243910, 85244000, 
852491, 85249920 Cultural products 
affecting to society 
morals  
8524. 39. 20  - - - For cinematographic film   
8524. 39. 90  - - - Other   
8524. 51. 10  - - - Videotape   
8524. 51. 20  - - - Computer tape   
8524. 51. 30  - - - For cinematographic film   
8524. 51. 90  - - - Other   
8524. 52. 10  - - - Videotape   
8524. 52. 20  - - - Computer tape  
8524. 52. 30  - - - For cinematographic film   
8524. 52. 90  - - - Other   
8524. 53. 10  - - - Videotape   
8524. 53. 20  - - - Computer tape   
8524. 53. 30  - - - For cinematographic film   
8524. 53. 90  - - - Other   
8524. 60. 00  - Cards incorporating a magnetic stripe   
8524. 99. 10  - - - For video   
8524. 99. 30  - - - For cinematographic film   4. 
8524. 99. 90  - - - Other   WT/ACC/SPEC/VNM/5/Rev.2 
 Page 207 
 
 
 No HS Description Rationale 
8802 Other aircraft (for exam ple, helicopters, aeroplanes); 
spacecraft (including satellites) and suborbital and spacecraft launch vehicles.  Natural monopoly 
8802. 11. 00  - - Of an unladen weight no t exceeding 2,000 kg   
8802. 12. 00  - - Of an unladen weight exceeding 2,000 kg   
8802. 20. 10  - - Aeroplanes   
8802. 20. 90  - - Other   
8802. 30. 10  - - Aeroplanes   
8802. 30. 90  - - Other   
8802. 40. 10 - - Aeroplanes   
8802. 40. 90  - - Other   
8802. 60. 00  - Spacecraft (inclu ding satellites) and suborbital and 
spacecraft launch vehicles   
8803  Parts of goods of heading 88.01 or 88.02  
8803. 10. 10  - - Of helicopters or aeroplanes   
8803. 10. 90  - - Other   
8803. 20. 10 - - Of helicopters, aeroplanes, balloons, gliders or kites   
8803. 20. 90  - - Other   
8803. 30. 00  - Other parts of aeroplanes or helicopters   
8803. 90. 10  - - Parts of telecommunication satellites [ITA/2]   
8803. 90. 20  - - Of ballons, gliders or kites   5. 
8803. 90. 90  - - Other  
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 208  
 
 Table 9:  Customs Fees Levied in Acco rdance with Inter-Ministerial Circular 
No. 71/2000/TTLT/BTC-TCHQ of 19 July 2000  of the Ministry of Finance and the General 
Department of Customs  
 
Customs Clearance Fee 
No. Kind of goods Calculation unit Fee rates (VND) 
I Ordinary cargo: 
1 Cargo transported by ships, barges (bulk goods, goods of 
different sorts contained in bags, cans, drums, barrels, tanks, reservoirs)   
- Minimum fee rate for 1 ton or less VND/ton 20,000 a. 
-  Fee rate for the second ton onwards VND/ton 1,200 
Goods transported by ships (goods of the same sort): fee rate 
per ton VND/ton 500 
Maximum customs clearance fee rate for:   
-  Ships of a capacity of less than 10,000 GRT 
(Gross registered tonnage) Ship Not exceeding 
3 million  
-  Ships of a capacity of between 10,000 and less than 
20,000 GRT Ship Not exceeding 
6 million  
-  Ships of a capacity of between 20,000 and less than 
70,000 GRT Ship Not exceeding 
15 million  b. 
-  Ships of a capacity of 70,000 GRT or more Ship Not exceeding 
20 million  
2 Goods transported by land 
a. -  Goods transported by car VND/ton 5,000 
b. -  Goods transported by train VND/ton 2,000 
Postal packages, parcels 
-  Of a weight of between 5 kg and less than 20 kg VND/clearing case 7,000 
-  Of a weight of between 20 kg and 50 kg VND/clearing case 10,000 
-  Of a weight of more than 50 kg, for every extra 10 kg a 
surcharge shall be collected VND/10 kg 500 3 
-  Of a weight of 1 ton or more, a surcharge shall be 
collected VND/ton 3,000 
II Cargo contained in containers 
1 Cargo contained in 20-feet containers VND/container 60,000 
2 Cargo contained in 40-feet containers VND/container 120,000 
III Cargo being automobiles and motorcycles of all kinds 
Automobiles of all kinds 
-  Automobiles in complete units VND/unit 18,000 1 
-  Automobile components in complete sets VND/set 20,000 
2 Motorcycles (units and complete sets) VND /unit or set 6,000 
Cargo being gold and gemstone 
-  Fee rate for 1 tael (37.5 gr ) or less VND/clearing case 15,000 
-  Fee rate for the second tael (37.5 gr) onwards VND /tael 1,000 IV 
-  Maximum fee rate for each clearance case  Not exceeding 
1.5 million 
Import and export of foreign currencies 
- Import, export of less than US$ 100,000 (or equivalent 
amounts of other foreign currencies) VND 100,000 
-  For every extra US$ 100,000, a surcharge shall be 
collected VND 80.000 V 
-  Maximum rate for each clearance case VND Not exceeding 
1.5 million  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 209 
 
 
 Fees For Goods and Luggage Consigned and Put at Customs Warehouses 
(Customs Warehouse Fee) 
Automobiles of all kinds 
-  Trucks of a capacity of 2 tons or more, passenger cars with 
15 seats or more Unit 50,000 1  
-  Trucks of a capacity of less than 2 tons, tourist cars with 14 
seats or less Unit 30,000 
2 Motorcycles, mopeds Unit 10,000 
3 Computers, fax machines, photocopiers Unit 10,000 
4 Air-conditioners, radios, cassettes, communication machines, 
television sets, video sets Unit 5,000 
5 Gold Tael (37.5 gr) 7,000 
6 Gemstone Tael 10,000 
7 Other goods 
a. Small postal parcels of a weight of less than 20 kg Parcel 2,000 
b. Small postal parcels of a weight of between 20 kg and 100 kg Parcel 4,000 
c. Goods packages of a weight of between more than 100 kg and 
1,000 kg Package 5,000 
d. Goods packages of a weight of more than 1,000 kg Package 10,000 
Administrative Fee 
Free rate for re-certifica tion of cargo, luggage documentation Case 12,000 
Note:  Transit and transit-related fees are enumerated in Table 20(a) and 20(b). 
 
  
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 210 Table 11:  Import Prohibitions (as per August 2005)  
 
