RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VNM/5/Rev.3 
29 June 2006 
 (06-3148) 
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.3 
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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...................................................................................... ..22 
Privatization .................................................................................................................. .......................31  
Pricing policies ............................................................................................................... ......................39  
Competition policy............................................................................................................. ..................41  
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES .................................................43  
POLICIES AFFECTING TRADE IN GOODS ................................................................................55  
Trading rights (the right to import and export)................................................................................ 55 
1. Import Regulation.............................................................................................................. .....59  
Customs tariff................................................................................................................. ......................59  
Other duties and charges....................................................................................................... ..............63  
Tariff rate quotas, tariff exemptions .......................................................................................... ........64  
Fees and charges fo r services rendered......................................................................................... .....70  
Application of internal taxes .................................................................................................. .............72  
Quantitative import restrictions, including pr ohibitions, quotas and licensing systems...............77  
Customs valuation.............................................................................................................. ..................87  
Rules of origin ................................................................................................................ ......................91  
Other customs formalities ...................................................................................................... .............93  
Pre-shipment inspection ........................................................................................................ ..............94  
Anti-dumping, countervailing duties, safeguard regimes ................................................................95  
2. Export Regulation.............................................................................................................. .....97  
Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports........................................................................................................................ ..............97  
Export restrictions............................................................................................................ ....................99  
3. Internal Policies Affecting Foreign Trade in Goods ..........................................................102  
Industrial policy, including subsidies......................................................................................... ......102  
Technical barriers to trade, standards and certification................................................................109  
Sanitary and phytosanitary measures............................................................................................ ..116  WT/ACC/SPEC/VNM/5/Rev.3 
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  Trade-Related Investment  Measures (TRIMs) ...............................................................................125
 
Free zones, special economic areas............................................................................................. ......127  
Government procurement......................................................................................................... ........130  
Trade in ci vil aircraft........................................................................................................ .................132  
Transit ....................................................................................................................... .........................132  
Agricultural policies.......................................................................................................... .................134  
(a) Imports – description of the types of border protection maintained ...............................134  
(b) Exports........................................................................................................................ ...........135  
(c) Internal policies.............................................................................................................. .......137  
Fisheries ...................................................................................................................... ........................139  
[Textiles regime].............................................................................................................. ...................140  
[Core labour standards] ........................................................................................................ ............141  
TRADE-RELATED INT ELLECTUAL PROPERTY RIGHTS (TRIPS) ...................................142  
1. General........................................................................................................................ ...........142  
(a) Intellectual property protection...........................................................................................142  
(b) Responsible agencies for policy formulation and implementation ...................................144  
(c) Participation in international intellectual property agreements ......................................145  
(d) Application of national and MFN treatment to foreign nationals....................................145  
(e) Fees and taxes ................................................................................................................. .......146  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ................................................................147  
(a) Copyright protection ........................................................................................................... .147 
(b) Trademarks, including  service marks.................................................................................152  
(c) Geographical indications, including appellations of origin...............................................156  
(d) Industrial designs............................................................................................................. .....158  
(e) Patents........................................................................................................................ ............159  
(f) Plant variety protection....................................................................................................... .163 
(g) Layout designs of integrated circuits ..................................................................................163  
(h) Requirements on undisclosed information, including trade secrets and test data..........164  
3. Measures to control abuse of intellectual property rights.................................................165  
4. Enforcement .................................................................................................................... ......165  
(a) Civil judicial procedures and remedies...............................................................................165  
(b) Provisional measures ........................................................................................................... .168 
(c) Administrative procedures and remedies...........................................................................168  
(d) Special border measures.......................................................................................................1 72 
(e) Criminal procedures............................................................................................................ .174  WT/ACC/SPEC/VNM/5/Rev.3 
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  POLICIES AFFECTING TRADE IN SERVICES.........................................................................177  
TRANSPARENCY ................................................................................................................... .........189  
Publication of information on trade............................................................................................ .....189  
Notifications.................................................................................................................. ......................193  
TRADE AGREEMENTS ............................................................................................................... ...193  
CONCLUSIONS .................................................................................................................... ............194  
ANNEX 1 ........................................................................................................................ ....................196  
ANNEX 2 ........................................................................................................................ ....................202  
 
  WT/ACC/SPEC/VNM/5/Rev.3 
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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 th e 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; 
27 March 2006 and [...] under the Chairmansh ip 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; WT/ACC/VNM/42; WT/ACC/VNM/44….….), including the legislative te xts 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.3 
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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.3 
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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, wh ich represented 3.67 per cent of the banks' total 
loans.  Financial institutions, including State- owned commercial banks, established their own lending 
procedures based on objective criteria such as the clie nt's solvability, tradin g and production plans, 
feasibility assessment, and investment project effi ciency assessment, in accordance with Decision 
No. 1627 of 31 December 2001 on Lending Regulations of  Credit Organizations to Clients.  Financial 
institutions considered and decided themselves whet her to provide loans to State-owned enterprises, 
on commercial terms.  They were self-responsible  for their credit activities.  Support through the 
Development Assistance Fund had amounted to 917.1 billion dong 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 intere st support.  He provide d statistics about support 
provided under the Development Assistance Fund, in cluding information about non-performing loans, 
in Annex 1 to document WT/ACC/VNM/39.  He a dded that the question of non-performing public WT/ACC/SPEC/VNM/5/Rev.3 
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  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 commercia l banks were to be equitized in 2006 (see 
paragraph 80).  The State Bank would remain re sponsible for State management, inspection and 
supervision over State-owned commerc ial 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.3 
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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.3 
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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 Vietnam ese 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 resident s were subject to the same progressive tax rates, 
ranging from zero per cent to 40 per cent, but to a diffe rent taxable income threshold.  However, the 
monthly taxable income threshold for Vietnamese re sidents had been raised to VND 5 million in order 
to reduce the gap to the threshold applicable to fo reign residents.  The threshold for foreigners had 
remained unchanged since 30 June 1999 and amounted to VND 8 million.   He confirmed that new tax 
rulings 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.3 
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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 Janua ry 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 Viet 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.3 
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  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 measures.  A Member also noted that Viet Nam 
applied a fee for inspecting and counting currenci es remitted cross-border 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 processing 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 Deci sion 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 inspecting and counting cu rrencies remitted cross-border, he noted that 
this fee was applicable to the importation or exporta tion of physical currencies, not to the purchase or 
sale of foreign currency.  This fee aimed at mon itoring physical movements of foreign exchange and 
at preventing counterfeit 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$5), with a maximum of VND 1.5 million (US$  100) for each transaction (Inter-Ministerial  WT/ACC/SPEC/VNM/5/Rev.3 
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  Circular No. 71/2000/TTLT/BTC-TCHQ of 19 July 2000) .  He subsequently added that this fee had 
been abolished in November 2005.   
23. Concerning Article XI and footnote 8 to Article 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 of 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 officially 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 
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 regula tions were being monitored by the IMF once a year as part of the 
Fund's missions under Article IV of the IMF Articles of Agreement.   WT/ACC/SPEC/VNM/5/Rev.3 
Page 10  
 
  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 
five 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 
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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 11 
 
 
  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 forei gn 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 of 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.  
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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 12  
 
  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 othe rwise 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 in J une 1999, the National Assembly had passed the 
Law on Enterprises, superseding the Laws on Compan ies and Private Enterprise adopted in 1990.  
The Law on Enterprises had entered into force on  1 January 2000 and had been considered an 
important milestone in Viet Nam's economic reform  process.  The main changes brought forward by 
this Law were broader eligibility to set up a nd contribute to enterprise capital; simplified 
administrative procedures, including single-stop regi stration of new businesses; and more business 
autonomy.  The number of newly registered enterp rises had increased rapidly after the promulgation 
of the Law.  By September 2003, some 72,600 new enterprises had been registered, adding to the  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 13 
 
 
  45,000 enterprises registered betw een 1991 and 1999, 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.   
33. With a view to further improving the business environment in accordance with international 
rules, the National Assembly had adopted a ne w Law on Enterprises in November 2005.  The new 
Law would enter into force on 1 July 2006.  The Law regulated the establishment, management and 
operation of enterprises.  It provided for four types of enterprises − limited liability companies, 
shareholding companies, partnerships, and sole pr oprietorships.  Under the Law, any domestic and 
foreign legal person or individual ha d the right to establish and manage enterprises in Viet Nam, with 
the exception of cadres and civil servants; officer s, non-commissioned officers, professional soldiers, 
army's workers, and units of the People's Police;  leaders and expertise managers of 100 per cent 
State-owned enterprises; State agencies and units of Viet Nam's People's armed forces using State 
assets to set up business enterprises for their own prof it; minors and persons without or with limited 
capacity for civil acts; prisoners or persons prohi bited to do business following a court judgement; and 
other organizations and i ndividuals as stipulated by the Law on Bankruptcy.  In the case of enterprises 
governed by other laws because of their distinctive nature, the provi sions of such other laws would 
prevail.  In the event of discrep ancies between an international treaty to which Viet Nam was a party 
and the Law on Enterprises, the provisions of such international treaty would prevail.  
34. Business sectors were divided into (i) prohib ited sectors, i.e. sectors in which "conducting 
business" was banned – prohibited to both domestic and foreign investors, regardless of ownership, 
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 business 
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 enterprises; 
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. [...].   
35. The relevant ministries, e.g. the Ministry of Industry and, for cultural products, the Ministry 
of Culture and Information, were responsible for determining whether a business application fitted the 
categories of prohibited business.  Questioned ab out the meaning of the prohibition concerning 
"superstitious, depraved and reactionary cultural products", he noted that domestic and foreign 
investors could participate in activities such as publishing, media, information technology etc., WT/ACC/SPEC/VNM/5/Rev.3 
Page 14  
 
  provided they did not conduct business in "superstitio us, depraved and reactionary cultural products" 
in line with applicable laws (see also paragraph [200]). 
36. 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 
licensing in Table 2.  Conditional and prohibited bu siness sectors would be set out in Government 
Decree No. [...].  He added that his Government  would review business conditions on a regular basis 
to identify provisions of the Law on Enterprises overlapping or conflicti ng with other related laws and 
regulations or hindering the operation of enterpri ses (Article 7.4 of the Law on Enterprises).  His 
Government would propose amendments or re vocation of business conditions to the National 
Assembly for action.  Any changes to existing condi tions would be made in full compliance with the 
Law on the Promulgation of Legal Normative Docume nts.  He further confirmed that all future 
additions and deletions to the list of prohibited or conditional business sectors would comply with 
WTO rules.   
37. During the past 20 years, foreign direct investment (FDI) activities in Viet Nam had been 
regulated by the Law on Foreign Investment of 29 December 1987 together with its amendments and 
additions of 1990, 1992, 1996 and 2000 and other gu iding documents mentioned therein.  This Law, 
along with the legal system and policies concerned,  had created a favourable environment for foreign 
investors.  In addition, with a view to creating a comprehensive legal framework for FDI, Viet Nam 
had signed and acceded to various bilateral and/or multilateral arra ngements on investment, including 
bilateral agreements on the encouragement and pr otection of investment with 49 countries and 
territories, agreements on the avoidance of double taxation with 45 countries and territories, the 
Framework 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.  
As of December 2005, there were 6,341 foreign investment projects in operation in Viet Nam − with a 
total registered capital of US$ 53.6 billion.  Fore ign investment projects a ccounted for 18 per cent of 
the total invested capital, 31 per cent of Viet Na m'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 thou sand jobs were indirectly dependent on these 
projects.    WT/ACC/SPEC/VNM/5/Rev.3 
 Page 15 
 
 
  38. The National Assembly had adopted a new La w on Investment in November 2005 with a 
view to further enhancing the investment environm ent for investors of all economic sectors.  This 
Law, which superseded the previous Law on I nvestment and the Law on Domestic Investment 
Promotion, would enter into force on 1 July 2006.  Implementing regulations we re being drafted.  The 
Law regulated business investment activities, invest ors' rights and obligations, the allocation of 
incentives, State administration of investment activities in Viet Nam (encouraging, guiding and 
supporting investors in the implementation of their projects and formulating strategies and policies for 
the development of investment), and offshore inv estment from Viet Nam.  The Law also included 
guarantees against nationalization or confiscation of i nvestors' assets (nationalization or confiscation 
of assets was only possible in case of public inte rest and was subject to fair and adequate 
compensation in accordance with the law).  In th e case of investment activities regulated by other 
laws (e.g. Law on Credit Institutions, Law on Insurance Business, etc.), the provisions of such other 
laws were applied.  If an international treaty to  which Viet Nam was a party contained provisions 
which were different from the provisions in the 2005 Investment Law, the provisions of such international treaty would prevail. 
39. The new Law applied uniformly to domestic a nd foreign investors and guaranteed investors' 
autonomy in doing business.  Foreign investors were free to select the sector(s) in which they wished 
to invest, the form of investment, capital rais ing methods, the geographical location and scale of 
investment, investment partners and the duration of investment in accordance with Viet Nam’s laws 
and Viet Nam’s commitments under the internationa l treaties to which Viet Nam was a party.  
However, the Law prohibited investments detrimental to national defence and security, historical and 
cultural ethics, Vietnamese traditions and fine cust oms, and the environment.  The Law also defined 
the sectors in which investment was conditional, including: (i) sectors having an impact on national 
defence and security, social order and safety; (ii) banking and finance; (iii) sectors having an impact 
on public health; (iv) culture, information, press a nd publication; (v) recreational services; (vi) real 
estate; (vii) survey, prospecting, exploration a nd mining of natural resources; (viii) education and 
training; and (ix) a number of other sectors in accord ance with the law.  He added that a detailed list 
of conditional investment sectors and specific conditions for each sector would be included in the 
Decree guiding the implementation of the new Investme nt Law.  In addition to the above-mentioned 
sectors, sectors in which investment was subject to conditions would comprise investment sectors in 
accordance with the schedule for implementation of international treaties to which the Socialist 
Republic of Viet Nam was a party.  He confirme d that any amendment or deletion to the list of 
prohibited or conditional investment sectors would comply with Viet Nam's WTO obligations.  The 
Ministry of Planning and Investment, in coordina tion with the relevant agencies, would submit any 
proposed changes to the Government, or in the case of investment activities regulated by other laws WT/ACC/SPEC/VNM/5/Rev.3 
Page 16  
 
  (e.g. Law on Credit Institutions, Law on Insurance Bu siness, etc.) to the competent authority, for 
consideration.  Comments received during the draf ting stages and changes would be made public, in 
accordance with the Law on the Promulgation of Le gal Normative Documents.  In response to a 
question, he noted that the decrees guiding th e implementation of the Laws on Investment and 
Enterprises would stipulate the prohibited and co nditional investment/business sectors governed by 
these two laws.  Other laws and regulations, e.g.  the Law on Credit Institutions or the Law on 
Insurance Business, could also regulate this matter.   
40. He added that the Law guaranteed investors' equal access to sources of capital, foreign 
exchange, land and natural resources, legal in struments and data on the national economy and 
investment opportunities, and ensured the investors'  right to lodge claims, make denunciations or 
initiate legal proceedings.  The Law provided for th e principle of non-retroactivity in case of changes 
in policies and instituted a mechanism for dispute resolution and enforcement of court judgements in 
line with international practices to enhance invest ors' confidence.  The Law also eliminated all 
discrimination in terms of prices and charges applied to investors.   
41. Investment registration procedures were set out in Articles 45 to 49 of the Investment Law.  
The Law provided for two types of procedures for granting investment certificates, "investment 
registration" and "investment evaluation".  Domes tic investment projects inferior to 15 billion 
Vietnamese dong which were not included in the list of conditional investment sectors did not have to 
be registered.  Investment registration procedures a pplied to domestic investment projects superior or 
equal to 15 billion Vietnamese dong and inferior to  300 billion dong not in cluded in the list of 
conditional investment sectors, a nd to foreign investment projects inferior to 300 billion dong not 
included in the list of conditional investment sectors.   In the former case, no investment certificate 
was delivered.  In the latter case, investment cer tificates were granted within 15 days.  Investment 
evaluation procedures applied to both domestic and fo reign investment projects equal or superior to 
300 billion dong and to investment projects in conditional sectors.  Evaluation focussed on 
i) compliance with master plans for technical infr astructure, land use, construction, utilization of 
natural resources and minerals, ii) compliance w ith land use requirements, iii) the project 
implementation schedule, and iv) environmental conditions.  Evaluation was carried out within 
30 days, a period which could be extended, in case of necessity, up to 45 days.  Evaluation procedures 
and criteria for "important national investment projects" would be determined by the National 
Assembly on a case-by-case basis (Article 47).  Pursuant to Resolution No. 15/1997/QH10 of 
29 November 1997, "important national projects" in cluded (a) projects with an invested capital of 
10,000 billion VND or more (at 1997 prices); (b) projects having a major impact or a potentially 
major impact on the environment; (c) projects resulti ng in the displacement of 50,000 people or more  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 17 
 
 
  in populous areas, or 20,000 people or more in mountainous areas and areas of ethnic minorities; 
(d) projects located in areas specially important for the national defence and security or having 
important historical and cultural relics or special natural resources; and (e) projects requiring special 
mechanisms or policies that needed to be consid ered and decided by the National Assembly.  He 
noted that under the new Laws on Investment and Enterprises investment/business registration procedures applied to foreign investors had been harmonized; investment certificates served as 
business registration certificates.  Thus, foreign compan ies having an investment project did not need 
to make a separate business registration in accordan ce with the Enterprise Law.  In response to a 
question, he noted that any change to an investment activity, including for projects under 300 billion dong not included in the list of conditional or prohi bited sectors, had to be re-registered.  This 
requirement aimed at ensuring the legitima te rights and benefits of investors. 
42. Pursuant to the 2005 Law on Enterprises and Government Decree No. [...] guiding the 
implementation of the Law on Investment, foreign-i nvested enterprises were permitted to change the 
form of investment and divide, de-merge, consolidat e or merge with other enterprises.  Existing joint-
ventures could be allowed to transform into wh olly-owned foreign capital enterprises under certain 
conditions pursuant to Government Decree No. [...] guiding the implementation of the Law on 
Investment.  Procedures and formalities for opening branches and representative offices were 
provided for in the Decree on Business Registration which would enter into force on 1 July 2006.  
Foreign-invested enterprises established before the entry into force of the new Law on Enterprises had 
to re-register within two years after the entry into force of the Law.  In the absence of re-registration, 
such enterprises could only operate within the scope  of business and time period stipulated in their 
investment licence, and would continue to enjoy i nvestment incentives under their investment licence, 
except otherwise provided for under the interna tional treaties to which Viet Nam as a party –
 incentives contingent upon export performance or local content stipulated in already granted 
investment licenses would be removed in accordance  with Viet Nam's accession commitments.  He 
added that the new Investment Law guaranteed forei gn investors the right to remit invested capital, 
profits and other legitimate income abroad.   
43. The representative of Viet Nam stated that due  to the low level of economic development, 
Viet Nam applied a wide range of incentives to s timulate economic development and employment in 
compliance with Viet Nam's WTO accession commitments (see the sections on "Industrial Policies, including Subsidies" for a description and discussi on of these incentives).  Investment incentives for 
foreign-invested projects and domestic-invested pr ojects subject to investment evaluation were 
recorded in the investment certificate.  Invest ment incentives for other domestic invested projects 
were stipulated in the investment certificates only at  the request of the investor.  Investors determined WT/ACC/SPEC/VNM/5/Rev.3 
Page 18  
 
  the level of incentives and submitted their claim, along with relevant documentation, to the competent 
State body (Article 38 of the new Investment Law).  Incentives were applied to all investors, domestic 
and foreign, on a non-discriminatory basis.  He  confirmed that the new Law did not provide for 
investment incentives contingent upon export perfo rmance and local content.  He added that all 
enterprises, whether domestic or foreign, State-owne d or privately-owned, were required to comply 
with Viet Nam's minimum wage regulations.  Mini mum wages had been stipulated in local currency 
since 1 July 1999.   
44. 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 In vestment 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 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.    WT/ACC/SPEC/VNM/5/Rev.3 
 Page 19 
 
 
  45. 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 c onstruction planning and management. 
46. Regarding the right to use land, he noted that  the National Assembly had adopted the Land 
Law on 26 November 2003.  Land was subject to public ownership and State administration in 
Viet Nam.  Thus, even Vietnamese nationals coul d not own or mortgage land.  The Land Law (as 
amended) nevertheless stated that a foreign inv ested enterprise was permitted to mortgage assets 
associated with land and the value of land use ri ghts to secure loans fro m 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 le ase land in connection with investment projects.  
Pursuant to Article 67.3 of the Land Law (as ame nded), the duration of the lease should normally not 
exceed 50 years.  However, the lease could be extend ed upon termination of th e initial duration.  In 
the case of projects with a large amount of inv ested 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, wh ich were applied in a non-discriminatory manner 
between domestic and foreign investors, were not obstructing business activities, and Viet Nam had 
no plans to revise these regulations.   
47. Concerning the possible resort to ad hoc incentiv es, he said that Article 39 of the Investment 
Law aimed at encouraging investment in certain se ctors in line with the Government's development 
plans.  Any proposal to grant ad hoc incentives, i. e. incentives other than those stipulated in the 
Investment Law, had to be submitted to the National Assembly for consideration.  The decision of the 
National Assembly would take the form of a Resoluti on.  He confirmed that these measures would be 
applied in conformity with the principles set out in  the Investment Law and WTO rules.  He further WT/ACC/SPEC/VNM/5/Rev.3 
Page 20  
 
  confirmed that Viet Nam would notify all such d ecisions to grant ad hoc incentives to the WTO in 
accordance with the Agreement on Subsid ies and Countervailing Measures.  
48. 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.   
49. He added that on 6 June 2003, his Govern ment had issued Decree No. 61/2003/ND-CP 
mandating the Agency of Foreign Investment within  the Ministry of Planning and Investment to 
administer foreign investment activities uniformly throughout Viet Nam.  Together with other 
concerned ministries and agencies, the Ministry of  Planning and Investment was reviewing existing 
regulations with the objective of abolishing provisi ons, procedures and licenses considered out-dated, 
overlapping or impeding the operation of FDI en terprises.  He noted that a one-stop-shop for 
investment matters had been set up in Ministries and local authorities.  He further noted that under the 
new Investment Law, stock-holding companies were allowed as one form of investment.  In response 
to questions, he said 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 
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.  
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.  
Under the new Law on Investment, mining was a c onditional investment sector and was, as such,  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 21 
 
 
  subject to the same procedures for evaluation and issuance of investment certificates as other 
conditional investment sectors.  Prior to issuing an investment licence, the competent investment 
licence body was required, under Article 46 of Decree No. 160/2005/ND-CP, to seek the written 
opinion of the mining licensing agency.  This requirement aimed at ensuring close coordination between the competent investment  licensing body and the mining licensing agency and at accelerating 
the issuance of investment licenses.  Criteria taken into consideration for the issuance of investment 
certificates included (i) compliance with the master  plans for technical infrastructure, land use, 
construction, and utilization of mi nerals and other natural resources; (ii) compliance with land use 
requirements; (iii) the project implementation sch edule; and (iv) environmental measures.  These 
regulations applied uniformly to dom estic and foreign investors.  Decisions on approval or refusal of 
investment certificates could be appealed in acco rdance with Viet Nam's applicable laws (see the 
section on "Framework for making and enforcing policies"). 
51. Finally, concerning participati on in joint-ventures and the decision-making process, he noted 
that there no longer existed any requirements in  the new Laws on Investment and Enterprises for 
existing/future joint-venture partners or wholly foreign-owned enterprises to sell compulsorily or 
otherwise transfer part of or their entire share of a venture to a domestic or third party.  Regulations 
encouraging increased Vietnamese participation in joint-ventures or allowing Vietnamese enterprises 
to purchase part of the capital of a wholly forei gn-owned enterprise were not  binding, and should be 
applied strictly on the basis of mutual agreement be tween the joint venture par ties or with the consent 
of the owner of the wholly foreign-owned enterpri se.  He further noted that under the 2005 Laws on 
Investment and Enterprises, decisions by management boards of joint ventures did not require unanimity.   
52. A Member asked how these provisions of the 2005 Enterprise Law would affect foreign 
investors who had already established joint-ventures in Viet Nam.  In response, the representative of 
Viet Nam confirmed that enterprises established by Vietnamese investors together with investors of a 
WTO Member prior to the date of entry into for ce of the 2005 Enterprise Law would, if such a joint-
venture desired, be permitted, for a period of two years after the date of entry into force of the 
2005 Enterprise Law, to modify provisions of the en terprise’s original Charter related to these issues, 
as the enterprise deemed appropriate.  Approval of such modifications of enterprise Charters during 
the period stipulated would be granted expediti ously in order to avoid disruption of business 
operations.  The Working Party took note of these commitments. WT/ACC/SPEC/VNM/5/Rev.3 
Page 22  
 
  State-owned and State trading enterprises 
53. 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, about 120,000 enterprises were 
operating in Viet Nam − of which 3,364 were State-owned,  a number which had increased to 
approximately 200,000 enterprises (i ncluding 2,663 State-owned) by the end of 2005.  State-owned 
enterprises had accounted for 39.2 per cent of GDP in 2004 (38.4 per cent in 2005), the non-State 
sector for 45.6 per cent (45.7 per cent in 2005), and FDIs for 15.2 per cent (15.9 per cent in 2005).  
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 under Decision No. 155/2004/QD-TT g 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 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 acces sions commitments.  He added that Viet Nam's 
policy was to refrain from establishing new State-owne d enterprises, i.e. enterprises with more than 
50 per cent of State-owned shares, and to narro w 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"). 
54. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 23 
 
 
  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 De cember 2003 to improve the effectiveness of 
State-owned enterprises and ensure that they w ould compete with private enterprises on an equal 
basis, and a new Law on Enterprises in November 2005 according to which all State companies had to 
be transformed into joint-stock companies or lim ited liability companies within four years after the 
entry into force of the Law on 1 July 2006.  Thus, as of 1 July 2010 all enterprises would be subject to 
the Law on Enterprises.  The term "equitized ente rprise" designated any State-owned enterprise 
converted into a joint-stock or a limited liability co mpany, regardless of the percentage of shares held 
by the State in the equitized company.  Unde r the 2003 Law on State-owned Enterprises, equitized 
State-owned enterprises had the status of limited lia bility companies and were subject to the Law on 
enterprises − and thus to the same provisions on est ablishment, business registration, rights and 
obligations, closure and bankruptcy as private en terprises.  He confirmed that all State-owned 
enterprises, equitized State-contro lled enterprises and equitized St ate minority stake enterprises had 
the legal status of a lim ited liability company; shareholders and capital contributors were responsible 
for the debts and other liabilities of the company with in the limits of their respective contributions.  
While in the past, the profits of State-owned ente rprises 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 1994 Law on Bankruptcy, last revised in 2004.  The revised 
Law had entered into force on 15 October 2004.  Since the promulgation of the Bankruptcy Law, 
17 State-owned enterprises had gone bankrupt.  Under the 2003 Law on State-owned enterprises, 
profits of State-owned enterprises were paid to th e members' contributing capital; used to cover losses 
of preceding years; and transferred – up to 10 per cen t – to the financial reserve fund of the company 
provided this fund did not exceed 25 per cent of the chartered capital and, in case of companies 
providing banking and insurance services, to the risk  insurance fund.  The rest was distributed in 
accordance with the ratio of invest ed State capital and the average cap ital raised by the company in 
that year.  Profits distributed according to the cap ital raised could be given as bonuses to employees 
and used for re-investment.  Profits distributed accord ing 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.   
55. 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 24  
 
  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.  State- owned enterprises determined their own wage and 
allowance regimes, including directors' salaries, independently without any Government interference 
in line with the Labour Code and minimum wage re gulations.  Ministers and Chairmen of provincial 
People's Committees could not interfere  in the business operations 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 and compliance wi th the law 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, cond ucting business, and utilizing the State invested 
capital efficiently.  State-owned enterprises having fail ed to fulfil their tax obligations could be liable 
for an administrative penalty or prosecution for crim inal offence, depending on the seriousness of the 
offence.  Efficient use of State capital was assessed in  the light of profits.  In the case of inefficient 
use, the Director and Board of Management memb ers could be deprived of  bonus and pay rise and 
asked to compensate for the company's losses.  Government Decree No. 199/2004/ND-CP of 
3 August 2004 provided for self-liability of St ate-owned enterprises for debts and other asset 
obligations within the extent of the State cap ital invested therein.  The Government conducted 
periodic reviews and unscheduled assessments of SOEs ' business efficiency.  Results of such reviews 
could be published, posted in the company's offi ces, or presented at employees' and shareholders' 
meetings.  In response to a question, he noted th at Vietnamese legislation did not address the question 
of the relationship between the National Competitio n Council and the supervision and evaluation of 
State-owned companies' efficiency.  
56. 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 
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.  
57. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 25 
 
 
  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.  
58. In response to a Member who enquired about the sanctions to be applied if the State-owner 
influenced the decisions of the State-owned company in a manner not authorized under the law − e.g. 
if a State-appointed board member or members took action for political or corrupt reasons rather than based on commercial considerations, the representa tive of Viet Nam said that representatives of 
State-ownership had to ensure the business autonom y and self-responsibility of the enterprise.  All 
corrupt activities in Viet Nam were subject to criminal law.   
59. The Government did not intervene in asset ev aluation.  Under the 2003 Law on State-owned 
Enterprises, asset evaluation was provided by consul tancy organizations and valuation centres subject 
to market mechanisms and via auction.  Asset purchases and sales were decided and conducted by the 
enterprises themselves through competitive tenders.  Decisions on capital mobilization were taken by 
the Board of Management or the representative of th e owner of the State equity if the value of the 
proposed project was greater than the enterprise's ch artered capital.  Other projects were decided by 
the General Director or the Director of the ente rprise 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.  In response to a question concerning the valuation of land-use rights for use in asset valuation, he said that the valuation of land-use rights was subject to 
the Land Law and Government's  regulations on price bands − price bands depended on the type of 
land, region, period and land-use purposes.  Pro cedures for valuation of land-use rights applied 
uniformly to State-owned and private enterprises.  
60. Under Viet Nam's Law on State-Owned Enterprises 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 26  
 
  information necessary for a reliable assessment of the efficiency of the company's operations 
(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.  
61. 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).   
62. 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 and services to produ ce such public goods and services.  Investment  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 27 
 
 
  in the production and supply of public services were subject to the Law on Investment and thus to the 
same procedures as other investment projects.  Detailed procedures for the application of bidding and 
ordering procedures for the procurement of public goods and services had been submitted to the Prime 
Minister for approval.  In response to a question concerning power transmission and distribution, he 
noted that the national electric transmission syst em 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 the Khanh Hoa Electricity Compan y, the Vinh Son-Hinh River Hydro-Electric Plant, 
the Thac Ba Hydro-Electric Company, and the Pha La i Therma-electricity Company had already been 
conducted.   
63. 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-discrimin atory 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. 
64. The representative of Viet Nam provided in formation on State-trading enterprises in 
document WT/ACC/VNM/3/Add.1, Annex 6, and a "N otification 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.3 
Page 28  
 
  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 
and 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 
6. Cigarettes and 
cigars 2402, 2403 Viet Nam National Tobacco Corporation 
(VINATABA) Sole importer of cigarettes and 
cigars into Viet Nam 
 
65. 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 been  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).   
66. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 29 
 
 
  fertilizer freely.  Fertilizer production and trading was regulated by Decree No. 113/2003/ND-CP of 
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. 
67. 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 nine member enterprises of VINACAFE and eight member 
enterprises of VINATEA had been equitized.  As fo r 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 fre e from any government intervention.  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 Co rporation had been equitized as of mid-2005.  The 
State had retained controlling shares in four compan ies and kept a minority stake in two enterprises-.  
The percentage of shares owned by the State in these companies now ranged from 51 to 57 per cent.  
Salt production and business enterprises under the ma nagement 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.  
68. 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 30  
 
  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.  
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. 
69. 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, in cluding Article XVII of the GATT 1994 and the 
Understanding on the interpre tation of this Article.  
70. 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. 
71. 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").    WT/ACC/SPEC/VNM/5/Rev.3 
 Page 31 
 
 
  72. The representative of Viet Nam confirmed that Viet Nam would ensure that all enterprises 
that were State-owned or State-controlled, incl uding equitized enterprises in which the State had 
control, and enterprises with special or ex clusive privileges would make purchases, not for 
governmental use, and sales in international trade, based solely on commercial considerations, e.g., 
price, quality, marketability, and availability, a nd that the enterprises of other WTO Members would 
have an adequate opportunity in accordance w ith customary business practice to compete for 
participation in sales to and purchases from the se enterprises on non-discriminatory terms and 
conditions.  In addition, the Government of Viet Nam would not influence, directly or indirectly, 
commercial decisions on the part of enterprises that are State-owned, State-controlled, or that have 
special and exclusive privileges, including decisions on the quantity, value or country of origin of any 
goods purchased or sold, except in a manner cons istent with the WTO Agreement and the rights 
accorded to non-governmental enterprise owners or shareholders.  The Working Party took note of 
these commitments. 
73. The representative of Viet Nam confirmed that, without prejudice to Viet Nam's rights with 
respect to government procurement, all laws, regulat ions and other measures re lating to the purchase 
or sale of goods and services, by enterprises that are State-owned, State-controlled, or that have 
special or exclusive privileges, that are for comme rcial sale, production of goods or supply of services 
for commercial sale, or for non-governmental pur poses would not be considered to be laws, 
regulations and measures relating to government pr ocurement.  Thus, such purchases and sales would 
be subject to the provisions of Articles II, XVI, XVII of the GATS and Article III of GATT 1994.  
The Working Party took no te of these commitments. 
Privatization  
74. 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. WT/ACC/SPEC/VNM/5/Rev.3 
Page 32  
 
