RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/VNM/48 
27 October 2006 
 (06-5205) 
Working Party on the  
Accession of Viet Nam  
 
 
 
ACCESSION OF VIET NAM 
Report of the Working Party on the Accession of Viet Nam  
  WT/ACC/VNM/48 
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  TABLE OF CONTENTS 
Introduction................................................................................................................... .........................1  
Documentation provided ......................................................................................................... ..............1  
Introductory statements ........................................................................................................ ................1  
ECONOMIC POLICIES.............................................................................................................. .........2  
Monetary and fiscal policy ..................................................................................................... ...............2  
Foreign exchange and payments.................................................................................................. .........5  
Investment regime.............................................................................................................. ....................9  
Enterprises that are State-owned or –controlled,  or with special or exclusive privileges .............14  
Privatization and equitization................................................................................................. ............21  
Pricing policies ............................................................................................................... ......................25  
Competition policy............................................................................................................. ..................27  
FRAMEWORK FOR MAKING AN D ENFORCING POLICIES .................................................29  
POLICIES AFFECTING TRADE IN GOODS ................................................................................35  
Trading rights (the right to import and export)................................................................................ 35 
1. Import Regulation.............................................................................................................. .....38  
Customs tariff................................................................................................................. ......................38  
Other duties and charges....................................................................................................... ..............41  
Tariff rate quotas, tariff exemptions .......................................................................................... ........41  
Fees and charges fo r services rendered......................................................................................... .....45  
Application of internal taxes .................................................................................................. .............47  
Quantitative import restrictions, including pr ohibitions, quotas and licensing systems...............51  
Customs valuation.............................................................................................................. ..................58  
Rules of origin ................................................................................................................ ......................62  
Other customs formalities ...................................................................................................... .............63  
Pre-shipment inspection ........................................................................................................ ..............64  
Anti-dumping, countervailing duties, safeguard regimes ................................................................64  
2. Export Regulation.............................................................................................................. .....67  
Customs tariffs, fees and charges for services rendered, application of internal taxes to 
exports........................................................................................................................ ..............67  
Export restrictions............................................................................................................ ....................68  
3. Internal Policies Affecting Foreign Trade in Goods ............................................................69  
Industrial policy, including subsidies......................................................................................... ........69  
Technical barriers to trade, standards and certification..................................................................74  
Sanitary and phytosanitary measures............................................................................................ ....78  WT/ACC/VNM/48 
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  Trade-related investment  measures (TRIMs) ...................................................................................85
 
Free zones, special economic areas............................................................................................. ........86  
Government procurement......................................................................................................... ..........88  
Trade in ci vil aircraft........................................................................................................ ...................89  
Transit ....................................................................................................................... ...........................89  
Agricultural policies.......................................................................................................... ...................91  
(a) Imports – description of the types of  border protection maintained .................................91  
(b) Exports........................................................................................................................ .............92  
(c) Internal policies.............................................................................................................. .........93  
Fisheries ...................................................................................................................... ..........................94  
TRADE-RELATED INT ELLECTUAL PROPERTY RIGHTS (TRIPS) .....................................95  
1. General........................................................................................................................ .............95  
(a) Intellectual property protection.............................................................................................95  
(b) Responsible agencies for policy formulation and implementation .....................................96  
(c) Participation in international intellectual property agreements ........................................96  
(d) Application of national and MFN treatment to foreign nationals......................................97  
(e) Fees and taxes ................................................................................................................. .........97  
2. Substantive standards of protection, including procedures for the acquisition 
and maintenance of intellectual property rights ..................................................................98  
(a) Copyright protection ........................................................................................................... ...98 
(b) Trademarks, including  service marks.................................................................................101  
(c) Geographical indications, including appellations of origin...............................................103  
(d) Industrial designs............................................................................................................. .....105  
(e) Patents........................................................................................................................ ............105  
(f) Plant variety protection....................................................................................................... .108 
(g) Layout designs of integrated circuits ..................................................................................109  
(h) Requirements on undisclosed information, including trade secrets and test data..........109  
3. Measures to control abuse of intellectual property rights.................................................109  
4. Enforcement .................................................................................................................... ......110  
(a) Civil judicial procedures and remedies...............................................................................110  
(b) Provisional measures ........................................................................................................... .111 
(c) Administrative procedures and remedies...........................................................................112  
(d) Special border measures.......................................................................................................1 14 
(e) Criminal procedures............................................................................................................ .116 
POLICIES AFFECTING TRADE IN SERVICES.........................................................................118  
TRANSPARENCY ................................................................................................................... .........127   WT/ACC/VNM/48 
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  Publication of information on trade............................................................................................ .....127  
Notifications.................................................................................................................. ......................129  
TRADE AGREEMENTS ............................................................................................................... ...130  
CONCLUSIONS .................................................................................................................... ............131  
ANNEX 1 ........................................................................................................................ ....................132  
ANNEX 2 ........................................................................................................................ ....................139  
 