HS Description Rationale Legal basis Note 
1207 91 00 Poppy seeds. Materials for  production of opium    
1302 11 00 Opium, anhydrous morphine anhydrous content. Materials for  production of opium   
2402,  
2403 Tobacco, cigarettes, and other kinds of ma nufactured tobacco.  Limit the consump tion of cigarettes  Import prohibition to 
be abolished upon accession   
2618 00 00 Granulated slag (slag sand) from the manufacture of iron or steel. Residues causing environmental 
pollution    
2619 00 00 Slag, dross (other than granulated slag), scalings and other waste 
from the manufacture of iron orngs steel. Residues causing environmental 
pollution    
2620 Ash and residues (other than from the manufacture of iron or 
steel) containing metals or metal compounds. Residues causing environmental 
pollution    
2621 00 00 Other slag and ash, including seaweed ash (kelp). Residues causing environmental 
pollution    
3601 00 00 Propellant powders. Materials for production of 
explosives    
8710 00 00 Tanks and other armoured fighting vehicles, motorized, whether 
or not fitted with weapons, and parts of such vehicles. Military equipment    
ex 8711 Motorcycles of a cylinder capacity ex ceeding 175cc. Security and traffic safety   
ex 8702 
     8703      8704 
     8707 
     8708  Right-hand steering vehicles (including their components and 
those modified to left-hand drive ones prior to importation into Viet Nam), except for specialized  right-hand steering vehicles 
operating in small areas such as cranes, trench and canal digging 
machines, garbage trucks, road sweepers, road construction trucks, airport passenger transportation buses, fork-lifts used at 
warehouses and ports.       
9301 00 00 Military weapons, other than  revolvers, pistols and the arms of 
heading 307:  revolvers, pistols. Military equipment   Decision No. 28/TTg dated 
13 January 1997 by PM  
9302 00 00 Revolvers and pistols, other than those of heading 9303 or 9304. Weapons Decision No. 28/TTg dated 
13 January 1997 by PM  
9304  Other arms (for example, spring, air or gas guns and pistols, 
truncheons), excluding those of heading 9307. Weapons  Decision No. 28/TTg dated 
13 January 1997 by PM  
9305 Parts and  accessories of artic les of headings 9301 to 9304. Weapons  Deci sion No. 28/TTg dated 
13 January 1997 by PM   
  WT/ACC/SPEC/VNM/5/Rev.2
 Page 211HS Description Rationale Legal basis Note 
9306 Bombs, grenades, torpedoe s, mines, missiles and similar 
munitions of war and parts thereof; cartridges and other 
ammunition and projectiles and parts thereof, including shot and cartridge wads. Weapons  Decision No. 28/TTg dated 
13 January 1997 by PM  
9307 Swords, cutlasses, bayonets, lances and similar arms and parts 
thereof and scabbards and sheaths thereof. Weapons  Decision No. 28/TTg dated 
13 January 1997 by PM  
NA Second-hand consumer goods, including: 
- Textiles and clothes; footwear; -  Electronic goods; 
-  Refrigerating equipment and products; 
-  Household electric goods; -  Furniture; 
-  Household goods made from porcelain, clay, glass, metal, 
resin, rubber, plastic, and other materials. Product safety Decision No. 28/TTg dated 
13 January 1997 by PM  
NA Used materials and e quipment, including: 
- Used machines, structures, inner tires, tires, accessories, 
motors of automobiles, tr actors, 2-wheel and 3-weel 
motorbikes; 
- Internal combustion engines and machines with internal 
combustion engines having capacity below 30 CV  
- Bicycles, 2-wheel and 3-wheel vehicles; 
- Passenger cars of less than 16 seats, trucks with loading 
capacity of less than 5 tonnes, ambulances.  Traffic safety Decisi on No. 28/TTg dated 
13 January 1997 by PM  
NA Toxic chemicals. 
List published by the Ministry of Industry.  Environment protection, protection of 
human health  Decision No. 28/TTg dated 
13 January 1997 by PM  
NA Garbage and waste materials which may cause environmental 
pollution and epidemics. 
List published by the Ministry of Science and Technology. Environment protection, protection of 
human health    
NA Depraved and reactionary cultural products  Public morals    
NA Children toys having adverse effect in moral education, public 
order and security. Public morals and social security   
NA Narcotics. Protection of human life   
NA Firecrackers (excluding fire signal used for maritime safety and 
other purposes as stipulated by th e Prime Minister in the official 
Document No.1383/CP-KTTS dated 23 November 1998). Protection of human health & life    
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 212 HS Description Rationale Legal basis Note 
NA Right-hand steering vehicles (including their components and 
those modified to left-hand drive ones prior to importation into 
Viet Nam), except for specialized  right-hand steering vehicles 
operating in small areas such as cranes, trench and canal digging 
machines, garbage trucks, road sweepers, road construction 
trucks, airport passenger transportation buses, fork-lifts used at warehouses and ports.    Traffic safety   
NA Asbestos products and materials under amphibole group  Protection of human health   
NA Specialized encryption machines and encryption software subject 
to State secret. National security  This restriction shall 
not apply to general, 
commonly traded goods equipped with 
encryption 
technology which are destined for mass 
consumption 
Note :  NA Not applicable  
These products are not allowed to be circul ated in the domestic market on a normal commercial basis.  Importation for non-comme rcial purposes might be permitted in 
exceptional circumstances. 
 
   WT/ACC/SPEC/VNM/5/Rev.2 
 Page 213 
 
 
  Table 12 (a):  Import Prohibitions- Highly Toxic Chemicals (Persistence Organic Pollutants)  
No. Name of chemicals Formula Concentration 
1 Aldrin C 12H8Cl6  
2 BHC (lindane) C 6H6O6  
3 Chordane   
4 DDT   
5 Dieldrin   
6 Eldrin   
7 Heptachlor C 10H5Cl5  
8 Isobenzen   
9 Isodrin   
10 Methamidophos C 2H8NO 2PS  
11 Monocrotophos C 7H14NO 5P  
12 Methyl Parathion C 8H10NO 5PS  
13 Ethyl Parathion   
14 Phosphamidon   
15 Polychlorocamphere   
16 Strobane   
17 Captan   
18 Captofol   
19 Hexachlorobenzen C 6Cl6  
20 24,5 T (Brochtoc, Decamine)   
21 Axit cyanhydric and its salts HCN 0.0003 
22 Hexacloro cyclohexan C 6H6Cl6 0.0001 
23 Methyl parathion (demetil paranitro photpho, volfatoc...)  0.0001 
Note:  Applied in accordance with the Stockholm Convention on Persistent Organic Pollutants (POPs); 
HS codes are not applicable WT/ACC/SPEC/VNM/5/Rev.2 
Page 214  
 
   
No. Name of Chemical CAS 
Registry 
number  HS 
SCHEDULE 1 
Toxic Chemicals 
1 O-Alkyl (< C10, incl. cycloalkyl) alkyl 
 (Me, Et, n-Pr or i-Pr)-phosphonofluoridates 
 E.g. Sarin: O-Isopropylmethylphosphonofluoridate      
Soman: O-Pinacolyl methylphosphonofluoridate  
 
107-44-8  
96-64-0  2931.00 
2 O-Alkyl (< C10, incl. cycloalkyl) N,N-dialkyl 
 (Me, Et, n-Pr hoÆc i-Pr) phosphoramidocyanidates 
e.g. Tabun:O-Ethyl N,N-dimethyl phosphoramidocyanidate                
 
77-81-6  2931.00 
3 O-Alkyl (H or < C10, incl. cycloalkyl) S-2-dialkyl 
 (Me, Et, n-Pr or i- Pr)-aminoethyl alkyl 
(Me, Et, n-Pr or i-Pr) phosphonothiolates and salt 
  corresponding alkylated or protonated salts 
 e.g. VX: O-Ethyl S-2-diisopropylaminoethyl             methyl phosphonothiolate                     
  
 
50782-69-9 
 2930.90 
4  Sulfur mustards: 
 2-Chloroethylchloromethylsulfide                      
 Mustard gas: Bis(2-chloro ethyl)sulfide       
 Bis(2-chloroethylthio)methane                 
 Sesquimustard:  1,2-Bis(2-chloroethylthio)ethane      
 1,3-Bis(2-chloroethylthio)-n-propane                 1,4-Bis(2-chloroethylthio)-n-butane                
 1,5-Bis(2-chloroethylthio)-n-pentane              
 Bis(2-chloroethylthiomethyl)ether                     
 O-Mustard: Bis(2-chloroethylthioethyl) ether       
2625-76-5 
505-60-2 
63869-13-6 
3563-36-8 
63905-10-2 
142868-93-
7 
142868-94-
8 
63918-90-1 63918-89-8  
2930.90 
5  Lewisites: 
 Lewisite 1:  2-Chlorovinyldichloroarsine              
 Lewisite 2:  Bis(2-chlorovinyl)chloroarsine         Lewisite 3:  Tris(2-chlorovinyl)arsine               
541-25-3 
40334-69-8 40334-70-1  2931.00 
6 Nitrogen mustards: 
 HN1:  Bis(2-chloroethyl)ethylamine              
 HN2:  Bis(2-chloroethyl)methylamine           HN3:  Tris(2-chloroethyl)amine                   
538-07-8 
51-75-2 
555-77-1   
2921.19 
2921.19 2930.90 
7 Saxitoxin                                                35523-89-8 3002.90 
8 Ricin 9009-86-3 3002.90 
Precursors 
9 Alkyl (Me, Et, n-Pr or i-Pr) phosphonyldifluorides 
e.g. DF:   Methylphosphonyldifluoride               
676-99-3  
10 O-Alkyl (H or < C10, incl. cycloalkyl) O-2-dialkyl 
 (Me, Et, n-Pr or i- Pr)-aminoethyl alkyl 
 (Me, Et, n-Pr or i-Pr) phosphonites and 
  corresponding alkylated or protonated salts 
 e.g. QL:   O-Ethyl O-2-diisopropylaminoethyl methylphosphonite                    
  
 
57856-11-8  
  
 
2931.00 
11 Chlorosarin:   O-Isopropyl methylphosphonochloridate   1445-76-7 2931.00 
12 Chlorosoman: O-Pinacolyl methylphosphonochloridate  7040-57-5 2931.00 
Note:  These products belong to Schedule 1 of the Convention on the Prohibition of the Development, 
Production, Stockpiling and Use of Chemical Weapons and on their Destruction, to which Viet Nam is a State 
Party.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 215 
 