  75. 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.   
76. 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 Prime Minister's Decision No. 155/2004/QD-TTg of 
24 August 2004, which had superseded Prime Mi nister'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.   
77. 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 
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 decisi ons taken by a Minister, or the Chairmen of 
People's Committees of provinces or cities, for ente rprises involving capital equal to or less than 
10 billion dong.  Group 2 were enterprises in whic h the State should retain controlling shares, 
i.e. more than 50 per cent of th e chartered capital, when equitizi ng, as their businesses were related 
security or defence; their activities involved the s upply of essential products or were considered vital 
to the economy (i.e. essential for the development of production and improvement of lives in rural, 
mountainous and ethnic minority areas; large scale activ ities contributing in a substantial way to the 
State budget or playing an important role in stab ilizing the economy; or enterprises playing a leading 
role in high technology); or the Government be lieved the private sector was unwilling or unable to 
engage in such activities.  Joint-stock companies we re required to comply with the provisions of the 
Company Law (now Enterprise Law).  At least 20 per cent of the enterprises in Group 2 subject to self-accounting had been targeted for "equitizatio n" during 1998-99 in accordance with Directive 
No. 20/1998/CT-TTg of 21 April 1998.  Group 3 co nsisted of enterprises in which the State did not  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 33 
 
 
  hold a controlling interest, having disposed of all or part of its shareholdings.  Group 1 and Group 2 
sectors, as provided in Decision No. 155/2004/QD-TTg of 24 August 2004 are listed in Table 4.  He 
noted that Ministries and local authorities were in the process of classifying State-owned enterprises 
falling under their authority pursuant 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 sh are was therefore not 
available.  Ministries and local authorities would submit their proposals as to which enterprises fell 
under Group 1 or Group 2 to the Prime Minister for approval.  As for SOEs falling under the authority 
of the Prime Minister, i.e. SOEs established by Prime Minister’s Decision and State-owned 
corporations established by decision of the Pr ime Minister or provincial People’s Committees, 
equitization would be decided by the Prime Minister on the basis of proposals by the enterprises' Board of Directors.  He added that State-owne d commercial banks were subject to equitization 
pursuant to Government Decree No. 187/2004/ND- CP.  He confirmed that domestic private 
enterprises were free to participate in the sect ors listed in Decision No. 155/2004/QD-TTg (see 
Table 4), except for the production and supply of pub lic goods and services related to national defence 
and security.  Foreign investors may participate in these sectors/activiti es upon WTO accession in line 
with Viet Nam's commitments.  However, the Stat e retained a controlling share in already existing 
State-owned enterprises because these sectors were vital economic and technological sectors with 
high risks, requiring large investments, or involving a long pay-back time, or to ensure that the needs 
of inhabitants of disadvantaged socio-economic areas were met. 
78. 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.   
79. 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 
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.  As of 31 December 2005,  a total of 2,935 enterprises had been equitized, 
among which 682 had a State-owned capital ex ceeding VND 10 billion.  Among the equitized 
enterprises were big companies such as Viet Nam Dairy Products Company (VINAMILK with a 
capital 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 34  
 
  VND 1,311 billion, of which 63 per cent were State-owne d).  On average, the State held 46.5 per cent 
of the chartered capital of equitized enterprises, employees 38.1 per cent, and other shareholders 
15.4 per cent.  The State had retained controllin g 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 companies (21 pe r cent).  Following the ownership transformation, 
most of these enterprises were operating more effi ciently and 29 of them were listed on Viet Nam's 
stock exchange.  All garment companies had been eq uitized, with the exception of Viet Tien Garment 
Company, which had been transformed into a holding company with subsidiaries.  He noted that the 
equitization process of enterprises involved in ma nagement and operation of irrigation works, 
production of original plants and animals, and salt production and manageme nt had not attracted 
private investors as these enterp rises faced many difficulties and generated low profits.  From 2005 
onward, 1,472 State-owned enterpri ses would be equitized, transferred, sold, closed or subject to 
bankruptcy − under the current 2005-2007 restructuring pl an, about 50 State-owned enterprises would 
be subject to bankruptcy.  At the end of 2 006, approximately 1,800 enterprises would remain 
100 per cent State-owned, a number which would be reduced to 1,500 by the end of 2007.  The 
number of 100 per cent State-owned enterprises would be  further decreased in the following years to 
be restricted only to national security sectors and large corporations.  He provided information about 
the number of equitized enterprises since 1992 in Table 6.   
80. 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.  The Vietcombank would be equ itized in accordance with the Prime Minister's 
Decision No. 230/2005/QD-TTg of 21 September 2005 and the Mekong Delta Housing Development 
Bank pursuant to Decision No. 266/2005/QD-TTg of 27 October 2005.  Preparatory work for the valuation process (verification of assets and outstanding debts, resolving of financial issues) had been 
completed.  International consulting agencies had been recruited to assist in the valuation and 
equitization process of the banks.  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.  As 
for the Mekong Delta Housing Development Bank,  the valuation process had been launched on 
31 December 2005.  The Bank would start issuing shares in the fourth quarter of 2006 and would be 
equitized along the same lines as the Vietcombank.   
81. 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 
a steering committee for equitization, and an assist ant group compiled factual information about the  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 35 
 
 
  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 steering 
committee was composed of up to five members (the leader of the agency having issued the decision 
on equitization or an authorized person − representatives of Ministries, People's Committees of 
provinces or cities; representatives of the relevant units of the equitization agency; directors of the 
equitized company; and, in the case of a general co rporation, a representative of the Ministry of 
Finance).  The second step was the sale of the shar es.  The steering committee decided on the auction 
method (direct auction at the enterprise, auction at an intermediary financial organization, 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 en terprises were sold by 
public auction before shares subject to preferential sale were sold to employees and domestic strategic 
investors.  Preferential prices had to be contingent upon the average auction price.  After the auction, 
the steering committee submitted a report on the resu lts of the share sale to the body making the 
decision on equitization, which adjusted the equitiza tion plan accordingly.  The last step was the 
conversion of the enterprise into a shareholding  company.  The steering committee and assistant 
group held the first General Meeti ng of Shareholders to adopt the company's Charter, and elect the 
Members of the Board of Management, Control Bo ard and management apparatus.  The Board of 
Management was responsible for the business regist ration of the company.  A financial report was 
prepared, tax obligations and e quitization expenses finalized, a report submitted to the body making 
the decision on equitization, and proceeds from equitiza tion paid to the relevant  bodies.  Shareholding 
shares were then issued to the companies' sharehol ders.  These steps had to be completed within nine 
months.  Passed this period, the body making th e decision on equitization was responsible for any 
extra expenses incurred.   
82. 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).  There was no limit on the percentage sh are that could be awarded to a single strategic 
domestic investor.  Such percentage was decide d by each enterprise.  Employees were entitled to WT/ACC/SPEC/VNM/5/Rev.3 
Page 36  
 
  purchase 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 
shares, which should amount to minimum 20 per cent of  the chartered capital (Article 27.4), were 
publicly auctioned to investors. 
83. Foreign investors were allowed to participat e in the equitization process by purchasing shares 
of State-owned enterprises subject to Viet Nam' s commitments under international treaties.  These 
sectors included telecommunication; textiles and ga rments; footwear; leather-processing; production 
and processing of agricultural, forestry and ma rine products; production of  other consumer goods; 
production of construction materials; road tran sportation, inland waterway transportation and 
container merchandise transportati on; production of stationery and teaching equipment for schools; 
production of toys; commerce, hotel and hotel-related services; and mechanical engineering 
manufacturing.  The regulation did not distinguish between enterprises producing for the local market 
or for exportation.  Moreover, Viet Nam did not prohibit the establishment of foreign invested enterprises competing with State-owned enterpri ses undergoing equitization.  For equitized Group 2 
and Group 3 enterprises, the total value of shares so ld 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 July 2003.  Shares purchased  by foreign investors were paid in local 
currency.  Foreign exchange was converted at the average inter-bank exchange rate announced by the 
State Bank of Viet Nam at the time of the sale.  Pr ocedures 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 pe r cent after the initial distribution of shares, the 
representative of Viet Nam said that the 30 per cent cap  remained valid after the initial distribution of 
shares.  However, the list of sectors in which fo reign investors were entitled to purchase shares and 
the 30 per cent cap applicable to foreign invest ors were under review.  Decision No. 36/2003/QD-TTg 
would cease to have effect as from 1 July 2006.  After this date, the purchase of shares of Vietnamese enterprises by foreign investors would be subject to  the new Investment Law (Article 11) and its 
implementing regulations.  The list of sectors in  which foreign investors would be allowed to 
participate would be specified in the new Investme nt Law and the percentage of shares of existing 
Vietnamese enterprises that foreign investors woul d be allowed to purchase in the implementing 
Decree.  He confirmed that these changes woul d apply to State-owned enterprises having been 
equitized.    WT/ACC/SPEC/VNM/5/Rev.3 
 Page 37 
 
 
  84. Noting that foreign investors were not allowed to be "strategic investors", a Member 
requested Viet Nam to remove this differentiati on and ensure equal treatment.  In response, the 
representative of Viet Nam confirmed that any rul es on strategic investors would be in accordance 
with Viet Nam's WTO obligations.  
85. 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 
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.  
86. 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 opinions (Article 77 of the 
2005 Enterprise Law).  Decisions were taken by the majority of the votes − specific ratios were 
stipulated in the company's chartered capital, excep t for decisions on the type and number of shares to 
be issued, amendments to the company's Chapter,  reorganization and dissolution of the company, 
investment or sale of more than 50 per cent of th e total value of the company's assets, which required 
a 65 per cent majority.  Therefore, only a group of sh areholders representing at least 51 per cent of the 
votes, or 65 per cent in some cases, had a veto right .  Shareholders, 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 management  of some large shareholding companies.  In WT/ACC/SPEC/VNM/5/Rev.3 
Page 38  
 
  response to a question, he added that most equitiz ed enterprises had experienced changes in their 
boards of management.  However, no specific data was available. 
87. 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.  
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.   
88. 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.  
89. 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 and the new Investment La w.  The fees associated with 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.   
90. 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 and equitization] [its 
equitization programme and reform of equitized en terprises in which the State retained a controlling  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 39 
 
 
  share] [as long as the privatization and equitizati on programme would be in existence].  The Working 
Party took note of this commitment. 
Pricing policies  
91. 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 Ordina nce, 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 
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. 
92. 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.   
93. 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 a ppear 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 40  
 
  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 s ubsidization programme had been no tified in Viet Nam's tables on 
domestic support in agriculture (see paragraph 355).  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 
encouraged to purchase imported pork, sugar, and rice at the same prices at which they were encouraged to purchase domestic like products. 
94. 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.  
95. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 41 
 
 
  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.   
96. 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).   
97. 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.   
98. 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 the 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 
99. 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"). 
100. 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 42  
 
  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. 
101. Anti-competitive acts prohibited under the Law included anti-competitive agreements, abuse 
of dominant and monopoly position, and economic c oncentration (Article 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; 
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 provi ded 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 unde r Article 18 if the combined ma rket shares 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. 
102. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 43 
 
 
  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. 
103. 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 Tri bunal 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 hand ling 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 
(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).  S hould the complainant disag ree 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.   
104. 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  
105. The representative of Viet Nam said that pursu ant to the 1992 Constitution (as amended in 
2001), the National Assembly was the highest representative organ of the people and the highest organ of State power in the unitary State of th e Socialist Republic of Viet Nam.  The National 
Assembly had the legislative powers.  The Natio nal Assembly decided on domestic and foreign WT/ACC/SPEC/VNM/5/Rev.3 
Page 44  
 
  policy, socio-economic matters, national defence a nd security issues, the main principles governing 
the organization and activity of the State, social  relations, and citizens' activities.  The National 
Assembly supervised all State activities .  In addi tion, the National Assembly had the power to elect, 
discharge and remove from office the State President and Vice Presidents, the National Assembly's Chairperson and Vice-Chairpersons, as well as members of the National Assembly's Standing Committee, the Prime Minister, the Chief Justice of the Supreme People's Court, and the Head of the 
Supreme People's Procuracy; and to approve Prime Minister's proposed appointments, removals from 
office and discharges of the Deputy Prime Minister, Ministers and other members of the Government.  The term of each National Assembly was five years.  In special cases, with the approval of at least two thirds of its Members, the National Assembly coul d either reduce or prolong its period of tenure.  
The National Assembly held two sessions a year, c onvened by its Standing Committee.  In special 
cases, extraordinary sessions could also be convened. 
106. The Standing Committee of the National Assembly was its standing organ.  It was 
empowered to prepare for, convene and lead ses sions of the National Assembly.  The Standing 
Committee had the power to interpret the Constitution,  laws and ordinances; to enact ordinances and 
resolutions; to supervise the implementation of the Constitution, laws and resolutions of the National 
Assembly, its ordinances and resolutions; to over see the operations of the Government, the Supreme 
People's Court, the Supreme People's Procuracy; to  suspend the implementation of legal documents 
issued by the Government, Prime Minister, Supr eme People's Court and Supreme People's Procuracy 
that contravened the Constitution, laws, and resolu tions of the National Assembly and to report the 
matter to the National Assembly for it to decide th e abolition of such documents; and to repeal legal 
documents issued by the Government, Prime Mini ster, Supreme People's Court and Supreme People's 
Procuracy that were contrary to its ordinances and resolutions.  The Standing Committee was empowered to supervise and give guidance to th e activities of the People's Councils and to annul 
resolutions adopted by the People's Councils of provinces and cities under direct central government. 
107. The State President was the Head of State.  He/she represented the Socialist Republic of 
Viet Nam internally and externally.  The State President was elected by the National Assembly among its Members and was responsible befo re and reported to the National A ssembly.  The term of office of 
the State President corresponded to the term of the National Assembly.  The State President was 
empowered to promulgate the Cons titution, laws and ordinances; to propose to the National Assembly 
to elect, discharge or remove from office the Vice State President, the Prime Minister, the Chief 
Justice of the Supreme People's Court, the Head  of the Supreme People's Procuracy; and based on 
resolutions of the National Assembly, to appoint, remove from office or discharge the Deputy Prime 
Minister, Ministers and other members of the Government.  The State President had the power to  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 45 
 
 
  appoint, discharge or dismiss the Deputy Chief Justices and Justices of the Supreme People's Court, 
the Deputy Head and the procurators of the Supreme People's Procuracy.  The State President could 
negotiate and conclude international treaties in th e name of the State of the Socialist Republic of 
Viet Nam with other heads of State − once signed by the State President, such treaties were then 
submitted to the National Assembly for ratification.  The State President decided on the ratification of 
or accession to international treaties, except in case s where such treaties had to be submitted to the 
National Assembly for decision.  
108. The Government was the executive organ of the National Assembly and the highest organ of 
State administration.  The Government administer ed and implemented State objectives and policies 
affecting the economy, cultural and social life, na tional defence, security and foreign affairs in a 
uniform manner; built and strengthened the unified system of State administration from the centre to 
the grassroots; ensured the implementation of the Constitution and laws by State organs, economic 
organizations, social organizations, armed forces, a nd citizens.  The Government was accountable to 
the National Assembly and reported to the Nationa l Assembly, its Standing Committee and the State 
President.  The Government introduced draft laws, ordinances and other legal projects to the National 
Assembly and its Standing Committee.  It issued resolutions and decrees, and ensured implementation 
of those documents.  The Government was responsible  for the unified management of foreign policy; 
negotiated and concluded internationa l treaties in the name of the State of the Socialist Republic of 
Viet Nam, except in cases where the State Preside nt decided to negotiate  and sign international 
treaties in the name of the State with the heads of other States; negotiated, signed, approved and 
acceded to international treaties in the name of th e Government; administered the implementation of 
international treaties which the Socialist Republic  of Viet Nam had concluded or acceded to; and 
protected the interests of the State, and the leg itimate interests of Vietnamese organizations and 
citizens in foreign countries.  People's Committees we re elected by the People's Council.  They were 
the People's Council's executive organ and were in charge of local State administration.  People's 
Committees were responsible for implementing the Constitution, laws, legal documents issued by 
higher State organs and resolutions of the People' s Council.  People's Committees could, within the 
areas of duties and powers, issue decisions and directives and supervise their implementation. 
109. In accordance with the Constitution, laws a nd resolutions of the National Assembly, 
ordinances and resolutions of the National Assembly 's Standing Committee, and orders and decisions 
of the State President, the Prime Minister issued decisions and directives and ensured implementation 
of those documents.  The Prime Minister could su spend or annul decisions, directives and circulars 
issued by Ministers and other members of the Government, decisions and directives of People's 
Committees and Chairmen of People's Committees of provinces and cities under direct central WT/ACC/SPEC/VNM/5/Rev.3 
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  government that contravened the C onstitution, laws, and other legal doc uments issued by higher State 
organs; and suspend the implementation of resolu tions of People's Councils  of provinces and cities 
under direct central government that contravened the Constitution, the law, and legal documents 
issued by higher State organs and, simultane ously, propose their annulment by the Standing 
Committee of the National Assembly. 
110. The representative of Viet Nam confirmed that the National Assembly was the only organ 
empowered to promulgate the Constitution and laws .  Pursuant to the 1996 Law on the Promulgation 
of Legal Normative Documents (as amended in 2002) , the system of legal documents consisted of 
(i) documents promulgated by the National As sembly including the Constitution, laws and 
resolutions; (ii) documents promulgated by th e National Assembly's Standing Committee including 
ordinances and resolutions; (iii) orders and decisi ons of the State President; (iv) resolutions and 
decrees of the Government; (v) decisions and di rectives of the Prime Minister; (vi) decisions, 
directives and circulars of the ministers and the heads of the ministerial-level agencies; 
(vii) resolutions of the Justices' Council of th e Supreme People's Court; decisions, directives and 
circulars of the Chief Justice of the Supreme People's Court and the Head of the Supreme People's 
Procuracy; (viii) joint resolutions and circular s between competent State agencies and between 
competent State agencies and socio-political organizations; (ix) resolutions of the People's Councils; and (x) decisions and directives of the People's Committees.  The Constitution had the highest legal 
status and all other legal normative documents were  subject to the Constitution.  Legal normative 
documents issued by a lower State organ were consiste nt with those issued by the higher State organs.  
Legal normative documents contrary to the Cons titution and legal normative documents issued by 
higher State organs were repealed and/or suspended by the competent State organs.  In case of conflict 
between different provisions of various legal normati ve documents at the same hierarchy rank, which 
were issued by the same State organ, the most recently promulgated provisions would prevail. 
111. 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.  Regarding the collection of public opinions on 
the building of legal documents, the Law on Amen dment and Supplement of Some Articles of the 
Law on Promulgation of Legal Normative Instrume nts which had been approved by the National 
Assembly on 16 December 2002 stipulated that so cial organizations, econom ic organisations, State 
bodies and individuals had the right to contribute thei r opinions to the building of legal instruments.  
During the process of preparation of legal instruments, the agency and/or organization concerned 
would facilitate other agencies, organizations and individuals to participate by providing their  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 47 
 
 
  opinions, and organize the collection of opinions from those directly affected by the proposed legal 
instrument in an appropriate scope and form.  Opin ions which were contribut ed on a project or draft 
of a legal instrument would be studied in order to improve the project or draft document.  In addition, 
the Government issued detailed guidance on the time, process, and manner for collecting public 
opinions on the draft of legal instruments.  In response to Members' observations that conflicting provisions in Viet Nam's legislation encourag ed 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.  This principle had already been applied, for example, 
in the Constitution (Article 16) and in the Enterpri se Law (Article 7).  However, the "negative" list 
approach was still a novelty in Viet Nam, and woul d 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. 
112. Questioned about the applicability of international treaties, he noted that on 14 June 2005 the 
National Assembly of Viet Nam had adopted Law No. 41/2005/QH on Conclusion, Accession and 
Implementation of Treaties (or Law on Treaties).  Th e Law had entered into force on 1 January 2006.  
The Law provided for the conclusion,  accession, reservation, deposit, custody, preparation of certified 
copies, publication, registration, implementation, in terpretation, amendment, supplement, extension, 
termination, denunciation, withdrawal, and suspensi on of the implementation of treaties concluded or 
acceded to in the name of the State or in the name  of the Government of the Socialist Republic of 
Viet Nam.  The State President and the Government  decided on the negotiation and signing of treaties 
(Article 11).  The National Assembly, the State Pr esident or the Government decided on the accession 
to multilateral treaties (Article 50).  The National As sembly and the State President decided to ratify 
the treaties and the Government to approve them (A rticles 31, 32, 44 and 43).  Article 69 of the Law 
provided for the publication of international trea ties in the Official Gazette and the "Series of 
International Treaties".  He confirmed that accessi on to the WTO would require ratification.  The 
National Assembly and its Sta nding Committee were competent to oversee the implementation of 
international treaties in Viet Nam. 
113. He added that according to the Law on Treaties, a treaty would have legal effect in Viet Nam 
in the way and for the duration stipulated in su ch treaty or as agreed between Viet Nam and the 
foreign contracting party (parties).  Domestically, b ased on the needs, content and nature of a treaty, WT/ACC/SPEC/VNM/5/Rev.3 
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  the National Assembly, the State President or th e Government, in making decision to accept to be 
bound by the treaty, would, at the same time, make decision on direct application of such treaty, in 
whole or in part, with respect to agencies, organizations, and individuals, in cases where the 
provisions of the treaty were adequately detailed and clear for its implementation, or would make 
decisions or proposals for amendment, supplemen t, repeal or promulgation of legal normative 
documents for implementation of such treaty.  In case a legal normative document contained, with 
respect to the same subject matter, provision(s) different from relevant provision(s) of a treaty to 
which the Socialist Republic of Viet Nam was a party, the provision(s) of the treaty were applied.  In 
addition, the promulgation of legal normative documents would not create any obstacles to the 
implementation of treaties to which the Socialis t Republic of Viet Nam was a party and which 
contained provisions on th e same subject matters. 
114. The operation and organization of the Vietname se court system were stipulated in Law 
No. 33/2002/QH10 of 2 April 2002 on the Organization of People’s Courts.  According to this Law, 
the court system included the Supreme People’s C ourt; the People’s Courts of the provinces and 
centrally-run cities; the People’s Courts of the rural districts, urban districts, provincial capitals and 
provincial cities; military courts; and other courts  prescribed by law (in special circumstances, the 
National Assembly could decide to set up special tribunals).  The Supreme People’s Court had the 
following tasks and powers: (i) to guide courts to uniformly apply laws, sum up experiences in trials 
by courts; (ii) to supervise the trials by tribunals at different levels; to supervise the trials by special 
tribunals and other courts, except otherwise provide d for upon the establishment of such courts; and 
(iii) to submit bills to the National Assembly a nd draft ordinances to the National Assembly Standing 
Committee as provided for by law.  The Chief Just ice of the Supreme People’s Court was elected, 
removed from office or dismissed by the National Assembly on the proposal of the State President.  
The term of office of the Chief Justice of the Supr eme People’s Court corresponded to the term of the 
National Assembly.  The Chief Justice of the Supr eme People’s Court was re sponsible for and should 
report on its activities before the National Assembly , or while the National Assembly was in recess, 
before the National Assembly Standing Committee and the State President.  The courts should 
conduct public trials, except for special cases provide d by laws.  The legally effective judgments and 
decisions of courts had to be respected by all State bodies, political organizations, socio-political 
organizations, social organizations, socio-pr ofessional organizations, economic organizations, 
people’s armed force units and people. 
115. The 2004 Civil Procedure Code stipulated the procedure to settle commercial and economic 
disputes.  This Code provided for basic principl es in procedure: proceedings and formalities for 
initiating a lawsuit to require court resolution of laws uits or claims relating to civil disputes, marriage  WT/ACC/SPEC/VNM/5/Rev.3 
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  and family affairs, business, commerce and labour matte rs (to be referred to as civil lawsuits or civil 
matters).  According to this Code, the time limit fo r initiating a lawsuit to the Court to resolve a civil 
case was two years from the date of infringement of th e lawful rights and benefits of individuals or 
organizations, public interest or State interest; the time limit for requesting the Court to deal with a 
civil matter was one year from the date of occurren ce of the right to make such a request.  A first 
instance panel for hearing a civil lawsuit consisted of one judge and two people’s jurors.  In special 
cases, the first instance panel could consist of two judges and three people’s jurors.  According to the 
Code, the parties to a dispute could request panel members to be changed.  The courts adjudicated 
collectively and made decisions by majority.  During the settlement of a case, the court was responsible for conductin g conciliations and facilitating the litigants to agree with each other on the 
resolution of the civil case in accordan ce with the provisions of the Code.  Judgments of first instance 
courts were legally effective if not appealed within  the time-limit for appeal.  The implementation of 
already effective judgements and decisions should be implemented according to the Civil Procedure 
Code and Ordinance on Civil Judgment Execution No 13/2004/PL-UBTVQH11 of 14 January 2004.  
Already effective judgements and decisions of co urts had to be respected and implemented by 
individuals and organizations.  Pursuant to this Or dinance, the party in favour of which the judgment 
had been made was entitled to ask the judgement execution authority to issue a writ of judgement 
execution if the party against which the judgment ha d been made (the "judgment debtor") had not 
voluntarily paid the judgment.  The judgment execu tion authority could take compulsory measures 
against judgment debtors consisti ng of account deductions, money deduc tions, withdrawal of valuable 
documents, income deductions, seizure  of property, obligation to tr ansfer property, move houses or 
transfer the land use right, and obligation to do or no t to do certain activities.  In addition, under the 
Criminal Code, a person not having implemented a ci vil court's verdict could be criminally prosecuted 
for three years of re-education or six months to three years of imprisonment. 
116. Under the 2004 Civil Procedure Code, within 15  days from the date of announcement of a 
court's judgment, or in case of absence of the concer ned parties at the hearing within 15 days from the 
date when a copy of the judgement had been delivered  to the parties or from the date of posting of the 
judgement, all parties were entitled to appeal agai nst the first instance court's judgment or decision 
ask the higher people's court to conduct the second in stance trial.  Appeal applications had to be 
submitted to the court of first instance and should in clude the 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 signature or finge rprint of the appellant, and any document necessary 
to support the appeal.  The court of appeal woul d generally open the appeal hearing within three 
months after the date of receipt of all required do cuments, unless otherwise provided for in the Code.  
The judgment or decision of the court of a ppeal would become lega lly effective upon being WT/ACC/SPEC/VNM/5/Rev.3 
Page 50  
 
  announced.  Noting that the international norm for filing an appeal was 30-45 days, a Member asked 
Viet Nam whether it was considering lengtheni ng the 15 day period provided under Vietnamese 
legislation.  In response, the representative of Viet  Nam said that he consider ed 15 days appropriate to 
enable the parties concerned to protect their lega l interests and to accelerate the procedure for civil 
dispute resolution.  His Government ha d no plans to amend this regulation. 
117. 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 there were a number mech anisms aimed at ensuring impartial hearing in 
economic cases.  For example, Article 132 of the Constitution guaranteed the defending right of the 
accused.  Article 8 of the 2004 Civil Procedure Code provided for the principle of equality of rights and obligations in civil procedures of all agencies  and organizations, regardless of their form of 
organization or ownership, and Artic le 12 of the Civil Procedure Code  and Article 4 of the Ordinance 
on Judges and People's Jurors for the principle of judi cial independence.  Pursuant to Article 16 of the 
Civil Procedure Code, judges and People's jurors (lay  assessors) 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 had to be 
changed to ensure impartial hearing.   In addition, parties were allowed to ask that judges or People's 
jurors be changed if it was proved that they might not be impartial (Article 58).  The Civil Procedure 
Code also entrusted the People's Procuracy with th e role of supervising the law compliance in civil 
procedure, timeliness, and consiste ncy with the law by the court.  Finally, the Civil Procedure Code 
guaranteed the right of individuals, agencies a nd organizations to complain against and denounce 
illegal acts of persons carrying out civil proceedings. 
118. Viet Nam's current legislative provisions relati ng to the right of complaints were mainly 
stipulated in the Law on Complaints and Denunciati ons and its amendments (the latest amendment 
was the Law on Amending and Supplementing a Numb er of Articles of the Law on Complaints and 
Denunciations No. 58/2005/QH11 of 29 November  2005, which had entered into force on 
1 June 2006, hereafter referred to as the Law on Complaints and Denunciati ons); and the Ordinance 
on Procedures for the Settlement of Administrative C ases and its amendments (the latest amendment 
was the Law on Amending and Supplementing a Number of Article of the Ordinance on Procedures 
for the Settlement of Administrative Cases No . 29/2006/PL-UBTVQH of 5 April 2006, which had 
entered into force on 1 June 2006, hereafter refe rred to as the Ordinance on Procedures for the 
Settlement of Administrative Cas es).  According to the Law on  Complaints and Denunciations, 
individuals, agencies and organizations had the right to lodge a complaint against administrative 
decisions issued by, or administrative actions take n by, a State administrative agency or a competent  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 51 
 
 
  person of the State administrative agency if they foun d that such decisions or actions were illegal, or 
violated their legitimate rights and interests.  Th e complaints were settled through administrative 
procedures or in the court should the complainants not agree with an administrative settlement of the 
case.  The Administrative Court was a judicial tribunal in the system of People's Courts and was independent from the executive branch.  He conf irmed that all administrative decisions on WTO-
related matters could be challe nged in administrative courts. 
119. 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 the Law on 
Complaints and Denunciation and the Ordinance on Procedures for Settlement of Administrative 
Disputes gave effect to that Member's view.  The Ordinance on Procedures for Settlement of 
Administrative Disputes allowed the parties involved in an administrative dispute to bring the dispute 
before the court if the settlement of the dis pute through administrative proceedings had been 
unsatisfactory.  The amendment of this Ordinance in April 2006 had extended the jurisdiction of the 
court to cover all WTO related matters, i.e. (i) complaints against administrative decisions or 
administrative actions concerning the grant and revo cation of permits and licenses in the fields of 
capital construction, production a nd business, and of business registration certificates and practicing 
certificates; or complaints against other administra tive decisions or administrative actions concerning 
business and financial activities of traders; (ii) complaints against administrative decisions or 
administrative actions concerning domestic and intern ational trade in goods; (iii) complaints against 
administrative decisions or actions concerning the requisition, compulsory purchase or confiscation of 
properties; (iv) complaints against administrative decisions or actions concerning the application, 
collection and recovery of taxes; (v) complaints ag ainst administrative decisions or actions concerning 
the application, collection and recovery of charges a nd fees, collection of land use fee; (vi) complaints 
against administrative decisions or actions in the sector of State management of intellectual property 
and technology transfers; (vii) complaints against administrative decisions or actions in the State 
management of investment; (viii) complaints agai nst decisions on settlement of complaints about 
decisions on dealing with competition matters; (ix) complaints against administrative decisions or 
actions of customs agencies and customs officers; and (x) other complaints as prescribed by Vietnamese law and by international treaties of which Viet Nam was a signatory or a member.  In addition, the Ordinance provided for detailed and more transparent regulations on the process and 
procedures for the settlement of administrative cases with a view to creating more favourable 
conditions for complainants. WT/ACC/SPEC/VNM/5/Rev.3 
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  120. Legally effective court judgments or decisions  could be challenged according to re-opening 
(re-trial) and review procedures.  The Chief Justic e of the Supreme People’s Court and the Head of 
the Supreme People’s Procuracy were entitled to pr otest, in accordance with the review and re-
opening procedures, against effective court judgements  or decisions that had been rendered by courts 
of all levels according to the procedure laws.  Th e Chief Judge of the provincial People’s Court and 
the Head of the provincial People’s Procuracy were  entitled to protest, in acco rdance with the review 
and re-opening procedures, against effective judgements or decisions  rendered by district people’s 
courts according to the procedure la ws.  The trial panel was entitled to reject a protest, to remand, or 
to set aside the judgments or decisions of the case. 
121. Procedures for the settlement of economic disput es by arbitration were provided in Ordinance 
No. 08/2003/PL-UBTVQH on Commercial Arbitration, adopted on 25 February 2003 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 commercial dispute did not want to file a petition to the People's court, they could choose, by 
consensus, to resolve the dispute by an economic arbitration centre.  The Party seeking arbitration 
should file an arbitration request, a written arbitra tion agreement and other re lated documents to the 
arbitration centre.  Arbitrators were selected by the Parties or appointed by the chairman of the 
arbitration centre if the Parties had failed to select arbitrators.  In the case of arbitration proceedings 
involving a foreign Party, the arbitrators did not need  to be selected from the list of arbitrators of 
Viet Nam's arbitration centre; they could be foreig n arbitrators recognized under the law of their home 
country.  The Ministry of Justice was responsible for the administration of the rules on organization 
and activities of arbitrators.  Once established, arb itration centres operated according to their charter, 
arbitration rules and Vietnamese laws.  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 Ordina nce expanded the concept of commercial activities to 
be consistent with international practice and stipulated that arbitration decisions 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 
authority of the arbitration tribunal; the requesting party had proved that an arbitrator was violating 
his obligations; or the arbitration decision was contrary  to the public interests of  Viet Nam (Article 54 
of the Ordinance).  He noted that the definitio n of "public interest" was in conformity with  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 53 
 
 
  international norms and the 1958 New York Conven tion on Recognition and Enforcement of Foreign 
Arbitral Awards.  Asked whether a court had alread y nullified an arbitration decision based on this 
principle, he said he had no information about such cases. 
122. Arbitration decisions became effective upon announ cement (Article 44.4).  The decisions had 
to be announced within 60 days from the date of clos ing of the final hearing (Article 45.1) and sent to 
the parties immediately after announcement.  If the arbitration decision had not been voluntarily 
implemented within 30 days from its date of announcement, the inter ested party could file a request 
for enforcement in writing to a provincial judgm ent execution agency.  He confirmed that the 
Ordinance on Commercial Arbitration guaranteed non- discriminatory treatment.  Foreign arbitral 
awards were recognized and enforced in accordance with the Civil Procedure Code and other related 
legal normative documents for implementation in Viet Nam. 
123. 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. 
124. 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.  
125. 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. 
126. The representative of Viet Nam replied that  sub-central entities (Peoples' Councils and 
Peoples' Committees at all levels) were subject to cen tral laws.  They administered local affairs by 
issuing legal normative documents.  According to  the Law on Promulgation of Legal Normative 
Documents of Peoples' Council and Peoples' Committ ee, legal normative documents issued by sub-WT/ACC/SPEC/VNM/5/Rev.3 
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  central entities implemented laws and regulations adop ted or issued by central government agencies.  
The assignment of authorization to different levels of administration was determined by Viet Nam's 
central laws.  For example, according to the La w on Organization of Peopl e'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 par ticipate in international 
cooperation in trade, services and tourism as stipulat ed by laws; (ii) issuing and revoking licenses for 
tourist businesses, tourist areas, tourist spots, hotels,  and local travel agencies within a province as 
regulated by laws; (iii) market supervision a nd organization of export-import management as 
regulated by laws; and (iv) inspection and superv ision of trade, services and tourism activities to 
ensure their compliance with laws and regulations.  Accordingly, policies and measures introduced by 
sub-central entities were consistent with those adop ted by the central Government.  To ensure the 
uniform application of laws throughout Viet Nam' s customs territory and other territories under its 
control, Viet Nam had set up mechanisms to iden tify and invalidate incons istent legal normative 
documents issued by sub-central entities.  The Pe ople's Procuracies supervised judicial activities and 
exercised the right to initiate public prosecution with in their jurisdictions.  He confirmed that local 
authorities had no right to promulgate  any kind of fees on imported goods. 
127. 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.   
128. The representative of Viet Nam confirmed that  the provisions of the WTO Agreement would 
be applied uniformly throughout the customs territory  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. 
129. [The representative of Viet Nam further confir med 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 55 
 