  WT/ACC/VNM/48 
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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, 19 July, 9 October and 26 October 2006 unde r the Chairmanship of H.E. Mr. Eirik Glenne 
(Norway). 
Documentation provided 
3. The Working Party had before it, to serve as a basis for its discussions, a Memorandum on the 
Foreign Trade Regime of Viet Nam (WT/ACC/VN M/2), the questions submitted by Members on the 
foreign trade regime of Viet Nam, together with th e replies thereto, and other information provided by 
the authorities of Viet Nam (WT/ACC/VNM/3, Corrigendum 1 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 a nd Addenda 1 and 2; 
WT/ACC/VNM/14, Addenda 1 and 2 and Revision 1; WT/ACC/VNM/15 and Addenda 1, 2 and 3; 
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/30; WT/ACC/VNM/31 and Revisions 1, 2, 3, 4 and 5; WT/ACC/VNM/32; WT/ACC/VNM/33; 
WT/ACC/VNM/34; WT/ACC/VNM/35; WT/ACC/VNM/36 and Addendum 1; WT/ACC/VNM/37; 
WT/ACC/VNM/38; WT/ACC/VNM/39; WT/ACC/VNM/40; WT/ACC/VNM/41; WT/ACC/VNM/42 and Revision 1; WT/ACC/VNM/44; WT/ACC/VN M/46; and WT/ACC/VNM/47 and Addendum 1), 
including the legislative texts and other documentation listed in Annex I. 
Introductory statements 
4. The representative of Viet Nam said that Viet  Nam had been carrying out economic reforms 
since 1986 under the "Doi Moi" (Renovation) polic y, focussing on market oriented economic 
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 WT/ACC/VNM/48 
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  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 526. 
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 (VND), to control inflatio n and to promote socio-economic development.  
Credits were channelled into activities making full u se 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 VND 142.9 trillion 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 VND 4.646 billion in December 2004, which 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  WT/ACC/VNM/48 
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  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 VND 917.1 billion in  2004, including 
VND 504.3 billion through medium- and long-term i nvestment loans, VND 3 billion through short-
term investment loans, and VND 109.9 billion in the form of post-investment interest support.  He 
provided statistics about support provided under the Development Assistance Fund, including 
information about non-performing loans, in Annex 1 to document WT/ACC/VNM/39.  He added that 
the question of non-performing public sector debt was addressed through equitization and restructuring of State-owned enterprises (see the "P rivatization and equitization" 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 equitize most State-owned co mmercial banks by 2010.  According to the 
Government's plan, two State-owned commercia l banks were to be equitized in 2006 (see 
paragraph 83).  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 in the 1980s.  The Government targeted a budget deficit ratio (according to the definition of 
the IMF) 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 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 cu rrent 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 directed lending and other subsidy programmes on the budget deficit,  he noted that Viet Nam's subsidy programmes 
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 WT/ACC/VNM/48 
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  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. The corporate income tax was levied in acco rdance 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 ra tes of 10, 15 and 20 per cent, and for a uniform set 
of criteria for entitlement to tax incentives for both domestic 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 
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 to 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 
VND 1.2 million, and foreign residents and Vietname se citizens working abroad, which had originally 
been taxed at rates from zero to 50 per cent with  a threshold of VND 5 million.  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  WT/ACC/VNM/48 
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  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 
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 
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. WT/ACC/VNM/48 
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  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, as determined by the Government of Viet Nam, to maintain the 
national financial and monetary security in accord ance with the IMF Articles of 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 (U S$100) for each transaction (Inter-Ministerial 
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  WT/ACC/VNM/48 
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  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.   
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 Coopera tives, and enterprises established under the 
Enterprise Law.  Foreign-invested enterprises and foreign 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 th rough the procedures applicable to Vietnamese 
enterprises.   
27. Pursuant to Circular No. 04/2000/TT-NHNN of 18 May 2001, foreign-invested enterprises 
and foreign parties to business cooperation cont racts could open accounts overseas to facilitate 
medium and long-term overseas borrowing as stipulated  in Point 2, Item I, Chapter V, Part II of 
Circular No. 01/1999/TT-NHNN of 16 April 1999 on the implementation of Decree No. 63/1998/ND-CP.  Foreign-invested ente rprises and foreign parties to business cooperation 
contracts could also be permitted to open ove rseas accounts for other activities under special 
circumstances, i.e., if they carried out very important projects according to the Government's WT/ACC/VNM/48 
Page 8  
 