 
  SCHEDULE 2 
Toxic chemicals 
1 Amiton: O,O-Diethyl S-[2-(diethylamino)ethyl]phosphorothiolate            
and corresponding  alkylated or protonated salts 78-53-5 2930.90 
2 PFIB:  1,1,3,3,3-Pentafluoro-2-(trifluoromethyl)-1-propene     382-21-8 2903.30 
3 BZ:  3-Quinuclidinyl benzilate (*)                   6581-06-2 2933.90 
Precursors 
4 Chemicals, except for those listed in Schedule 1, containing a phosphorus 
atorn to which is bonded one methyl, etyl or propyl ( normal or iso) 
group but not further carbon atoms e.g. Methylphosphonyl dichloride    
             Dimethyl methylphosphonate         
Exemption:  O-Ethyl S-phenyl  ethylphosphonothio lothionate                      
 
 
676-97-1 
756-79-6 
944-22-9  
 
  
 
 2931.00 
5 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) phosphoramidic dihalides  2929.90 
6 Dialkyl   (Me, Et, n-Pr or i-Pr) N,N-dialkyl  
 (Me, Et, n-Pr hoÆc i-Pr)-phosphoramidates   
2929.90 
7 Arsenic trichloride                                     7784-34-1 2812.10 
8 2,2-Diphenyl-2-hydroxyacetic acid                        76-93-7 2918.19 
9 Quinuclidin-3-ol                            1619-34-7 2933.39 
10 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethyl-2-chlorides 
 and corresponding  protonated salts   
2921.19 
11 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-ols 
 and corresponding  protonated salts 
 Exemptions: N,N-Dimethylaminoethanol  and 
corresponding protonated salts 
   N,N-Diethylaminoethanol and corresponding  
protonated salts  
 
108-01-0 
 
100-37-8  
2922.19 
12 N,N-Dialkyl (Me, Et, n-Pr or i-Pr) aminoethane-2-thiols and 
corresponding protonated salts   
2930.90 
13 Thiodiglycol:  Bis(2-hydroxyethyl)sulfide               111-48-8 2930.90 
14 Pinacolyl alcohol:  3,3-Dimethylbutan-2-ol        464-07-3 2905.14 
SCHEDULE 3 
Toxic chemicals 
1 Phosgene:  Carbonyl dichloride                           75-44-5 2812.10 
2 Cyanogen chloride                               506-77-4 2851.00 
3 Hydrogen cyanide                                            74-90-8 2811.19 
4 Chloropicrin:  Trichloronitromethane                      76-06-2 2904.90 
Precursors 
5 Phosphorus oxychloride                               10025-87-3 2812.10 
6 Phosphorus trichloride       7719-12-2 2812.10 
7 Phosphorus pentachloride                             10026-13-8 2812.10 
8 Trimethyl phosphite                        121-45-9 2920.90 
9 Triethyl phosphite                                         122-52-1 2920.90 
10 Dimethyl phosphite                                         868-85-9 2921.19 
11 Diethyl phosphite                                     762-04-9 2920.90 
12 Sulfur monochloride                                 10025-67-9 2812.10 
13 Sulfur dichloride                               10545-99-0 2812.10 
14 Thionyl chloride                               7719-09-7 2812.10 
15 Ethyldiethanolamine 139-87-7 2922.19 
16 Methyldiethanolamine 105-59-9 2922.19 
17 Triethanolamine 102-71-6 2922.13 
Note : These products belong to Schedules 2 and 3 of the Convention on the Prohibition of the Development, 
Production, Stockpiling and Use of Chemical Weapons and on their Destruction, to which Viet Nam is 
a State Party.   WT/ACC/SPEC/VNM/5/Rev.2 
Page 216  
 
  Table 12 (b):  Import Allowed Conditionally 
 
Toxic Chemicals and Products Containing Toxic Chemicals  
No. Name of chemicals Formula Concentration 
1 Acetonitril CH 5-CN  
2* Anilin C 6H7-N  
3* Benzene C 6H6  
4 Choloroform CHCl 3  
5* Furfurol C 5H4O2  
6 n-Hexan CH 3(CH 2)4CH 3  
7 Piridin C 5H5N  
8 Carbon tetra chloro CCl 4  
9* Tuluen C 7H8  
10* Ethylen Glycol CH 2OH-CH 2OH  
11* n-Butanol CH 3(CH 2) 2CH 2OH  
12* Aldehyd acetic CH 3CHO  
13* IsoPropanol CH 3CHOHCH 3  
14* Asbestos raw material   
15* Selen and selen compounds Se  
16* Cadmium and cadmium compounds Cd  
17 Thallium Tl  
18* Xylen C 6H4(CH 3) 2  
19* Acid Pechloric HClO 4  
20 Acrolein CH 2=CH-CHO +0.002 
21* Amoniac NH 3NH 4OH +0.002 
22 Anhydric acsenio and anhydrit acsenic  
(asen pentoxide) As2O3 
As2O5 +0.0003 
23 Acsenua hydrogen AsH 3 +0.0003 
24* Anhydrit carbonic CO 2 0.1 per cent mg/l 
25* Anhydrit cromic CrO 3 0.0001 mg/l 
26* Anilin C 6H5-NH 2 0.005 
27* Antimony Sb 0.0005 
28* Hydrochloric acid and hydrochlorua  
(calculated as hydrochlorua) HCl 0.010 
29* Acid nitric (calculated as N 2O5) HNO 3 0.005 
30* Acid acetic CH 3COOH 0.005 
31 Cyanhydric calculated as HCN   
32* Acid sulfuric and anhydrit sulfuric H 2SO 4 0.002 
33* Acid phosphoric H 3PO 4  
34* Acid picric C 6H3K8O7  
35* Bary oxide containing 10 per cent free SiO2 BaO 0.005 
36* Bary + dissolvable compound  (Ba)  
37* Benzidin C 12H22N2 0.001 
38* Brom Br 2 1 ml/m3 
39* Bromua metyl Br-CH 3 10 ml/m3 
40* Bromofoc CHBr 3  
41* Bicromat alkali Cr 2O7-(NaK) 0.0001 
42* Lead and inorganic compounds of lead  Pb 0.00001 
0.0001 
43* Chlorine Cl 2 0.050 
44* Chlorinebenzene C 6H5Cl 0.001 
45 Chlorinediphenyl  0.0005 
46 Chlorine oxydiphonyl  0.001 
47 Chlorinenaphtaline (trichlorinenaphtalin) C 10H7Cl 0.005 
48 High level tetra and pentanaphtalin mixture     WT/ACC/SPEC/VNM/5/Rev.2 
 Page 217 
 
 
  No. Name of chemicals Formula Concentration 
49 Chlorineropren CH 2=CH-CCl=OH 2 0.002 
50 Chlorinepycrin CC 3NO 2 20 mg/m3 60 mg/m3 
51* Limestone chlorinerua (calculating as Cl) CaCl 2 0.001 
52* Metylic spirit CH 3OH 0.050 
53* Dimetyl amin (CH 3) 2NH 0.001 
54 Dimetyl focmanit  CH 3 HCO-N < CH 3 0.001 
55 Dichlorinebenzene C 6H4C12  
56 Dinitrochlorinebenzene (NO 2) 2 C6H3  < Cl 0.001 
57 Dinitrotoluen (NO 2) 2C6H3-CH 3 0.001 
58 Dinitrobenzene and identicals   
59 Dioxide Chlorine ClO 2 0.0001 
60* Copper (salt)  0.00005 
61 Etyl mercury phosphate  0.00005 
62* Focmaldehyt HCHO 0.005 
63 Etyl mercury chlorinerua   
64* Florua hydrogen FH 0.0005 
65 Salt of acid flohydric (calculating as HF) FH 0.0005 
66 Salt of acid flohydric (calculating as HF)  0.001 
67 Florosilicat metal dissolved and undissolved   
68 Hexachlorinero cychlorinehexan  0.00005 
69* Isome (gamma)   
70 Hydrazin and derivatives  0.0001 
71 Isopropylnitrat C 3H7NO 2 0.005 
72* NaOH gas, KOH gas   
73* Mangan and mangan compounds (calculating as 
MnO 2) MnO 2 0.0003 
74* Metaldehyl   
75 Nitrobenzene and its compounds C 6H5NO 2 0.005 
76 Nitrochlorinebenzene Cl C 6H4 < NO 2 0.001 
77 Nicotin  0.0005 
78 Metal nitrit NO 2  
79 Ozon O 3 0.0001 
80* Oxide carbon CO 0.030 
81* Oxide etylen  0.001 
82* Oxide zinc ZnO 0.005 
83* Oxide nito, calculating as N2O5 N 2O, NO, NO 2, N 2O3, 
N2O5 0.005 
84* Oxide niken NiO 0.005 
85 Oxide iron including fluo and mangan 
compound  0.004 
86 Photpho white (sesquisulfur phesphore) P 4 0.0003 
87 Photphotrichlorinerua compound  0.00005 
88 Photphua hydrogen PH 3 0.0003 
89 Photphua metal  0.15-0.30g 
90* Photphorit (ore of under 10 per cent free SiO2)  0.0005 
91 Photgen COCl 2 0.0005 
92* Phenol C 6H5OH 0.005 
93 Photphat dietyl C 10H14NO 5PS 0.00005 
94 Paranitropheny  5mg/kg 
95 (Pration, thiophot)  (insecticide) 
96 Sunfur lead PbS 0.0005 
97 Sunfua carbon SC 2 0.010 
98 Sunfua hydrogen H 2S 0.010 
99* Tetrachlorinerua carbon CCl 4 0.050 WT/ACC/SPEC/VNM/5/Rev.2 
Page 218  
 