 
  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)  
130. 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.   
131. In response, the representative of Viet Nam said that his Government had reviewed its 
legislation with a view to harmonizing investmen t/registration procedures for foreign-invested and 
domestic enterprises.  New Laws on Enterprises and In vestment had been adopted to this effect in 
November 2005.  Under the new Laws, domestic inv estors wishing to import or export were required 
to hold a Business Registration Certificate and foreign investors an investment certificate.  Procedures 
for business registration of domestic investors were set out in the 2005 Law on Enterprises and 
Government Decree [No.... ] on Business Registration and Business Registration Agency.  Domestic 
investors, whether enterprises or individual busin ess households, were free to register any business 
line, except those prohibited under Vietnamese law (s ee paragraph [34]).  Registration of some 
business lines was subject to specific conditions (conditional business lines, business requiring a 
minimum legal capital or certain practicing certificates − enterprises wishing to conduct business in 
conditional sectors were required, in addition to bus iness registration, to apply for a separate business 
licence, certificate of business condition, or certificate of profession).  Applications for business registration certificates had to be submitted to th e business registration office of the province where 
the enterprise would be located and should incl ude the business registration form; the company's WT/ACC/SPEC/VNM/5/Rev.3 
Page 56  
 
  charter; the list of members and shareholders; and a certificate of capital or a copy of the profession 
certificate for the sectors requiring such certificates.  Business registration certificates were delivered 
within 10 days provided the business sector was not prohibited, the name of the enterprise 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).  His Government did not limit 
or otherwise intervene in the scope of business chos en by Vietnamese enterprises and, except in the 
prohibited sectors, wholly Vietnamese-owned ente rprises were entitled to determine their scope of 
business at their own discretion.  He noted that domestic investors could only import goods listed in 
their Business Registration Certificate.   
132. Procedures for issuing investment certificates were described in the 2005 Law on Investment 
and Government Decree ] No...] providing for implem entation of this Law.  A foreign investor 
investing in Viet Nam for the first time was require d to apply for an investment certificate to the 
authorized State administrative body, i.e. the Ministry of Planning and Investment (under its statutory authority or upon decision of the Prime Minister), provincial People's Committees or Management 
committees of industrial zones, export processi ng zones, high-tech zones or economic zones 
depending on the type of project − the responsibilities of the various State administrative bodies will 
be defined in the decree implementing the Law on I nvestment.  Foreign investors already holding an 
investment certificate and wishing to carry out a ne w investment project could either apply for a new 
certificate or request that their certificate be amende d.  The Law on Investment provided for two types 
of procedures for granting investment certificat es, "investment registration" and "investment 
evaluation" (see paragraph [41]).  Investment  certificates also served as business registration 
certificates.  Investment certificates were delivered within 15 days for projects subject to registration 
procedures and within 30 day for projects subject to evaluation procedures.  These time-limits could 
be extended, if necessary, for 45 days maximu m.  Foreign investors were free to do 
investment/business in accordance with their investme nt certificate.  He confirmed that procedures for 
the establishment of foreign-invested companies were  not more restrictive than those applicable to 
wholly domestic enterprises. 
133. He added that, in his opinion, Viet Nam's legislation did not violate the national treatment 
obligation of Article III of the GATT 1994 and did no t amount to an import restriction as enterprises 
were free to define their scope of business (tradi ng lines) and hence free to determine the list of 
imported goods indicated in their Certificate of Business Registration, except for goods listed as prohibited imports and exports.  Government Decr ee No. [...] guiding the implementation of the new 
Investment Law stipulated that any change in th e business objective of an enterprise with foreign  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 57 
 
 
  owned capital required approval by the competent author ity.  In his view, this provision did not cause 
any impediment to the importation of equipment, ma chinery, and materials used in the establishment 
and production of these enterprises.  Importation of go ods for resale in Viet Nam was, in his opinion, 
a matter relating to distribution services and theref ore to be addressed in the bilateral market access 
negotiations on trade in services.   
134. Having reviewed the new Commercial Law enacted by the National Assembly on 
14 June 2005 and its implementing Decree, a Member noted that the draft Decree suggested that only 
existing foreign-invested enterprises with i nvestors 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 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.   
135. In response, the representative of Viet Nam said 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 
which Viet Nam had no international commitments on market access with respect to commercial activities, whether or not to permit the establishmen t of foreign-invested enterprises in accordance 
with the Prime Minister's instructions.  He adde d that Article 5 of the draft Decree abolished 
minimum capital investment requirements.  
136. 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.   
137. 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 58  
 
  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 
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 ensuring equal treatment of foreign and dom estic enterprises as regards trading rights and the 
products to be exported from and imported into  Viet Nam upon accession, in accordance with the 
relevant Articles of the GATT 1994, in particular Articles III and XI and the provisions of the TRIMs 
Agreement.   
138. A Member noted that the right to import require d investment in Viet Nam.  Members sought a 
commitment from Viet Nam that from the date of accession, any natural or legal person, domestic or foreign, would 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 the time of Viet Na m'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 would ensure 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.   
139. 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 any goods regardless of whether 
or not they were connected to their trading lines, except for some products subject to State trading, 
and requested that the Working Party grant Viet Nam a transition period until 1 January 2009 for the 
right of foreign-invested enterprises to import certa in products and until 1 January 2011 for the right 
to export rice (see Table 8).  He noted that the list of products covered by  the transitional period 
(Table 8(a)) had been further reduced.  He adde d that no later than 1 January 2007, all foreign 
individuals and companies would be able to establi sh foreign-invested enterprises, including foreign 
majority-owned joint-ventures, wholly foreign-ow ned trading companies a nd branches, in accordance  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 59 
 
 
  with Viet Nam's commitments on trading rights.  He noted that the right to import only required a 
minimal investment in Viet Nam, mainly for administrative purposes.  Decrees on the right to import 
and export guiding the implementation of the ame nded 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 
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 and the Understanding on the interpretation of 
this Article. 
140. [The representative of Viet Nam confirmed that  any foreign individual or foreign-invested 
enterprise that obtained a licence to engage in impor t activities would be free to select a distributor or 
distributors of their choice for the internal distribution of imports.  Viet Nam would not apply any 
restrictions on the choice of the distributor or distributors, including in relation to the type of 
enterprise or nationality of the distributor.  The Working Party took note of this commitment.] 
1. Import Regulation  
Customs tariff 
141. The representative of Viet Nam said that Viet Nam had begun levying import duties in 
accordance with the Law on Import, Export Duties for Commercial Goods of 29 December  1987.  
In 1991, Viet Nam had promulgated the Law on Export-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 145 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.   WT/ACC/SPEC/VNM/5/Rev.3 
Page 60  
 
  142. 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 
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. 
143. 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. 
144. 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.    WT/ACC/SPEC/VNM/5/Rev.3 
 Page 61 
 
 
  145. 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 Na m'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 
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. 
146. 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.   
147. Some Members expressed a strong preference for the application of ad valorem  duties rather 
than specific duties on imports as ad valorem  duties were more transparent and predictable for traders.  
Members were also concerned that  any conversion from the current ad valorem  duty rate to a specific 
or compound rate should not exceed Viet Nam's bound  rate of duty.  Members noted Viet Nam's 
statement that a conversion on some products might  be necessary to addr ess customs fraud.  These 
Members stated the view that other means were available to address customs fraud that were more targeted and less likely to result in Viet Nam ap plying tariffs in excess of its bindings.  While 
Members recognized that Viet Nam could have recourse to Article XXVIII procedures under the 
GATT 1994, they noted that Viet Nam would be requ ired to engage in detailed and time consuming 
negotiations with Members and provide compensa tion to Members as required under Article XXVIII.  WT/ACC/SPEC/VNM/5/Rev.3 
Page 62  
 
  Members asked Viet Nam to provide a list of the products and tariff lines that could be subject to a 
specific or combined tariff and assurances that if Viet Nam decided to convert a tariff from 
ad valorem  to a specific or combined rate of duty, it would ensure that the converted duty did not 
exceed the bound rate for that good. 
148. The representative of Viet Nam again stressed th at Viet Nam sought to reserve the right to 
apply specific and compound duty rates on certain item s to address customs fraud.  He confirmed that 
Viet Nam would provide a list of sensitive items an d tariff lines that could be subject to conversion 
for the Working Party to review.  The representative of  Viet Nam further confirmed that if a duty rate 
was converted to a specific or combined duty, Viet Nam would ensure that these new duty rates would not exceed Viet Nam's tariff binding for the relevant good.  Finally, he stated that Viet Nam recognized that recourse to Article XXVIII may incl ude provisions for compensatory adjustment with 
respect to other products.  Thus, his Government  would endeavour to limit as much as possible any 
possible recourse to procedures under Article XXVI II of the GATT 1994.  The Working Party took 
note of these commitments. 
149. 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 rat es (or "preferential rates") were levied on goods 
imported from countries having signed agreements on most-favoured nation treatment with Viet Nam 
(see Annex 3 of document WT/ACC/VNM/36/Add.1), while standard rates applied to products 
imported from other countries.  Under the Law, sta ndard rates could not exceed 170 per cent of the 
MFN rates.  Current standard rates were applied un iformly at 150 per cent of the MFN rate.  He added 
that standard rates were rarely applied as Viet Na m 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 discriminating agai nst goods originating in Viet Nam on the basis of 
tariffs or other measures.  However, Viet Nam had never invoked these gene ral 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 discr iminatory treatment would be consistent with the 
principles stipulated in the WTO Agreements.  The Standing Committee of the National Assembly  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 63 
 
 
  had adopted the Ordinance on Most Favoured Nati on and National Treatment on 22 May 2002, which 
required Viet Nam to comply with MFN and national tr eatment provisions of international treaties.   
150. 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. 
151. [The representative of Viet Nam confirmed that from the date of accession, Viet Nam would 
apply tariffs on an MFN basis to all countries and separate customs territories with which it had a 
WTO relationship and would appl y its authority to increase tariffs in conformity with WTO 
provisions and its WTO commitments.  The Work ing Party took note of this commitment.] 
Other duties and charges  
152. 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.   
153. 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.   
154. 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 64  
 
  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.  
155. 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  
156. 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 
commitments relating to the allocation of tari ff quotas and other aspects of tariff rate quota 
administration. 
157. 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. 46/2001/QD-TTg of 
3 March 2005, subsequently replaced by Decree No. 12/2006/ND-CP of 23 January 2006.  He 
provided information on the product coverage and allocation mechanism of tariff rate quotas, as laid  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 65 
 
 
  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 thereafter (80 per cent for tariff line 
24013010).  On average, 29,374 metric tons of to bacco products had been imported annually between 
1999 and 2001.  The TRQ on salt (HS 2501) amounted to 200,000 metric 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 importe d annually on average between 1999 and 2001 and 
130,000 metric tons in 2004.  As for eggs, a 40 per cent rate was applied up to US$ 20,000 of imports, 
and an 80 per cent rate thereafter.  Between 1999 and 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. 46/2001/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.   
158. 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 
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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 66  
 
  materials for other industries and was therefore eligib le to apply for salt quota allocations to use in its 
own production (see also  paragraph 68).   
159. 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.   
160. 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, his G overnment would replace discretionary licensing by a 
tariff rate quota mechanism as from the date of accession (Decision No. 19/2006/QD-BTM of 
20 April 2006).  In response to a request from a Me mber 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 tari ff rate quotas in conformity with WTO applicable 
rules and regulations, including the MFN and na tional treatment provisions of the GATT.   
161. 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, 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 allocation of quotas by the Stat e was inconsistent with the transparency and 
predictability required in quota administration and that the party conceding the tariff could not 
become the party deciding how many, and to whom, tariff quotas would be allocated.  This Member requested Viet Nam to find another administration method.  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 67 
 
 
  162. 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 a nd 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. 
163. 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.  The TRQs on salt, un-manufactured cigarettes and eggs were administered pursuant to 
Circular No. 04/2006/TT-BTM of 6 April 2006 of the Ministry of Trade, guiding the implementation 
of Government Decree No. 12/2006/ND-CP of 23 January 2006.  Circular No. 04/2006/TT-BTM 
provided for three methods of TRQ administration.  Pursuant to method A, quotas were allocated on the basis of past performance.  Under method B, impor ters were to be designated by the Government.  
He noted that this method only applied to un- manufactured tobacco (HS 2401).  He reminded 
Members that un-manufactured tobacco was subject to State-trading − quotas were allocated to State-
trading entities or groups of producers.  As for me thod C, it foresaw the allocation of quotas to end-
users.  He noted that existing legislation did not refer to auctioning as a method of TRQ allocation.  
He confirmed that the licensing mechanism used fo r the allocation of TRQs would comply with WTO 
rules, including the Agreement on Import Licensing Pr ocedures.  Quota allocations would be made in WT/ACC/SPEC/VNM/5/Rev.3 
Page 68  
 
  accordance with Viet Nam's Schedule of Concessions and Commitments on Goods (document 
WT/ACC/VNM/[...]).   
164. He added that the allocation of TRQs to enterprises having trading activities was in 
compliance with Viet Nam's current import management  policies.  He was of the opinion that this 
provision did not breach WTO rules as enterprises were free to register their own business lines and 
activities.  As for the provision requiring enterprises to send a report on import performance of TRQs 
to the Ministry of Trade by each quarter-end, th e requirement aimed at guaranteeing up-to-date and 
accurate information 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 administrati on were consistent with 
WTO rules and 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 
link between the duty drawback scheme and TRQ arra ngements, 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 269).  He added that goods imported under the TRQ and subsequently 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, Articl e 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.]  
167. [The representative of Viet Nam confirmed that from the date of accession, Viet Nam would 
refrain from using auctioning as a method of TRQ a llocation, would not determine TRQ allocations 
with reference to their form of business registrati on, levels of domestic produ ct or export, or on the 
condition that the importer limit use of such im ports for use in its own production.  Viet Nam  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 69 
 
 
  confirmed it would not limit an importer’s rights in re lation to the internal sale, purchase or transfer of 
allocated quantities to other parties.  The Wo rking Party took note of this commitment.] 
- Tariff exemptions  
168. The representative of Viet Nam said that pursuant to Law No. 45/2005/QH11 of June 2005, 
goods subject to tariff exemptions included goods in  transit or being transported to other countries 
across Viet Nam's borders; goods transited at Viet Nam's border-gates as stipulated by the 
Government; humanitarian goods and non-refund able aid; temporary imports and re-exports, 
temporary exports and re-imports for exhibitions and promotions; machines, equipment and devices 
temporarily imported and re-exported or temporarily  exported and re-imported for use within a 
specified period of time; moveable assets; exports  and imports of organizations and individuals 
eligible to diplomatic immunity as stipulated by the Government in accordance with the provisions of 
international treaties to which Viet Nam was a signa tory or a participant; goods imported for outward 
processing and re-exported or goods exported to fore ign individuals or organizations for inward 
processing and re-imported in accordance with processing contracts; exports and imports of individuals entering or leaving Viet Nam within th e tariff exemption limit for luggage stipulated by 
the Government; goods imported to form fixed asset s by investors having projects funded and by the 
Official Development Assistant (ODA); goods impor ted to facilitate oil and gas activities; imported 
goods used directly for scientific research activ ities and technology development; raw materials, 
materials, components imported for production of proj ects in sectors where i nvestment was especially 
encouraged or in regions with specially difficult socio-economic conditions (five year exemption from 
the commencement of production); imports specifica lly for national defence and security, education 
and training; and gifts and sample goods of interna tional organizations and i ndividuals to Vietnamese 
organizations and individuals and vice versa.  U nder the new Law, importers claimed the tariff 
exemptions they were entitled to upon importation of  the products.  Importers' claims were processed 
by the local customs authorities upon importation.  He confirmed that the import duty exemptions 
mentioned in this paragraph we re not contingent upon export pe rformance, export ratios or local 
content requirements. 
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 500,0 00 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. WT/ACC/SPEC/VNM/5/Rev.3 
Page 70  
 
  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[, notwithstanding Viet Nam's co mmitments on subsidies,] Viet Nam would not 
provide tariff reductions and exemp tions contingent upon export perfo rmance, export ratios, or local 
content requirements.  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.   
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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 71 
 
 
  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-BTC of 19 November 2004, which replaced 
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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 72  
 
  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 repr esentative 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.]  
Application of internal taxes 
177. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 73 
 
 
  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.   
178. 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. 
179. 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. 
180. 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, 
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 amended Law on Exci se 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.   WT/ACC/SPEC/VNM/5/Rev.3 
Page 74  
 
  181. 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 GA TT 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. 
182. 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 
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, 
he subsequently indicated that a new Law on Amendm ents of and Additions to some Articles of the 
Law on Excise Tax and the Law on Value Added Tax had been adopted in November 2005, and had 
entered into force on 1 January 2006.  The Law pr ovided for uniform excise tax rates for tobacco, 
draft and draught beer, and motor vehicles.  In hi s view, this Law conformed fully to the national 
treatment principle with respect to excise taxes.  
183. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 75 
 
 
  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 from 40° 65 
  b) Spirits from 20° to below 40° 30 
  c) Spirits of under 20°, 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 
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.  
184. Noting that Viet Nam's domestic industries produced vodkas and whiskeys at 39 per cent 
alcohol content by volume, some Members were of the view that Viet Nam's excise treatment of 
spirits constituted a de facto  discrimination of imported products.  These Members urged Viet Nam to 
address this concern.  Viet Nam was also i nvited to equalize the excise tax for all beer. WT/ACC/SPEC/VNM/5/Rev.3 
Page 76  
 
  185. Regarding the value added tax, the representa tive of Viet Nam said that the 1999 Law on 
Value Added Tax, which had replaced the Law on Tur nover Tax, stipulated four rates (0, 5, 10 and 
20 per cent).  However, amendments to the Law on Value Added Tax introduced on 1 January 2004 
(Law of 17 June 2003) had repealed the VAT rate of 20 per cent.  The tax was collected monthly and 
settled at the end of every calendar year.  VAT app lied generally to all produc ts and services in the 
covered categories and used in production and consum ption in Viet Nam irrespective of their origin.  
The list of items exempt from VAT had b een issued in accordance with Circular 
No. 122/2000/TT-BTC of 29 December 2000 of the Mini stry of Finance.  He provided a detailed 
listing of imported items subject to VAT (exempt, 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 response 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 this measu re was not to protect domestic production against 
imports, but a measure to simplify the management of the VAT system.  A large number of 
households involved in small-scale farming sold their products without invoices, which made tax 
collection and management difficult.  Viet Nam's administrative capacity in this area was very limited.  However, in the light of Members' co mments, Viet Nam had reviewed its provisions on 
value-added tax and adopted a ne w Law on Amendments of and Add itions to some Articles of the 
Law on Excise Tax and the Law on Value Added Tax in November 2005, which exempted all 
unprocessed and raw agricultural products, whether domestically-produced or imported, from value-
added tax.  He provided an updated list of products exempt from VAT in Table 11.   
187. Noting that Viet Nam exempted from VAT ma chinery equipment imported for fixed asset 
purposes by foreign investing en terprises according 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.    WT/ACC/SPEC/VNM/5/Rev.3 
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  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, spirits, 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 
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 12, 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 WT/ACC/SPEC/VNM/5/Rev.3 
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  their Destruction in Tables 13 (a) and 13 (b), an d a list of products subject to line management 
measures in Table 14.  He noted that the notion of "prohibited business sector" (see paragraph [34] 
and Table 1) implied a prohibition on both the dom estic business activities and the importation of 
corresponding products.  He added th at all import restrictions, with the exception of the restrictions 
applied to sugar, had been eliminated (see paragra ph 208 below).  In response to a question, he noted 
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 12, Viet Nam was invite d to explain how its import prohibitions did not 
violate Articles III and XI of the 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. 
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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 79 
 
 
  of Viet Nam's weak management system, which 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, registration and circulation of motorcycles with engine capacity exceeding 
175 cm³ were prohibited to ensure traffic safety.  Importation of motorcycles with engine capacity 
exceeding 175 cm³ was only allowed for special pur poses such as for the ar med forces, security 
personnel, or for competitive s ports.  Responding to calls for re moval 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 not ed that the prohibition was applied on a non-
discriminatory basis and that Viet Nam had no domestic production of such motorcycles.   
196. The representative of Viet Nam subsequently confirmed that Viet Nam would establish a non-
discriminatory and transparent system for the importa tion, distribution, and use of large motorcycles 
by individuals and firms that met appropriate criteria  by 31 May 2007.  He further confirmed that this 
commitment was made without prejudice to the di stribution commitments set forth in Viet Nam's 
Schedule of Specific Commitments.  Prospective purchasers and/or users of large motorcycles would 
need a large motorcycle operator’s licence from the appropriate authority befo re purchasing or using a 
large motorcycle.  To ensure the responsibility of large motorcycle operators, an applicant for an 
operator’s licence would be required, inter alia, to reach a certain age and to demonstrate knowledge 
and skill in safely operating a large motorcycle.  Di stributors of large motorcycles would be permitted 
to sell such motorcycles only to purchasers presen ting a valid large-motorcycle operator's licence 
from the appropriate regulatory authority.  Any a pprovals required for the importation of large 
motorcycles (e.g., from the Ministry of Public Security or the Ministry of Trade) would be administered as automatic licenses in conformity  with relevant WTO provisions, e.g., the GATT 1994 
and the Agreement on Import Licensing Procedures without restriction on the engine size, based on 
non-discriminatory published criteria, and without any overall quantitative restrictions.  Distributors 
would be able to import large motorcycles for demonstration and showroom purposes, and for the 
operation of rider training programs.  The Working Party took note of these commitments. WT/ACC/SPEC/VNM/5/Rev.3 
Page 80  
 
  197. The representative of Viet Nam added that he considered the import prohibition on second-
hand motor-vehicles of less than five years to be the most feasible measure to ensure traffic safety that 
Viet Nam could implement under the current co nditions, 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 information on the proposed system is provided in Table 15.  Used motor vehicl es had effectively been allowed for importation as 
from 1 May 2006.  He further confirmed that Vi et Nam would apply technical measures to second-
hand motor vehicles in compliance with the TBT Agreement.   
198. 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 
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 onl y 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 accession.  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.   
199. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 81 
 
 
  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.   
200. 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 pornographic cultural products containing im ages, designs, languages, sounds or actions of 
lewdness or incest or describing in detail scenes of nudity or sexual activities running counter to 
Viet Nam's traditional morals, and reactionary  cultural products as products propagating or 
communicating hatred and violence; destroying th e solidarity of the Vietnamese ethnic community; 
disclosing national, military, security, and other secrets provided for in Viet Nam's laws and 
regulations; or distorting historic truth, damaging th e nation's reputation or national heroes, etc.  He 
provided a detailed description of depraved cultura l goods in document WT/ACC/VNM/44, page 38.  
"Superstitious cultural products" were  cultural products including pictures, sounds or contents that 
caused paranoia, went against nature, or enchanted pe ople to commit crimes or go against the law.  He 
suggested that depraved, reactionary, and s uperstitious cultural products would include books, 
newspapers, magazines, pictures, paintings, cale ndars, posters, catalogues,  leaflets, circulars, 
handbills, pamphlets, tracts/propaganda leaflets, sloga ns, couplets, scrolls, sound or pictures recording 
tapes and discs of various kinds, films (including  cinematographic films and video films), photos, 
practical arts, and other cultural documents and pr oducts of depraved, reactionary, superstitious 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 investors could do business in 
activities such as publishing, media, information technology etc., provided they did not trade "superstitious, depraved and reactionary  cultural products", in line with  applicable laws.  All cultural 
products identified as superstitious, depraved and reactionary cultural products were banned from 
production, exportation, importation, business and circ ulation in Viet Nam, whether they were for 
commercial purposes or not.  These regulations had been detailed in several documents, including the WT/ACC/SPEC/VNM/5/Rev.3 
Page 82  
 
  Law on Publishing, the Law on the Press, the Ordinance on Advertising, the Decree 
No. 88/2002/ND-CP of 7 November 2002 on the mana gement of the import and export of cultural 
products for non-profit purposes, and Circular No. 48/2006/TT-BVHTT of 28 April 2006 of the 
Ministry of Culture and Information guiding the implementation of Decree No. 12/2006/ND-CP and 
applied to all organizations, individuals,  domestic and foreign economic entities on a non-
discriminatory basis.  He provided the list of le gal documents prohibiting the importation, production 
and circulation of cultural products  in Annex I to document WT/ACC/VNM/44.  Ministry of Culture 
and Information's management agencies (which incl uded the Department of th e Press, Department of 
Publishing, Department of Cinema, and Department  of Performing Arts) based their decisions to 
prohibit the production, importation and circulati on of cultural products on the above-mentioned 
documents.  They conducted insp ections in all economic sectors and assessed whether a cultural 
product was superstitious, reactionary or depraved on the basis of applicable laws, including the 
Commercial Law, the Law on the Press and the Law on Pu blication.  Prohibited toys included virtual 
toys propagating violence or running counter to tr aditional Vietnamese morals .  Asked to provide a 
specific list of children toys and depraved and reactionary cultural products prohibited from 
importation, he said such products fell under the HS numbers 3706, 4901-4904, 4909-4911, and 8524 
for cultural products containing por nographic, violent, reactionary or anti-Vietnamese images, sounds, 
or elements, and HS numbers 9501 to 9505 for toys having an adverse effect on personal 
development, social order, security and safety.  However, as the HS nomenclature did not classify 
goods according to their content, it was not po ssible to provide a more specific list.   
201. 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.  
202. The representative of Viet Nam confirmed that from the date of accession, the restriction on 
imports of "specialized encryption machines and encr yption software subject to State secret" set out in 
Table 12 would not apply to general, commercially traded goods equipped with encryption 
technology, which were destined for mass cons umption, such as all products covered by the WTO 
Information Technology Agreement (ITA).  He conf irmed that Viet Nam would permit imports of 
ITA and other commercially traded goods in  compliance with the WTO Agreement.  The 
representative of Viet Nam further confirmed that Viet Nam would not impose unreasonable or 
burdensome requirements on imports in determining whether other goods with encryption technology  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 83 
 
 
  were subject to the import restriction set out in Ta ble 12.  Once officials in Viet Nam had determined 
that a type of good equipped with encryption technology was not subject to this import restriction, that 
determination would apply to futu re imports of such good.  The Working Party took note of these 
commitments. 
203. 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.   
204. A Member raised a concern that  Viet Nam was restricting the importation of distilled spirits 
by authorised importers to only US$ 300,000 per a nnum.  This, in the Member’s view, did not apply 
to other alcohol.  In response, the representative of Viet Nam indicated that such a restriction did not 
apply and had never been applied.  [He agreed  that Viet Nam would refrain from applying any 
quantitative restriction on imports of distilled spir its.  The Working Party took note of this 
commitment.]  
205. This Member was also concerned by a ban im posed by Ho Chi Minh City on the sale and 
consumption of liquor with more than 30 per cent alcohol content within the city limits.  Such a 
measure, in the Member’s view, effectively prohi bited imported spirits, whic h were generally above 
40 per cent alcohol content, while allowing local production within the 20-30 per cent limit to be 
traded.  This Member requested Viet Nam to repeal  these provisions.  In response, the representative 
of Viet Nam said that the measure adopted con cerned the allocation of new liquor selling licenses 
within District 1.  Given the high number of liquor sellers in this area, the Ho Chi Minh City People's 
Committee had, on 9 June 2005, adopted Decisi on No. 93/2005/QD-UBND, which temporarily 
suspended the allocation of new liquor selling licenses w ithin District 1.  This measure applied to all 
drinks over 30 per cent alcohol content, whether dom estic or imported.  Selle rs who had already been 
granted liquor selling licenses were allowed to continue selling liquors as usual.  WT/ACC/SPEC/VNM/5/Rev.3 
Page 84  
 
  206. Noting that Table 13 (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 13 (b).  In response, the 
representative of Viet Nam said that Table 13 (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 13 (b), it contained t oxic chemicals that caused cancer 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.   
207. Concerned about Viet Nam's licensing system , 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.   
208. 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 measur es 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 Deci sion 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 160 above).  Hence, as from the date of accession, all import licensing  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 85 
 
 
  measures would be imposed in the form of TR Q licensing and automatic licensing (automatic 
licensing for large motorcycles − see paragraph [196] above; line management measures; and 
automatic licensing as required under international trea ties to which Viet Nam was a party).  He added 
that import licenses were delivered automatically and were valid for one year, a period which could be 
extended upon request.  However, as import licenses we re granted automatically, traders preferred, in 
practice, to apply for a new import licence rather than request extension.   
209. Current line management measures were imposed to protect the environment, human health, 
labour safety, national security, food safety and hygiene.  Import restrictive line-management 
measures had been eliminated in early 2001.  Line  management measures applied to all organizations 
and individuals entitled to import goods, i.e. having duly completed their business registration.  He 
provided a comprehensive list of all line manageme nt measures applied in Viet Nam in the period 
2001-2005, including the products covered, the WTO ju stification for such measures, and the agency 
in charge of issuing the import licence, where appli cable, reproduced in Table 14.  He noted that not 
all line management measures involved licensing.  In  his view, existing line management measures 
were in compliance with international practice a nd WTO provisions, notably Articles XX and XXI of 
the GATT 1994.  The fees associated  with the issuance of line mana gement licences were consistent 
with the Ordinance of Fees and Charges and, in  his opinion, modest and commensurate with the 
related administrative costs.  For example, li censing fees for the importation and exportation of 
cultural products amounted to 50,000 VND per licen ce (about US$ 3) for commercial transactions and 
20,000 VND per licence (about US$ 1.2) for n on-commercial products pursuant to Decision 
No. 03/2000/QD-BTC of 21 December 2000; licensi ng fees for imported plant protection medicine 
and materials to 200,000 VND per licence (about  US$ 12) in accordance with Circular 
No. 110/2003/TT-BTC of 17 November 2003; and fees for granting quarantine certificates for animals and animal products importe d, exported, or in transit to 50,000 VND (about US$ 3) pursuant 
to Decision No. 08/2005/QD-BTC of 20 January 2005 .  He added that a new line-management 
mechanism for the post-2005 period had been est ablished pursuant to Decree No. 12/2006/ND-CP of 
23 January 2006.  He confirmed that this new mech anism was designed so as to ensure that it did not 
impose quantitative restrictions on imports and complied with WTO rules, including Articles XX and 
XXI of the GATT 1994.   
210. Questioned about the line management m easures applied to printed material, the 
representative of Viet Nam added that printed materi als were specialized cultural products subject to 
line management by the Ministry of Culture and In formation pursuant to the Law on Publishing, the 
Law on the Press, Government Decree No. 12/2006/ND-CP of 23 January 2006, Circular 
No. 48/2006/TT-BVHTT of 28 April 2006 of the Mini stry of Culture and Information guiding the WT/ACC/SPEC/VNM/5/Rev.3 
Page 86  
 
  implementation of Decree No. 12/2006/ND-CP, Prim e Minister's Decision No. 41/2005/QD-TTg of 
2 March 2005 on import licensing of goods, and other related legal documents.  Traders wishing to 
import such materials were required to apply for an import licence to the local Department of Culture 
and Information, which would assess whether the materials were in accordance with the above-
mentioned regulations. 
211. 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 
23 July 1998; the Cartagena Protocol on Biosafet y; and the Vienna Convention on the Ozone Layer 
Protection.   
212. 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. 
213. 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 2005, 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 87 
 
 
  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 Decree No. 12/2006/ND-CP (which had replaced Decision No. 46/2001/QD-TTg) and Decision No. 41/2005/QD- TTg, line management measures could not 
constitute quantitative import restrictions or be ad ministered in such a way as to have any trade-
restrictive or distortive effects, and were in compliance with the Agreement on Import Licensing Procedures. 
214. 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 
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  
215. 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.   WT/ACC/SPEC/VNM/5/Rev.3 
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  216. 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.   
217. 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/ 2005/QH11), which had replaced the 1998 Law on 
Import and Export Duties, and of a Law amending some Articles of the Customs Law (Law 
No. 42/2005/QH11 of 14 June 2005).  The Mini stry of Finance had 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 Valu ation Agreement.  The new system had been 
applied on a pilot basis for certain target grou ps of countries from 1 January 2004 and had been 
expanded gradually.  On 15 December 2005,  Decree No. 155/2005/ND-CP and Circular 
No. 113/2005/TT-BTC had been issued in replaceme nt of Decree No. 60/2002/ND-CP and Circular 
No. 118/2003/TT-BTC.  The new Decree, which had en tered into force on 1 January 2006, made the 
use of the transaction value applicable to all impor ts, in full conformity with the Customs Valuation 
Agreement.  The Decree also provided for the full a pplication of the computed value method and the 
deductive method.  Other legal instruments adopt ed in December 2005 included Government Decree 
No. 154/2005/ND-CP of 15 December 2005 guiding the implementation of some Articles of the 
Customs Law relating to customs procedures, custom s inspection and supervision, which had replaced 
Decree No. 102/2001/NC-CP, and Circular No. 114/2005/TT-BTC of 15 December 2005 of the 
Ministry of Finance on import-export post-clearance audit.   
218. He further noted that minimum customs values had been eliminated in September 2004 
pursuant to Circular No. 87/2004/TT-BTC of 31 A ugust 2004 (which had been replaced by Circular 
No. 113/2005/TT-BTC in December 2005) and that Viet Nam had fully incorporated the provisions of 
the Customs Valuation Agreement and the Interpre tative Notes in its regulations, in particular  WT/ACC/SPEC/VNM/5/Rev.3 
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  Circular No. 113/2005/TT-BTC and Decree No. 155/2005/ND-CP of 15 December 2005.  Noting that 
the elimination of minimum values seemed to appl y only to a list of countries and that minimum 
import prices still seemed to be used in practice, in particular for wines and spirits, a Member 
enquired how Viet Nam intended to ensure full co mpliance with the Customs Valuation Agreement 
upon accession, both in law and in practice.  In res ponse, the representative of Viet Nam noted that 
the list referred to had been abolished in 2004.   
219. In response to a specific question concerning the implementation of Article 6(2) of the 
Agreement on Customs Valuation according to which no Member could require or compel any person 
resident in its own territory to produce for exam ination or to allow access to, any account or other 
record of the purpose of determining a computed value, the representative of Viet Nam noted that 
such a provision had not been included in Viet Nam's legislation.  
220. 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 appeals,  the representative of Viet Nam said that an 
importer could appeal a disputed customs decision of value in accordance with Article 17 of Decree 
No. 155/2005/ND-CP and Article 1 of the Law on Comp laints and Denunciation.  If dissatisfied or if 
the settlement 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. 26/2004/QH11 amending the Law on Complaints and Denunciation and Artic le 1.1 of Ordinance 
No. 10/1998/PL-UBTVQH10 of 25 December 1998 amending the Ordinance on Procedures for 
Settlement of Administrative Disputes.  Cases br ought forward by one complainant would be handled 
by the Administrative Court.  Final and binding decisions on appeals to the higher Customs bodies were taken by the Minister of Finance; in excep tional 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 amended the Law on Co mplaints and Denunciation in December 2005 and 
the Ordinance on Procedures for Settlement of Administrative Disputes on 5 April 2006.  He 
confirmed that under the new legislation, the importe r or other person liable for the payment of duty 
in customs valuation could appeal initial determin ations without penalty and that notice of the 
decision on appeal should be given to the appella nt and the reasons for such decision should be 
provided in writing (Articles 17, 38 and 45 of the Law on Complaints and De nunciation).  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 (Article 16).   WT/ACC/SPEC/VNM/5/Rev.3 
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  221. He added that transparency requirements were provided for in Decree No. 155/2005/ND-CP 
of December 2005, in particular Arti cles 7 and 15.  Pursuant to this  Decree, customs authorities were 
required to inform the declarant in writing of the method of valuation used.  Legal normative 
documents pertaining to Customs were published in the Official Gazette in accordance with Article 10 
of the Law on Promulgation of Legal Normative Do cuments, as well as in the Customs Newspaper 
and other newspapers and on the customs website (see the "Trans parency" section below).  He 
confirmed that customs authorities consulted with relevant ministries and agencies, including the 
Chamber of Commerce and Industry, prior to impl ementing changes to customs procedures and rules 
of general application.  The Chamber of Commerc e was responsible for collecting comments from the 
business community and sending the results to customs authorities (Ministry of Finance).  Enterprises 
were also invited to annual meetings with the Prime Minister and regular meetings with Customs.  He 
added that a transparent post-clearance audit system had been established pursuant to Article 32 of the 
revised Customs Law No. 42/2005/QH11 of 14 June 2005.  Under this Article , post-clearance audit 
was carried out in case of signs of tax or commercial fraud or violation of im port-export regulations or 
in the event of suspicion of fraud or violation based  on data analysis, customs controls, or information 
from agencies, organizations, individuals or forei gn customs.  Post-clearance audit aimed at re-
examining the accuracy and reliability of documents  presented for customs clearance or compliance 
of customs clearance with existing legislation.  He  further noted that importe rs were informed about 
Customs' classification decisions in writing pu rsuant to Circular No. 85/2003/TT-BTC of 
29 August 2003 (Item IV, Section B).  
222. 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 Data Processing 
Equipment as soon as possible, and in no case late r than two years from the date of accession.  
223. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 91 
 