  programme; needed to open overseas accounts to implement their commitments (for BOT, BTO and 
BT foreign-invested projects); were engaged in in ternational trade, including aviation, navigation, 
post and telecommunications, insurance, and touris m, 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 
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  WT/ACC/VNM/48 
 Page 9 
 
 
  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 attributable to that individual or enterprise.  The Working Party took note of these commitments. 
Investment regime  
- Regulations on establishment of enterprises
 
32. The representative of Viet Nam said that in J une 1999, the National Assembly had passed the 
Enterprise Law, superseding the Laws on Companie s and Private Enterprise adopted in 1990.  The 
Enterprise Law had entered into force on 1 January  2000 and had been considered an important 
milestone in Viet Nam's economic reform process.  With a view to further improving the business 
environment in accordance with international ru les, the National Assembly had adopted a new 
Enterprise Law in November 2005.  The new Law ha d entered into force on 1 July 2006.  The Law 
regulated the establishment, management and operati on of enterprises.  It provided for four types of 
enterprises − limited liability companies, shareholdi ng companies, partnerships, and sole 
proprietorships.  Under the Law, a ny domestic and foreign legal pers on or individual had the right to 
establish and manage enterprises in Viet Nam, w ith the exception of cadres and civil servants; 
officers, non-commissioned officers, professional soldiers, army's workers, and units of the People's Police; leaders and 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 profit; minors and persons without or with limited capacity for civil acts; pr isoners or persons prohibited to 
do business following a court judgment; and other orga nizations and individuals as stipulated by the 
Law on Bankruptcy.  In the event of discrepancies be tween an international treaty to which Viet Nam 
was a party and the Enterprise Law, the provisions of such international treaty would prevail.   
33. Business sectors were divided into (i) prohi bited 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 justified under the WTO Agreement (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.   
34. The relevant ministries, e.g. the Ministry of Industry and, for cultural products, the Ministry 
of Culture and Information, were responsible fo r determining whether a business application fit the 
categories of prohibited business.  When Member s asked about the meaning of the prohibition on 
trading in "superstitious, depraved and reactionary cultural products", the representative of Viet Nam 
noted that domestic and foreign investors could participate in activities such as publishing, media, 
information technology etc., provided they did not conduct business in "supe rstitious, depraved and 
reactionary cultural products" as provided in app licable laws (see also  paragraphs 211-215). 
35. Conditional business sectors included sectors s ubject to requirements on environment, 
hygiene standards, food safety, fire prevention and fire  fighting, social order, traffic safety and other 
requirements on business activities, for which no busin ess licence was required, and sectors subject to 
business licensing in accordance with relevant legisla tion.  An exhaustive list of prohibited business 
sectors was set out in Table 1 of this Working Party Report; conditional sectors were listed in Table 2.  
The representative of Viet Nam confirmed that these Tables, also annexed to Government Decree 
No. 59-2006-ND-CP of 12 June 2006,  would be updated if new sectors were added or removed.  The 
representative of Viet Nam confirmed that any add itions to the lists of conditional and prohibited 
business sectors would be undertaken only in full conformity with Viet Nam's WTO obligations, WT/ACC/VNM/48 
Page 10  
 