  No. Name of chemicals Formula Concentration 
100 Tetrachlorineheptan  0.001 
101 Tetra etyl lead Pb(C 2H5) 4 0.000005 
102 Tetra nitrometan CH 3(NO 2) 4 0.00003 
103 Metal mercury and mercury inorganic 
compound, excluding HgC12 (sublime) Hg 0.00001 
104 Mercury (II)   
105 Chlorinerua (sublime) HgCl 2 0.0001 
106 Trinitro chlorinebenzene  0.001 
107 Trichlorineetylen  0.001 
108 Trichlorineetylen C 2H3Cl3 0.050 
109 Trinitrobenzene and its compounds C 6H3(NO 2) 3 0.001 
110 Toluen dihydrogenxyanat  0.0005 
111 Nitro Toluen CH 3-C6H4-NO 2 0.003 
112 Tetraetyl C 10H20N2S4  
 
No. Name of chemicals 
1 Phosphorus oxochloride, (10025-87-3) 
2 Phosphorus trichloride, (7719-12-2) 
3 Phosphorus pentachloride, (10026-13-8) 
4 Trimethyl phosphite, (121-45-9) 
5 Triethyl phosphite, (122-52-1) 
6 Dimethyl phosphite, (868-85-9) 
7 Diethyl phosphite, (762-04-9) 
8 Sulfur monochloride, (10025-67-9) 
9 Sulfur dichloride, (10545-99-7-0) 
10 Thionyl chloride, (7719-09-7) 
11 Ethyldiethanolamine, (139-87-7) 
12 Methyldiethanolamine, (105-59-9) 
13 Triethanolamine, (102-71-6) 
14 Asen and asen compounds 
15 Cyanide compounds 
16 PCB (Polychlorinated biphenyls) and PCB-containing compounds 
17 Mercury and mercury-containing compounds 
  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 219 
 
 
  Table 13:  List of Imported G oods Subject to Line Management  
 
Note:  The list is issued in conjunction with Decision No. 46/2001/QD-TTg of the Prime Minister dated 
4 April 2001 on the management of exports and imports in the 2001-2005 period.  All line-
management measures shall not limit the importation of the products involved in terms of value or quantity. 
I. LIST OF GOODS SUBJECT THE LINE MANAGEMENT OF THE MINISTRY OF 
AGRICULTURE AND RURAL DEVELOPMENT 
Automatic import licence  
No. Goods HS WTO Justification 
1. Plants and animal gene sources; micro-organisms 
for scientific and technical  research and exchange 
purposes. N.A GATT Article XX.b. 
 
TBT/SPS requirement  
No. Goods HS WTO Justification 
1. Veterinary medicines and materials for making 
veterinary medicines. ex 3004, 30062000 
2. Biological products for veterinary use. N.A 
3. Pesticides and materials for making pesticides. ex 3808 
4. Plants and animal strains, and various types of 
insects. ex 0106, 06, 07, 08, 09, 
12 
5. Animal feeds and materials for producing animal 
feeds. ex 23 
6. Fertilisers newly used in Viet Nam.  3101, 3102, 3103, 
3104, 3105 TBT/SPS Agreement. 
 
 
II. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
FISHERIES (FOR SPS PURPOSES) 
1 The Ministry of Fisheries is to carry out its line management by issuing the following lists of goods:  
- The list of aquatic breeds allowed to be imported ordinarily; 
- The list of feeds for aquaculture farming and mate rials for producing feeds for aquaculture farming 
allowed to be imported ordinarily. 
The list of drugs, chemicals and materials for produc ing drugs and chemicals used in aquaculture farming 
allowed to be imported ordinarily. 
2 Any kind of breeds, feeds and materials for producing feeds, drugs, chemicals and materials for 
producing drugs and chemicals not contained in the list of ordinary imports are allowed to be imported into Viet Nam after obtaining testing certificates issu ed by the Ministry of Fisheries.  After the testing 
period, the Ministry of Fisheries is to decide whether or not to add the items in question to the list of 
ordinary imports.  If the Ministry of Fisheries has added certain goods to the list of ordinary imports, these goods are allowed to be imported upon demand, without any quantitative limitations and no import 
licences shall be required. 
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 220  
 
  III. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE STATE BANK 
(i.e. THE CENTRAL BANK) OF VIET NAM 
Automatic import licence
 
No. Goods HS WTO Justification 
1. Specialized cars for carrying money. ex 8704 
2. Multi-functional devices for counting, classifying, bundling and 
shredding money. ex 8472 
3. Treasury doors. ex 7308 
4. Papers for printing money. ex 4802 
5. Inks for printing money. ex 3215 
6. Machines for printing hard-to-forge money, payment vouchers, 
certificates and other valuable papers to be issued and managed by the banking industry. N.A 
7. Money printers  
(technical specifications announced by the State Bank). ex 8443 
8. Machines for moulding and pressing metal money  
(technical specifications announced by the State Bank). ex 8462 Government 
procurement and 
monetary security7. 
 
Management principles: 
The State Bank of Viet Nam will designate eligible enterprises to import items indicated in this list, 
and be responsible for managing their use properly. 
IV. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE GENERAL 
DEPARTMENT OF POSTS AND TELECOMMUNICATIONS8 
Automatic import licence  
No. Goods HS WTO Justification 
1. Postage stamps, stamp publications and items of postage 
stamps. 49070020, 
9704 Natural monopoly 
2. Radio transceivers of 9 KHz-400 KHz frequency band and 
60 mW or more capacity. ex 8525 GATT 
Article XXI.b.(ii) 
3. Radar equipment, radio support equipment and radio remote 
control equipment. ex 8526 GATT 
Article XXI.b.(ii) 
 
                                                      
7 According to GATS - Annex on Financial Servi ces, paragraph 1.b(i), importation for the activities 
solely conducted by the State Bank in pursuit of monetary security policy, wh ich are not considered as services 
governed by GATS. 
8 The formerly "General Department of Posts and Telecommunications" is now the "Ministry of Posts 
and Telecommunications".  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 221 
 
 
  TBT Requirement/Technical Standards Conformity Test  
No. Goods HS WTO Justification 
1. Large and small capacity switchboards, net accessing equipment 
using V 5.1 and V 5.2 interface. 851730 
2. PABX switchboards. 851730 
3. Transmission equipment. ex 8525 
4. Optic-fibre cables. 854470 
5. Metal communications cables. 7413, 7614 
6. Wireless telephony equipment. ex 8517 
7. Terminals for connecting with PSTN and ISDN networks. ex 8471, 
ex 8525 
11. Telex machines. 8517 
12. Fax machines. 8517 
13. Pagers. 8527 
14. Mobile phones. 8525 
15. Low speed picture telephones. 8525 TBT Agreement 
 
V. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
CULTURE AND INFORMATION  
Automatic import licence 
No. Goods HS WTO Justification 
1. Publications of different types (books, newspapers, magazines, 
pictures, photos, calendars etc.). 4901 
4902 
2. Cinematic works and other audio-visual products recorded on 
any materials. 8524 
3. Specialized print proof making systems and type setting systems 
used in printing industry (specia lized scanners, colour analysers, 
film developing and enlarging machines, sample making devices). 8442 
4. Offset printers, flexo printers, bronze drum printers, heat 
processing printers, ink pad printers and colour laser printers. 8443 GATT Article XX.a 
 
 
VI. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
HEALTH 
Automatic import licence  
No. Goods HS WTO Justification 
1. Addictive substances, sedative substances, pre-substances 
(including final medicines). 3004 
2. Finally tested medicines for human beings, which have not 
been registered. 3004 
3. Vaccines and vaccination-related biological products 3002 
4. Medical equipment which may dir ectly affect the health of 
human beings. ex 9019,  
ex 9020 GATT Article XX.b 
 
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 222  
 
  Table 14: Commitments on the Elimination of Import Prohibitions on Used Motor-Vehicles
 
1. Commitment to eliminate quantitative restriction 
- Viet Nam commits to eliminate, upon accession to the WTO, import proh ibition on used motor-vehicles of 
less than 5 years usage (the description of the measure and the products concerned were given in Table 1, 
Annex 2, Document WT/ACC/VNM/33). Import quota shall be applied in a period of 3 years from the date 
of accession: 
 - First year:  1,000 units; 
 - Second year:   1,500 units; 
 - Third year: 2,000 units. - Import quota on used motor-vehicles shall be allocated  at the beginning of each year with a transparent 
mechanism for quota bidding. 
- Import quota on used motor-vehicles shall be abolis hed after 3 years from the date of accession to the 
WTO. 
2. Other measures (measures proposed to be applied in ternally and in consistence with the WTO Agreements) 
- Applying registration mechanism for first-time registration of used motor-vehicles; 
- Formulating technical standards, and standards on quality, safety and environmental protection; 
- The importing enterprises are required to recondition used motor-vehicles to meet with Viet Nam’s 
technical regulations and standards before they can be imported into Viet Nam. 
3.  Import duties on used motor-vehicles  
- Import duties on used motor-vehicles shall be subject to Viet Nam’s final Schedule of Concessions and 
Commitments on tariffs, but shall in no case be less than:  
 - Used cars with engine capacity of less than 2,500 cm3:  X + 10,000 US$; 
 - Used cars with engine capacity of 2,500 cm3 or above:  X + 15,000 US$; 
 - Used trucks with loading capacity below 5 tonnes:         X +  7, 000 US$   of which, X is the bound rates of duty for the respective motor-vehicles in Viet Nam’s Schedule.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 223 
 
 
  Table 15:  Viet Nam's Export Duty Schedule  
(attached to Decision No. 45/2002/QD/BTC dated 10 April 2002 by the Ministry of Finance) 
 
No. Description Sub- 
Heading Rates 
(per cent) 
1 Cashew nuts in shell. 08013100 4 
2 Crude petroleum oil. 27090010 4 
3 Raw hides and skins of bovine (including buffalo) or equine animals 
(fresh, or salted, dried, limed, pickled or otherwise preserved, but not 
tanned, parchment-dressed or further prepared), whether or not de-haired 
or split. 4101 10 
 
4 Other raw hides and skins (fresh, or salted, dried, limed, pickled or 
otherwise preserved, but not tanned, parchment-dressed or further 
prepared), whether or not de-haired or split, other than those excluded by 
Note 1(b) or Note 1(c) to this Chapter. 4103 10 
5 Trees' Roots and bush of natural wood. 4403 5 
6 Hoopwood; split poles; piles, pickets and stakes of wood, pointed but not 
sawn lengthwise; wooden sticks, roughly trimmed but not turned, bent or 
otherwise worked, suitable for the manufacture of walking-sticks, 
umbrellas, tool handles or the like; chip wood and the like of natural wood. 4404 5 
7 Railway or tramway sleepers (cross-ties) of natural wood. 4406 10 
8 Wood sawn or chipped lengthwise, sliced or peeled, whether or not 
planed, sanded or end-jointed, of a thickness exceeding 6 mm of natural 
wood. 4407 10 
9 Sheets for veneering and  laminated wood (whether or not assembled), 
other wood, sawn lengthwise, sliced or peeled, whether or not planed, 
sanded, spliced or end-jointed, of a thickness not exceeding 6mm of 
natural wood. 4408 10 
10 Wood (including strips and friezes for parquet flooring, not assembled) 
continuously shaped (tongued, grooved, rebated, chamfered, V-jointed, 
beaded, moulded, rounded or the like) along any of its edges, ends or faces, whether or not planed, sa nded or end of natural wood. 4409 10 
 
11 Packing cases, boxes, crates, drums and similar packings, of wood; cable-
drums of wood; pallets, box pallets and other load boards, of wood pallet 
collars of natural wood. 4415 10 
 
12 Casks, barrels, vats, tubs and other coopers' products and parts thereof, of 
wood including staves of natural wood. 4416 10 
 
13 Parquet flooring (parquet flooring wood and semi-processed parquet 
floring), shingles and shakes, palet. 4418 10 
 
 Shuttering for concrete constructional work of natural wood.   
14 Doors and their frames, steps, thresholds, stairs and their parts of natural 
wood. 4418 5 
15 Precious stones (other than diamonds) and semi-precious stones, whether 
or not worked or graded but not strung, mounted or set; ungraded 
precious stones (other than diamonds) and semi-precious stones, 
temporarily strung for co nvenience of transport. 71031000 5 
15.1  - Unworked or simply sawn or roughly shaped  5 
15.2  - Otherwise worked   
15.2.1  - Rubies, sapphires and emeralds 71039100 1 
15.2.2  - Other 71039900 1 
16 Dust and powder of precious stones of 7103. 71059000 3 
17 Steel and iron wastes (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of steel, whether or not in 
bundles). 7204 35 
18 Iron and non-alloy steel in ingots or other primary forms (excluding iron 
of heading 72.03). 7206 2 WT/ACC/SPEC/VNM/5/Rev.2 
Page 224  
 
  No. Description Sub- 
Heading Rates 
(per cent) 
19 Semi-finished products of iron or non-alloy steel.  7207 2 
20 Copper waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of cooper, whether or not in 
bundles). 74040000 45 
21 Master alloys of copper. 74050000 15 
22 Powders of non-lamellar structure. 74061000 15 
23 Powders of lamellar structure; flakes. 74062000 15 
24 Copper bars, rods and profiles. 7407 5 
25 Nickel waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of nickel, whether or not in 
bundles). 75030000 45 
26 Nickel powders and flakes. 75040000 5 
27 Nickel, not alloyed, in bars, rods and profiles. 75051100 5 
28 Alloyed Nickel bars, rods and profiles. 75051200 5 
29 Aluminium waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of aluminium, whether or not in bundles). 76020000 45 
30 Aluminium powders and flakes. 7603 10 
31 Lead waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of lead, whether or not in 
bundles). 78020000 45 
32 Lead bars, rods and profiles. 7803 5 
33 Lead Powders and flakes. 78042000 5 
34 Zinc waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of zinc, whether or not in 
bundles). 79020000 40 
35 Zinc powder. 79031000 5 
36 Zinc powder and flakes. 79039000 5 
37 Zinc bars, rods, profiles. 7904 5 
38 Tin waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of tin, whether or not in 
bundles). 80020000 45 
39 Tin bars, rods. 80030010 2 
40 Tin profiles. 80030090 2 
41 Tin powder and flakes. 8005 2 
42 Waste and scraps of metal and metallic ceramics and their products 
(excluding turnings, shavings, milling waste, sawdust, filings, trimmings and stampings, whether or not in bundles). 8101 to 8113 45 
43 Semi-products of metal and metallic ceramics and Products of metal and 
metallic ceramics. 8101 to 8113 5 
  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 225 
 