 
  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 
224. 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. 
225. 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, which had since then been replaced 
by Decision No. 1420/QD-BTM of 4 October 2004, Joint Circulars of the Minist ry of Trade and the 
General Customs Department Nos. 09/2000/TTLT- BTM-TCHQ of 17 August 2000 and 22/2001/TTLT-
BTM-TCHQ of 2 October 2001, a nd Decree No. 19/2006/ND-CP of  20 February 2006 guiding the 
implementation of the Commercial Law regarding the origin of goods in accordance with the Kyoto 
Convention and the WTO Agreement on Rules of Orig in.  Viet Nam was participating in the ASEAN 
Free Trade Area (AFTA) and the preferential rules of  origin of AFTA, and impo rters 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.   
226. 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. WT/ACC/SPEC/VNM/5/Rev.3 
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  227. In Viet Nam, certificates of or igin were issued by the Chamber of Commerce and Industry of 
Viet Nam, the Ministry of Trade, or the Management 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. 
228. 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 Decree No. 19/ 2006/ND-CP of 20 February 2006 implementing the 
2005 Commercial Law.  The Decree also provided for the principle of substantial transformation as a 
means of determining the origin of goods and in cluded provisions on verification and audit.  In 
response to a question, he said that administrativ e decisions on origin were subject to the same 
administrative and judicial review mechanisms as other administrative decisions.   
229. [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.  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 93 
 
 
  Other customs formalities 
230. 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. 
231. 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 
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.  The system was being implemented in several 
major cities.  In response to a question, he noted that the system allowed Electronic Data Interchange 
(EDI) transfer of entry data between customs brokers and the Customs service, but not yet EDI 
transfer of data between oversea s suppliers and the Customs service.  He added that Viet Nam had 
qualified for 81 of the 148 norms and standards pr ovided for by the Kyoto Convention, including 
norms on clearance, customs procedures, customs tariff and taxes, and customs inspections. 
232. 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 practices, 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 94  
 
  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 regul ations 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 
233. 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, the Agreement on Pre-shipment Inspection and the Agreement on the Implementati on of Article VII of  the GATT 1994.  A Member requested a 
commitment that Viet Nam would not apply PSI measures until WTO-consistent legislation had been 
implemented. 
234. 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.   
235. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 95 
 
 
  Article VI (Antidumping), Subsidies and Countervail ing Measures, Safeguards,  and Agriculture.  The 
establishment of charges and fees would be cons istent 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 
236. 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 Ar ticles in the Law on Import and Export Duties 
(Articles 2 and 9), passed by the National Asse mbly on 20 May 1998, allowed 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. 
237. 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 ready 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 96  
 
  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. 
238. 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.  
239. [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.] 
240. The representative of Viet Nam confirmed th at, upon accession, the following would apply 
− Article VI of the GATT 1994, the Agreement on Implementation of Article VI of the General 
Agreement on Tariffs and Trade 1994 ("Anti-Dumpi ng Agreement") and the SCM Agreement should 
apply in proceedings involving exports from Viet Nam into a WTO Member consistent with the 
following: 
(a) In determining price comparability under Article VI of the GATT 1994 and the Anti-
Dumping Agreement, the importing WTO Member should use either Vietnamese prices or  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 97 
 
 
  costs for the industry under investigation or a methodology that was not based on a strict 
comparison with domestic prices or costs in Viet Nam based on the following rules: 
(i) If the producers under investigation could clearly show that market economy 
conditions prevailed in the industry produc ing the like product with regard to the 
manufacture, production and sale of that product, the importing WTO Member should 
use Vietnamese prices  or costs for the industry unde r investigation in determining 
price comparability; 
(ii) The importing WTO Member may use a methodology that was not based on a strict 
comparison with domestic prices or co sts in Viet Nam if the producers under 
investigation could not clearly show that market economy conditions prevailed in the 
industry producing the like product with re gard to manufacture, production and sale 
of that product. 
(b) In proceedings under Parts II, III and V of the SCM Agreement, when addressing subsidies, 
the relevant provisions of the SCM Agreement s hould apply; however, if there were special 
difficulties in that application, the importing WTO Member may then use alternative 
methodologies for identifying and measuring the subsidy benefit which took into account the 
possibility that prevailing terms and conditions  in Viet Nam may not be available as 
appropriate benchmarks.   
(c) The importing WTO Member should notify methodologies used in accordance with 
subparagraph (a) to the Committee on An ti-Dumping Practices and should notify 
methodologies used in accordance with subpara graph (b) to the Committee on Subsidies and 
Countervailing Measures. 
241. Once Viet Nam had established, under the nati onal law of the importing WTO Member, that 
it was a market economy, the provisions of subparagr aph (a) should be terminated provided that the 
importing Member's national law contained market ec onomy criteria as of the date of accession.  In 
any event, the provisions of subpa ragraph (a)(ii) should expire on 31 December 2018.  In addition, 
should Viet Nam establish, pursuant to the nati onal law of the importing WTO Member, that market 
economy conditions prevailed in a particular indus try or sector, the non-market economy provisions 
of subparagraph (a) shoul d no longer apply to that industry or sector. 
2. Export Regulation 
Customs tariffs, fees and charges for services rend ered, application of internal taxes to exports  
242. 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 98  
 
  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 16.   
243. 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. 
244. 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 
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. 
245. [The representative of Viet Nam recognized the concerns of some Members that export duties 
could act as de facto export restri ctions and confirmed that Viet Na m 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 Agreemen t, in particular with Article 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 export  duties applied by Viet Nam.  In  particular, he confirmed that  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 99 
 
 
  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.] 
246. [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 
247. 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. 
248. 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 capital requirement for trading enterprises was no longer effective.  Viet Nam imposed product-specific controls  or restrictions on the items listed in Table 17.  Certain exports were subject to 
line management approval.  The Ministry of Aqua-c ulture licensed exports of certain aquatic species 
(see Table 18).  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.  
249. 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 WT/ACC/SPEC/VNM/5/Rev.3 
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  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. 
250. 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. 
251. 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. 
252. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 101 
 
 
  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.  
253. 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 
was only temporary.  Enterprises having signed le gal mineral export contracts were allowed to 
continue exporting normally.  
254. Asked to justify the provisions of Article 5. 4 of the Law on Changing and Amending Several 
Clauses of the Mineral Law (Law No. 46/2005/QH11) according to which the State could limit the exportation of raw minerals and concentrates and to list all minerals affected by this Article, the 
representative of Viet Nam said that, under the Mine ral Law, minerals which would meet the quality 
requirements and conditions stipulated in the Ministry of Industry Circular No. 04 of 2 August 2005 
in the period 2005-2010 would be allowed for exporta tion.  These conditions aimed at preventing the 
illegal exploitation, and subseque nt exportation, of minerals. 
255. 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. WT/ACC/SPEC/VNM/5/Rev.3 
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  3. Internal Policies Affecting Foreign Trade in Goods 
Industrial policy, including subsidies  
256. 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.   
257. 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.   
258. 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 
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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 103 
 
 
  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.   
259. 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 19 (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.   
260. 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). 
261. 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 
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 WT/ACC/SPEC/VNM/5/Rev.3 
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  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.  
262. Asked to provide information about export subsidy 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.   
263. 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. 
264. 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 (Deci sion No. 63/2002/QD-BTC of 21 May 2002). 
265. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 105 
 
 
  through the Development Assistance Fund for the years 2003 and 2004 in Annex 1 to document 
WT/ACC/VNM/39. 
266. He added that Viet Nam granted a five year  tariff exemption on the importation of production 
raw materials to foreign invested enterprises expor ting at least 80 per cent of their products, or 
50 per cent in the case of agricultural, forestry or a qua-cultural products.  Investment in such projects 
were "specially encouraged" accord ing to Decree No. 24/2000/ND-CP.  In addition, preferential rates 
of corporate income tax (10, 15 or 20 per cent against the standard rate of 28 per cent) and tax 
reductions or exemptions of up to nine years, c ould be granted to foreign-invested enterprises 
depending on their export ratio or area of investme nt.  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 domestic ma rket to be processed for export or exported 
without processing (except products listed as proh ibited to trade for exportation, or conditionally 
exported goods).   
267. 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.   
268. 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. 
269. 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 expor t.  A Member noted that the volumes of products 
entering Viet Nam's territory under a duty drawback ar rangement should not be considered as part of, or 
linked to any tariff rate quota a nd asked Viet Nam to clarify the link between the duty drawback regime 
and its TRQ arrangements.  The representative of Vi et Nam replied that traders could apply for tariff 
rate quotas or import directly the goods to be used in the manufactur e of products for export, in both 
cases benefiting from duty drawback.   
270. In response to a question about the support pr ogramme for shipbuilding, he added that 
incentives under this programme were provided fo r both exported vessels and vessels registered WT/ACC/SPEC/VNM/5/Rev.3 
Page 106  
 
  domestically.  In 2003, three vessels had been exporte d and 12 had been registered domestically.  In 
2004, all vessels (21) had been registered domestically.   
271. 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.  A Member noted that for purposes of applying Articles 1.2 and 2 of the SCM Agreement, subsidies provided to State-owne d and State-controlled enterprises (SOEs) would 
be viewed as specific if, inter alia, SOEs were the predominant recipients of such subsidies or SOEs 
received disproportionately large amounts of such subsidies.   These Members asked Viet Nam to 
revise these programmes and amend it s legislation prior to accession to  remove all prohibited elements 
and ensure that investors would only be entitled to  previously enjoyed incentives that were WTO-
consistent.  Members noted, in this respect, that Article 32 of the ne w Investment Law, by stipulating 
that investments in export processing zones would be  entitled to incentives, meant that all incentives 
listed under Section 2 of the Law could be grante d for export activities an d therefore considered 
prohibited subsidies under Article 3 of the WTO Ag reement on Subsidies and Co untervailing Measures.  
These Members asked Viet Nam to e xplain how it reconciled this provisi on with the expectation that all 
prohibited subsidies be eliminat ed upon accession.  A Member s ought a commitment from Viet Nam 
that, from the date of accession, Viet Nam would re frain from issuing any new investment licenses 
providing for prohibited subsidies.  In addition, noting that Viet Nam administered two separate 
investment incentive schemes for export-oriented  foreign-invested and domestic enterprises, a 
Member observed that a unification of the schemes  would be - economically, financially, and from a 
transparency point of view - preferable, and enquired about Viet Nam's plans to reform its system.    WT/ACC/SPEC/VNM/5/Rev.3 
 Page 107 
 
 
  272. 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 inclusion 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 
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.   
273. 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 subsidi es 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 accession 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 [353] to  eliminate agricultural export s ubsidies.  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 from such incentives would be notified accordingly.]  
Concerning the provisions of Article 32 of the new Investment Law, he noted that the investment 
incentives referred to this Article would be spelle d out in the implementing Decree and would be in WT/ACC/SPEC/VNM/5/Rev.3 
Page 108  
 
  accordance with Viet Nam's commitm ents on subsidies (i.e. incentiv es will not be contingent upon 
export performance or local content).  In particul ar, enterprises in export processing zones would not 
be required to export their pr oduction and would only be entitled to incentives in the form, inter alia, 
of facilitation of procedures with respect to i nvestment and rental of land and premises; and 
facilitation in the supply and training of labour and s upply of water, power and other utilities.  As for 
the surcharges applied under the Export Promotion F und, 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 the 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.   
274. Some Members asserted that Decision No. 55/ 2001/QD-TTg provided prohibited subsidies to 
Viet Nam's textile and garment industries.  In res ponse, the representative of Viet Nam stated that no 
disbursement or subsidy benefit pursuant to D ecision No. 55/2001/QD-TTg had been provided since 
31 May 2006, and that Decision No. 55/2001/QD-TTg w ould be repealed as of the date of accession.  
He also confirmed that Viet Nam would eliminate all prohibited subsidies (i.e., subsidies contingent 
upon export performance or the use of domestic over imported goods) to the textile and garment 
industries, including but not limited to investment incentives contingent upon export performance for domestic businesses, investment incentives contingent  upon export performance for foreign-invested 
enterprises, export promotion subsidies continge nt upon export performance and trade promotion 
subsidies contingent upon export pe rformance, as of the date of accession.  The Working Party took 
note of these commitments. 
275. Several Members noted that Viet Nam provided investment incentives contingent upon export 
performance for domestic businesses and investment incentives contingent upon export performance 
for foreign-invested enterprises to other industries in  addition to the textile and garment industries.  
These two programmes provided subsidies conti ngent upon export performance in the form of 
preferential corporate income tax treatment; impor t duty exemptions for machinery and equipment; 
and, land rental, land use payment and land use tax exemptions or reductions.  Article 3 of the WTO 
Agreement on Subsidies and Countervailing Measures pr ohibited the use of such subsidies.  Members 
accordingly asked Viet Nam to indicate how it intended to eliminate these subsidies.   
276. The representative of Viet Nam confirmed that, as of the date of Viet Nam's accession to the 
WTO, no prohibited subsidies would be provided to new beneficiaries pursuant to the programme that  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 109 
 
 
  provided investment incentives contingent upon export performance for domestic businesses and the 
programme that provided investment incentives co ntingent upon export performance for foreign-
invested enterprises.  He further confirmed that over a five-year period begi nning on the date of 
accession, benefits to current beneficiaries unde r these two programmes would be phased-out.  The 
representative of Viet Nam further confirmed that the programme that provided investment incentives contingent upon export performance for domest ic businesses and the programme that provided 
investment incentives contingent upon export perfo rmance for foreign-invested enterprises would be 
eliminated completely no later than five years fro m the date of Viet Nam's accession to the WTO.  
The representative of Viet Nam also confirmed that all other prohibited subsidies would be eliminated 
as of the date of accession and that any other rema ining subsidy programmes would be brought into 
conformity with the WTO Agreement on Subsidies and Countervailing Measures.  Viet Nam would 
provide notice of measures eliminating these progra mmes and any other prohibited subsidies to the 
WTO.  He also confirmed that, by the date of accession, a subsidy notification, in accordance with 
Article 25 of the Agreement, would be provide d to the Committee on Subsidies and Countervailing 
Measures.  The Working Party t ook note of these commitments.    
Technical barriers to trade, standards and certification 
277. The representative of Viet Nam said that a St ate administration body - the Directorate for 
Standards and Quality (STAMEQ), which consis ted of standardization, metrology, quality 
management, and conformity assessments organizatio ns (see www.tcvn.gov.vn for information on the 
structure of STAMEQ) and which reported to the 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 Enquiry 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. 
278. 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 WT/ACC/SPEC/VNM/5/Rev.3 
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  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.  
279. 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.  However, a framework law on Standards and 
Technical Regulations had been adopted in June 2006, which covered all standard-related issues 
previously contained in the various legal doc uments, including the Ordinances on Measurement, 
Goods Quality, Food Safety and Hygiene, Plant Pr otection, Veterinary, and Consumer Protection.  
This framework Law focused on issues such as th e development and application of standards, 
conformity assessment procedures, as well as technical regulations.   
280. 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  WT/ACC/SPEC/VNM/5/Rev.3 
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  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. 
281. 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 (e.g. food products, garmen ts, and toys may be dependent on cultural and 
custom specificities).  Because of changes in fashion and consumers' needs, harmonization of garment standards focused on materials and auxiliary parts of garments. 
282. Draft standards were prepared by technical committees (90 technical committees and 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 work programme on the Internet 
(http://www.vsc.org.vn).  This programme was revised in the second part of the year, generally during 
the third quarter, and re-posted.  The programme included information about the title of the proposed 
standards and technical regulations, the name of th e technical committee in charge, and the form of 
adoption.  Interested parties could request copies of draft standards for consideration and comment.  
He added that a schedule of development would be considered and added to the programme.   
283. Concerning technical regulations, the Law on the Promulgation of Legal Documents 
stipulated that for regulations issued by the Government, the Government would assign a drafting 
body to establish drafting committees.  The drafting committees consisted of the relevant agencies and 
organizations, experts and scientists.  Pursuant to  the Law on Standards and Technical Regulations, 
Ministries, ministerial level bodies and provincial-level People's Committees issuing technical 
regulations developed technical regulations in co operation with the relevant State management 
agencies, scientific and technological organizati ons, enterprises, consumers, experts and other 
relevant agencies.  Reviews of existing regulations  were carried out on an annual basis by each 
government agency involved.  Draft technical regulati ons were - subject to their nature and content - WT/ACC/SPEC/VNM/5/Rev.3 
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  submitted to the relevant bodies, organizations a nd individuals for comment.  Notices of proposed 
technical regulations were, for that purpose, publis hed in the Appendix of the Official 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 D ecree).  Representatives of stakeholders could 
participate in the drafting process by taking part in the drafting committees or by submitting 
comments on proposed technical regulations when th ese were published in the media.  Asked whether 
Viet Nam published notices of its intention to make a st andard or elements of it mandatory to allow an 
opportunity for comment before it was approved, he said that his Government was considering 
publishing draft laws and regulations, including t echnical regulations, in the electronic Official 
Gazette.  He added that the issue of ensuring qua lity and integrity in th e development of legal 
documents was provided for in the Law on the En actment of Legal Normative Documents.  In 
response to a question, he noted that the Law on Standards and Technical Regulations provided for a 
period of six months between adoption and implementation of a technical regulation − except in very 
special cases such as national security − in line with TBT rules.  He  added that a network of TBT 
notification bodies and enquiry points had been established in the concerned 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.   
284. 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.   WT/ACC/SPEC/VNM/5/Rev.3 
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  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. 
285. 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 th e 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 
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. 
286. 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 Prime Minister's 
Decision No. 50/2006/QD-TTg of 10 March 2006.  He  added that mandatory registration of product 
quality had been abolished in early 2001.  Inspec tion procedures for importe d and exported goods had 
been simplified by moving towards a system of t ype testing.  The requirement to inspect each 
individual consignment could be waived for compan ies with a proven track record of quality (i.e. 
when conformity with relevant standards and/or t echnical regulations had been demonstrated several 
times for the same goods).  The principle of simp lified inspection procedures applicable to imported WT/ACC/SPEC/VNM/5/Rev.3 
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  and exported goods had been approved by the Mini ster 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 applied were specified  in regulations issued by the Directorate for 
Standards and Quality and line management ministri es for each type of goods.  Complaints against 
decisions by the authorities responsible for conf ormity assessment or quality inspection procedures 
were conducted in compliance with  Viet Nam's Ordinan ce on Claim and Denouncement.  In response 
to a Member who enquired why line government agencies had to be involved in the inspection for 
quality/conformity testing 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 testi ng facilities were financially independent. 
287. 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 Inte r-Circular No. 37 upon arrival of the goods at the 
port of entry.  In order to facilita te customs clearance and save import ers the costs of storage of their 
goods at the port of entry during quality inspection, the Circular provided for the possibility to clear 
goods at the port of entry before quality testing/certif ication provided the other requirements, such as 
tax payment, had been fulfilled.  The goods owner was then required to present within one working 
day following customs clearance the declared goods in  their original state together with the cleared 
customs documents and other documents pursuant to  the regulations of the inspecting body for post-
customs clearance quality inspection.  Post-customs  clearance quality inspection could take place at 
places other than the port of entry (in the warehouse, in  the store of the importer, etc.).  The inspecting 
body was required to verify the registration for St ate quality inspection, or issue a notification of 
inspection exemption, to the customs agency with in one working day.  The most recent list of 
imported and exported goods subject to State quality inspection had been issued in Prime Minister's 
Decision No. 50/2006/QD-TTg of 10 March 2006.  The list specified the goods subject to State quality inspection under the competence of specializ ed inspecting bodies of the Ministries of Science 
and Technology; Health; Agriculture and Rural De velopment; Industry; Transportation; Fisheries; 
Construction, and Labour, Invalids and Social Affairs.  He noted that goods processed for re-
exportation by Vietnamese enterprises − i.e. Vietnamese-owned enterprises and foreign-invested  WT/ACC/SPEC/VNM/5/Rev.3 
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  enterprises in Viet Nam − for foreign traders outside Viet Nam were not subject to State quality 
inspection.  
288. 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). 
289. 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 
inspection.  Viet Nam's unilateral acceptance of fo reign 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.   
290. 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 WT/ACC/SPEC/VNM/5/Rev.3 
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  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 implemented Viet Nam's action plan in cooperation with 
other Ministries, including the Ministry of Trade.  In recent years his Government had been promoting 
a programme to review legal docum ents to harmonize legal documents with WTO rules, including in 
the area of technical regulations and conformity asse ssment.  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.   
291. 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  
292. 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 phytosanitary database.  Viet Nam was facing 
difficulties in performing its own independent risk assessment.  His Government was seeking 
international assistance to address these issues.  In pr inciple, Viet Nam applied international standards 
in the areas where Viet Nam could not conduct its own independent risk assessment.   
293. 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; Viet Nam Food Administration under the Ministry of Health; the Department of Science 
and Technology under the Ministry of Industry; a nd the Directorate for Standards, Measurement and 
Quality under the Ministry of Science and Technolog y.  Viet Nam's enquiry point and notification 
authority had been officially established at the Ministry of Agriculture and Rural Development  WT/ACC/SPEC/VNM/5/Rev.3 
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  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 Deve lopment and Viet Nam's SPS Office to carry out the 
obligation of notification and enquiry in accordan ce with the provisions of the SPS Agreement.  The 
Ministry of Agriculture and Rural Development a nd relevant Ministries were developing regulations 
on the coordination and operation of Viet Nam's National SPS Office and establishing SPS 
notification and enquiry networks between 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. 
294. Phytosanitary measures were regulated by th e Ordinance on Plant Protection and Quarantine 
on 15 February 1993, amended on 25 July 2001, 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. 
295. The principal legal framework for sanitary m easures 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 veterinary hy giene inspection of animals and animal-related 
products; and Decisions Nos. 389 NN-TY/QD a nd 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 
inspection and quarantine of impor ted and exported animals and produc ts of animal origin 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 WT/ACC/SPEC/VNM/5/Rev.3 
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  Administrative Infringement in Veterinary Servi ces provided a detailed legislative framework for 
veterinary hygiene and food safety inspection proce dures for veterinary drugs and vaccines.  Fees 
charged for veterinary services, including the cost fo r additional quarantine, testing and/or destruction 
of animals, were regulated by Decision No. 08/2005/ QD-BTC.  He added that Viet Nam was revising 
its food safety inspection procedures for production and commercialization of fishery products and 
developing approval and veterinary hygiene and f ood safety inspection procedures for aquatic animals 
and products thereof (see paragraph [361]) and that regulations on treatment of infected animals and 
animal products were expected to be issued in 2006. 
296. As for food safety, a new Ordinance on Food Hygiene and Safety 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.   
297. Viet Nam was a Member of Codex, FAO and OI E and had become a contracting member of 
the International Plant Protection Convention (IP PC) in February 2005.  Viet Nam's national 
regulations and standards were based on those provi ded by Codex, IPPC, OIE and FAO/WHO.  In his 
view, Viet Nam's SPS standards and inspection me asures were consistent with regulations of 
international organizations such as CODEX, OIE, and IPPC.  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 the new framework Law on Standards and Technical Regulations, which 
had been adopted in June 2006, provided detailed guidelines for adopting standards, guidelines or 
recommendations, including those in the SPS area.  In  the meantime, Viet Nam would make its best 
efforts to apply SPS measures based on standards, guidance and recommendations of international 
organizations.   
298. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 119 
 
 
  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.   
299. Viet Nam applied line management measures to imports of some animal and plant products 
(see Table 14).  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 complied with 
the WTO SPS Agreement − 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 health inspection and quarantine procedures for 
import, export and in-country movements were also  being revised to bring them in line with the 
Veterinary Ordinance and OIE regulations and sta ndards.  He added that Viet Nam was making 
efforts to enhance the capacity of staff and equipment to develop reasonable procedures for 
inspection, supervision and approval at border ga tes.  Information about Viet Nam's veterinary 
hygiene and food safety inspection procedures and inspection procedures for veterinary drugs and 
vaccines was available on www.mard.gov/dah or www.cucthuy.gov.vn. 
300. 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 
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.  WT/ACC/SPEC/VNM/5/Rev.3 
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  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. 
301. 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 inspection 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 or www.cucthuy.gov.vn).  Under this Decree, animals intended for slaughter 
or preliminary processing were required to satisfy veterinary hygiene standards and to have been 
quarantined and certified by the competent professi onal State veterinary agency.  Slaughter or 
preliminary processing had to take place at premises  for slaughter and processing.  Products of animal 
origin were inspected by the competent authority prior to, during, and after slaughter or preliminary processing.  He noted that these requirements applie d to both domestic and imported poultry.  He 
added that Viet Nam was reviewing, amending and supplementing its poultry entrance measures to 
ensure conformity with the SPS Agreement. 
302. Asked to clarify why the Ordinance on Food Hygiene and Safety restricted the entry of 
products to no more than two-thirds of their expi ration date, the representative of Viet Nam noted that 
this measure applied only to food-ra w materials and food additives, not to the final food product to be 
used in the production of food products.  The meas ure had been put in place to avoid the importation 
of food-raw materials and food additives close to e xpiration and thereby limit the risk that expired 
material and food additives be used in the productio n of food products as had been revealed by some 
on-site inspections.  Asked to provide a list, by HS codes, of the products covered by this limitation, 
he added that no such list was available.  In r esponse to a Member who questioned the rationale of  WT/ACC/SPEC/VNM/5/Rev.3 
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  requiring that all pre-packaged food contain shelf- life requirements in addition to expiration date 
information, he added that under Article 35 of the Ordinance on Food Hygiene and Safety, food labels 
had to indicate either the manufacture date, the expira tion date or the shelf-life, not all three.  In 
addition, paragraph 2, Article 11(a) of Pr ime Minister's Decision No. 178/1999/QD-TTg of 
30 August 1999 required that some products such as  food, cosmetics and pharmaceutical products be 
labelled with the expiration date. 
303. 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 
2007.  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. 
304. 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 
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 WT/ACC/SPEC/VNM/5/Rev.3 
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  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. 
305. 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 justif ied 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.   
306. The representative of Viet Nam replied that  Viet Nam's SPS standards were based on 
CODEX, IPPC and OIE standards, but  had a generally lower level of protection in order to adapt to 
the production conditions in Viet Nam.  Should CODE X, IPPC and OIE 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.   
307. 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. 
308. 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  WT/ACC/SPEC/VNM/5/Rev.3 
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  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 under Article 48 of the Veterina ry Ordinance, only veterinary drugs produced in 
foreign countries, imported for the first time into Viet  Nam, and not included in the list of veterinary 
drugs permitted for circulation in Viet Nam had to  be registered for importation.  Viet Nam was 
developing procedures on drug registration for circula tion in Viet Nam, which would specify the types 
of drugs subject to re-trial.  These procedures were  expected to be promulgated in 2006.  Concerning 
the requirement for quality review in case of co mplaints 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.   
309. 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.   
310. 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 Decision No. 1117/QD-BNN-TCCB of 18 April 2006 of the Ministry of Agriculture and Rural Development on the orga nization and operation of Viet Nam's SPS National 
Office provided for a suitable timeframe for public  comment on draft SPS standards and regulations 
of no less than 60 days, in conformity with the SPS Agreement.  He confirmed that draft SPS 
measures and proposed actions re lated to SPS were posted on the e nquiry point's website.  The 
website could be accessed by both the public and pr ivate sector.  He further noted that all legal 
documents, including those related to SPS issues, were  published in the Official Gazette and entered 
into force minimum 15 days thereafter in accord ance with the amended Law on the Enactment of 
Legal Documents.  At present, SPS-related lega l documents were accessible at two websites WT/ACC/SPEC/VNM/5/Rev.3 
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  (http://www.mard.gov.vn/dah or www.cucthuy.gov. vn and www.ppd.gov.vn).  The website of 
Viet Nam's National SPS Notification and Enquiry Po int 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  Prime Minister's Decision No. 99/2005/QD-TTg. 
311. A Member also noted that Viet Nam's legislation 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 or www.cucthuy.gov.vn)  and sent to the OIE in accordance with OIE's 
regulations.  Such information would also be sent  to other stakeholders as agreed in bilateral 
agreements or upon request. 
312. A Member was concerned that Viet Nam required compulsory food labelling for all 
genetically modified products.  This Member as ked Viet Nam to clarify whether its regulatory 
framework provided for differential treatment with regard  to approval of GMOs to be released into the 
environment in Viet Nam, as opposed to GMOs br ought into the country for food, feed and/or 
processing and enquired about implementation of th e National Biosecurity Framework.  Viet Nam 
was also invited to describe the scope of its new mandatory labelling requirement.  In response, the 
representative of Viet Nam noted that this was a relatively new subject in Viet Nam and that no 
national standards for GMO products had been deve loped yet.  Viet Nam's capacity to assess the 
impact of GMO products was still limited.  Labe lling of GMO products was subject to the same 
regulations as other products, i.e. Decision No. 178/1999/QD-TTg of 30 August 1999 on the 
importation, exportation and domes tic 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 
guidelines for the labelling of foodstu ff.  Thus, the circulation of GMO products in the Vietnamese 
market was permitted.  Labelling only aimed at provi ding general information to the consumers.  He 
noted that Decision No. 178 would be repealed by a Government Decree, which would include 
labelling provisions consistent with international practice and based on scientific evidence.  
A Member reminded Viet Nam that any standards rela ting to GMOs would have to be in conformity 
with WTO rules and jurisprudence in this area.  The representative of Viet Nam confirmed that 
Viet Nam would apply the SPS Agreement, including ru les that may be applicable to the treatment of 
GMOs, from the date of accession.    WT/ACC/SPEC/VNM/5/Rev.3 
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  313. 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 
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.   
314. 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 under the SPS Agreement fully.  In  particular, he hoped that concrete technical 
assistance would be delivered to train staff and he lp 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 proce dures) would be provided to develop Viet Nam's 
laboratories, information systems and control procedures.   
315. [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)  
316. Noting that Viet Nam appeared to apply local  content requirements and an 80 per cent export 
ratio requirement to certain industrial products  in accordance with Decision No. 718/BKH-QD, and 
that the transition period for developing country Memb ers 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-Relate d Investment Measures (TRIMs) and specifying a 
timetable for their elimination.  A Member noted that while Decision No. 718/2001/QD-BKH had removed some products from the list of goods subject  to the 80 per cent ratio requirement, in practice WT/ACC/SPEC/VNM/5/Rev.3 
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  Viet Nam still appeared to apply export requirements to these products.  This Member also noted that 
in some cases, foreign-invested enterprises appeared  to have been requested to maintain the same 
export sales ratio for products not included in the list (such as pork).  A Member reminded Viet Nam 
that the solution envisaged for automobile assembly factories, i.e. voluntary registration of local 
content, would not solve the problem of consiste ncy with the TRIMs Agreement.  Furthermore, 
Viet Nam was asked to abolish the regulations restricting the maximum level of motorcycle 
production for foreign-invested enterprises.  Seve ral Members noted that most TRIMs measures had 
been introduced after Viet Nam's application to jo in 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 comply fully with th e TRIMs Agreement from the date of accession to 
the WTO without invoking a transition period.  So me Members encouraged Vi et Nam not to enforce 
contracts imposing requirements inconsistent with the TRIMs Agreement, assuming that the 
Government of Viet Nam would also eliminate an y such requirements accepted on a voluntary basis.  
Viet Nam was invited to confirm that any export re quirement listed in an i nvestment licence, whether 
issued by the central government or a local author ity, would be eliminated at the same time.  
Viet Nam was also asked to comm it, from the date of accession, not to relate tariff quota allocations 
to the levels of production or export of partic ular enterprises that processed the tariff quota product 
concerned as such measures were illegal TRIMs unde r paragraph 2(a) of the Annex to the TRIMs 
Agreement. 
317. 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 Supp lement 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 prio rity to the purchase of domestic products − foreign invested 
enterprises were free to  choose their own markets for products other than those listed in Decision 
No. 718/BKH-QD.  Viet Nam had no intention to reintroduce self-balancing requirements.   
318. 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 of 31 October 2003.  He stated  that, in accordance with the revised action 
plan, the import duty preferences contingent on loca lization ratio with 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.  In addition, the export ratio 
requirement had been eliminated by Decree No. 27/2003/ND-CP of 19 March 2003 and the new 
Law on Investment and its Implementing Decree  had removed all measures and conditions for  WT/ACC/SPEC/VNM/5/Rev.3 
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  granting investment licenses or for receiving investme nt incentives indicated in the Illustrative List of 
the TRIMs Agreement.   
319. 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  
320. 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 
Government Decision or Decision of the Prime Mi nister.  The establishment and operation of export 
processing enterprises were governed by Government Decree No. [...] guiding the implementation of the Investment Law.   
321. 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. 
322. The representative of Viet Nam confirmed that requirements for establishment in such zones 
were not contingent upon export performance or the use of domestic inputs.  Government agencies 
responsible for regulating the operations of i ndustrial 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 Ministry of Home Affairs, in 
accordance with their functions, co mpetences, and mandates.  In a ddition, Management Boards of 
industrial zones and export processing zones could be authorized to implement certain administrative 
functions.  The provincial People's Committee had authorized provincial management boards of 
industrial zones, high-tech zones and economic z ones to grant, amend, and withdraw foreign 
investment licenses for projects inferior to US$ 40 m illion, and the Ministry of Trade and Ministry of 
Labour, War Invalids and Social Affairs had author ized the management boards of industrial and 
export processing zones to implement certain admini strative functions under their management.  The WT/ACC/SPEC/VNM/5/Rev.3 
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  Ministry of Planning and Investment would be  primarily responsible for ensuring the WTO 
compliance of the operations of industrial and export processing zones. 
323. 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 
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.  
324. 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. 
325. In reply, the representative of Viet Nam said that incentives for investments in export 
processing zones were stipulated in Articles 32 and 37 of the new Investment Law.  He confirmed that 
under the Decree guiding the implementation of the La w, all investment incen tives for investments in 
export processing zones would be WTO consistent, i.e. incentives would not be contingent upon 
export performance or local content.  Specifically , enterprises in export processing zones should not 
be required to export their products and shoul d only be entitled to incentives in the form, inter alia, of 
facilitation of procedures with respect to investment  and rental of land and premises; and facilitation 
in the supply and training of labour, and supply of water, power and othe r utilities.  He added that the 
preferential treatment provided by the Regulati ons on industrial zones, export processing zones and 
high-tech parks were measures commonly applied by other countries to attract foreign direct  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 129 
 