  including those under GATS and Viet Nam's Schedule of Specific Commitments.  He added that his 
Government would review business conditions on a regular basis to identify provisions of the 
Enterprise Law overlapping or conflicting with othe r related laws and regula tions or hindering the 
operation of enterprises (Article 7.4 of the En terprise Law).  His Government would propose 
amendments or revocation of business conditions to the National Assembly for action.  Any changes 
to existing conditions would be made in full comp liance with the Law on the Promulgation of Legal 
Normative Documents.  He further confirmed that all future additions and deletions to the list of 
prohibited or conditional business sect ors would comply with WTO rules. 
- Measures specific to foreign investment 
 
36. With respect to foreign-invested enterprises,  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 guiding documents me ntioned therein.  The representative of Viet Nam stated that this Law, 
along with the legal system and policies concerned,  had created a favourable environment for foreign 
investors.  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 b illion.  Foreign investment projects accounted 
for 18 per cent of the total invested capital, 31 pe r cent of Viet Nam's export revenue and 37 per cent 
of industrial output, contributing nearly 14 per cent of Viet Nam's GDP.  Foreign investment projects 
had created some 620,000 jobs directly, and several hundred thousand jobs were  indirectly dependent 
on these projects.   
37. The representative of Viet Nam noted that the National Assembly had adopted a new 
Investment Law in November 2005 with a view to further enhancing the investment environment for 
investors of all economic sectors.  This Law, wh ich superseded the 1987 Investment Law, as 
amended, and the Law on Domestic Investment Prom otion, had entered into force on 1 July 2006.  
The Law regulated investment activities, investors' 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 invest ment from Viet Nam.  The 2005 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).  He furt her stated that Viet Nam had signed and acceded to 
various bilateral and/or multilatera l arrangements on investment, includi ng bilateral agreements on the 
encouragement and protection 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.  He confirmed that if an international treaty to which Viet Nam was a part y contained provisions which were different from 
the provisions in the 2005 Investment Law, the provi sions of such international treaty would prevail. 
38. The 2005 Investment Law prohibited investme nts detrimental to national defence and 
security, historical and cultural ethics, Vietnamese traditions and fine customs, and the environment.  
The Law also defined the sectors in which investme nt was conditional, including: (i) sectors having 
an impact on national defence and security, soci al order and safety; (ii) banking and finance; 
(iii) sectors having an impact on public health; (iv) culture, information, press and publication; (v) recreational services; (vi) real estate; (vii) surv ey, prospecting, explora tion and mining of natural 
resources; (viii) education and training; and (ix) a nu mber of other sectors in accordance with the law.  
Investment in certain sectors was not subject to th e provisions of the Investment Law, but rather, was 
subject to the laws regulating investment in tho se particular sectors:  the Law on Credit Institutions 
for the banking sector, the Law on Insurance Business for the insurance sector , the Law on Securities 
for securities trading, and the Law on Lawyers for the legal services sector.  WT/ACC/VNM/48 
 Page 11 
 