 
  Table 16:  Goods Subject to Export Restriction  
(except as indicated in the invest ment licences of FDI enterprises) 
Export prohibition 
- Weapon, ammunition, explosives, technical military equipment 
- Antique 
- Narcotics 
- Toxic chemicals 
- Log, sawn timber, husked wood, fire wood, mining coal from wood or fire wood, other wooden products 
from group IA and high quality-manufactured pallet fr om group IIA (refer to the notice), rattan materials 
- Various kinds of wild animal and preciously natural animals and plans 
Products subject to export quota 
Rice 
Textile and garment exported to European Union, Canada, Norway and Turkey markets 
Export subject to specific control 
- Coffee bean 
- Wild animals for export - Wild animals for breeding 
- Precious gems, metal and natural pearl 
- Wooden products (except handicraf t; those produced from cultivated forest's wood, from imported wood 
and from artificial pallet implemented under the provision  of the Prime Minister in Decision 
No. 136/1998/QD-TTg dated 31 July 1998) 
- Minerals 
Notice 
Group IA Group IIA 
Calocedrus macrolepis Taxus chinensis 
Cephalotaxus fortunei 
Podocarpus neriifolius 
Pinus kwangtugenis 
Pinus dalatensis Glyptostrobus pensillis 
Keteleeria calcarea 
Amentotaxus argotenia Abies nukiangensis 
Aquilaria crassana 
Copressus torulosa Ducampopinus krempfii Dalbergia oliverrii Gamble 
Dalbergia bariaensis 
      Dalbergia oliverrii Gamble 
      Dalbergia Dongnaiensis 
Afzelia xylocarpa 
 Sindora cochinchinensis 
Sindora tonkinensis – A.Chev 
Pterocarpus pedatus Pierre Pterocarpus cambodianus Pierre 
Pterocarpus indicus Willd 
 Chukrasia tabularis A.juss 
Chukrasia sp 
Chukrasia sp  
Dalbergia cochinchinensis Pierre 
Dalbergia annamensis Dalbergia cambodiana Pierre 
Fokienia hodginsii A.Henry et 
Thomas  
Diospyros mun H.lec  
Diospyros SP 
Markhamia pierrei 
Madhuca pasquieri Burretiodendron hsienmu 
Erythophloeum fordii 
Padocarpus fleuryi Rauwolfia verticillata  
Morinda officinalis 
Lilium brownii 
Panax Viet Nammensis 
Amomum longfiligulare 
Amomum tsaoko 
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 226  
 
  Items Classified as Narcotics
9 
 
No. International name Scientific name 
1. Acetyl dihydrocodein  (5 , 6)- 4,5 - epoxy-3-methoxy-17 methyl-morphinan-6-
olacetat  
2. Alfentanil (N-[1-2(4-ethyl-4,5-dihydro-5-oxo-1 H-tetrazol-1-yl) ethyl]-4-
(methoxymethyl)-4-piperidinyl]-N-Phenylpropanamide 
monohydrochloride) 
3. Alphaprodin (Alpha- 1,3-dimethyl-4-phenyl-4 propionoxypiperidine 
4. Anileridin (1- para-aminophenethyl-4- phnylpiperidine-4-carboxylic acid 
ethyl ester) 
5. Bezitramid (1-(3-cyano- 3,3-diphenylpropyl)- 4 (2- oxo- 3- propoonyl-1- 
benzimidazolinyl)- piperidine) 
6. Butorphanol (-)-17- (cyclobutylmethyl) morphinan- 3,14 diolhydrogen 
7. Ciramadol (-)-2-(-Dimethylamino-3-hydroxybenzyl) Cyclohexanol 
8. Cocain (Methyl ester cña benzoylecgonine)* 
9. Codein (3- methylmorphine) 
10. Dextromoramid ((+)-4 [2-methyl-4-oxo-3,3-diphnyl-4 (1-pyrrolidinyl)- butyl] – 
morpholine) 
11. Dextropropoxyphen ( -(+)-4-dimethylamino-1,2-diphenyl-2-butanol propionate) 
12. Dezocin (-)- 13 - Amino- 5,6,7,8,9,10,11 , 12 octahydro- 5- methyl- 5, 
11- methanobenzo – cyclodecen-3-ol 
13. Difenoxin (1- (3 cyano-3,3-Diphenylpropyl)-4- Phenylisonip ecotic acid 
14. Dihydrocodein 7,8- Dihydro-3-O-methylmorphine-hydrogen 
15. Dipipanon (+) - 4,4- Diphenyl-6-Piperidinoheptan-3. 
16. Drotebanol (3,4- Dimethoxy- 17 –Methyl morphinan-6, 14 diol) 
17. Ethyl morphin (3-Ethylmorphine) 
18. Fentanil  (1-Phenethyl-4-N-Propionylanilinopiperidine) 
19. Hydromorphon (Dihydromorphinone) 
20. Ketobemidon (4-meta-hydroxyphenyl -1-methyl-4-prop ionylpiperidine) 
21. Levomethadon (3-Heptanone, 6- (dimethylamino)-4,4-Diphenyl, (R) 
22. Levorphanol ((-)-3-hydroxy-N-methylmorphinan) 
23. Meptazinol (3(-3-Ethyl-1- me thylperhydroazepin -3-yl) phenol 
24. Methadon (6- dimethylamino-4,4-diphenyl-3-heptanone) 
25. Morphin Morphinan-3,6 diol, 7,8-didehydro-4,5-epoxy-17 –methyl – 
(5,6) 
26. Myrophin Myristyl Benzyl morphine 
27. Nalbuphin 17-Cyclobutylmethyl-7,8-dihydro-14-hydroxy-17-normorphine 
28. Nicocodin Morphinan- 6- ol, 7,8- Dihydro- 4,5-epoxy- 3 methoxy-17- 
methyl-3-pyridin mecarboxxy late (ester), (5, 6 ) 
29. Nicodicodin 6- Nicotimylcodein 
30. Nicomorphin (3,6- Dinicotylmorphine) 
31. Norcodein N- Dimethylcodein 
32. Opium Opium 
33. Oxycodon (14- hydroxydihydrocodeinone) 
34. Oxymorphon (14- hydroxydihydromorphinone) 
35. Pethidin (1-methyl-4-phenylpiper odine-4-carboxylic acid ethyl ester) 
36. Phenazocin (2'- Hydroxy-5,9-Dimethyl-2-Phenethyl-6,7- Benzomorphan) 
37. Pholcodin (Morpholinylethylmorphine) 
38. Piritramid (1-(3-cyano-3,3-diphenylpropyl-4-(1-piperidino)-piperidine-4-
carboxylic acid amid) 
39. Propiram (N- (1- Methyl- 2 piperidinoethyl- N- 2- pyridyl Propionamide) 
                                                      
9 Attached to Decision No. 2033/1999/Q§_BYT dated 9 July 1999 of the Minister of Health 
  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 227 
 
 
  No. International name Scientific name 
40. Sufentanil (N- [4-(methoxymethyl)- 1- [2- (2-thienyl)- ethyl]-4 – 
piperidyl]- propionanilide) 
41. Thebacon (Acetyl dihydro codeinone) 
42. Tonazocin mesylat (+)-1-[(2 R- 6S –1, 2,3,4,5,6 – hexahydro – 8 –hydroxy- 
3,6,11- Trimethyl – 2,6- methano-3-benzazocine-11-yl] 
43. Tramadol (+) - Trans- 2- Dimethylaminomethyl- 1-(3- methoxyphenyl) 
cyclohexanol 
 
Narcotics in the Form of Mixtures10 
 
No. Name of the material Content of base form per single 
dose product unit 
(mg) Concentration of base form 
per multi dose product unit 
(mg) 
1. Acetyl dihydrocodein 100 2.5 
2. Cocain  0.1 
3. Codein 100 2.5 
4. Dextropropoxyphen 135 2.5 
5. Difenoxin No more than 0.5mg Difenoxin 
and at least 0.025 mg Atropin 
Sulfat in per dosage unit of 
product.  
6. Difenoxylat No more than 2.5mg 
Difenoxylat and at least 0.025 
mg Atropin Sulfat per dosage 
unit of product.  
7. Dihydrocodein 100 2.5 
8. Ethyl morphin 100 2.5 
9. Opium 1 mg Morphin in base form  
10. Nicocodin 100 2.5 
11. Nicodocodin 100 2.5 
12. Norcodein 100 2.5 
13. Pholcodin 100 2.5 
14. Propiram 100 2.5 
 
                                                      
10 Attached to Decision No. 2033/1999/Q§_BYT dated 09 July 1999 of Minister of Health 
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 228  
 
  Table 17:  List of Precious Aquatic Creatures Requiring Export Approval 
 
by the Ministry of Aqua-culture  
 
Names Scientific Names 
Red coral Carallium Japonieus 
Konojci red coral Carallium Konojci 
Leaf-shaped earth-worms Phylum Spp. 
Round earth-worms Bibis Spp. 
Grown batrachian Ranidae 
Lobsters Panulirus Spp. 
Sea Cods of various kinds Ephinephelus Spp. 
 Seriola Spp. 
Awa Chanos Chanos 
Note:  The list is attached to Government Decree No. 89/CP of  15 December 1995.  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 229 
 