 
  investment.  The preferential measures applied to industrial zones, export processing zones and high-
tech parks had been described in  the Notification pursuant to Article XVI:I of the GATT 1994 and 
Article 25 of the Agreement on Subsidies and Countervailing Measures in document 
WT/ACC/VNM/13/Add.2.  He conf irmed that, upon accession, preferential treatment for investments 
in export processing zones would be granted in a manner consistent with the Agreement on Subsidies 
and Countervailing Measures and Viet Nam's accession commitments.   
326. 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 commitments.  He proposed to eliminate prohibited subsidies in the form of i nvestment incentives granted under already conceded 
investment licenses within five years from the da te 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 [353] 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.3 
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  Government procurement  
327. 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. 
328. 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.   
329. 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. 
330. 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.3 
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  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. 
331. 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. 
332. The representative of Viet Nam added that a new Law on Procurement had been adopted in 
November 2005.  The Law provided for greater transp arency in the procurement process.  It foresaw 
the creation of a Procurement Gazette to provi de general information on tendering activities, 
invitations for tender, lists of tenderers participating in limite d tendering proceedings, selection of 
bids, information on enterprises prohibited to participat e, or restricted, in the bidding process, etc.  
The party calling for tenders was required to publis h the terms and conditions of the tender in the 
newsletter.  The Law also aimed at decentralizi ng procurement decision-making to the ministries, 
agencies and local authorities.  It also identifie d bad practices and fraudulent behaviour, stipulated 
penalties for violations, and included provisions co ncerning right of appeal and the settlement of 
disputes.   
333. 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.3 
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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.   
334. 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 
335. 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 services infrastructure and foster development and 
growth.  This Member requested Viet Nam to join the Agreement upon accession to the WTO. 
336. 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 
337. Noting that prior permission from the Ministry of Trade was required for goods to transit 
through the territory of Viet Nam, some Memb ers questioned whether Viet Nam's regulations 
restricted the freedom of transit as provided for under GATT Article V:2.  Viet Nam was invited to 
provide further justifications for its transit pro cedures and the conditions for granting transit permits, 
and explain how Viet Nam would bring its tran sit regime into conformity with the WTO. 
338. In response, the representative of Viet Nam said that provisions on transit had been reviewed 
with a view to ensuring freedom of transit as laid down in Article V of the GATT.  Transit of goods 
was now regulated by Article 242 of the 2005 Commercial Law.  The new Commercial Law had 
eliminated the requirement of prior permission.  Pursuant to Article 242 of the new Commercial Law, 
all goods owned by foreign organizatio ns or individuals were allowed to transit through the territory  WT/ACC/SPEC/VNM/5/Rev.3 
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  of Viet Nam, except arms and ammunitions, expl osive and other high dange rous commodities, unless 
so permitted by the Prime Minister; and commod ities subject to business prohibition or import and 
export prohibition, unless allowed by the Minister of Trade.  Foreign organizations and individuals 
were required to hire Vietnamese carriers or carriers fr om countries which had signed bilateral transit 
agreements with Viet Nam (China, the Lao PDR and Cambodia).  The se lection of Vietnamese carriers 
was based on past performance.  Regulations were strict for the purpose of combating smuggling.  
Customs clearance of goods in transit was required at the port of entry and at the port of exit.  
Documents to be submitted at the customs included, for goods transported in their original condition, 
a list of the goods in transit, to be submitted by the customs declarer or his/her representative, and for 
goods that had to be warehoused or transhipped ont o another type of transport means, a customs 
declaration and a list of the goods in transit.  For arms and ammunitions, explosives, other high 
dangerous commodities, and prohibited goods, a trans it permit was also required.  Customs authorities 
allowed or declined transit on the basis of the list of transiting goods, of the customs declaration and 
of the transit permit, if required.  Physical inspec tion of goods in transit was carried out only if signs 
of violation of law were detected.  While in transit, goods were required to be transported along the 
prescribed route and within the time allowed.  Ware housing of goods in transit was subject to approval 
by Customs.  Consumption of goods in transit within  the territory of Viet Nam was forbidden, unless 
otherwise permitted by the Ministry of Trade,  and any discrepancy be tween the amount of goods 
entering and leaving Viet Nam requi red certification by Customs.  Domestic legislation did not 
stipulate any time-limit for customs to process tran sit shipments, but normal transit shipments were 
processed within four hours on average.  Current pr ocedures were, in his view, not in violation of 
GATT Article V and Viet Nam would therefore co mmit to observe fully WTO rules on transit upon 
accession.     
339. Some Members noted that goods in transit were subject to a transit fee of 1 per cent of the 
value of the goods.  These members questioned whether the fee was commensurate with the 
administrative expenses entailed by transit or with the cost of the services rendered for individual cases as required under GATT Article V:3. 
340. The representative of Viet Nam replied that the 1 per cent transit fee had been abolished.  
Current fees applicable to goods, including postal p ackages and parcels, and luggage 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 escorted 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.  WT/ACC/SPEC/VNM/5/Rev.3 
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  341. He added that no fee was charged for approval of a request to warehouse goods in transit.  
Goods warehoused at customs bond warehouses or  bonded warehouses were charged 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.  Transiting goods warehoused outside 
customs warehouses or bonded warehouses were subject to the fees and charges of the enterprises 
providing the warehouse services at the ra tes specified by the enterprises.   
342. 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 
343. 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.3 
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  available to acceding governments.  Viet Nam was as ked to enter a commitment not to seek recourse 
to SSGs. 
344. 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 [160]).  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. 
345. 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.   
346. 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 
347. The representative of Viet Nam said that Viet Na m imposed export restrictions or controls on 
the products listed in Table 17 (see section "Expor t restrictions" for a discussion of these measures).  WT/ACC/SPEC/VNM/5/Rev.3 
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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"). 
348. 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. 
349. 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. 
350. 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.   
351. 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.3 
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  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. 
352. 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. 
353. [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 agri cultural 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 
354. 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.3 
Page 138  
 
  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. 
355. He provided information on domestic support an d export subsidies in agriculture for the 
period 1999-2001 in document WT /ACC/SPEC/VNM/3 of 5 November 2002, last revised in 
September 2005 (WT/ACC/SPEC/VNM/3/Rev.5).  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" po licies.  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. 
356. 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. 
357. 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.  
358. 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 
strengthen the research capacity of the coffee industr y, and (ii) a 700 billion dong project to plant an  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 139 
 
 
  additional 40,000 hectares of arabica in North Vi et 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.   
359. 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. 
360. 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 
361. 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 
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.   WT/ACC/SPEC/VNM/5/Rev.3 
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  362. As of 31 December 2003, 1,468 fisheries enterpri ses operated in Viet Nam, with an average 
capital of approximately 0.5 billion dong.  Fisheries 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 had 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. 
363. 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.  
[Textiles regime 
364. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 141 
 
 
  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). 
365. 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.   
366. 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 Agre ement on Textiles and Clothi ng 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. 
367. 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 th e 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.]   
[Core labour standards 
368. Referring to paragraph 4 of the Singapore Mini sterial 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 142  
 
  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. 
369. 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) Intellectual property protection   
370. The representative of Viet Nam said that sin ce the early stages of Viet Nam's accession 
process the main legal instruments for the protection of intellectual property in Viet Nam had been the 
Civil Code of 1995 (Part Six); Government De cree No. 63/CP of 24 October 1996 on Detailed 
Regulations on Industrial Property; Circular  No. 3055/TT-SHCN of 31 December 1996 of the 
Ministry of Science, Technology and Environment on Guiding the Implementation of the Provisions on the Procedures for Establishing Industrial Prope rty Rights, and a number of other procedures in 
Decree No. 63/CP; Government Decree No. 76/CP of 29 November 1996 on Guiding the 
Implementation of the Provisions on Copyright in  the Civil Code; Circular No. 23-TC/TCT of 
9 May 1997 of the Ministry of Finance on Industrial Property Fees; and Circular 
No. 166/1998/TT-TC of 19 December 1998 of the Ministry of Finance on copyright registration fees.  WT/ACC/SPEC/VNM/5/Rev.3 
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  371. His Government had made important efforts during the past decade 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. 3/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 Dece mber 2001 on dispute settlement procedures 
concerning copyright violations; the Customs Law 2001 and Decree No. 101/2001/ND-CP of 
31 December 2001 providing guidelines on customs 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 i ndustrial property rights to industrial designs; 
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; the Ordinance on Plant Varieties of 2004 (Ordinance No. 15/2004/PL-UBTVQH11 of 24 March 2004, Chapter IV – Protection of New Pl ant Varieties); the new Civil Procedure Code of 
2004; 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 Finance on border control meas ures in respect of industrial property rights for 
imports and exports.  
372. 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.  In 2005, in im plementation of this Action Plan, Viet Nam had WT/ACC/SPEC/VNM/5/Rev.3 
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  promulgated amendments to the Civil Code, which r eaffirmed the basic civil principles of intellectual 
property rights (Part VI of the Code), as well as an Intellectual Property Law governing all aspects of 
intellectual property rights.  The Civil Code (L aw No.33/2005/QH11 of 14 June 2005 replacing the 
1995 Civil Code - thereafter referred to as th e 2005 Civil Code) had entered into force on 
1 January 2006.  As for the Intellectual Prope rty Law (Law No.50/2005/QH11 of 29 November 2005 
- thereafter referred to as the 2005 Intellectua l Property Law), it would become effective on 
1 July 2006.  These two texts formed a complete a nd uniform system of regulations on intellectual 
property, which would substitute prev ious legislation.  He noted that the new system was, to a large 
extent, based on the previous one.  In case of c onflict between the 2005 Intellectual Property Law and 
the provisions on intellectual property of the 2005 Civ il Code, the former would apply (Article 5.2 of 
the 2005 Intellectual Property Law).  These texts had, in his view, made Viet Nam's intellectual 
property legislation fully compliant with the TR IPS Agreement.  Various decrees on copyright, 
industrial property, plant varieties and enforcem ent of intellectual property rights guiding the 
implementation of the 2005 Intellectual Property Law were expected to be adopted by the end of 
July 2006.  Drafts of the above-mentioned decrees had been published for comments in May 2006.  In 
addition, the Ministry of Culture and Information,  the Ministry of Science and Technology and the 
Ministry of Agriculture and Rural Developm ent would promulgate circulars guiding the 
implementation of procedures on registration of co pyright and related rights, industrial property 
rights, and plant varieties; on industrial property representatives; and on transfer of industrial 
property. 
(b) Responsible agencies for policy formulation and implementation 
373. 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; Agriculture and Rural Development; Ju stice; Finance; and Trade; the General Customs 
Department (under the Ministry of  Finance); the National Office of  Intellectual Property (under the 
Ministry of Science and Technology) and the Copyr ight Office (under the Ministry of Culture and 
Information).  Administrative enforcement of IPR le gislation was entrusted to the customs offices, the 
market control agencies, the Economic Police, the Culture and Information Inspectorates, the Science 
and Technology Inspectorates, and the People's Co mmittees at provincial  and district levels. 
374. Concerning the tasks of the administrative enfo rcement agencies, he said that, pursuant to 
Article 200 of the 2005 Intellectual Property Law, inspectorates, market c ontrol agencies, customs 
offices, police agencies and People’s Committees we re responsible for handling infringements of 
intellectual property rights within their own juri sdiction and for imposing administrative remedies or,  WT/ACC/SPEC/VNM/5/Rev.3 
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  in appropriate cases, preventive measures and meas ures to ensure the imposition of administrative 
sanctions.  Customs authorities were also in charge  of the application of border control measures on 
intellectual property-related impor ts and exports.  The jurisdiction and competences of the above-
mentioned agencies would be detailed in the decr ee guiding the implementation of the enforcement 
provisions of the 2005 Intellectual Property Law, wh ich was expected to be adopted by the end of 
July 2006.   
(c) Participation in international intellectual property agreements 
375. 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 and would become an o fficial party to the Protocol relating to the 
Madrid Agreement concerning the international regi stration of marks from 11 July 2006.  Viet Nam had 
concluded bilateral ag reements on the protection of  intellectual property with the United States and 
Switzerland.  He expected Viet Nam to join the Rome Convention and the International Union for the 
Protection of New Varieties of Plan ts (UPOV) Convention in late 2006.   He confirmed that Viet Nam's 
Law on Conclusion, Accession and Implementation of International Treaties of 2005 provided for the 
direct application, in whole or in part, of intern ational treaties to which Viet Nam was a party (see 
paragraph [113]).  In case of c onflict between Vietnamese laws on intellectual property rights and 
international treaties to which Viet Nam was a part y, the provisions of the latter would apply, as 
prescribed in Article 5.3 of th e 2005 Intellectual Property Law. 
376. 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 (WCT) or the WIPO Performance and Phonogr ams Treaty (WPPT).  However, the substantive 
provisions of the WCT and WPPT had been incorpor ated in the 2005 Intellectual Property Law. 
(d) Application of national and MF N treatment to foreign nationals 
377. 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. WT/ACC/SPEC/VNM/5/Rev.3 
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  378. 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.   
379. In reply, the representative of Viet Nam said that 2005 Intellectual Prope rty Law did not require 
foreign natural or legal persons to establish and en force copyright nor to carry out any procedure other 
than the establishment of indus trial property rights through intell ectual property agents.  The 
requirement to use Vietnamese indu strial property agents under Arti cle 89.2 of the 2005 Intellectual 
Property Law applied only to foreign non-reside nts and foreign legal persons without legal 
representation or an effective industrial or commercial presence in Viet Nam − the requirement aimed at 
protecting the interests of the right holder and fa cilitating his/her communication with the competent 
State authorities and was, in his view, in conformity with inte rnational practice and exceptions to 
national treatment allowed unde r the TRIPS Agreement.   
(e) Fees and taxes  
380. 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 
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.   
381. 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.   
382. 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  WT/ACC/SPEC/VNM/5/Rev.3 
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  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 Conventi on).  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. 
383. 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 
384. The representative of Viet Nam said that accord ing to Article 14 of the 2005 Intellectual 
Property Law, literary, artistic, and scientific works protected included literary and scientific works, 
textbooks, teaching materials, and other works in the form of letters or other writing characters; lectures, presentations and other speeches; pre ss works; musical works; dramatic works; 
cinematographic works and works created by similar methods (hereinafter referred to as 
cinematographic works); fine art works and app lied art works; photographic works; architectural 
works; graphics, sketches, maps, dr awings relevant to topography a nd scientific works; folk artistic 
and literary works; and computer programmes and compilations of data.  "Scientific works" covered works referring to sciences such as written theoreti cal works in the natural, social, technological, and 
economic sciences.  "Press works" were works publis hed in newspapers.  "Other works" was an open 
provision referring to other forms of works not mentioned in the list, but subject to copyright protection.  
Protection would not be granted for the works above if they were found to be in  violation of Article 8.1 
of the 2005 Intellectual Property Law.   
385. Copyright was provided for original works irresp ective of form, language used for expression, 
and the quality of the works.  Copyright arose fro m the moment the work was created in a concrete 
material form irrespective of whether or not it was a registered work (Article 739 of the 2005 Civil Code 
and Article 6.1 of the 2005 Intellectual Property Law).  Works existing prior to the entry into force of the 1995 Civil Code were protected in accordance with paragraph 3 of the National Assembly WT/ACC/SPEC/VNM/5/Rev.3 
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  Resolution on the implementation of the 1995 Civil C ode if their term of protection had not expired 
and if they were not in violation 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.  Under 
Article 27 of the 2005 Intellectual Property Law, copyright was protected for the lifetime of the author and 50 years after his decease (in ca se of a co-authored work for 50 years after the death of the last 
surviving author); cinematographi c works, and works published posthumously were protected for a 
period of 50 years from the date of  first publication; and moral rights of the author other than publication 
rights were protected indefinitely.  As for the ri ghts of performers, produce rs of audio- and video 
recordings, and broadcasting organizations, they were  protected for 50 years from the date of fixation of 
the performance or publication of the phonograms pur suant to Article 34 of the 2005 Intellectual 
Property Law.  Unless the declaration in the applicat ion 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.  In response to a question concerning the application of the national treatment principle, he 
noted that the 2005 Intellectual Property Law guara nteed the implementation of Article 3 of the 
TRIPS Agreement and Article 3 of the Berne Conve ntion.  Pursuant to Article 13 of the Law, 
nationals from any Member of the Berne Conventi on or the WTO would be eligible for copyright 
protection in Viet Nam. 
386. The 2005 Intellectual Property Law regulated th e registration of copyri ght and related rights 
(Articles 49 to 55); the rights of the author and the time-limit for author's right protection (Articles 18 to 
20 and 27); the rights of performers, producers of  audio and video recordings, and broadcasting 
organizations (Articles 29 to 31); the rights of inheritance (Article 40);  rental rights (Articles 20, 29, 30); 
and the right to import copies (Articles 20).  Produ cers of audio and video re cordings were protected 
under Article 30, and unfixed performances under Arti cle 29.3(c).  Concerning radio and television 
broadcasts, he noted that Viet Nam had acceded to the Brussels Conventi on in January 2006 and had 
included specific provisions in the 2005 Civil Code (Articles 744-749) an d the 2005 Intellectual 
Property Law (Articles 3, 4.11, 6. 2, 17.3, 17.4 and 35.7, 35.8, and 35.9) covering pre-programmed and 
encrypted signals, and transmission by cable.  
387. The registration process was now governed by Articles 49 to 55 of the 2005 Intellectual 
Property Law.  The author or the copyright owne r of a work filed the application and related 
documents with the Copyright Office of Viet Na m (COV).  The COV decided on the granting of a 
Registration Certificate within 15 days from the date of receipt of the application (Article 52 of the 2005 Intellectual Property Law).  WT/ACC/SPEC/VNM/5/Rev.3 
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  388. Pursuant to Article 13.2 of the 2005 Intell ectual Property Law, the works of foreign 
individuals or foreign organisations which were protected in Viet Nam included (i) works published 
in Viet Nam for the first time and not published in any foreign country, or works published in 
Viet Nam within 30 days from the date of their first publication in other nations; and (ii) works 
eligible for protection in Viet Nam in accordance wi th international treaties to which Viet Nam was a 
party.   
389. Right holders had the exclusive right of repr oduction, broadcasting/performance, distribution, 
and creation of derivative works (Article 738.3 of th e 2005 Civil Code and Articles 20, 30, and 31 of 
the 2005 Intellectual Property Law).  Limitations to author's rights were laid down in Articles 25 and 32 of the 2005 Intellectual Property Law.  Pursuant to  Article 25.1 of the 2005 Intellectual Property Law, 
published works could be used without permission of the author nor payment of any royalties in the 
case of self-reproduction in a single copy for sci ence research or individual teaching purposes; 
reasonable quotation without alteration of the cont ents for commentary or illustration in one’s own 
works; quotation without alteration of the contents for use in articles, periodic journals, radio and 
television programmes and documentary  films; quotation, without alte ration of the contents and for 
non-commercial purposes, for teaching in schools; d uplication for archives in libraries for research 
purposes; performance of dramatic works and other fo rms of performing arts in cultural gatherings or 
in promotional campaigns; direct recording and re porting of performances for public information and 
educational purposes; pictures of or television broa dcasting, for introduction purposes, of works of 
fine art, photographic, and applied art that had alread y been publicly displayed; translation into Braille 
or the like; and importation of copies of others’ wo rks for personal use only.  Use of works under the 
provisions of Article 25.1 should not affect the normal exploitation of the works nor prejudice the 
rights of the authors or copyright owners.  Natura l and legal persons using protected works under the 
provisions of Article 25.1 were requi red to provide the name of the author(s) and origin of the works 
(Article 25.2 of the 2005 Intellectual Property Law).  He noted that the provisions of Article 25.1 did 
not apply to architectural, fine art works and computer programmes (Article 25.3 of the 2005 
Intellectual Property Law).  Asked to confirm that Viet Nam's legislation did not allow libraries and 
archives to make and distribute unlimited copies of works in digital form nor limited importation to a 
single copy for personal use, he said that these issu es would be dealt with in the decree guiding the 
implementation of the 2005 Intellectual Property Law.   A Member noted that the terms "cultural 
gatherings" and "promotional campaigns" used in Artic le 25.1(e) could be interpreted so as to allow 
for commercial gain other than through the sale of tickets, which would appear to conflict with the 
Berne Convention and the TRIPS Agreement.  In re sponse, the representative of Viet Nam said that 
this provision only referred to cultural perfo rmances without a commercial purpose.  WT/ACC/SPEC/VNM/5/Rev.3 
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  390. Pursuant to Articles 26.1 and 33.1 of the 2005 Intellectual Property Law, organizations and 
individuals using published works or sound/video recordings for sp onsored broadcasting programmes, 
or programmes with advertisements  or involving money collection in any form did not have to obtain 
permission from the right holder, but were required to pay royalties in accordance with Government's 
regulations.  Organizations and individuals using works or sound/video recordings in accordance with 
the provisions of Articles 26.1 and 33.1 should not in fluence the normal exploitation of the works nor 
prejudice the rights of the authors, copyright ow ners, performers, sound/video recoding producers or 
broadcasting organizations.  He noted that Article 26.1 did not apply to cinematographic works.  In 
response to a Member who noted that the exceptions provided for in Articles 26 and 33 appeared to be 
too broad and therefore inconsistent with the TR IPS Agreement, the representative of Viet Nam said 
that the exceptions stipulated in  these Articles were limited to cases which did not conflict with a 
normal exploitation of the work and did not prejudice the rights of the right holder.  He noted that 
broadcasting organizations in Viet Nam were operate d by the State and were required to pay royalties 
only when they broadcasted sponsored programs, programmes with advertisements, or programmes 
involving money collection. 
391. Authors or owners of works whose rights were  being infringed were entitled to request the 
organization or individual having committed the act s of infringement to stop his infringement acts, 
apologize, publicly rectify and compensate for da mages; request the comp etent State agencies to 
handle infringement acts in accordance with the pr ovisions of the Intellectual Property Law and other 
related laws and regulations ; or initiate a lawsuit at a competent court or an arbitrator to protect their 
legitimate rights and interests (Article 198 of the 20 05 Intellectual Property Law).  Criminal remedies 
were stipulated in Article 131 of the Criminal C ode.  Violators could face a fine of 200 million dong 
or up to three 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.  Purs uant to Articles 57 and 58 of the 2001 Customs Law, 
the right holder could also request customs offi ces to halt clearance temporarily of infringing 
imported or exported goods. 
392. 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. 
393. 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,  WT/ACC/SPEC/VNM/5/Rev.3 
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  videotapes and DVD.  Imports were effected th rough FAFIM under the Ministry of Culture and 
Information (Article 15 of Government 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 
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 screen ed 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.   
394. Asked specifically about Viet Nam's regulation of digital copyright issues, the representative 
of Viet Nam said that digital copyright protection was provided for in Articles 4.10, 20.1(dd), 29.3(d), 
30.1(b), and 31.1(d) of the 2005 Intellectual Propert y Law.  The principles and forms of fair use 
exceptions were laid down in Articles 25 and 32 of the 2005 Intellectual Property Law.  Provisions on 
technological protection measures for protected copy right had been included in Articles 28 and 35 of 
the 2005 Intellectual Property Law.  As to Inte rnet services, Article 6.1 of Decree No. 55/2001 
required compliance with the respective regula tions under the Law on Newspapers, the Law on 
Publishing, the Ordinance on Protection of State Secrets, and other laws and regulations on 
intellectual property and Internet information manage ment.  The Decree prohibited strictly theft and 
unlawful use of passwords, codes and private informat ion of individuals or entities on the Internet.   
395. [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.  
These Members also noted that an agency of th e Government of Viet Nam and a State-owned 
enterprise were providing unlicensed cable television programming to Vietnamese customers.   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 WT/ACC/SPEC/VNM/5/Rev.3 
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  agency computers, and inventories of existing soft ware licenses.  The representative of Viet Nam also 
confirmed that prior to the date of accession, Vi et Nam would issue appropriate legal instruments 
mandating that all cable television purveyors provide only fully licensed products to their customers.  
The Working Party took note  of these commitments.]  
396. 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 
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. 
397. The representative of Viet Nam replied that the Ordinance on Copyright Protection of 1994 
had expired on 1 July 1996 and that all copyright-re lated provisions had been incorporated in the 1995 
Civil Code (Chapter 1, Part Si x), and subsequently in the 200 5 Civil Code and 2005 Intellectual 
Property Law.  These texts had broug ht copyright legislation into line with the TRIPS Agreement and 
the Berne Convention. 
(b) Trademarks, including service marks 
398. The representative of Viet Nam said that trad emarks were protected in accordance with 
Articles 750 to 753 of the 2005 Civil Code and Pa rt III of the 2005 Intellectual Property Law.  
Trademarks for pharmaceutical pr oducts were regulated by the ge neral laws and regulations on 
trademarks.  Mandatory registration was not requ ired for any goods or services.  All trademark 
registrations were published in the Offi cial Gazette of Industrial Property. 
399. A trademark could be words, letters, pictures, figures − including three-dimensional figures − 
or a combination of such elements represented in one or many colours (Article 72 of the 
2005 Intellectual Property Law).  A sign capable of disti nguishing goods or services of different owners 
could be protected as trademark, unless it was ex cluded from protection under Article 73 of the 2005 
Intellectual Property Law.  Signs excluded from protection included signs identical with or confusingly 
similar to national flags, national em blems; flags, emblems, armorial bearings, abbreviations, full names 
of State agencies, political organizations, socio- political organizations, socio-political professional 
organizations, social organizations or socio-profes sional organizations of Vi et Nam or international 
organizations, unless so permitted by such agencies or organizations; real names, alias, pen names or 
images of leaders, national heroes or famous pers ons of Viet Nam or forei gn countries; certification  WT/ACC/SPEC/VNM/5/Rev.3 
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  seals, control seals, warranty seals of international organizations; and signs likely to mislead, confuse or 
deceive consumers as to the origin, functional pa rameters, intended purposes, quality, value or other 
characteristics of the good or service.  While Viet Na m's laws did not list personal names as signs that 
could be protected as trademarks, personal names were, as words, ex officio  recognized as signs that 
could be registered pursuant to Article 72.1 of the 2005 Intellectual Property Law.  Applications for registration of marks were filed with the competent St ate authority (the National Office of Intellectual 
Property).  In accordance with Article 89.2 of the 2005 Intellectual Property Law, foreign natural 
persons not resident in Viet Nam and legal persons not industr ially or commercially established in 
Viet Nam were required to file applications for trademark regist ration through a legally operating 
industrial property representative of their choice.  Use was not a condition for entitlement to file an 
application for registration of a trad emark.  A sign which did not possess  a distinctive character could be 
protected if it had been widely used and recognized as a trademark (Article 74.2 of the 2005 Intellectual 
Property Law).  Current laws and regulations also applied to service marks.  Well-known marks were 
protected under Articles 74.2( i), 75, and 129.1(d) of the 2005 Intellectual Property Law.  These 
provisions were, in his view, in compliance with  the Paris Convention and the TRIPS Agreement. 
400. Examination of marks was mandatory, and included examination as to form and substance 
(Article 109.1 and 114.1(b) of the 2005 Intellectual Property Law).  Pursuant to Article 114.1 of the 
2005 Intellectual Property Law, the National O ffice of Intellectual Property conducted an ex officio  
substantive examination of trademark applicati ons and decided on refusal of registration if a 
trademark failed to meet the protection requireme nts of Articles 72 to 74 of the 2005 Intellectual 
Property Law.  He added that Article 112 of the 2005 Intellectual Property Law provided for opposition to a trademark application prior to registration.   
401. The owner of a trademark had the exclusive right to use, transfer, licence and assign the 
trademark to other persons (Article  123.1 of the 2005 Intellectual Property Law).  He had the right to 
request a third party to stop infringement or to request the competent authority to handle such 
infringements (Article 198.1, paragraphs (b), (c), and (d), of the 2005 Intellectual Property Law).  
A trademark was protected for ten years from the filing date − taking effect from the registration date 
− and was renewable for periods of ten years withou t limitation (Article 93.6 of the 2005 Intellectual 
Property Law).  The owner of a trademark was obliged to use the registered mark.  Failure to use a 
trademark for five consecutive years without plausibl e reason would lead, upon request of a third party, 
to the termination of the protecti on certificate (Article 136.2 of the 2005 Intellectual Property Law).  
Examples of justifiable re asons were natural disaster s, war, governmental rest rictions on use, etc.  
Licensing of a trademark would not be considered e ffective use, but the use of the trademark by the 
licensee would be considered an act of use.  A regi stration would not be terminated in the absence of a WT/ACC/SPEC/VNM/5/Rev.3 
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  request for termination of validity, or if the owner had begun or restarted use of the trademark at least 
three months before a request wa s made (Article 95.1(d) of the 2005 Intellectual Property Law).  
Applications requesting terminati on or invalidation of a Trademar k Registration Ce rtificate were 
processed in accordance with procedures laid dow n in Articles 95.4 and 96. 4 of the 2005 Intellectual 
Property Law. 
402. 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 
assignor to transfer, together with the trademar k, the business to which the trademark belonged 
(Article 139 of the 2005 Intellectual Property Law) .  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.   
403. Legal entities, including charitable organizations , could apply for trademark registration only 
if legally engaged in business activities (produc tion, service or trading), in accordance with 
Articles 87.1 and 87.2 of the 2005 Intellectual Property Law.  However, charitable entities not engaged 
in business activities were protected against non-au thorized registration of signs and designations 
identical with or similar to their emblems or  designations according to Article 73.2 of the 
2005 Intellectual Property Law. 
404. 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 – possi bly due to a misinterpretation of Article 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.  In reply, the representative of Viet Nam said that neither the TRIPS Agreement 
nor the Paris Convention required re cognition of jointly owned trademar ks.  Nevertheless, provisions on 
the right to register such marks had been included in  Article 87.5 of the 2005 Intell ectual Property Law.   
405. 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 judicial review of any administrative d ecision was guaranteed by the Law on Complaints and 
Denunciations of 1998, as amended in 2005, an d the Ordinance on Procedures for Settlement of 
Administrative Cases of 1996, as amended in 2006.  Pu rsuant to these texts, decisions relating to the 
establishment, maintenance, termination and invalidat ion of trademarks, and industrial property rights  WT/ACC/SPEC/VNM/5/Rev.3 
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  in general, having been appealed to the Direct or General of the National Office of Intellectual 
Property could be further appealed, at the appellant's discretion, either to the Minister of Science and 
Technology or to the Administrative Court, in acco rdance with Article 39 of Law on Complaints and 
Denunciations of 1998, as amended in 2005, and Article 2 of the Ordinance on Procedures for 
Settlement of Administrative Cases of 1996, as amended in 2006.  As such, in his view, existing laws 
and regulations provided an opportunity for both judicial and administrative review in compliance 
with the TRIPS Agreement.   
406. He added that the scope of trademark protecti on, which under previous legislation had been 
narrower than the requirement in Article 16.1 of the TRIPS Agreement, had been extended by Decree 
No. 06/2001/ND-CP of 1 February 2001.  Decree  No. 06/2001/ND-CP had broadened the scope of 
protection of trademark rights in compliance with the TRIPS Agreement.  The provisions of Decree 
No. 06/2001/ND-CP had subsequently been incl uded in Article 129.1 of the 2005 Intellectual 
Property Law.  In particular, Artic le 129.1 stipulated as infringement of a trademark owner's rights the 
use of signs identical with or similar to a protect ed mark for goods or services identical with, similar 
to or related to those in the list registered with th e mark if such use was likely to cause confusion as to 
the origin of the goods or services.  He furthe r noted that Articles 46, 181, 287, 289 of the 
2005 Commercial Law required the concerned parties to ensure the legality of intellectual property 
rights in commercial transactions, and Articles 109, 134 and 320 of the Commercial Law prohibited 
acts deceiving and confusing customers, as well as acts of displaying false advertisements or 
counterfeit goods. 
407. 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 th e recognition of well-known marks were provided in 
Articles 4.20 and 75 of the 2005 Intellectual Propert y Law.  Pursuant to Article 75, the criteria 
included information on the number of relevant c onsumers knowing the mark 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 tradem ark protection or recognizing the trademark as 
well-known; generated sales revenue; period of continuous use; indi cations of widespread reputation; 
the value of the trademark in terms of licensing, c ontribution to an investment asset, etc.  Ownership 
of well-known marks should be established on the basis of use without registration (Article 6.3(a) of 
the 2005 Intellectual Property Law).  He confirme d that in drafting the 2005 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 World Intellectual Pr operty Organization (WIPO) in September 1999.  WT/ACC/SPEC/VNM/5/Rev.3 
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  He considered Viet Nam's system for the recogniti on 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 
408. The representative of Viet Nam said that geographical indications were protected under 
Articles 750 to 753 of the 2005 Civil Code and Part III of the 2005 Intellectual Property Law.  The 2005 Intellectual Property Law provided for a single model of protection applicable to all types of 
geographical indications, including appellations of origin .  Pursuant to Article 6. 3 of the Law, industrial 
property rights of geographical indications, includin g appellations of origin, were established on the 
basis of registration with the competent State authorit y (the National Office of Intellectual Property).  
The time-limit for formality examination was one month from the filing date and six months for 
substantive examination.  The term of protection of geographical indications was indefinite.  Article 79 
of the 2005 Intellectual Property Law laid down the conditions for protec tion of a geographical 
indication.  Products bearing a ge ographical indication should (i) originate from the area, locality, 
territory or country corresponding to such geographical  indication and (ii) have the reputation, quality or 
characteristics essentially attributab le to the geographical conditions of  the area, locality, territory, or 
country corresponding to such geographical indicati on.  Geographical indications corresponding to 
regions and localities within a country  or territories crossing internationa l borders were protected if they 
complied with all requirements stipul ated by law.  The provisions were, in his view, in compliance with 
Article 22.1 of the TRIPS Agreement.  In response to a question, he added th at a geographical indication 
would not be protected pursuant to Article 80.1 of th e 2005 Intellectual Property Law if it had become a 
generic name in Viet Nam.  As of early 2006, five geographical indications were prot ected in Viet Nam. 
409. Acts infringing geographical i ndications were handled in acc ordance with Part V of the 
2005 Intellectual Property Law on enforcement of intell ectual property rights.  A person having the right 
to use a geographical indication coul d require the competent State auth orities to stop unlawful use of 
such indication and demand compensation from unlaw ful users for the damage caused (Article 198.1, 
paragraphs (b) and (c) of the 2005 Intellectual Prop erty Law).  However, th at person would not have 
exclusive rights to such geographi cal indication, and could not grant licenses to other persons.  Civil 
remedies for wrongful use of a geographical indication were provi ded for in Article 202 of the 
2005 Intellectual Property Law, admi nistrative remedies in Articles 214 and 215, and criminal penalties 
in Articles 156 to 158 and 170 of the 1999 Criminal  Code.  He confirmed that administrative and 
criminal laws and re gulations provided for ex officio  protection of geographical indications.   
410. Article 129.3 of the 2005 Intellectual Property Law provided for additional protection for 
wines and spirits.  Under to this Article, the u se of a protected geographical indication identifying  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 157 
 