 
  39. According to the representativ e from Viet Nam, the 2005 Investment Law applied uniformly 
to domestic and 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 raising methods, the geographical location a nd scale of investment, investment partners and 
the duration of investment in accordance with Vi et Nam's laws and Viet Nam's commitments under 
the international treaties to which Viet Nam was a pa rty.  He added that the Law guaranteed investors' 
equal access to sources of capital, foreign exchange, land and natural resources, legal instruments and 
data on the national economy and investment opportuniti es, and ensured the investors' right to lodge 
claims, make denunciations or initiate legal proceed ings.  The Law provided for the principle of non-
retroactivity in case of changes in policies and instituted a mechanism for dispute resolution and 
enforcement of court judgments in line with international practices to enhance investors' confidence.  
The Law also eliminated all discrimination in terms of prices and charges applied to investors.  He 
noted that under the new Laws on Investment and Enterprises, as well as Government Decree No. 108/2006/ND-CP dated 22 September 2006 guiding the implementation of the 2005 Investment Law, investment/business registration procedures ap plied to foreign investors had been harmonized; 
investment certificates served as business registrati on certificates.  Thus, foreign companies having an 
investment project did not need to make a sep arate business registration in accordance with the 
Enterprise Law.  In response to a question from a Memb er, he noted that any change to an investment 
activity, including for projects valued less than  VND 300 billion and not included in the list of 
conditional or prohibited sectors, had to be re-regi stered.  This requirement aimed at ensuring the 
legitimate rights and benefits of investors. 
40. Procedures for obtaining the requisite investment  certificate were set out in Articles 45 to 
49 of the 2005 Investment Law, and Articles 57-70 of Government Decree No. 108/2006/ND-CP 
dated 22 September 2006 guiding the implementation of this Law.  The Law provided for two types 
of procedures for granting investment certificat es, "investment registration" and "investment 
evaluation".  Domestic investment projects valu ed less than VND 15 billion, and which were not 
included in the list of conditional investment sector s, did not have to be registered.  Investment 
registration was required, however, for (1) dom estic investment projects valued between 
VND 15 billion and VND 300 billion, and not included in the list of conditional investment sectors, and (2) foreign investment projects valued at l ess than VND 300 billion and not included in the list of 
conditional investment sectors.  In the former c ase, no investment certificate was delivered; in the 
latter case, investment certificates were granted within 15 days.   
41. Investment evaluation was required for both domest ic and foreign investment projects valued 
at, at least, VND 300 billion, as well as domestic and foreign investment projects in conditional sectors.  Evaluation focussed on (i) compliance with master plans for technical infrastructure, land 
use, construction, utilization of natural resour ces and minerals, (ii) compliance with 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 "i mportant 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 na tional projects" included (a) projects with an 
invested capital of VND 10,000 billion or more (at 1997 prices); (b) projects having a major impact or a potentially major impact on the environment; (c) projects resulting in the displacement of 
50,000 people or more in populous areas, or 20,0 00 people or more in mountainous areas and areas of 
ethnic minorities; (d) projects located in areas especially 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 considered and decided by the National 
Assembly.   
42. Pursuant to the 2005 Enterprise Law and G overnment Decree No. 108/2006/ND-CP dated 
22 September 2006 guiding the implementation of the Investment Law, foreign-invested enterprises WT/ACC/VNM/48 
Page 12  
 