 
  Table 18 (a):  The Structure of Investment Incentives According to th e Types of Enterprises  
Granted by Local Authorities From 1996-2003  
Number of projects Types of Enterprises Number Percentage (%) 
State-owned Enterprises 2,584 22.8 
Limited Liabilities Companies (Co., Ltd) 3,992 35.2 
Joint-stock Companies 903 8.0 
Sole proprietor Enterprise 2,776 24.4 
Co-operatives 481 4.2 
Private Individuals, Households 598 5.3 
Overseas Vietnamese  23 0.2 
Total 11,357 100 
 
Table 18 (b):  The Number of Investment Projects According to the Areas of Investment Incentives  
in the Period of 2001-2003  
Areas of investment incen tives Number of projects 
Areas with difficult socio-economic conditions (List B) 1,863 
Areas with specially socio-economic conditions (List C) 550 
Total 2,413 
 
Table 18 (c):  The Structure of Investment Fi elds According to the List of Sectors with  
Investment Incentives in the Period of 2001-2003  
The investment fields Number of projects 
I. Afforestation or forest regeneration zones; planting of perennial trees on unused 
land or barren hills; land reclamation, salt-making, cultivation of marine 
products in unexploited waters 188 
II. Construction of infrastructure; development of public transportation; 
development of education, training, healthcare and ethnic cultures 371 
III. Production and trading of exported goods 862 
IV. Offshore fishing of marine wildlife; processing of agricultural, forestry, and 
marine products; provision of technical services which directly cater for 
agriculture, forestry and fishing activities 1,050 
V. Scientific and technology research an d development; scientific and  technology 
services; legal consultancy, investment consultancy; business consultancy, management consultancy, protection of intellectual property rights and 
technology transfer 161 
VI. Investment in construction of new production lines, investment in expansion of 
scale, investment in technology renovation, investment in environmental and 
ecological improvement and urban sanitation improvement; relocation of 
production establishments to non-urban areas; diversification of industries, trades and products 2,415 
VII. Other industries  1,449 
Total 6,496 
 WT/ACC/SPEC/VNM/5/Rev.2 
Page 230  
 
  Table 20: Industrial Zones in Viet Nam (as per  end July 2005)
 
 
No. Name of industrial zones and export 
processing zones Location 
(province/city) Date of granting 
license Infrastructure 
investors 
I. Industrial zones which have been  established and are in operation 
1 AMATA (Phases 1&2) Dong Nai 1994 Thailand – Viet Nam 
2 Nhon Trach I Dong Nai 1995 Viet Nam 
3 Nhon Trach II Dong Nai 1997 Viet Nam 
4 Nhon Trach III (Phase 1) Dong Nai 1997 Viet Nam 
5 Go Dau Dong Nai 1995 Viet Nam 
6 LOTECO Dong Nai 1996 Japan – Viet Nam 
7 Bien Hoa II Dong Nai 1995 Viet Nam 
8 Bien Hoa I Dong Nai 2000 Viet Nam 
9 Song May Dong Nai 1998 Viet Nam 
10 Ho Nai Dong Nai 1998 Viet Nam 
11 Tam Phuoc Dong Nai 2003 Viet Nam 
12 My Xuan A Ba Ria – Vung Tau 1996 
2002 Viet Nam 
13 My Xuan A2 Ba Ria – Vung Tau 2001 Chinese Taipei – 
Viet Nam 
14 Dong Xuyen Ba Ria – Vung Tau 1996 Viet Nam 
15 My Xuan B1 Ba Ria – Vung Tau 1998 Viet Nam 
16 Phu My I Ba Ria – Vung Tau 1998 Viet Nam 
17 Cai Mep Ba Ria – Vung Tau 2002 Viet Nam 
18 Viet-Sing* Binh Duong 1996 
2004 Singapore – 
Viet Nam 
19 Binh Duong Binh Duong 1997 Viet Nam 
20 Song Than I Binh Duong 1995 Viet Nam 
21 Song Than II Binh Duong 1996 Viet Nam 
22 Dong An Binh Duong 1996 Viet Nam 
23 Tan Dong Hiep A Binh Duong 2001 Viet Nam 
24 Tan Dong Hiep B Binh Duong 2002 Viet Nam 
25 Viet Huong Binh Duong 1996 Viet Nam 
26 My Phuoc Binh Duong 2002 Viet Nam 
27 Tan Thuan Ho Chi Minh City 2001 Chinese Taipei –  
Viet Nam 
28 Linh Trung 1 Ho Chi Minh City 1992 China – Viet Nam 
29 Linh Trung 2** Ho Chi Minh City 1997 China – Viet Nam 
30 Binh Chieu Ho Chi Minh City 1996 Viet Nam 
31 Tan Tao* Ho Chi Minh City 1996 Viet Nam 
32 Vinh Loc Ho Chi Minh City 1997 Viet Nam 
33 Hiep Phuoc Ho Chi Minh City 1996 Viet Nam 
34 Tan Binh Ho Chi Minh City 1997 Viet Nam 
35 Tan Thoi Hiep Ho Chi Minh City 1997 Viet Nam 
36 Le Minh Xuan Ho Chi Minh City 1997 Viet Nam 
37 Tay Bac Cu Chi Ho Chi Minh City 1997 Viet Nam 
38 Cat Lai Ho Chi Minh City 2003 Viet Nam 
39 Trang Bang Tay Ninh 1999 
2003 Viet Nam 
40 Da Nang Da Nang 1994 Malaysia – Viet Nam 
41 Lien Chieu Da Nang 1998 Viet Nam 
42 Hoa Khanh (Phase 1 and 
extension)* Da Nang 1997 
2004 Viet Nam 
43 Dien Nam- Dien Ngoc (Phase 1 and 
extension) Quang Nam 1996 
2005 Viet Nam 
44 Tinh Phong Quang Ngai 1997 Viet Nam  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 231 
 
 
  No. Name of industrial zones and export 
processing zones Location 
(province/city) Date of granting 
license Infrastructure 
investors 
45 Quang Phu Quang Ngai 1998 Viet Nam 
46 Phu Bai (PHASE1+2) Thua Thien - Hue 1998 
2004 Viet Nam 
47 Suoi Dau  Khanh Hoa 1997 Viet Nam 
48 Phan Thiet (Phases 1&2) Binh Thuan 1998 Viet Nam 
49 Hoa Hiep Phu Yen 1998 Viet Nam 
50 Phu Tai (Phases 1, 2,3 and 
Extention) Binh Dinh 1998 
2003 Viet Nam 
51 Le Mon Thanh Hoa 1998 Viet Nam 
52 Bac Vinh Nghe An 1998 Viet Nam 
53 Noi Bai Ha Noi 1994 Malaysia – Viet Nam 
54 Sai Dong B Ha Noi 1996 Viet Nam 
55 Bac Thang Long (Phase 1 and 
extension) Ha Noi 1997 
2002 Japan-Viet Nam 
56 Nomura-HP Hai Phong 1994 Japan-Viet Nam 
57 Cai Lan Quang Ninh 1997 Viet Nam 
58 Tien son Bac Ninh 1998 
2004 Viet Nam 
59 Que Vo Bac Ninh 2002 Viet Nam 
60 Duc Hoa 1 (Phase 1) Long An 1997 Chinese Taipei-
Viet Nam 
61 Thuan Dao -  Ben Luc Long An 2003 Chinese Taipei-
Viet Nam 
62 My Tho Tien Giang 1997 Viet Nam 
63 Tra Noc 1 Can Tho 1995 Viet Nam 
64 Sa Dec Dong Thap 1998 Viet Nam 
65 Song Cong 1 Thai Nguyen 1999 Viet Nam 
66 Thuy Van (Phases 1, 2 and 3) Phu Tho 1997 
2003 2004 Viet Nam 
67 Tam Thang Dac Nong 2002 Viet Nam 
68 Dong Van Ha Nam 2003 Viet Nam 
69 Quang Minh Vinh Phuc 2004 Viet Nam 
70 Nam Sach Hai Duong 2003 Viet Nam 
71 Dinh Tram (Phases 1 and 2) Bac Giang 2003 
2005 Viet Nam 
II. Industrial zones which have been establishe d and are in the process of basic construction 
1 Nhon Trach Textile and Clothing Dong Nai 2003 Viet Nam 
2 An Phuoc Dong Nai 2003 Viet Nam 
3 Long Thanh Dong Nai 2003 Viet Nam 
4 Nhon Trach V Dong Nai 2003 Viet Nam 
5 Dinh Quan Dong Nai 2004 Viet Nam 
6 Nhon Trach 6 Dong Nai 2005 Viet Nam 
7 Cat Lai IV Ho Chi Minh City 1997 Viet Nam 
8 Phong Phu Ho Chi Minh City 2002 Viet Nam 
9 Linh Trung III Industrial and Export 
processing zone Tay Ninh 2002 China - Viet Nam 
10 Tron Thanh Binh Phuoc 2003 Viet Nam 
11 Hoa Cam Da Nang 2003 Viet Nam 
12 Nam Cam (Phase 1) Nghe An 2003 Viet Nam 
13 Vung Ang I Ha Tinh 2002 Viet Nam 
14 Dai T- Ha Noi Ha Noi 1995 Dai Loan 
15 Deawoo Hanel (SDR) Ha Noi 1996 Korea - Viet Nam 
16 Nam Thang Long (Phase 1) Ha Noi 2001 Viet Nam WT/ACC/SPEC/VNM/5/Rev.2 
Page 232  
 