 
  wines or spirits for wines or spirits that were not originating in the territories corresponding to the 
geographical indication, even where the true origin of the goods was indicated or the geographical 
indication was used in translation or transcripti on or accompanied by words such as "kind", "type", 
"style", "imitation" or the like was considered  an infringement of the rights to a protected 
geographical indication.  Infringeme nts could be dealt with under civil, administrative or criminal 
procedures and the provisions were, in his view, c onsistent with the requirements of Article 23.1 of 
the TRIPS Agreement.   
411. As to the relationship between the protection of geographical indications and trademarks, 
Article 72.2 and 74.2(l) of the 2005 Intellectua l Property Law prohibited the registration of a 
trademark identical with or confusingly similar to protected geographical indications, including 
appellations of origin, if the use of such trad emark was likely to mislead consumers as to the 
geographical origin of the goods.  The time to be  taken into consideration for the protection of 
geographical indications was the priority date of the trademark application.  Asked how Viet Nam 
could confer exclusive rights to trademark owners  consistent with the TRIPS Agreement if its 
legislation appeared to allow trademarks to co exist with confusingly similar and 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 geographi cal indications identical with or confusingly 
similar to an already protected trademark where actual use thereof would create confusion as to the 
origin of the goods (Article 80.3).   
412. Noting that the right to register geographical indications belonged to the State pursuant to 
Article 88 of the 2005 Intellectual Property Law, a Member asked Viet Nam to explain how foreign applicants could register geographical indicati ons, as opposed to the "mode of filing registration 
applications" set out in Article 89.  This Member also asked Viet Nam to clarify how ownership and 
regulation of foreign-owned geogra phical indications were treated under the new Intellectual Property 
Law as the State was the owner of Viet Nam's ge ographical indications and regulated the use of 
Vietnamese geographical indications pursuant to Ar ticle 21.  In response, the representative of 
Viet Nam said that the provisions of the 2005 Intellectual Property Law on registration rights, ownership, management and use of geographical i ndications applied only to Vietnamese geographical 
indications.  He noted that, in accordance with Ar ticle 80.2 of the Law, only foreign geographical 
indications protected in their country of origin could be protected in Viet Nam.  Any entity having the right, under foreign national law, to own, use or f ile an application for registration of a geographical 
indication in the country of origin had the right to file an application for registration of such geographical indication in Viet Nam and could be recorded as such in Viet Nam's Registry of 
Geographical Indications.  This provision was, in hi s view, in conformity with Article 24.9 of the WT/ACC/SPEC/VNM/5/Rev.3 
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  TRIPS Agreement.  The filing of a registration applica tion, directly or through a lawful representative, 
had to comply with the provisions of Article 89.  He was of the view that these provisions were not 
contradictory.  He cited the example of the ge ographical indication "cognac", which was currently 
protected in Viet Nam and whose application for re gistration in Viet Nam had been filed through the 
French embassy by the National Inter-Professional Bu reau of Cognac.  Ownership, management and 
use of geographical indications in Viet Nam we re required to comply with the provisions of 
Chapter IX of the 2005 Intellectual Property Law.  In his view, the 2005 Intellectual Property Law 
protected Vietnamese and foreign geographical indica tions in conformity with the TRIPS Agreement.  
He noted, in this regard, that conformity with th e TRIPS Agreement was guaranteed by Article 5.3 of 
the Law, according to which the provisions of inte rnational treaties to which Viet Nam was a party 
should apply in case a conflict. 
(d) Industrial designs 
413. 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 Articles 750-753 of the 2005 Civil Code and Part III of the 2005 Intellectual Property 
Law.  Textile designs were protected in the same manner as other industrial designs.  Applications for 
registration of industrial designs we re filed with the comp etent State authority (the National Office of 
Intellectual Property) and subject to examination as to form and substance.  The initial term of 
protection of an industrial design was five years from the filing date − taking effect from the registration 
date − and it could be renewed for two consecutive terms of five years (Article 93.4 of the 
2005 Intellectual Property Law). 
414. The owner of a protected industrial design had the exclusive right to use, licence or assign the 
right to use such industrial design to other pe rsons (Article 123 of the 2005 Intellectual Property 
Law), the right to request the competent State author ity to compel other persons to stop infringements, 
and the right to claim compensation for damages cau sed by such acts of infringement (Articles 255 
and 751 of the 2005 Civil Code and Article 198 of th e 2005 Intellectual Property Law).  In his view, 
the current laws and regulations of Viet Nam were in compliance 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 of Articles 123.1(a), 124.2 and 126.1 of the 2005 Intellectual Property Law also covered the making, selling or importing of Articles embodying 
designs which were "substantially a copy" of a protected design.   WT/ACC/SPEC/VNM/5/Rev.3 
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  415. The rights were restricted when provisions on prior user were applied.  The rights of prior 
users were provided in Article 134 of the 2005 Intellectual Property Law.  As for compulsory 
licensing, he noted that the 2005 Intellectual Property Law no longer provided for compulsory 
licensing in respect of industrial design.   
(e) Patents   
416. The representative of Viet Nam said that any invention involving world-wide novelty, an 
inventive step and industrial applicability was prot ected in accordance with Articles 750 to 753 of the 
2005 Civil Code and Part III of the 2005 Intellectual Pr operty Law.  Patent applications were subject 
to examination as to form and substance.  The time-limit for formality examination was one month 
and 12 months for substantive examination as sti pulated in Article 119 of the 2005 Intellectual 
Property Law.  He added that utility solutions, which did not require protection under the TRIPS 
Agreement, were protected in Viet Nam.  Any invention possessing world-wide novelty with 
industrial applicability − even if it did not involve an i nventive step but was not of common 
knowledge − could be protected by a Utility Solution Pa tent (Article 58.2 of the 2005 Intellectual 
Property Law).  By 31 December 2005, 5,342 invent ion patents had been granted, and the National 
Office of Intellectual Property had a staff of approximately 200. 
417. 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 protection than patents, i.e. plant and animal varieties; and (iii) those not 
industrially applicable such as methods for the preven tion, diagnosis, and treatment of human or animal 
diseases, essentially biological processes for the production of pl ants or animals other than non-
biological and microbiological pr ocesses (Article 59 of the 2005 Intellectual Property Law).  
Pharmaceutical products and processes to manufact ure pharmaceutical products were protectable 
under Vietnamese law as they did not fall under the list of the objects excluded from protection under Article 59 of the 2005 Intellectual Property Law.  Res ponding to a Member, who considered that 
Viet Nam's exclusions from protection far exceeded th e exceptions permitted under Article 27.3 of the 
TRIPS Agreement, the representative of Viet Nam said that the exclusions provided for in Viet Nam's 
legislation were essentially 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.  I nventions could also be 
excluded from patentability for reasons of public order and morality in accordance with Article 8 of the WT/ACC/SPEC/VNM/5/Rev.3 
Page 160  
 
  2005 Intellectual Property Law  This provision app lied irrespective of whether the commercial 
exploitation of such inventions  was prohibited by law.   
418. Owners of Invention Patents or Utility Solution Pa tents had the exclusive right to use, licence 
and assign the right to use the invention to other pe rsons.  They had the right to demand that other 
persons stop infringements, and could seek compen sation for damages caused by acts of infringement 
(Article 255 of the 2005 Civil Code and Article 123,  125, and 198 of the 2005 Intellectual Property 
Law).  In response to a question, he added that the rights conferred to the pa tent owner by Article 28.1 
of the TRIPS Agreement were set out in Articles 123.1(b), 124.1, and 125 of the 2005 Intellectual 
Property Law.  As for the provisions of Article 28.2 of the TRIPS Agreement, these had been included in Articles 123.1(a) and 123.1(c) of the Law.  He noted, in this regard, that the use of an invention was defined in Article 124.1 of the La w as the production, application, exploitation, 
circulation, advertisement, offer, stocking, and im portation of a protected product or process.  In his 
view, these Articles  complied fully with the pr ovisions of Article 28 of the TRIPS Agreement. 
419. The terms of Invention Patents and Utility Solu tion Patents were 20 and 10 years respectively 
counting from the official filing date − taking effect on the grant date (Article 93.2 of the 
2005 Intellectual Property Law) − and were, in his view, in compliance with Article 33 of the TRIPS 
Agreement.   
420. The owner of an invention or his exclusive li censee were obliged to use the invention (or 
transfer the right of use) in conformity with the requirements of socio- economic development of 
Viet Nam (Articles 136.1 and 142.5 of the 2005 Intell ectual Property Law), and the owner was required 
to pay a remuneration to the author of the inventi on (Article 135 of the 2005 Inte llectual Property Law).  
He confirmed that importation woul d not satisfy the "use" requireme nt stipulated in Viet Nam's 
legislation (Article 136.1 of the 2005 In tellectual Property Law).  The righ ts to a patent (invention) were 
restricted by provisions on prior use right and comp ulsory licensing (Articles 134 and 145 to 147 of the 
2005 Intellectual Property Law).   
421. Conditions and procedures for granting compulso ry licences were laid down in Section 3, 
Chapter X of the 2005 Intellectual Property Law (Articles 145 to 147).  Compulsory licensing could 
only be applied (i) for reasons of national defence an d security, the prevention and treatment of diseases 
or other urgent needs of the society; (ii) for reason of non-use or improper use; (iii) if the proposed user 
had failed to reach an agreement with the owner on reasonable commercial te rms and conditions within 
a reasonable period of time; or (iv) in case of anti-competitive practices.  Provisions on conditions for granting compulsory licenses in compliance with Articles 31(f), 31(k) an d 31(l) of the TRIPS 
Agreement had been introduced in Article 146 of the Law.  Pursuant to Section 3 of Chapter X,  WT/ACC/SPEC/VNM/5/Rev.3 
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  compulsory licences could not be gran ted before the expiration of a four year period after the filing of an 
application for a Protection Title and three years after a Protection Title had been granted.  The licensee 
of an invention by compulsory licensing was required  to pay adequate remuneration to the owner, taking 
into account the economic value of the authorizati on, as required by Arti cle 31(h) of the TRIPS 
Agreement (Article 146.1).  The patent owner was en titled to request the termination of the use of a 
compulsory licence if the circumstances which led to it had ceased and were unlikely to recur, provided 
such termination would not prejudice  the grantee of the compulsory lic ence (Article 145. 2).  Ministries 
and other ministerial-level authoriti es were responsible for granting a nd terminating compulsory licenses 
with regard to inventions in their field of action, when such licenses had been granted for reasons of 
national defence and security, the pr evention and treatment of diseases or other urgent needs of the 
society; the Ministry of Science and Technology  was responsible for gr anting and terminating 
compulsory licences in the other cases (Article 147.3 ).  He noted that no compulsory licence had been 
granted in Viet Nam thus far.   
422. In response to a question concerning the "remun eration frame provided for by the Government" 
stipulated in Article 146.1(d), the representative of Viet Nam said that the term "remuneration frame" 
referred to the ceiling level of remuneration and principles for de termining the adequate level of 
remuneration under compulsory licensi ng.  The "remuneration frame" would be used as a basis for 
establishing the remuneration.  The frame would be  set out in detail in the decree guiding the 
implementation of the industrial pr operty provisions of the 2005 Inte llectual Property Law, which was 
expected to be promulgated by the end of July 2006.   According to the latest draft, the remuneration 
should take into account the economic value of the righ t transferred, including the contractual licensing 
price of the invention, the funds invested for the crea tion of the invention, the profits gained by using the 
invention, the remaining duration of validity of th e patent, and the need for licensing the invention. 
423. He added that judicial review of decisions on compulsory licensing and of the use of inventions 
under compulsory licenses was guaranteed by Law on Complaints and Denunciat ions, the Ordinance on 
Procedures for Settlement of Admi nistrative Cases, and Ar ticle 147.4 of the 2005 Intellectual Property 
Law.  Pursuant to Article 147.4,  decisions on compulsory licensing we re subject to both administrative 
appeal and judicial litigat ion.  Asked specifically  about judicial review of decisions related to 
remuneration, he noted that de cisions on compulsory licensing − which could be appealed under 
Article 147.4 − were required, pursuant to Article 147.2, to  provide for appropriate scope and conditions 
in accordance with Article 146, including the right  to an adequate remunerati on (Article 146.1).  Thus, 
decisions on remuneration could be appealed.  In his view, the provisions of Articles 146.1, 147.2 and 
147.4 of the 2005 Intellectual Propert y Law complied fully with the pr ovisions of Article 31(j) of the 
TRIPS Agreement.  WT/ACC/SPEC/VNM/5/Rev.3 
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  424. 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 ensu red by Article 751 of the 2005 Civil Code and 
Article 123.1 of the 2005 Intellectual Property Law.  The assignment or licensing of a patented 
invention was subject to certain restrictions perm itted by Articles 30 and 40 of the TRIPS Agreement 
(Articles 139 and 142 of the 2005 Intell ectual Property Law).  In response to concerns expressed by a 
Member about limitations on royalty payments applie d by Viet Nam, the representative of Viet Nam 
said that ceilings on royalty payments for intellect ual property rights had been abolished by Decree 
No. 11/2005/ND-CP of 2 February 2005 on  Technology Transfer, replacing Decree 
No. 45/1998/ND-CP of 1 July 1998. 
425. 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 
(Article 125.2 of the 2005 Intellectual Property Law). 
426. Procedures for the termination and invalidati on of invention patents were regulated by 
Articles 95 and 96 of the 2005 Intellectual Property La w.  There were two routes to appeal against 
decisions of the National Office of Intellectual Property, and as which route to choose was up to the interested parties, "an opportunity for judicial re view", i.e. by the Administrative Court, was fully 
ensured.  Minister's decisions could be review ed by the Administrative Court under the Law on 
Complaints and Denunciations of 1998, as amende d in 2005 (Article 39), and the Ordinance on 
Procedures for Settlement of Administrative Cases  of 1996, as amended in 2006 (Article 2).  He 
considered Viet Nam to be in full complian ce with Article 32 of the TRIPS Agreement.  
427. Asked about procedures for patent applications in respect of micro-organisms, he said that the 
Ministry of Science and Technology had promulgated Circular No. 30/2003/TT-BKHCN of 
5 November 2003 containing provisions on patent applications for micro-organisms and the 
examination thereof.   
428. 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 (Artic le 203.4).  He considered the pr ovisions of Article 203.4 fully 
compliant with Article 34 of the TRIPS Agreement.  WT/ACC/SPEC/VNM/5/Rev.3 
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  (f) Plant variety protection 
429. The representative of Viet Nam said that, having  studied the compliance of Viet Nam's laws 
and regulations on the protection of plant varieties with the requirements of the TRIPS Agreement, his 
Government had decided to promulgate provision s on the protection of new plant varieties in 
accordance with UPOV standards.  New plant vari eties were now protected pursuant to Part I 
(Articles 4.5 and 6.4) and Part IV (Articles 157 to  197) of the 2005 Intellectual Property Law.  The 
substantive provisions of the 2005 Intellectual Prope rty Law on plant variety protection were derived 
from the UPOV.  Nationals and fore igners were eligible for protec tion pursuant to Article 157 of the 
2005 Intellectual Property Law.  The protection criteri a applied to plant varieties under Articles 158 to 
162 of the Law corresponded precisely to those provided for in Articles 5 to 9 of the UPOV, including novelty, distinctness, uniformity and stability.  The requirements on variety denomination under 
Article 163 of the 2005 Intellectual Property Law were compatible with those prescribed in Article 20 
of the UPOV.  As for the establishment of rights to  plant varieties, he noted that Articles from 164 to 
184 of the 2005 Intellectual Property Law satisfied th e requirements and criteria set out in Articles 10, 
11, 12, 19, 21, 22 of the UPOV concerning the filing of applications, the right of priority, the 
examination of applications, and validity and duration of breeder’s rights.  Article 169, in particular, 
provided for a duration of breeder’s rights of 25 years for trees and vines and 20 years for other 
species, counting from the date the rights had been granted.  The provisions on provisional protection, 
scope and limitations of breeder’s rights, and exhaustion of breeder’s rights of Articles 185 to 197 of 
the 2005 Intellectual Property Law corresponded to th e language of Articles 13 to 18 of the UPOV.  
He noted that Article 187 of the 2005 Intellectual Property Law did not extend breeder’s rights to 
harvested material or products made directly from harvested material obtained through the 
unauthorized use of propagating material of protected  variety, in conformity with Articles 14(2) and 
(3) of the UPOV.  In his view, the provisions on plant variety protection included in the 
2005 Intellectual Property Law met the minimum sta ndards of the UPOV.  He added that Viet Nam 
would promulgate a Decree Guidi ng the Implementation of the Provis ions on Rights to Plant Varieties 
of the 2005 Intellectual Property Law.   
(g) Layout designs of integrated circuits 
430. The representative of Viet Nam said that layout designs of semiconductor integrated circuits 
were protected under Articles 4.4, 6.3(a) and Part III of the 2005 Intellectual Property Law.  Viet Nam 
would also promulgate a Decree Guiding the Impl ementation of the Provisions on Industrial Property 
Rights of the 2005 Intellectual Property Law, in cluding those related to layout designs of 
semiconductor integrated circuits. WT/ACC/SPEC/VNM/5/Rev.3 
Page 164  
 
  431. 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 
432. The representative of Viet Nam said that business secrets, including trade secrets and test 
data, were protected under the provisions of the 2005 Intellectual Property La w on industrial property 
rights, including Articles 4.4, 6.3(c) and Part III of the Law..  Business secrets would be protected as 
long as they satisfied all prescribed conditions withou t being required for registration.  The owner of 
business secrets had the right to prohibit the unaut horized use of his business secrets and demand 
injunctions from the State competent authoriti es to stop infringements and to claim damages 
(Articles 121, 123 to 125, 127, and 198 of the 2005 Intellectual Property Law).  The protection of undisclosed test or other data submitted as a c ondition for approving the marketing of pharmaceutical 
or agricultural chemical products was addressed in Article 128 of the 2005 Intellectual Property Law.  
Under this Article, the authorities concerned had the ob ligation, when an applicant requested that data 
submitted as a condition for approving the marketi ng of pharmaceutical or agricultural chemical 
products be kept secret, to take necessary measures so that such data were neither used for unfair 
commercial purposes nor disclosed, except if disclos ure was necessary to protect the public.  The 
authorities concerned were not allowed to grant any licence during a five-year period from the date a 
licence had been granted to an applicant to any subsequent applicant using secret data in his 
applications without permission of the prior app licant, except in cases wher e the business secret had 
been created independently by the subsequent a pplicant as provided for in Article 125.3(d) of the 
Law.  
433. He added that the new Law on Competition, which had been adopted by the National 
Assembly on 3 December 2004 (Law No. 27/2004/ QH11), included provisions on the protection of 
industrial property rights against unfair competition (Article 39) and infringement of business secrets, 
including accessing and acquiring information on business secrets of others in procedures for 
marketing approval of products, using such info rmation for business purposes or for obtaining 
business-related licenses or marketi ng approval of products, or acting against secret-keeping measures 
of State agencies (Article 41.4).    WT/ACC/SPEC/VNM/5/Rev.3 
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  3. Measures to control abuse of intellectual property rights 
434. The representative of Viet Nam said that viola tions of the procedures establishing a right in 
relation to an object of industrial property could lead to the annulment of the granted protection 
certificate (Article 96.1 of the 2005 Intellectual Property Law).  Failure to pay maintenance fees or remuneration to the author, or to use or licence a pa tented invention could result in compulsory licensing 
(Article 136.1 of the 2005 In tellectual Property Law). 
435. He added that legal provisions had been incl uded in the 2005 Intellectual Property Law to 
enable Viet Nam to take appropriate measures to  prevent or control anti-competitive practices in 
contractual licences.  Article 144.2 of the Law stipul ated 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. 
436. While acknowledging that Article 8 of the TRI PS Agreement allowed a ppropriate 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.   
437. 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   438. 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 intellectual 
property rights.  The People's Court could adjudicate cases with respect to claims of abuse of industrial WT/ACC/SPEC/VNM/5/Rev.3 
Page 166  
 
  property rights, disputes concerning royalty or remune ration, claims on registratio n right and the right of 
authorship, and disputes relating to  contracts concerning assignment of ownership 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 representa tive would need to provide evidence of his/her 
intellectual property right as well as evidence of infringement of the rights (Article 203 of the 2005 Intellectual Property Law).  The defendant had th e right to refute the evidence and arguments of 
the plaintiff before the Court.  The Court had th e right, upon request of either party or on its own 
initiative, to demand further evidence or documentati on and, if necessary, to  collect evidence itself 
(Articles 85 and 94 of the 2004 Civil Procedure Code ).  The persons or institutions requested to 
provide evidence had 15 days to present such eviden ce.  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 the concerned parties' reque st.  People's Prosecutors were responsible for 
controlling and supervising civil c ourts' judgements and decisions and ensuring their timely settlement 
and conformity with Viet Nam's laws and regulatio ns (Article 21 of the 2004 Civil Procedure Code).  
All Court decisions were provided in written fo rm to the concerned parties and the People's 
Prosecutor within 10 days (Article 241 of the 200 4 Civil Procedure Code).  Detailed provisions on 
necessary evidence had been included in Article 203 of the 2005 Intellectual Property Law.  Pursuant 
to Article 203, documentation to be submitted to prove 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. 
439. The Court could rule that the act of infringement  be stopped, recognize the legitimate rights to 
objects of intellectual 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 dama ges, and lost income (Articles 307.2 of the 2005 Civil Code).  
"Mental damages" included damages to honour, dignity a nd prestige of the victim  (Article 204.1(b) of 
the 2005 Intellectual Property Law).  The 2005 Intell ectual Property Law contained detailed provisions 
on calculation of damages (Article 204), compensa tion of right holders (Article 205), remedies 
(Article 202), provisional m easures (Article 207), burden of pr oof (Article 203), and authority of 
People's Courts to order provisiona l measures (Article 210) .  Pursuant to the 2004 Civil Procedure Code,  WT/ACC/SPEC/VNM/5/Rev.3 
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  the Court would decide upon the apportioning of legal costs based on the rights and faults of the parties 
concerned and the parties could appeal decisions of the first instance civil judgment and request a 
hearing at higher instance.   
440. He added that detailed provisions concerning in demnification of the defendant in the case of 
abuse of civil enforcement procedures by the co mplainant had been stipulated in the 2004 Civil 
Procedure Code and the 2005 Intellectual Property Law (Article 208.2).  He noted that the intellectual 
property right owner, when requesting the suspension of customs procedures, was required to deposit an 
amount equal to 20 per cent of the value of the goods 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 217.2 of the 2005 Intellectu al Property Law).  The intellec tual property right owner having 
registered his right at a Customs Unit (or a Customs Department or the Genera l Department of Customs 
if he wished to register his right at two or mo re Customs Units) and having paid the prescribed 
registration fee could request custom s authorities to take necessary actions to detect suspected infringing 
goods at the borders (Artic le 216 of the 2005 Intellectual Property  Law and Articles 48.1 and 49.2 of 
Decree No. 154/2005/ND-CP of 15 December 2005).  Customs registration of intellectual property 
rights was valid for one year and could be renewed at the request of the intellectual property right 
owner, as long as the latter pa id the prescribed fee (Article 49.1 of Decr ee No. 154/2005/ND-CP of 
15 December 2005).  In response to a Member who noted that the require ment to deposit 20 per cent of 
the value of the good could place an  unreasonable burden on effectiv e border enforcement and enquired 
about the alternative guaran tee, the representative of Viet Nam sa id such alternative guarantee had been 
included in Article 217.2(b) of the 2005 Intellectual Property Law. 
441. 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 Civi l Procedure Code provided for a two-year period 
for filing suits for the settlement of civil dis putes, including those involving infringement of 
intellectual property rights.  He considered this  period sufficient compared to other types of 
violations. 
442. 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 2005 Intellectual Property Law,  specialized short-term courses on intellectual 
property had been organized for judges with  the assistance of several WTO Members. WT/ACC/SPEC/VNM/5/Rev.3 
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  (b) Provisional measures 
443. The representative of Viet Nam said that the Courts having jurisdiction over violations and 
disputes in relation to intellectual property righ ts could decide on the application of provisional 
measures.  Detailed provisions were laid down in the 2004 Civil Procedure Code and the 
2005 Intellectual Property Law.  Pursuant to Ar ticle 207.1 of the 2005 Intellectual Property Law, 
provisional measures included seizure, attachme nt, or sealing of goods suspected to infringe 
intellectual property rights, and of materials, raw materials or implements for producing or trading 
such goods; the prohibition to change or displace such goods and materials; and the prohibition to 
transfer ownership of such goods and materials.  Provisional measures could be lifted when no l onger 
considered necessary by the imposing authority.   
444. The Court could order provisional measures to be taken on its own initiative or at the request of 
the Prosecution Institute or the parties concerne d (Articles 99 and 119 of the 2004 Civil Procedure 
Code).  Pursuant to Article 206.2 of  the 2005 Intellectual Property Law, the Court could, prior to hearing 
the opinion of the party liable for provisional measures , take an immediate decision which would also be 
effective immediately.  The decision could be appealed to the Chief of Justice by either party, in which 
case the Prosecution Institute would have the right to make a proposal to the Ch ief of Justice, who was 
required to respond within three days (Articles 124  and 125 of the 2004 Civil Procedure Code).   
(c) Administrative procedures and remedies 
445. The representative of Viet Nam said that Viet Nam had no special agency for the enforcement 
of Intellectual Property Rights.  Pursuant to Ar ticle 200.1 of the 2005 Intellectual Property Law and 
the 2002 Ordinance on handling administrative violati ons, 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 offi ces, anti-smuggling inspection office), specialized 
inspection authorities such as the Culture and Info rmation Inspectorates at the national and provincial 
levels and the Science a nd 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 Po lice).  He added that the 2005 Inte llectual Property Law limited the 
administrative handling of IPR infringement to coun terfeiting, pirating, intentional infringements and 
infringements of remarkable social effect (Article 211). 
446. The responsibilities of each agency depended on thei r area of administration and jurisdiction, as 
spelled out in Article 200 of the 2005 Intellectual Property Law.  Mark et control agencies could impose  WT/ACC/SPEC/VNM/5/Rev.3 
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  administrative remedies and other measures against infringements of industrial property rights and trade 
in cultural-informational products and services occurring in th e country.  Customs agencies had the 
competence to impose administrative remedies agains t infringements of intellectual property rights in 
the course of exportation and impor tation, Science and Technology In spectorates against infringements 
of industrial property rights, Culture  and Information Inspectorates against infringements of copyright, 
and People's Committees against in fringements of intellectual prope rty rights occurring within their 
jurisdiction.  As for publ ic security agencies, these were res ponsible for handling infringements of 
intellectual property 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 intellectu al property rights in all areas of production and business.  The 
Economic Police could search the hou ses of persons deemed to hide in struments involved in or evidence 
of infringement cases, and suspend business license s in case of serious violation of the provisions 
regulating the use of busin ess licenses.  It could impose administrative remedies against acts of 
industrial property infringement related to business and production activities and acts of copyright 
infringement associated with public order and secu rity.  The Economic Poli ce received specialized 
training on intellectual property enforcement.  It had the same jurisdiction a nd resources as other police 
forces.  These regulations, whic h were spelled out in Decrees No. 12/1999/ND-CP of 6 March 1999 and 
No. 31/2001/ND-CP of 26 June 2001, would be included in the Decree  implementing the enforcement 
provisions of the 2005 Intellectual Property Law, whic h was expected to be promulgated by the end of 
July 2006. 
447. 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.  In 2005, Science and Technology Inspecto rates, in coordination with the 
Hanoi Police, had investigated se veral infringing business bases and imposed fines on eight enterprises 
for a total of VND 64 million.  Science and Tec hnology Inspectorates had al so organized two board 
meetings with the participation of trade representa tives from the French and US embassies to destroy WT/ACC/SPEC/VNM/5/Rev.3 
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  intellectual property infringing produc ts.  Furthermore, the National Offi ce of Intellectual Property of 
Viet Nam had conducted a legal as sessment of the handling of 5 92 industrial property infringement 
cases by enforcement agencies.  It had also participated in an inte r-ministerial group under the lead of 
the Ministry of Industry to control the implemen tation of existing intellectual property laws and 
regulations in 30 domestic enterp rises producing and assembling motorbikes in the provinces of Hai 
Phong, Ha Noi, Nam Dinh, Ha Tay, Ho Chi Minh, Da Nang, and Nghe An.  Finally, in order to ensure 
the quality of goods in the market , Science and Technology Inspectora tes, in coordination with local 
Departments of Science and Technology and other related agencies, had in spected 17,317 business 
bases and imposed 1,953 fines for a total of VND 842 million. 
448. 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 
agencies and had no officials specialized in this area.  No particular incentives were available to these 
officials to encourage investigati on and prosecution of IPR infringeme n t s .   H e  n o t e d  t h a t  t h e  D e c r e e  
implementing the enforcement provisions of the 2005 In tellectual Property Law, which was expected to 
be promulgated by the end of July 2006, would in clude detailed provisions clarifying the scope of 
duties, responsibilities and jurisdiction of each enfo rcement agency.  In order to avoid overlaps, the 
Economic Police would only be empowered to inves tigate intellectual property infringement, not to 
impose administrative remedies and prosecute or adjudicate crimes.  In such cases, the Economic Police would be required to inform the competent agencies.  In addition, with a view to further improving the 
efficiency of law enforcement staff, specific provisions on training had been included in the 
2005 Intellectual Property Law.  He noted that capacity building had be en one of the main 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 infringeme nt.  His authorities were also 
considering plans to develop statisti cs and a general assessment system of infringements of intellectual 
property rights to ensure a good coordina tion between enforcement agencies.  
449. Administrative measures and remedies, previously regulated by Government 
Decree No. 12/1999/ND-CP of  6 March 1999 on administrative measures  against 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  WT/ACC/SPEC/VNM/5/Rev.3 
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  violations, and Government Decree No. 31/2001/ND-C P of 26 June 2001 on administrative measures 
against violations in the field of culture and information, would be governed, under the new legislative 
framework, by the Decree implementing the enfo rcement provisions, including administrative 
enforcement provisions, of the 2005 Intellectual Prop erty Law.  Under the 1998 Law on Complaints and 
Denunciations, as amended in 2005, any natural or legal person, including non-resident foreigners or foreign legal entities without 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.   
450. Pursuant to Article 214 of the 2005 Intellectual  Property Law, main administrative measures 
were warnings and monetary fines amounting to one to fi ve times the value of the discovered infringing 
goods.  Additional measures included suspension of bu siness activities for a de finite term, and in the 
case of counterfeit and piracy goods, and materials and implements used for manufacturing or trading 
such goods, confiscation, destruction, distributio n, use for non-commercial purposes, or compulsory 
delivery of transiting goods out of the territory of Vi et Nam or re-exportation, after infringing elements 
had been removed.  The imposition of a compensation for damages - up to 1 million dong - under administrative procedures had been abolished in  2002 by the Ordinance on handling administrative 
violations No. 44/2002/PL-UBTVQH10.  Compensation for damages was now c onducted only under 
civil procedures.  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, Decree No.101/2001/ND-CP of  31 December 2001, and Article 218 of the 
2005 Intellectual Property Law.   
451. 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.  
452. 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 provided, in his vi ew, the deterrent effect foreseen in Article 41 of WT/ACC/SPEC/VNM/5/Rev.3 
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  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 
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 (Chapter XVII of the 
2005 Intellectual Property Law), the pr inciple of administrative fines ex ceeding the benefit gained from 
infringement had been established (A rticle 214.4 of the 2005 Intellectual Property Law), the functions of 
enforcement authorities had been more clearl y defined to avoid overlapping and cumbersome 
procedures, and a coordinating authority had been established (Art icle 200 of the 2005 Intellectual 
Property Law). 
(d) Special border measures 
453. The representative of Viet Nam said that Cust oms agencies had the authority to detain 
imported or exported goods temporarily upon request of  the right holder.  Pursuant to Article 217 of 
the 2005 Intellectual Property Law, requests for tem porary detention of goods ha d to be filed with the 
customs agencies where the goods were importe d or exported, accompanied by evidence to 
substantiate lawful owners hip right or use right to the object, and evidence testifying the infringement.  
The right holder was also required to deposit an amount equal to 20 per cent of the value of the goods 
or at least 20 million dong in case such value co uld not be determined, or provide a guarantee 
ensuring compensation in case of a wrongful request  (Article 217.2 of the 2005 Intellectual Property 
Law).  Decisions to suspend the release of goods from customs were issued by the Chief of the 
Customs Bureau pursuant to Article 218.1 of the 2005 Intellectual Property Law, and the parties 
concerned would be notified accordingly.  Goods could be suspended from release for ten days from 
the date the decision was issued, and an additional ten days in certain circumstances (Article 218.2 of 
the 2005 Intellectual Property Law).  Evidence of infr ingement 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 indus trial property right of the detained goods.  The Customs office would 
take a decision to release or prohibit circulation of  the goods in consultation w ith the State management 
bodies for Intellectual Property (the  National Office of Intellectual Pr operty and the Copyright Office).  
He added that Joint Circular No. 58/2002/TTLT-B VHTT-BTC of 17 October 2003 contained detailed 
provisions on the implementation of  border control measures for copy right.  Specific provisions on the 
implementation of border cont rol measures concerning industrial property had also been included in the 
Joint Circular No. 129/2004/TTLT/BTC-BKHCN of the Ministry of Finance and Ministry of Science 
and Technology on border control m easures in respect of industrial property rights for imports and 
exports, promul gated on 29 December 2004.  WT/ACC/SPEC/VNM/5/Rev.3 
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  454. 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 Article 217.1(b) of the 2005 Intellectual 
Property Law, the right holder was only required to  provide information sufficient to identify the 
suspected infringing goods or to discover infringi ng goods.  Other types of information, such as the 
name and address of the importer and exporter, a photo of the goods or information on the predicted 
time and venue of arrival of the goods, should be su bmitted only if available.   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 increase d to three working days in the new Intellectual 
Property Law.  He added that detailed provisions would be included in the Decree implementing the 
enforcement provisions of the 2005 Intellectual Proper ty Law, which was expected to be promulgated 
by the end of July 2006. 
455. In response to specific questions, he said that the 2005 Intellectual Property Law provided 
customs authorities with the right to check, det ect, and suspend customs clearance of counterfeit 
trademark goods at their own initiative or at the re quest of the trademark holder.  Joint Circular 
No. 129/2004/TTLT/BTC BKHCN of the Ministry of Finance and Ministry of Science and Technology on border enforcement of industrial pr operty rights included provisions allowing right 
holders or importers to inspect the detained good s to reinforce their claims.  The exemption for 
de minimis  imports allowed under Article 60 of the TR IPS Agreement was addressed in Article 25.2 
of the 2005 Intellectual Property Law which referre d to usage for "personal needs or non-commercial 
purposes" as not being considered infringement of co pyright.  Provisions c overing goods imported or 
exported for non-commercial purposes, goods exempt ed under diplomatic 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 (Article 2.2).   
456. Asked whether Viet Nam's Customs Code or related laws and regul ations contained a 
definition of "counterfeit of tradem ark" and "piratical acts", the re presentative of Viet Nam said that, 
pursuant to Joint Circular No. 58/TTLT-BVHTT-BTC of  17 October 2003 of the Ministry of Culture 
and Information and Ministry of Finance guiding th e protection of copyright at customs agencies for 
imported and exported goods, "copyright infringing imported and exported good s" were imported and 
exported goods, including copies of works, infri nging the moral rights or economic rights of the 
author or owner of the work.  As for "counterfe it trademark goods", they were defined in Joint 
Circular No. 129/2204/TTLT-BTC-BKHCN of 29 December 2004 of the Ministry of Finance and WT/ACC/SPEC/VNM/5/Rev.3 
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  Ministry of Science and Technology on border contro ls in respect of industrial property rights as 
imported or exported goods, includi ng packaging, labels and decals, bearing a trademark which was 
identical with or which could not be distinguished  in its essential aspects from a protected trademark 
without the authorization of the trademark's owner.  He added that the 2005 Intellectual Property Law 
designated both “trademark counterfeit goods” (defined  in Article 213.2 ) and “piracy goods” (defined 
in Article 213.3) with the common term of “intellectual property counterfeit goods” in its 
Article 213.1 with a view to making provisions of Articles 156 to 158 of the Criminal Code applicable 
to intentional and commercial-scale counterfeiti ng and pirating and imposing strong administrative 
remedies for counterfeiting and pirating. 
(e) Criminal procedures  
457. 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 counterfeit s (Articles 156-158), deceptive pr actices (Article 162), false 
advertising (Article 168), and infri ngement of industrial property rights (Article 171) .  Any person 
misappropriating copyrights, wrongfully  assuming an author's name, or illegally amending, publishing 
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).  Infring ements of organized char acter or carrying very 
serious consequences, and repeated offence were puni shable by imprisonment from six months to three 
years.  Offenders also risked fines from 10 to  100 million dong and being banned from holding certain 
positions or practising certain professions during on e to five years.  Persons producing or trading 
counterfeits valued up to 150 million dong risked six mont hs to five years imprisonment, or three to ten 
years for organized or professional counterfeiting, recidivism, abuse of position, abuse of names of organizations, counterfeit s priced between 150 to 500 million dong,  large illicit profits, and acts 
resulting in very serious conseq uences (Article 156).  In case  of counterfeited value exceeding 
500 million dong, very large illicit profits and extrem ely serious consequences, the penalty would be 
increased from seven to 15 year s imprisonment.  Offenders woul d also face a fine of 5 to 
50 million dong, possible confiscation of property, in terdiction to hold certain positions and practise 
certain professions during one to five years.  Person s falsely advertising goods or  services were subject 
to a fine ranging from 10 to 100 million dong, non-custodial probation for up to three years or imprisonment of six months up to three years (Art icle 168).  They also risked a fine of 5 to 
50 million dong and an interdiction to practise certain profes sions during one to five years.  According 
to Article 171, infringements of indu strial property rights constituting cr iminal acts would be subject to a 
fine of 20 to 200 million dong or non-custodial probati on of up to two years.  Violations of organized  WT/ACC/SPEC/VNM/5/Rev.3 
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  character or carrying very serious consequences, and repeated infringemen ts, were punishable by 
six months to three years imprisonment.  Offenders al so risked a fine of 10 to 100 million dong 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 Agreement.  He confirmed that acts of wilful trademark counter feiting and copyright piracy on a 
commercial scale were considered  crimes under Articles 155-158 of th e Criminal Code and Article 213 
of the 2005 Intellectual Property Law.  This woul d be further clarified in the regulations on the 
implementation of the Intellectual Property Law and the Criminal Code.  He added that criminal intellectual property enforcement officials were enti tled to take ex-officio actions against criminal 
infringement of intellectual property rights.  In 2002,  one person had been convicted to a prison sentence 
under the provisions of Article 171 of the 1999 Criminal Code. 
458. Pursuant to Article 170 of the Criminal Pro cedure Code, as amended in 2003, the District 
People's Courts had the jurisdiction as the first instan ce over offences subject to less than seven years 
imprisonment, except offences ha rmful 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 rights.  Criminal 
proceedings for intellectual property infringement cases were identical to procedures for other criminal 
cases and involved the denouncement of the crime before the competen t police, an investigation, the 
transfer of the file to the pros ecution agency (Supreme People's Prosecution Institute), criminal 
proceedings at the competent court, judgement and enforcement of the judgement.  
459. Some Members considered the application of  death penalty for serious counterfeiting of 
trademarks unacceptable and request ed 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 prosecution 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 Criminal Code of 1999 
only authorized death penalty for production and tr ade in counterfeited foodstuff, medicines and 
prophylactics having extremely seriou s consequences.  He considered these 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 ag ainst infringements of "organized character" or 
"causing very serious consequences", he noted that the commercial objective of  an infringement act was 
one of the factors constituting a crime pursuant to  Articles 156, 157, 158, a nd 171 of the 1999 Criminal WT/ACC/SPEC/VNM/5/Rev.3 
Page 176  
 
  Code.  An infringement of organized character had an  intentional nature, not an infringement causing 
serious consequences. 
460. 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 Criminal Code of 199 9.  Administrative remedies thus served as a 
deterrent tool and, in the event of non-complianc e with administrative penalties, compelling measures 
could be taken pursuant to Article 64 of the 2002 Ordinance on handling administrative violations.  
The Criminal Code did not contain provisions providing for criminal penalties in case of violation of 
an administrative order, 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 
having already been issued, the nulli fication of that decision and the tr ansfer of the case within three 
days, unless the time-limit for crim inal prosecution had expired (Art icles 62.1 and 62.2).  Evidence 
collected during an administ rative procedure could be used by the civil court if necessary in accordance 
with Article 3 of the Ordinance on procedures for handling civil ca ses of 1989.  In response to a 
Member, he noted that infringers could be prosecuted either for administrative remedies or for criminal penalties, not both simultaneously.  Administrative measures only applied to acts of low gravity.  Any 
person involved in an act including a criminal el ement or having repeated an offence sanctioned 
administratively was subject to criminal prosecution. 
461. 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.   
462. 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 mechanis ms.  An Action Plan on Cooperation for 
Preventing and Fighting Infringements of Intellectu al Property Rights for the period of 2006 – 2010 had  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 177 
 
 
  been issued on 19 January 2006 (Action Plan  No. 168/CTHD/VHTT-KH& CN-NN&PTNT-TC-TM-CA 
of the Ministries of Culture and Information,  Science and Technology, Agriculture and Rural 
Development, Finance, Trade,  and Public Security).  
463. 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. 
POLICIES AFFECTING TRADE IN SERVICES 
464. 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.   
465. 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. 
466. 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).   
467. 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. WT/ACC/SPEC/VNM/5/Rev.3 
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  468. 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 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;  foreign lawyers could practice foreign and 
international law as members or employees of Vi et Nam-based foreign lawyers' law-practicing 
organizations, or as employees of Vietnamese lawyer offices or Vietnamese law partnerships.  To 
work as a lawyer in Viet Nam, foreigners were re quired to hold a valid practising certificate issued by 
a competent foreign agency or organization, show goodwill towards the state of Viet Nam, and be employed by a Viet Nam-based foreign lawyer organization or a Vietnamese lawyer organization.  Foreign auditing firms could operate in Viet Nam in  the form of a joint-venture with a Vietnamese 
auditing firm.  Wholly foreign-owned auditing firms had to be licensed as provided for in the Foreign 
Investment Law and other related legal acts.  Advertising was a new activity in Viet Nam, and the 
market would be liberalized gradually. 
469. 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.   
470. 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,  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 179 
 
 
  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 Artic les 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 
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.   
471. In response to a Member’s question on licensi ng procedures in the telecommunications, the 
representative of Viet Nam conf irmed that licensing decisions for both fac ilities-based and non-
facilities-based services would be made in accordance with transparent and objective criteria.  He also confirmed that Vietnamese enterprise s that were not State-owned or Stat e-controlled were eligible to be 
licensed to provide non-facilities-based  services in Viet Nam and to fo rm joint-ventures with foreign 
firms, in accordance with Viet Nam's Schedule of Specific Commitments.  Th e Working Party took note 
of these commitments. 
472. 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 [99-104].  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 [499-502].  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 [505], 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 WT/ACC/SPEC/VNM/5/Rev.3 
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  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 
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. 
473. The organization and operation of credit ins titutions and the banking activities of other 
organizations were governed by the Law on Credit Institutions, the Law on Amending and 
Supplementing a number of Articles of the Law on Credit Institutions and some other legal 
documents.  The Government and the State Bank of Viet Nam had issued regulations to guide the 
implementation of the Law on Credit Institutions.  The Law specified the licensing requirements for 
the establishment and operation of credit institutions in Viet Nam.  Foreign credit institutions could 
operate in Viet Nam in the form of a representa tive office, a foreign bank branch, a joint-venture 
bank, or a 100 per cent foreign-owned bank, a join t-venture finance company, or a 100 per cent 
foreign-invested finance company, a joint-vent ure financial leasing company, or a 100 per cent 
foreign-invested financial leasing company.  Pursuant to Articles 11 and 12 of the Decree 
No. 22/2006/ND-CP of 28 February 2006, the term of operation of a foreign bank branch, a joint-
venture bank, a 100 per cent foreign-owned bank of  a foreign credit institution should not exceed 
99 years; the operation term of a foreign bank br anch should not exceed the operation term of the 
parent foreign bank; the operation te rm of a representative office of a foreign credit institution should 
not exceed the operation term of that foreign cr edit institution.  The operation term should be 
specifically stipulated in the granted licence a nd could be extended upon request.  However, the 
maximum term of extension should not exceed the te rm of operation previously stipulated in the 
licence (a domestic bank was also required to apply for the extensi on of its operation term).  The 
maximum term of operation was 50 years for a join t-venture finance company, a 100 per cent foreign-
invested finance company, a joint-venture financial leasing company, and a 100 per cent foreign-invested financial leasing company, and these opera ting licences could be extended.  The contribution 
of the foreign party in a joint-venture bank ac ting 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 capital.  The aggregate share of 
foreign institutions and individuals could be lim ited to 30 per cent of the registered capital of a 
Vietnamese joint stock commercial bank, unless ot herwise permitted by Viet Nam's laws or the 
relevant Vietnamese authority.  WT/ACC/SPEC/VNM/5/Rev.3 
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  474. Some Members requested information on the regulation of the ba nking sector and in 
particular information on the cond itions under which a foreign bank would be able to obtain a licence 
to establish a branch in Viet Nam.  In response, the representative of Viet Nam stated that direct 
branching was permitted under the current banking law and the Law on Amending and 
Supplementing a number of Articles of the Law on Credit Institutions.  He reported that banking 
institutions’ activities were currently regulated by the Law on Credit Institutions and related 
amendments.  Beginning on 1 April 2007, foreign credit institutions would be allowed to open 
100 per cent foreign-owned banks in Viet Nam.  He added that any natural or legal person was 
required to have a licence to engage in a banking busi ness.  One of the key conditions for establishing 
a branch of a foreign commercial bank in Viet Nam was that the parent bank should have total assets 
of more than US$20 billion at the end of the year prior to application.  
475. A key condition for the establishment of a joint- venture bank or a 100 per cent foreign-owned 
bank was that the parent bank was required to have total assets of more than US$ 10 billion at the end 
of the year prior to application.  A key cond ition for establishing a 100 per cent foreign-invested- 
finance company, a joint-venture finance company,  a 100 per cent foreign-invested financial leasing 
company and a joint-venture financial leasing compan y was that the foreign credit institution had total 
assets of more than US$ 10 billion at the end of the y ear prior to application.  Viet Nam viewed these 
conditions to be prudential in na ture.  Similarly Viet Nam anticip ated that its future licensing 
requirements for 100 per cent foreign-owned banks w ould be prudential and address issues such as 
capital adequacy, liquidity and corporate governance.  Otherwise, the criteria for both foreign bank 
branches and 100 per cent foreign-owned banks would be applied on a non-discriminatory basis.  The 
representative of Viet Nam confirmed that the State Bank of Viet Nam would comply with the requirements of Articles XVI and XVII of the GA TS when considering an application for a new 
licence subject to the limitations set forth in the Vietnamese Services Schedule.  He further confirmed 
that a foreign commercial bank could simultaneous ly have a 100 per cent foreign-owned bank and 
branches.  The representative of Viet Nam conf irmed that a 100 per cent foreign-owned bank in 
Viet Nam was not treated as a foreign institu tion or individual and was accorded full national 
treatment as a Vietnamese commercial bank with respect to establishment of commercial presence.  
The Working Party took no te of these commitments. 
476. A Member urged Viet Nam to reduce the mini mum capital requirement for a foreign bank 
branch to a level at or below that of a domestica lly-owned bank incorporated in Viet Nam.  Such a 
change would be more consistent with international norms, which we re based on the level of activity 
and risks of the branch.  In response, the repres entative of Viet Nam noted that Viet Nam already WT/ACC/SPEC/VNM/5/Rev.3 
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  allowed foreign bank branches to operate based on the capital of the parent bank for lending.  The 
representative of Viet Nam further confirmed that Viet Nam would progressively bring its regulatory 
regime for foreign bank branches, including mini mum capital requirements, in line with commonly 
accepted international practice.  The Worki ng Party took note of these commitments. 
477. The representative of Viet Nam confirmed that a foreign bank branch would not be permitted 
to open transaction points, which were dependent on  the capital of the branch.  Transaction points did 
not include offsite Automatic Teller Machines (A TMs).  The representative of Viet Nam further 
confirmed that there was no quantitative limit on the num ber of foreign bank branches.  Foreign banks 
operating in Viet Nam were granted full MFN and national treatment in the placement and operation 
of Automatic Teller Machines (ATMs).  The Wo rking Party took note of these commitments. 
478. 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 
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 regula tions.  He provided information on criteria for awarding insurance 
services licenses and securities services licenses in  Annex II to document WT/ACC/VNM/44. 
479. In response to a question, the representative of Viet Nam confirmed that the Government of 
Viet Nam would ensure that foreign-invested  as well as domestic insurance companies and 
intermediaries were accorded meaningful and fair  opportunities to be informed of, comment on, and 
exchange views with officials re garding measures relating to or a ffecting the supply of insurance 
services in Viet Nam.  He further stated that, wi th respect to regulatory changes in the insurance 
sector, foreign-invested insura nce companies would be accorded  access to information by the 
Government of Viet Nam on a national treatment basi s that afforded fair competitive opportunities.  
The Working Party took no te of these commitments. 
480. The representative of Viet Nam confirmed that, provided that separate applications be 
submitted for life and non-life insurance, there was no limit, in law or in practice, on the number of 
new licenses that a foreign insurance company could s ubmit at one time.  He further stated that there 
was also no limitation on the number of product a pproval applications that a foreign-invested  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 183 
 
 
  insurance company could submit at one time, and that  no requirement or regulatory practice restricted 
a foreign-invested insurance co mpany from submitting additional applications based upon whether the 
Government of Viet Nam had completed its review  of that company’s previous applications.  
481. In response to a Member’s question concerning transparency in the re gulation of insurance 
services, the representative of Viet Nam confirmed th at standards relating to licensing and approval of 
new products and rates would be co mpiled, published and made availabl e to the public consistent with 
paragraphs [493-495].  He furthe r confirmed that administrative guidance would be delivered in 
writing.  The Working Party took note of these commitments. 
482. A Member inquired whether a formal appeal  process was available for all dispositions 
(including approvals for a licence to provide insura nce and approvals of new products) relating to the 
supply of insurance.  In response, the representativ e of Viet Nam confirmed that a formal appeal 
process had been established for all service sector s in the Law on Complaints and Denunciations 
No. 58/2005/QH11 of 29 November 2005 and the Ordinance Amending and Supplementing Some Articles of the Ordinance on Procedures for th e Settlement of Administrative Cases (OPSAC) 
No. 29/2006/PL-UBTVQH11. 
483. A Member asked whether Viet Nam's laws ensure d that administrative guidance issued to an 
insurance company by an insura nce administrative agency would be consistent with competition 
legislation in force in Viet Nam.  This Member  further inquired whether any recipient of such 
administrative guidance could seek the views of the appropriate authority as to whether the person’s 
conduct proposed to be taken in response to the administrative guidance was inconsistent with the 
competition legislation in effect in Viet Nam.  In  response, the representative of Viet Nam confirmed 
that the Law on Promulgation of Legal Normative Documents No. 02/2002/QH11 of 16 December 2002 ensured that administrative gui dance issued by Viet Nam's regulatory bodies 
would not be inconsistent with legi slation in force in Viet Nam.  He further confirmed that recipients 
of such administrative guidance were entitled to seek  the views of the appropriate authority as to 
whether the person’s conduct proposed to be take n in response to the administrative guidance was 
inconsistent with the competition legislation in effect in Viet Nam. 
484. Members also sought clarification about how Viet Nam would implement its commitment to 
allow direct branching for foreign non-life insura nce companies after five years from the date of 
accession.  The representative of Viet Nam explained that the legislation and regulations necessary to implement this commitment would be developed w ith the goal of promoting investment and the WT/ACC/SPEC/VNM/5/Rev.3 
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  creation of meaningful commercial opportunities, ensu ring the sustainable development of Viet Nam's 
insurance market and protecting the legitimate interests of policy-holders and the safety and 
soundness of the insurance market in Viet Nam.  He further stated that regulation of such branches 
would be in line with the internationally recognized  insurance industry standards and principles of the 
International Association of Insurance Supervisor s (IAIS).  The Working Party took note of these 
commitments. 
485. 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. 
486. A Member raised concerns about the equity limitations and economic needs test included in 
Viet Nam's commitments for road transport servi ces.  The Member asked specifically how these 
limitations would affect the ability of foreign co mpanies to supply express delivery services.  In 
response, the representative of Viet Nam confirmed that foreign-invested express delivery companies 
licensed to supply express delivery services in Viet Nam under the terms of Viet Nam's commitments 
for express delivery services would have the right to own and operate road transport vehicles used to 
supply their own express delivery services.  The Working Party took note of this commitment. 
487. A Member noted that Viet Nam had scheduled phase-in periods for foreign equity 
participation in many services sectors, and i nquired whether there were transparent and pre-
established procedures for increasing foreign equity in a joint-venture and for transitioning from a 
joint-venture to a 100 per cent foreign-owned enterp rise.  This Member further stated that foreign 
investors would need assurance that it was possible to  effect such changes in foreign participation 
and/or transition to a wholly foreign-owned enterpri se in a manner that would be efficient, timely and 
not create disruption of normal operations.  This Member asked, for example, whether a foreign 
partner in a joint-venture seeking to buy out the cap ital contribution of its Vietnamese partner(s) in 
order to achieve 100 per cent ownership would be required to apply for a new licence or other 
authorization in order to continue supplying the same service(s).  WT/ACC/SPEC/VNM/5/Rev.3 
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  488. In response, the representative of Viet Nam e xplained that, subject to agreement with its 
Vietnamese partner(s), and to limitations provid ed for under Viet Nam's Schedule of Specific 
Commitments, a foreign partner in a joint-ventur e could buy out the capital contribution of its 
Vietnamese partner(s).  He further explained th at the procedures and conditions for re-allocating 
capital within a joint-venture, and transitioning fro m a joint-venture to a 100 per cent foreign-owned 
enterprise were laid out in detail in the [Government Decree No. 24/2000/ND-CP of 31 July 2000 
Providing Detailed Regulations on the Implementation of the Law on Foreign Investment in 
Viet Nam, as amended on 19 Marc h 2003 – note: pending revision].  The representative of Viet Nam 
further confirmed that such re-allocation of capital within a joint-venture, or the transition from a 
joint-venture to a 100 per cent foreign-owned ente rprise would be subject to transparent and pre-
established procedures, which in themselves woul d not require any disruption of the company’s 
normal operations.  He also confirmed that join t-ventures seeking to transition to a 100 per cent 
foreign-owned enterprise may be re quired to apply for and receive an amended [license/investment 
certificate] to supply the same services, with a comparable scope of business.  A decision on such applications would be provided promptly so that  the enterprise could continue operation without 
disruption.  The Working Party took note of these commitments. 
489. A Member noted that Viet Nam's market access commitments for retailing services included 
gradual phase-in to 100 per cent foreign participa tion.  The Member asked how Viet Nam would 
implement its commitments for retail services in light of provisions in Decree No. 110 restricting 
foreign participation in multi-level sales activities.   In response, the representative of Viet Nam 
confirmed that the restrictions on foreign par ticipation in multi-level sales activities described in 
Decree No. 110 applied only to foreign natural pers ons working in Viet Nam and to those foreign 
entities whose scope of business did not include distribution services, including retail services, in Viet Nam.  He further confirmed that such restri ctions would not apply to foreign participation in 
terms of investment in retailing services consiste nt with the terms and conditions set forth in 
Viet Nam's Schedule of Specific Commitments on trad e in services.  Foreign equity limitations for 
multi-level sales were those indicated in Viet Na m's market access commitments for retail services.  
The Working Party took no te of these commitments. 
490. A Member noted that Viet Nam had scheduled lim its on foreign participation in most services 
sectors in its Schedule of Specific Commitments.  For example, some sectors were subject to a 
permanent limitation on foreign equity, while other sect ors were subject to temporary foreign equity 
limitations as part of a gradual phase-in to 100 per cent foreign ow nership.  This Member voiced 
strong concerns about how certain provisions of th e 2005 Enterprise Law would affect the ability of a WT/ACC/SPEC/VNM/5/Rev.3 
Page 186  
 
  majority (at least 51 per cent) share-holder to control an investment and make fundamental decisions 
about the operation of the enterprise.  Provisions  on limited liability companies of more than one 
member and provisions on shareholding companies s tipulated how fundamental decisions were to be 
made within an enterprise, by requiring that these fundamental issues were subject to approval by the 
Members’ Council or Shareholders’ Meeting an d specifying a minimum percentage of votes 
necessary for the Members’ Council or Shareholders’ M eeting to make such a decision.  According to 
these provisions, making certain fundamental decisions  about the enterprise would require at least a 
majority of 65 per cent of the Members’ Council in  the case of a limited li ability company of more 
than one person, or a majority of 75 per cent of the Shareholders’ Meeting in the case of a 
shareholding company.  
491. In response, the representative of Viet Nam confirmed that the Enterprise Law established 
minimum percentage of votes required to make fundame ntal decisions in various forms of enterprises.  
He recognized the validity of Members’ concerns re garding the capability of majority shareholders (at 
least 51 per cent) to make these fundamental decisi ons, especially in sectors in which Viet Nam had 
included foreign equity limitations in its Schedul e of Specific Commitments.  The representative of 
Viet Nam confirmed that, upon accession, Viet Nam would ensure that, notwithstanding the 
requirements in the 2005 Enterprise Law, inv estors establishing a commercial presence as a joint-
venture under the commitments in Viet Nam's Sc hedule of Specific Commitments would have the 
right to establish, through the enterprise’s Charter, all the types of decisions that had to be submitted 
to the Members’ Council or Shareholders’ Meeting for approval; the quorum rules, if any, that 
governed voting procedures; and the precise percen tages of voting majorities necessary to make 
decisions, including a simple majority of 51 percent.  He further confirmed that Viet Nam would give 
legal effect to these provisions of the enterprise’s Ch arter.  In addition, prior to accession, Viet Nam 
would give effect to these obligations through appr opriate legal means.  The Working Party took note 
of these commitments. 
492. A Member observed that licensing procedures and conditions should not act as an 
independent barrier to market access and requested Viet Nam to guarantee transparency of licensing 
requirements and procedures, qualification requireme nts and procedures as well as of other licensing 
requirements.  In particular, this Member request ed Viet Nam to publish a list of all organizations 
responsible for authorizing, approving or regulati ng services, including those organizations that had 
been delegated such authority from national author ities, as well as Viet Nam's licensing procedures 
and conditions.  Viet Nam was asked to ensure th at its licensing procedures and conditions were pre-
established, publicly available, based on objective criteria; identified activities terms and conditions;  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 187 
 
 
  included all critical information for valid completion of applications; included relevant timeframe and 
critical deadlines; and identified the competent author ity.  This Member also requested Viet Nam to 
ensure that licensing procedures and conditions wo uld be published prior to becoming effective; 
include a reasonable timeframe for review and deci sion in that publication; any fees charged would 
not constitute an independent barrier to market a ccess; the applicant would be informed whether the 
application was complete or, in case of incomple te application, what additional information was 
required; decision be taken promptly; if an applica tion was terminated or denied, the applicant would 
be informed in writing and without delay of the reas ons 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. 
493. Some Members stated that transparency of regulations and other measures, particularly of 
sub-national authorities, was essential since these authorities often provided the details on how the 
more general laws, regulations and other measures of  the central Government would be implemented.  
This information needed to be received in a ti mely fashion so that services suppliers could be 
prepared to comply with such provisions and coul d exercise their rights in respect of implementation 
and enforcement of such measures.  Pre-publication of these measures was important to enhancing 
secure, predictable trading relations.  The deve lopment of the Internet and other means of 
communication could help ensure that information from all Government bodies at all levels could be 
assembled in one place and made readily available to  the public.  The creation and maintenance of a 
single, authoritative journal and enquiry point woul d greatly facilitate dissemination of information 
and help promote compliance.  
494. In response, the representative of Viet Nam c onfirmed that Viet Nam would publish all laws, 
regulations and other measures of ge neral application pertaining to or  affecting trade in services.  
Publication of such laws, regulations and other me asures would include the effective date of these 
measures and the general scope of services or activities affected.  The representative of Viet Nam 
further confirmed that Viet Nam would publish a list of all organizations that were responsible for 
authorizing, approving or regulating service activitie s for each service sector.  In addition, Viet Nam 
would publish in the official journal all of its  existing licensing procedures and conditions upon 
accession.  The Working Party took note of these commitments. 
495. With respect to licensing procedures, the represen tative of Viet Nam confirmed that Viet Nam 
would ensure that its licensing procedures and cond itions would not act as independent barriers to 
market access.  The representative of Viet Nam c onfirmed that for those services included in its WT/ACC/SPEC/VNM/5/Rev.3 
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  Schedule of Specific Commitments, Viet Nam would en sure that: (a) Viet Nam's licensing procedures 
and conditions were published prior to becoming effec tive; (b) relevant authorities would review and 
make a decision on licensing within the period specified  in official procedures; (c) any fees charged in 
connection with the filing and review of an applica tion would not constitute an independent barrier to 
market access; (d) on the request of an applican t, Viet Nam's relevant regulatory authority should 
inform the applicant of the status of its appli cation and whether it was considered complete.  An 
application shall not be considered complete until all information specified in the relevant 
implementing measure was received.  If the aut hority required additional information from the 
applicant, it should notify the applicant without un due delay and specify the additional information 
required to complete the application.  Applicants should have the opportunity to cure deficiencies in 
the application; (e) on the request of an unsuccessful applicant, a regulatory authority that had denied 
an application should inform the applicant in writi ng of the reasons for denial of the application; 
(f) where an application had been denied, an applican t may submit a new application that attempted to 
address any prior problems; (g) where approval was required, once the application was approved, the 
applicant would be informed in writing without undue delay; and (h) where Viet Nam required an 
examination to licence professionals, such examinations  would be scheduled at reasonable intervals.  
The Working Party took no te of these commitments.  
496. The representative of Viet Nam further confir med that for the service sectors included in 
Viet Nam's Schedule of Specific Commitments, the relevant regulatory authorities would be separate 
from, and not be accountable to, any service suppliers  they regulated.  Further, the representative of 
Viet Nam confirmed that, except in emergency situ ations or for regulati ons and other measures 
involving national security, specific measures setting fo reign exchange rates or monetary policy and 
other measures the publication of which would impede  law enforcement, Viet Nam would, (a) publish 
in advance any regulations or other implementing m easures of general application that it proposed to 
adopt and the purpose of the regulation or other impl ementing measure; (b) provide interested persons 
and other Members a reasonable opportunity to comment on such proposed regulation or other 
implementing measure; and (c) allow reasonable time  between publication of the final regulation or 
other implementing measure and its effective date.  The Working Party took note of these 
commitments. 
[to be completed]  WT/ACC/SPEC/VNM/5/Rev.3 
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  TRANSPARENCY 
Publication of information on trade 497. 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. 
498. 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.   
499. 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 implem entation 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.   
500. 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.3 
Page 190  
 
  comments from the general public.  Articles 62.2 a nd 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 on the Internet for 
comments by agencies, organizations and individua ls.  There was no specialized website for the 
publication of draft legal documents; draft legal documents were published on the website of the 
responsible Ministry and drafting agency, i.e. on th e Ministry of Planning and Investment's website 
for documents related to investment (www.mpi.gov. vn), on the Ministry of Trade's website for 
documents concerning trade rules and regulations (www.mot.gov.vn), and on the Ministry of Finance's website for draft legal documents on ta x and finance (www.mof.gov.vn).  A number of draft 
documents were also published on the website of th e Ministry of Justice (www.moj.gov.vn).  Drafting 
entities could also organize workshops and seminars to discuss the drafts with  those interested.  He 
noted that Directive No. 28/2001/CT-TTg require d Ministries and agencies to seek comments from 
the business community through the Viet Nam Chambe r of Commerce and Industry in the drafting of 
any policies or rules affecting business operations.  Draft legal documents affecting the business 
community were published on the Internet site of the Chamber of Commerce and Industry 
(http://www.vibonline.com.vn).  He added that 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. 
501. The obligation to seek the opinions of those dir ectly affected by the legal documents, and the 
possibility to take account of these opinions in the dr afting 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, anal yse and evaluate the comments received and, as 
necessary, to propose adjustments to the original draft.  The comments received by the drafting 
agency were attached to the draft legal instrument  when forwarded to the appropriate decision-making 
body.   
502. 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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 191 
 
 
  implementing regulations for the Law would ensure uniform and consistent implementation of this 
Law throughout Viet Nam.   
503. He confirmed that Article 47 of the Law aut horized the Standing Committee of the National 
Assembly to invite relevant agencies or indivi duals to address the Committee on a draft ordinance.  
Although the Law did not provide similar authority to  the National Assembly or to his Government, 
Article 32.2 allowed the lead examination committe e 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 re quired to provide information and materials to 
serve this examination.   
504. 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.   
505. 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 192  
 
  "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. 
506. 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 rul es.  Pursuant to Article 3 of Government Decree 
No. 161/2005/ND-CP of 27 December 2005, any document providing for legal normative rules but 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.  
507. [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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 193 
 
 
  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 
508. 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. 
TRADE AGREEMENTS 
509. 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. 
510. 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. 
511. 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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 194  
 
  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.  
512. 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 
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, how  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.   
513. The representative of Viet Nam replied that Viet Nam would comply with the MFN principle 
within the meaning of Article I of the GATT 1994 upon accession to the WTO.  The bilateral agreement with the United States had come  into force at the end of 2001.   
514. 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 
515. 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.    WT/ACC/SPEC/VNM/5/Rev.3 
 Page 195 
 
 
  516. 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 
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.3 
Page 196  
 