  No. Name of industrial zones and export 
processing zones Location 
(province/city) Date of granting 
license Infrastructure 
investors 
17 Dinh Vu (Phase 1) Hai Phong 1997 The US, Belgium and 
Thailand 
18 Hai Phong 96 Export processing 
zone Hai Phong 1997 Hong Kong –
Viet Nam 
19 Dai An Hai Duong 2003 Viet Nam 
20 Phuc Dien Hai Duong 2003 Viet Nam 
21 Tan Truong Hai Duong 2005 Viet Nam 
22 Pho Noi B (Phase 1 and 2) Hung Yen 2003 Viet Nam 
23 Pho Noi A  Hung Yen 2004 Viet Nam 
24 Bac Phu Cat Ha Tay 2002 Viet Nam 
25 Kim Hoa Vinh Phuc 1998 Viet Nam 
26 Phuc Khanh Thai Binh 2002 Chinese Taipei 
27 Xuyen A *** Long An 1997 Viet Nam 
28 Tan Kim Long An 2003 Viet Nam 
29 Hoa Xa Nam Dinh 2003 Viet Nam 
30 Hoa Phu Vinh Long 2004 Viet Nam 
31 Ninh Phuc (Phase 1 and Extention 
phase 1) Ninh Binh 2003 Viet Nam 
32 Viet Huong II Binh Duong 2004 Viet Nam 
33 Binh An Textile and Apperal Binh Duong 2004 Viet Nam 
34 Mai Trung Binh Duong 2004 Viet Nam 
35 My Phuoc II Binh Duong 2005 Viet Nam 
36 Tra Noc Can Tho 1998 Viet Nam 
37 Hung Phu I (Phases 1 and 2) Can Tho 2004 Viet Nam 
38 Tan Duc (Phase 1) Long An 2004 Viet Nam 
39 Long My (Phase 1) Binh Dinh 2004 Viet Nam 
40 Loc Son Lam Dong 2003 Viet Nam 
41 Tan Huong (Phase 1) Tien Giang 2004 Viet Nam 
42 Tan Phu Trung Ho Chi Minh City 2004 Viet Nam 
43 Tra Da Gia Lai 2003 Viet Nam 
44 Nam Dong Ha Quang Tri 2004 Viet Nam 
45 Khanh An (Phase 1) Ca Mau 2004 Viet Nam 
46 An Nghiep Soc Trang 2005 Viet Nam 
47 Phu My II Ba Ria – Vung Tau 2004 Viet Nam 
48 Hon La (Phase 1) Quang Binh 2005 Viet Nam 
49 Tay Bac Dong Hoi Quang Binh 2005 Viet Nam 
50 Giao Long Ben Tre 2005 Viet Nam 
51 Sao Mai (Phase 1) Kon Tum 2005 Viet Nam 
52 Ninh Thuy Khanh Hoa 2004 Viet Nam 
53 Vinh Loc 2 Long An 2005 Viet Nam  WT/ACC/SPEC/VNM/5/Rev.2 
 Page 233 
 
 
  Table 21 (a):  Fees for Cargo and Luggage in Transit Through Viet Nam  
 
No. Means of transport – Transiting Distance Calculation 
unit Fee rate 
(VND) 
Automobiles 
- Distance of less than 100 km Unit 60,000 1  
- Distance of 100 km or more, a surcharge shall be collected for 
every extra 50 km Unit 24,000 
Train 
- Distance of less than 100 km Wagon 72,000 2 
- Distance of 100 km or more, a surcharge shall be collected for 
every extra 50 km Wagon 36,000 
3 Ship 
Fee rates for ships of a weight of between 300 GRT and less than 1,000 GRT:  
- Distance of less than 100 km Ship 120,000 a. 
- Distance of 100 km or more, a surcharge shall be collected for 
every extra 50 km Ship 60,000 
Fee rates for ships of a weight of between 1,000 GRT and less than 3,000 GRT 
- Distance of less than 200 km Ship 300,000 b. 
- Distance of 200 km and more, a surcharge shall be collected for 
every extra 50 km Ship 70,000 
Fee rates for ships of a weight of between 3,000 GRT and 5,000 GRT 
- Distance of less than 200 km Ship 720,000 c. 
- Distance of 200 km and more, a surcharge shall be collected for 
every extra 50 km Ship 120,000 
Fee rates for ships of a weight of more than 5,000 GRT 
- Distance of less than 200 km Ship 1,200,000 d. 
- Distance of 200 km and more, a surcharge shall be collected for 
every extra 50 km Ship 240,000 
 
Table 21 (b):  Fees for Escort and Sealing of Cargo  
 
No. Means of transport Calculation unit Fee rate 
(VND) 
I Customs escorting fee 
Automobiles: 
- Escorting distance of less than 100 km Unit 48,000 
- Escorting distance of between 100 km and 150 km Unit 96,000 1  
- Escorting distance of more than 150 km, a surcharge shall 
be collected for every extra 50 km Unit 30,000 
Train 
- Escorting distance of less than 100 km Wagon 42,000 
- Escorting distance of between 100 km and 150 km Wagon 96,000 2  
- Escorting distance of more than 150 km, a surcharge shall 
be collected for every extra 50 km Wagon 20,000 
3 Ship 
a. Fee rates for ships of a weight of less than 300 GR T as those for river or s ea barges (as indicated in 
Item 4 below) 
Fee rates for ships of a weight of between 300 GRT and 1,000 GRT:  
- Escorting distance of less than 200 km Ship 360,000 
- Escorting distance of between 200 km and 300 km Ship 720,000 b. 
- Escorting distance of more than 300 km, a surcharge shall 
be collected for every extra 50 km Ship 100,000 WT/ACC/SPEC/VNM/5/Rev.2 
Page 234  
 
  No. Means of transport Calculation unit Fee rate 
(VND) 
Fee rates for ships of a weight of more than 1,000 GRT:  
- Escorting distance of less than 200 km Ship 600,000 
- Escorting distance of between 200 km and 300 km Ship 1,200,000 c. 
- Escorting distance of more than 300 km, a surcharge shall 
be collected for every extra 50 km Ship 150,000 
River or sea barges 
- Escorting distance of less than 200 km Barge 240,000 
- Escorting distance of between 200 km and 300 km Barge 300,000 4 
- Escorting distance of more than 300 km, a surcharge shall 
be collected for every extra 50 km Barge 50,000 
Crafts, boats 
- Escorting distance of less than 100 km Boat 60,000 
- Escorting distance of between 100 km and 150 km Boat 120,000 
- Escorting distance of between 150 km and 200 km Boat 180,000 5 
- Escorting distance of more than 200 km, a surcharge shall 
be collected for every extra 50 km Boat 240,000 
II Customs sealing fee 
1 Paper seal fee: 
- Seals which use less than 10 sealing papers Per sealing procedure 5,000 
- Seals which use from 10 to less than 20 sealing papers Per sealing procedure 10,000 
 Seals which use from 20 to less than 50 sealing papers Per sealing procedure 20,000  
- Seals which use more than 50 sealing papers Per sealing procedure 30,000 
2 Lead seal fee Per sealing case 5,000 
3 Seal ring fee Per sealing case 20,000 
 
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