  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" of 4 April 2005; 
- National Assembly's Resolution No. 51/2001/QH10 on amendment of and supplement to 
some Articles of the 1992 Constitution of the 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 of 4 August 1994 On Am endments of and A dditions 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); 
- Ordinance No. 28/2005/PL-UBTVQH11 "O n Foreign Exchange" of January 2006; 
- 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 "On Enterprises" of December 2005; 
- Law No. 13/1999/QH10 – The Enterprise Law; 
- Law No. 59-2005-QH11 "On Investment" of December 2005; - 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);  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 197 
 
 
  - Ordinance on Price of 26 April 2002; 
- Petroleum Law of 6 July 1993; - 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 Detailed Provisions on the Implementation of the 
Mineral Law" of 15 December 2000; 
- Law No. 46/2005/QH11 "On Amendment and Supple ment of Some Articles of the Mineral 
Law" of 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 
of 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); 
- Law No. 41/2005/QH11 "On Conclusion, Accession and Implementation of Treaties" of 
June 2005; 
- 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 No. 29/2006/PL-UBTVQH11 "On the Amendment to and Supplementation of 
Some Articles of the Ordinance on Procedures to  Settle Administrative Case" of 5 April 2006; 
- Ordinance on Most-Favoured-Nation and Nati onal Treatment in International Trade of 
7 June 2002; 
- Law No. 58 "On Amendment of and Addition to  some Articles of the Law Complaints and 
Denunciations" of December 2005; 
- Draft Law Amending and Supplementing a Number  of Articles of the Law on Complaints and 
Denunciations; 
- Commercial Law No. 36/2005/QH11 of June 2005; - The Law No. 42/2005/QH10 "Amending and Supplementing a Number of Articles of the 
Customs Law" of June 2005; 
- Law on Customs (Law No. 29-2001-QH10 of 29 June 2001); 
- Draft Law amending and supplementing some Ar ticles of the Customs Law of 29 June 2001; 
- Decision No. 46/2005/QD-TTg "On Revisions of th e List of Imported Goods Subject to Tariff 
Rate Quotas" of 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); WT/ACC/SPEC/VNM/5/Rev.3 
Page 198  
 
  - 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); 
- Circular No. 114/2005/TT-BTC Guiding the Po st-Customs Clearance Inspection of Exports 
and Imports of 15 December 2005; 
- 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; - Circular No. 87/2004/TT-BTC Guiding the Implementation of Export Tax, Import Tax of 
31 August 2004; 
- Circular No.113/2005/TT-BTC Guiding the Implementation of the Import Tax and Export 
Tax Law of 15 December 2005; 
- Law No. 45/2005/QH11 "On Export and Import Duties" of June 2005; - 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. 57-2005-QH11 "On Amendment of and Addition to some Articles of the Law on 
VAT and Excise Tax" of December 2005; 
- 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); 
- Law No. 34/2005/QH11 "On Pharmaceuticals" of June 2005;  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 199 
 
 
  - Decree No. 154/2005/ND-CP Detailing the Implementation of a Number of Articles of the 
Customs Law Regarding Customs Procedures, Inspection and Supervision of 15 December 
 2005; 
- 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); 
- Circular No. 118/2003/TT-BTC Guiding th e Implementation of Government's Decree 
No. 60/2002/ND-CP of 6 June 2002 Prescribing th e Determination of Tax Calculation Values 
of Import Goods According to the Principles of the Agreement Implementing Article 7 of the General Agreement on Tariffs and Trade" of 8 December 2003; 
- 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; 
- Decree No. 19-2006-ND-CP "On Making Detaile d Provisions for Implementation of the 
Commercial Law with Respect to Orig in of Goods" of 20 February 2006; 
- 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" of 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" 
of 11 July 2005; 
- Ordinance on Safeguards in the Import of Foreign Goods into Viet Nam 
(No. 42/2002/PL-UBTVQH10 of 1 September 2002); 
- Decree No. 179/2004/ND-CP "On Providing St ate Management Over Product and Goods 
Quality" of 21 October 2004; 
- Draft Law "On Standards and Technical Regulations" (draft of 21 April 2006); 
- 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" of 26 May 2005; 
- Decision No. 444/QD-TTg "On Approving the Sc heme on Implementation of the Agreement 
on Technical Barriers to Trade" of 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" of 12 December 2000; 
- Decision No. 50/2006/QD-BCN "On the Issuance of the List of Products and Goods Subject 
to Quality Control" of 7 March 2006; 
- 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 Fo od Hygiene and Safety Ordinance" of  
7 September 2004; WT/ACC/SPEC/VNM/5/Rev.3 
Page 200  
 
  - 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" of 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 Number of Articles of the Regulations on 
Tendering Issued with Decrees of the Govern ment No. 88-1999-ND-CP of 1 September 1999 
and No. 14-2000-ND-CP Of 5 May 2000 (Decr ee No. 66-2003-ND-CP of 12 June 2003); 
- Decree No. 43/CP of 16 July 1996 on Procurement; - Law No. 61-2005-QH11 "On Tendering" of December 2005; - Law No. 37/2005/QH11 "On the State Audit" of June 2005; - Law No. 50/2005/QH11 "On Intellectual Property" of December 2005; 
- Draft Law "On Intellectual Property"; 
- Civil Code No. 33/2005/QH11 of June 2005; - 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 Of 24 October 1996 on Industria l Property (Decree No. 06-2001-ND-CP of 
1 February 2001); 
- Circular No. 23-TC/TCT of 9 May 1997 Guiding the Collection, Payment and Management 
of Industrial Property Service Charges and Fees; 
- 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 Environment'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;  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 201 
 
 
  - Circular on the Implementation of Government Decree No. 13/2001/ND-CP of 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; 
- Law on Insurance Business of 9 December 2000; - Decree No. 64-CP of 9 October 1995 On Organization and Operation of Finance Leasing 
Companies; 
- Circular No. 03-TT-NH5 of 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 of 8 July 1995 On Legal Consultancy Practices of Foreign Law Firms in 
Viet Nam; 
- Circular No. 791-TT-LS-TVPL of 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); 
- Law No. 38/2005/QH11 "On Education" of June 2005; - Law No. 44/2005/QH11 "On Tourism" of June 2005; - Law No. 40/2005/QH11 "On Maritime Code" of June 2005; 
- Law "On Railways" of June 2005; 
- Ordinance on Post and Telecommunication of 7 June 2002; - Decree on Management, Provision and Use of Internet Services (Decree No. 55-2001-ND-
CP); 
- Law No. 51/2005/QH11 "On E-Transactions" of December 2005; 
- Draft Law "On E-Transactions"; 
- 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" of 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;  
- 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" of 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 of 8 July 1999 and Decree 12/20 00/ND-CP of the Government of 5 May 2000" 
of 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.3 
Page 202  
 
  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 materials1, 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 [200] for a definition of "reactionary cultural products".  
3 Superstitious cultural produc ts" could be defined, inter alia , as cultural products (inclusive 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 whic h have an adverse effect on social order,  security, and safety " could be defined, inter 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.3
 Page 203Table 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 and 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 veri fied scales, tanks and 
trays, tables (stalls or stands), knives, chopping blocs... The places for processing and 
selling food must have necessary  instruments for processing and maintenance and covers 
to ensure hygiene and qualit y 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 appropria te health condition to th e business as stipulated 
by the Ministry of Health, and free from infectious diseases and must have a health check every 
12 months.  
  WT/ACC/SPEC/VNM/5/Rev.3 
Page 204 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 sti pulates pawnage service 
as one of his/her business lines. 
 
2. The trader must have a fixed pawnshop with de finite address; have warehouses 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 leas t 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 conditions 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.3
 Page 205II. List of Business Lines Which Require a Business Licence * 
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.3 
Page 206 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 cigarette 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.3
 Page 207No. 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  
  WT/ACC/SPEC/VNM/5/Rev.3 
Page 208 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). provincial/municipal Trade Services/ 
Trade Departments shall decide the 
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 licence, 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.3 
 Page 209 
 
 
  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.3 
Page 210  
 
  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.3 
 Page 211 
 
 
  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 wea pons, military equipment and specialized equipment used for 
national defence and security; equipment and technical 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 important in both econo mic 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 political 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 following 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 prevention and treatment and pharmaceutical 
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.3 
Page 212  
 
  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 Budget 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 following m echanical products: electrical  equipment and materials; 
specialized industrial machinery;  machinery and equipment serv ing agriculture, forestry and 
fishery; building and repair of mean s of transportation by sea or rail; 
- Provision of infrastructure of telecommunications networks; 
- Manufacture of ferrous metals (cast iron and steel) with a capacity 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 food s: table salt; milk; beer with a capacity of 
more than 50 million litres per annum; alcohol and spirits with a capacity 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.3 
 Page 213 
 
 
  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 Resolution of  the Central Executive Committee of 
the Party (2002-2004) 1,467 
Total up to 31 December 2004 2,242 
Total up to 31 December 2005 2,935 
Equitization plan for post-2005 period 736 WT/ACC/SPEC/VNM/5/Rev.3 
Page 214  
 
  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 sectors, 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 adver tisements; cinematographic 
activities, artistic performance; conducting games with 
prizes; medical examination and treatment 
establishments; pre-tertiary 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: el ectricity, mining, metallurgy, 
cement, mechanical engineering manufacturing, chemicals, 
hotels, apartments for lease, or tourism-entertainment areas. 
 
- Projects using at least five (5) hectares 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.3 
 Page 215 
 
 
  Authority Responsible for Granting 
Investment Licences Type of project 
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 Prime 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, metallurg y, 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.3 
Page 216  
 
  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, except in relation to those produc ts subject to State trading enterprises (as listed in 
the attached Table 8(c)). 
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 8(c)) and the restrictions listed in the attached Tables 8(a) 
and 8(b); 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 Viet Nam' s applicable 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 shall only accord the righ t to be the importer/exporter of record and, in 
the case of importation, shall only accord the right to import and sell the imported products to enterprises 
who have the right to distribute such products in Viet Nam. Commitments on trading rights shall not, in any case, automatically gran t 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 Schedule 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.3 
 Page 217 
 
 
  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 for 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 gentamycines or derivatives thereof, for 
injection    
3004.20. 42 - - - Containing lincomycins 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.3 
Page 218  
 
  HS Description Schedule Rationale 
3004.40. 30 - - Containing quinine sulphate 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 vitami ns PP, other than goods of 
subheadings 3004.50.10 and 3004.50.79    
3004.50. 60 - - Containing other vitamins, 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 medicine s 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 acetyls alicylic 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)    
3004.90. 97 - - - Nose-drop medicaments containing naphazoline, 
xylometazoline or oxymetazoline       WT/ACC/SPEC/VNM/5/Rev.3 
 Page 219 
 
 
  HS Description Schedule Rationale 
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 adhesivesfor 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 contraceptive preparations based on 
hormones, on other products of heading 29.37 or on 
spermicides   
3006.70. 00 - Gel preparations desi gned to be used in human or 
veterinary medicine as a lubr icant for parts of the body for 
surgical operations or physic al 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 si milar 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, messages or announcements, whether 
or not illustrated, with or without envelopes or trimmings   
4910 Calendars, calendar blocks of any kind, printed... 2009 ditto 
4910.00. 00 Calendars of any kind, printe d, 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    
4911.91. 90 - - - Other    
4911.99. 10 - - - Printed cards for jewellery 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    WT/ACC/SPEC/VNM/5/Rev.3 
Page 220  
 
  HS Description Schedule Rationale 
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    
8525.10. 23 - - - Telemetry monitoring systems    
8525.10. 29 - - - Other    
8525.10. 30 - - Data compression tools    
8525.30. 90 - - Other    
8525.40. 20 - - Other still image video cameras     WT/ACC/SPEC/VNM/5/Rev.3 
 Page 221 
 
 
  HS Description Schedule Rationale 
8525.40. 30 - - Digital cameras    
8525.40. 40 - - Other video camera recorders   
8526 Radar apparatus, radio navi gational aid apparatus and 
radio remote control apparatus 2009 ditto 
8526.10. 90 - - Other    
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.3 
Page 222  
 
  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.3 
 Page 223 
 
 
  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, reform ate 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   2. 
2710. 19. 21  - - - - Topped crudes   WT/ACC/SPEC/VNM/5/Rev.3 
Page 224  
 
  No HS Description Rationale 
2710. 19. 22  - - - - Carbon black feedstock oil   
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.3 
 Page 225 
 
 
  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 (includi ng 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.3 
Page 226  
 
  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.3 
 Page 227 
 
 
  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.3 
Page 228  
 
  Table 11:  List of Products Not Subject to VAT (as of 1 January 2006)
 
1. Products of cultivation, husbandry, fishery or aquaculture wh ich have not yet been processed into other products or 
which have only been semi-processed by organizations or  individuals self-producing and selling such products and 
imports 
2. Animal breeds and plant breeds 
3. Salt products 
4. Specialized machinery, equipment or means of transportation which form part of a technological process or 
construction materials which are not yet able to be produc ed domestically and are require d to be imported to form 
the fixed assets of enterprises; aircra ft, drilling platforms or wa tercraft leased from foreign parties which are not yet 
able to be produced domes tically used for production or business; e quipment, machinery, replacement parts, 
specialized means of transportation a nd supplies which are required to be im ported in service of prospecting, 
exploration and development of petr oleum fields and which are not yet able to be produced domestically 
5. Sales of State-owned houses by the State to existing tenants 
6. Transfers of land use rights 
7. Credit services, investment funds  and securities tr ading activities 
8. Life insurance; student insurance; insurance of anim als and plants and non-profit-making insurance activities 
9. Medical services 
10. Non-profit-making cultural, exhibition and sports activities; artistic performances, f ilm production; import, 
publication and screening of film footage and documentary videos 
11. Education and vocational training 
12. Radio and television broadcasting  accordi ng to programmes funded by the State Budget 
13. Printing, publication, import and distribution of newspa pers, magazines, specialize d newsletters, political books, 
textbooks, teaching materials,  books on legislation, books printed in languages of ethnic mi norities, propaganda 
pictures, photos and posters; Printing of money 
14. Public services of cleaning and water drainage in urban areas and residential areas, ma intenance of zoos, flower 
gardens, parks, trees in streets, pub lic lighting systems and funeral services 
15. Repair, renovation and construction of cultural and artistic  works, public works, infrastructure and welfare housing 
funded by public contribution and humanitarian aid 
16. Public passenger transportatio n by bus; electrical bus 
17. Geological surveys, exploration, measur ing and formulation of maps, which can be characterized as basic surveys of 
the State 
18. Water supply and drainage serving agri cultural production; clean water produced  by organizations and individuals 
for consumption in rural, mountainous and is land areas and remote and distant regions 
19. Specialized arms and weaponry required for national defence and security 
20. Imported goods in the following cases: humanitarian aid,  non-refundable aid; gifts to State bodies, political 
organizations, socio-political  organizations, social organizations, soci o-professional organizations; units of the 
people's armed forces; donations and gifts to individuals  in Viet Nam within the limits stipulated by the 
Government, personal effects of forei gn organizations and individuals under di plomatic immunity regulations; hand 
luggage within duty-free limits; goods to be sold to international organi zations and foreign individuals for 
humanitarian and non-refundable aid to Viet Nam 
21. Goods in transit or transhipment or  crossing Vietnamese borders; goods te mporarily imported and re-exported and 
goods temporarily exported and re-imported 
22. International transportation, goods and se rvices provided directly for internati onal transportation an d re-insurance to 
abroad 
23. Technology transfers; software 
24. Post and Telecommunication services a nd universal internet programme in a ccordance with Government's plan 
25. Gold imported in bars and foils which are not yet proce ssed into fine art articles, jewellery or other products 
26. Certain exported unprocessed mine rals to be stipulated in detail by the Government 
27. Products that are man-made substitute for human parts of patients; crutches and other specialized  equipments for 
invalid people 
28. Goods and services of business individuals having low income levels. Low in come levels shall be stipulated by the 
Government 
Note:   The list of products by six-digit HS code is not available. 
 
  
   WT/ACC/SPEC/VNM/5/Rev.3
 Page 229Table 12:  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 transporta tion 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   
  WT/ACC/SPEC/VNM/5/Rev.3 
Page 230 HS Description Rationale Legal basis Note 
9305 Parts and  accessories of Articles of headings  9301 to 9304. Weapons  Decision No. 28/TTg 
dated 13 January 1997 by 
PM  
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, la nces 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 Decision 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    
   WT/ACC/SPEC/VNM/5/Rev.3
 Page 231HS Description Rationale Legal basis Note 
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   
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 transporta tion 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.3 
Page 232  
 
  Table 13 (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.3 
 Page 233 
 
 
  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 phosphoramid ocyanidate                
 
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-diisopropylaminoe thyl 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 Conven tion on the Prohibition of the Development, Production, 
Stockpiling and Use of Chemical Wea pons and on their Destruction, to which Viet Nam is a State Party. WT/ACC/SPEC/VNM/5/Rev.3 
Page 234  
 
  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  ethylphosphonothiolo thionate                        
 
 
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.3 
 Page 235 
 
 
  Table 13 (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.3 
Page 236  
 
  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.3 
 Page 237 
 
 
  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.3 
Page 238  
 
  Table 14:  List of Imported G oods Subject to Line Management
 
 
Note:  The list is issued in conjunction with Decree No. 12/2006/ND-CP dated 23 January 20006 of 
the Government guiding the implementation of  the Commercial Law of 2005.  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 
No. Goods HS Form of 
management WTO 
Justification 
1. Veterinary medicines and materials for making 
veterinary medicines. ex 3004; 
30062000 TBT/SPS  
2. Biological products for veterinary use registered 
for first-time use in Viet Nam. N.A TBT/SPS  
3. Pesticides and materials for making pesticides 
excluded in the List of pesticides allowed to be 
used in Viet Nam. ex 3808 AIL7 
4. Pesticides and materials for making pesticides 
included in the List of pesticides subject to 
restricted use in Viet Nam. ex 3808 AIL 
5. Plants and animal strains, and various types of 
insects not available in Viet Nam. ex 0106; 06; 
07; 08; 09; 12 TBT/SPS  
6. Animal feeds and materials for producing animal 
feeds newly used in Viet Nam. ex 23 TBT/SPS  
7. Fertilisers newly used in Viet Nam.  3101; 3102; 
3103; 3104; 3105 TBT/SPS  
8. Genetic sources of plants, animals and micro-
organs used for scientific purposes. 3001; 3002 TBT/SPS TBT/SPS 
Agreement.  
9. Wild animals and plants subject to import control 
according to CITES Convention. ex 01 AIL GATT 
Article XX.g 
 
II. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
FISHERIES (FOR SPS PURPOSES) 
The Ministry of Fisheries is to carry out its line management by issuing the following lists of goods:  (a) The list of items subject to automatic export licence; 
(b) The list of items used in aquaculture farming subject to automatic import licence; 
(c) The list of breeds for aquaculture allowed to  be imported ordinarily (without licence); and 
(d) The list of drugs, chemicals and material s for producing drugs and chemicals used in 
aquaculture farming allowed to be imported ordinarily (without licence). 
                                                     
 
7 Automatic import licence.  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 239 
 
 
  III. LIST OF GOODS SUBJECT TO LINE M ANAGEMENT OF THE STATE BANK (i.e. THE 
CENTRAL BANK) OF VIET NAM 
No. Goods HS Form of 
management WTO Justification 
1. Money destroying machines. 84793000 AIL 
2. Treasury doors. ex 7308 AIL 
3. Papers for printing money. ex 4802 AIL 
4. Inks for printing money. ex 3215 AIL 
5. Machines for printing hard-to-forge money, 
payment vouchers, certificates and other valuable papers to be issued and managed by the 
banking industry. 8462; 8477; 
4907 AIL 
6. Money printers  
(technical specifications announced by the State 
Bank). ex 8443 AIL 
7. Machines for moulding and pressing metal 
money  
(technical specifications announced by the State 
Bank). ex 8462 AIL Government 
procurement and 
monetary 
security8. 
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 TELECOMMUNICATIONS9 
No. Goods HS Form of 
management WTO 
Justification 
1. Postage stamps, stamp publications and items of 
postage stamps. 49070020; 
49070090; 
97040010; 97040090 AIL Natural 
monopoly 
2. Radio transceivers of 9 KHz-400 KHz 
frequency band and 60 mW or more capacity. 852510; 
85252092 AIL GATT 
Article XXI.b.(ii) 
3. Radar equipment, radio support equipment and 
radio remote control equipment. 852610; 
852691; 85269200 AIL GATT 
Article XXI.b.(ii) 
 
                                                      
8 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. 
9 The formerly "General Department of Posts and Telecommunications" is now the "Ministry of Posts 
and Telecommunications". WT/ACC/SPEC/VNM/5/Rev.3 
Page 240  
 
  V. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
CULTURE AND INFORMATION  
No. Goods HS Form of 
management WTO  
Justification 
1. Publications (books, magazines, newspapers, 
pictures, photographs, calendars, etc ). 4901; 4902; 
4903; 4904; 
4905; 4906; 
4909; 4910; 
4911 AIL. 
2. Cinematic works and other audio-visual products 
recorded on any materials. 3706; 8524 
 AIL 
3. Specialized print proof making systems and type 
setting systems used in printing industry. 8442 
 AIL 
4. Printers of any kinds (Offset printers, flexo 
printers, bronze drum printers) and color photocopiers.  8440; 8443; 
9009 AIL 
5. Television Receive Only (TVRO) equipment. 8528; 8529; 
8543 AIL 
6. Gambling machines. 9504 
 AIL 
7. Children's toys. 9501; 9502; 
9503 
 TBT GATT 
Article XX.a 
 
VI. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
HEALTH 
No. Goods HS Form of 
management WTO 
Justification 
1. Addictive substances, sedative substances, pre-
substances (including final medicines). 3004 AIL 
2. Finally tested medicines for human beings, 
which have been registered. 3004  
3. Finally tested medicines for human beings, 
which have not been registered. 3004 TBT/SPS  
4. Materials for producing medicines, 
pharmaceutical materials, excipient, empty hard 
gelatine and containers directly contacting with 
medicines, which are newly used in Viet Nam. ex 28; 29; 30; 
19059060; 
96020010; ex 
3923; ex 
4014; ex 4819 TBT/SPS  
5. Cosmetics directly affecting human health. 3302; 3303; 
3304; 3305; 
3306; 3307 TBT 
6. Vaccines and immunized  biological products 
excluded in the List  of items allowed to be imported upon demand 3002 AIL 
7. Medical equipment whic h may directly affect 
the health of human beings. ex 9019;  
ex 9020 AIL GATT 
Article XX.b 
8. Chemicals, pesticides, antiseptic products for 
medical use 3808 TBT TBT Agreement 
  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 241 
 
 
  VII. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
INDUSTRY  
No. Goods Form of 
management WTO  Justification 
1. Toxic chemicals and products with toxic chemicals.  
Addictive pre-chemicals for us e in industry (under the 
Anti-Drug Law and related legal documents) AIL TBT Agreement 
2. Natri hydrocid (liquid) TBT  TBT Agreement 
3. Acid chlohydric TBT  TBT Agreement 
4. Acid sulfuric (technical) TBT  TBT Agreement 
5. Acid sulfuric (pur e) TBT  TBT Agreement 
6. Acid phosphoric (techni cal) TBT  TBT Agreement 
7. Aluminum hydrocid TBT  TBT Agreement 
8. Industrial explosive materials  
NH4NO3 AIL GATT Article XX 
 
VIII. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
NATURAL RESOURCES AND THE ENVIRONMENT  
No. Goods HS Form of 
management WTO 
Justification 
1. Scraps 300680; 
3825; 3915; 
4017; 4707; 6310; 7112; 
7204; 7404; 
7503; 7602; 7802; 7902; 
8002; 
810197; 810297; 
810330; 
810420; 810530; 
8106; 
810730; 810830; 
810930; 
811020; 
8111; 
811213; 811222; 
811252; 
811292; 8113 TBT TBT Agreement 
 
IX. LIST OF GOODS SUBJECT TO LINE MANAGEMENT OF THE MINISTRY OF 
TRANSPORT  
No. Goods HS Form of 
management WTO 
Justification 
1. Lighting flares used in marinetime transport 360490 TBT TBT Agreement 
 WT/ACC/SPEC/VNM/5/Rev.3 
Page 242  
 
  Table 15: 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 prohibition 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 allocat ed at the beginning of each year with a transparent 
mechanism for quota bidding. 
- Import quota on used motor-vehicles shall be abo lished after 3 years from the date of accession to the 
WTO. 
2. Other measures (measures proposed to be applied internally 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.3 
 Page 243 
 
 
  Table 16:  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 fo r 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 
 
14. Shuttering for concrete constructional work of natural wood.   
15. Doors and their frames, steps, thresholds, stairs and their parts of natural 
wood. 4418 5 
16. 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 
17.  - Unworked or simply sawn or roughly shaped.  5 
18.  - Otherwise worked.   
19.  - Rubies, sapphires and emeralds. 71039100 1 
20.  - Other. 71039900 1 
21. Dust and powder of precious stones of 7103. 71059000 3 
22. Steel and iron wastes (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of steel, whether or not in 
bundles). 7204 35 
23. 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.3 
Page 244  
 
  No. Description Sub- 
Heading Rates 
(per cent) 
24. Semi-finished products of iron or non-alloy steel.  7207 2 
25. Copper waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of cooper, whether or not in 
bundles). 74040000 45 
26. Master alloys of copper. 74050000 15 
27. Powders of non-lamellar structure. 74061000 15 
28. Powders of lamellar structure; flakes. 74062000 15 
29. Copper bars, rods and profiles. 7407 5 
30. Nickel waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of nickel, whether or not in 
bundles). 75030000 45 
31. Nickel powders and flakes. 75040000 5 
32. Nickel, not alloyed, in bars, rods and profiles. 75051100 5 
33. Alloyed Nickel bars, rods and profiles. 75051200 5 
34. Aluminium waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of aluminium, whether or not in bundles). 76020000 45 
35. Aluminium powders and flakes. 7603 10 
36. Lead waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of lead, whether or not in 
bundles). 78020000 45 
37. Lead bars, rods and profiles. 7803 5 
38. Lead Powders and flakes. 78042000 5 
39. Zinc waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of zinc, whether or not in 
bundles). 79020000 40 
40. Zinc powder. 79031000 5 
41. Zinc powder and flakes. 79039000 5 
42. Zinc bars, rods, profiles. 7904 5 
43. Tin waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of tin, whether or not in 
bundles). 80020000 45 
44. Tin bars, rods. 80030010 2 
45. Tin profiles. 80030090 2 
46. Tin powder and flakes. 8005 2 
47. 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 
48. Semi-products of metal and metallic ceramics and Products of metal and 
metallic ceramics. 8101 to 
8113 5 
  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 245 
 
 
  Table 17:  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-manufactur ed pallet from 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 handi craft; those produced from cultivated forest's wood, from imported 
wood and from artificial pallet implemented under th e provision  of the Prim e 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.3 
Page 246  
 
  Items Classified as Narcotics
10 
 
No. International name Scientific name 
1. Acetyl dihydrocodein  (5 , 6)- 4,5 - ep oxy-3-methoxy-17 methyl-m orphinan-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- phnyl piperidine-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-dimethylami no-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- Dihydr o-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-propionylpiperidine) 
21. Levomethadon (3-Heptanone, 6- (d imethylamino)-4,4-Diphenyl, (R) 
22. Levorphanol ((-)-3-hydroxy-N-methylmorphinan) 
23. Meptazinol (3(-3-Ethyl-1- methylperhydroazepin-3-yl) phenol 
24. Methadon (6- dimethylami no-4,4-diphenyl-3-heptanone) 
25. Morphin Morphinan-3,6 diol, 7,8-di dehydro-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- Dihy dro- 4,5-epoxy- 3 methoxy-17- methyl-3-
pyridin mecarboxxylate (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-phenylpiperodine-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 piperidi noethyl- N- 2- pyridyl Propionamide) 
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 
 
                                                      
 10 Attached to Decision No. 2033/1999/Q§_BYT dated 9 July 1999 of the Minister of Health. 
  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 247 
 
 
  Narcotics in the Form of Mixtures11 
 
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 
 
                                                      
 11 Attached to Decision No. 2033/1999/Q§_BYT dated 09 July 1999 of Minister of Health 
 WT/ACC/SPEC/VNM/5/Rev.3 
Page 248  
 
  Table 18:  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.3 
 Page 249 
 
 
  Table 19 (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 19 (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 19 (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 reclam ation, 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 and 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.3 
Page 250  
 
  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  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 251 
 
 
  No. Name of industrial zones and export 
processing zones Location 
(province/city) Date of 
granting 
license Infrastructure investors 
44 Tinh Phong Quang Ngai 1997 Viet Nam 
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 WT/ACC/SPEC/VNM/5/Rev.3 
Page 252  
 
  No. Name of industrial zones and export 
processing zones Location 
(province/city) Date of 
granting 
license Infrastructure investors 
15 Deawoo Hanel (SDR) Ha Noi 1996 Korea - Viet Nam 
16 Nam Thang Long (Phase 1) Ha Noi 2001 Viet Nam 
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.3 
 Page 253 
 
 
  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.3 
Page 254  
 
  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 1,200,0
00 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 
 
_______________   WT/ACC/SPEC/VNM/5/Rev.3 
 Page 255 
 
 
  [DRAFT DECISION 
 
ACCESSION OF THE SOCIALIST REPUBLIC OF VIET NAM 
 
Decision of […]  
 
 
 The General Council,   Having regard to  paragraph 2 of Article X II and paragraph 1 of Article IX of the Marrakesh 
Agreement Establishing the World Trade Organizati on (the "WTO Agreement"), and the Decision-
Making Procedures under Articles IX and XII of th e WTO Agreement agreed by the General Council 
(WT/L/93),   Conducting  the functions of the General Council in th e interval between meetings pursuant to 
paragraph 2 of Article IV of the WTO Agreement, 
  Taking note of the application of the Socialist Re public of Viet Nam for accession to WTO 
Agreement dated January 1995, 
 
 Noting  the results of the negotiations directed toward the establishment of the terms of 
accession of the Socialist Republic of Viet Nam to the WTO Agreement and having prepared a 
Protocol on the Accession of the Socialist Republic of Viet Nam,   Decides  as follows: 
 
1. The Socialist Republic of Viet Nam may accede to the WTO Agreement on the terms and 
conditions set out in the Protoc ol annexed to this Decision. 
  
_______________ 
  
 WT/ACC/SPEC/VNM/5/Rev.3 
Page 256  
 
  DRAFT PROTOCOL  
 
ON THE ACCESSION OF THE SOCIALIST REPUBLIC OF VIET NAM 
 
Preamble
 
 
 The World Trade Organization (hereinafter referred to as the "WTO"), pursuant to the approval 
of the General Council of the WTO accorded under Article XII of the Marrakesh Agreement 
Establishing the World Trade Organi zation (hereinafter referred to as the "WTO Agreement"), and the 
Socialist Republic of Viet Nam,  
 
 Taking note  of the Report of the Working Party on the Accession of the Socialist Republic of 
Viet Nam to the WTO Agreement reproduce d in document WT/ACC/VNM/[…], dated […] 
(hereinafter referred to as the "Working Party Report"), 
 
 Having regard  to the results of the negotiations on the accession of the Socialist Republic of 
Viet Nam to the WTO Agreement,    Agree
 as follows: 
 
PART I -  GENERAL 
 
1. Upon entry into force of this Protocol pursuant to paragraph 8, the Socialist Re public of 
Viet Nam accedes to the WTO Agreement pursuant to Article XII of that Agreement and thereby becomes a Member of the WTO.   
2. The WTO Agreement to which the Socialist Republic of Viet Nam accedes shall be the WTO 
Agreement, including the Explanatory Notes to that Agreement, as rectified,  amended or otherwise 
modified by such legal inst ruments as may have entered into force be fore the date of entry into force of 
this Protocol.  This Protocol, which shall include th e commitments referred to in paragraph […] of the 
Working Party Report, shall be an integral part of the WTO Agreement.  
3. Except as otherwis e provided for in paragraph […] of  the Working Party Report, those 
obligations in the Multilateral Trade Agreements annexed to the WTO Agreement that are to be 
implemented over a period of time starting with the entry into force of that Agreement shall be 
implemented by the Socialist Republic of Viet Nam as if it had accepted that Agreement on the date of 
its entry into force. 
 
4. The Socialist Republic of Viet Nam may mainta in a measure inconsistent  with paragraph 1 of 
Article II of the GATS provided that such a measure was recorded in the list of Article II Exemptions annexed to this Protocol and meets the conditions of the Annex to the GATS on Article II Exemptions. 
 
PART II - SCHEDULES 
 
5. The Schedules reproduced in Annex I to th is Protocol shall become the Schedule of 
Concessions and Commitm ents annexed to the General Agr eement on Tariffs and Trade 1994 
(hereinafter referred to as the "GATT 1994") and the Schedule of Specific Co mmitments annexed to the 
General Agreement on Trade in Services (hereinafter referred to as "GATS") relating to the Socialist 
Republic of Viet Nam.  The staging of the concessions and commitments listed in the Schedules shall 
be implemented as specifie d in the relevant parts of the respective Schedules. 
  WT/ACC/SPEC/VNM/5/Rev.3 
 Page 257 
 
 
  6. For the purpose of the reference in paragraph 6( a) of Article II of the GATT 1994 to the date of 
that Agreement, the applicable date in respect of the Schedules of Conc essions and Commitments 
annexed to this Protocol shall be the date  of entry into force of this Protocol. 
 
PART III - FINAL PROVISIONS 
 
7. This Protocol shall be open for acceptance, by  signature or otherwise, by the Socialist Republic 
of Viet Nam until […].  8. This Protocol shall enter into force on the thirtieth day following the day upon which it shall 
have been accepted by the Socialist Republic of Viet Nam.  
 9. This Protocol shall be deposited with the Director-General of the WTO.  The Director-General of the WTO shall promptly furnish a certified copy of this Protocol and a notification of acceptance by 
the Socialist Republic of Viet Nam thereto pursuant to paragraph 9 to each Member of the WTO and to 
the Socialist Republic of Viet Nam.   
  This Protocol shall be register ed in accordance with the provisi ons of Article 102 of the Charter 
of the United Nations.     Done at [...] this [...] day of [...] in a single  copy in the English, French and Spanish languages, 
each text being authentic, except that a Schedule an nexed hereto may specify that it is authentic in only 
one of these languages.  
_______________ WT/ACC/SPEC/VNM/5/Rev.3 
Page 258  
 
  ANNEX I 
SCHEDULE […] – THE SOCIALIST REPUBLIC OF VIET NAM 
Authentic only in the English language. 
(Circulated in document WT/ACC/VNM/…/Add.1) 
_______________ 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the English language. 
(Circulated in document WT/ACC/VNM/…/Add.2) 
] 
__________