  were permitted to change the form of investment  and divide, de-merge, consolidate or merge with 
other enterprises.  Existing joint-ventures could be  allowed to transform into wholly-owned foreign 
capital enterprises under certain conditions pursuan t to Government Decree No. 108/2006/ND-CP 
dated 22 September 2006 guiding th e implementation of the Investment Law.  Procedures and 
formalities for opening branches and representative offices of foreign business entities were provided 
for in Government Decree No. 72/2006/ND-CP dated 25 July 2006 on Representative Offices and 
Branches of Foreign Business Entities.  Foreign-inv ested enterprises establishe d before the entry into 
force of the new Enterprise Law had to re-register w ithin two years after the entry into force of the 
Law.  In the absence of re-registration, such en terprises could only operate within the scope of 
business and time period stipulated in their inve stment licence, and would continue to enjoy 
investment incentives under their i nvestment licence, except as otherwise provided for under the 
international treaties to which Viet Nam was a pa rty.  He added that the new Investment Law 
guaranteed foreign investors the right to remit inve sted capital, profits and other legitimate income 
abroad.   
43. A Member noted that the 2005 Enterprise Law did not  appear to require the re-registration of 
existing enterprises.  The Member asked Viet Nam to explain what governing law would apply to an 
enterprise that chose not to re-register, as the previous Law on Foreign Investment had become 
redundant on 1 July 2006 and the 2005 Investment Law and the 2005 Enterprise Law did not provide guidance on such enterprises.  The Member also asked Viet Nam whether, once the two-year time 
limit for re-registration had passed (as stipulated by  the 2005 Enterprise Law), an enterprise could still 
choose to re-register if this subsequently became a desired option.  The representative of Viet Nam 
replied that a foreign-invested enterprise set up prior to the date of entry into force of the 
2005 Enterprise Law and the 2005 Investment Law that  chose not to re-register was still allowed to 
conduct business operations within the scope of its business lines, the terms stated in its investment 
licence and its corporate charter.  With respect to the issues that were not specifically stipulated in its 
investment licence and corporate charter, such enterprise would be subject to the two above-
mentioned Laws. 
44. Some Members encouraged Viet Nam to continue deregulating and simplifying 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 excepti on, and by making improvements to address 
discrimination in labour matters.  Some Member s also asked Viet Nam to allow stock-holding 
companies as one form of investment, and urged Viet Nam to ensure that all company specific 
information obtained through the licensing procedures would remain confidential.   
45. A Member asked Viet Nam to confirm whet her under the 2005 Enterprise Law and its 
decrees, a foreign investor could register a stoc k-holding enterprise and under that same enterprise 
form, apply to establish a number of different invest ment projects, without the need to register new 
enterprises each time a new investment project is developed.  The Member also requested Viet Nam 
to advise in which Decrees specific guidance on this  issue would be provided.  The representative of 
Viet Nam replied that in accordance with the 2005 Investment Law and its implementing regulations, 
foreign-invested enterprises that had been estab lished in Viet Nam, including a stock-holding 
enterprise, would be permitted to carry out new invest ment projects without the need to register for a 
new enterprise, unless otherwise provided for by the laws. 
46. Some Members noted that foreign investors had faced various serious difficulties in 
Viet Nam.  Some of these difficulties were caused  by complicated and burdensome procedures, and 
included governmental investigation and a public tende r requirement for the construction of factories.  
The representative of Viet Nam replied that tender requirements aimed at ensuring fair competition, 
equality and transparency.  Government Decr ee No. 88/1999/ND-CP of 1 September 1999 on the 
issuing of a Procurement Regulation and its ame ndments of 2000 and 2003 had introduced more  WT/ACC/VNM/48 
 Page 13 
 
 
  transparent, specific and simple tender proce dures.  Only joint-ventures, business co-operation 
contracts (BCC), and projects with more than 30 pe r cent of State-owned shares were subject to the 
Regulation on Tendering.  Public tender was not re quired 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 added that inspecti ons of construction sites guaranteed the quality of 
the works in accordance with Viet Nam's construction st andards.  In this respect, he noted that three 
Decrees had been issued to guide the implementati on of the 2003 Construction Law:  a Decree on 
construction quality management, a Decree on the mana gement of construction investment projects, 
and a Decree on constructi on planning and management. 
47. Some Members stated that conditions on the ri ght to use land remained inconvenient and 
insufficient for foreign investors, limiting the possibilities for investor s to raise funds by mortgaging 
land.  In addition, the land register system was considered imperfect and the methods for calculating 
land prices were not transparent.  The representative of Viet Nam noted that land was subject to public ownership and State administration in Viet Na m.  Thus, even Vietnamese nationals could not 
own or mortgage land.  The Land Law of 26 N ovember 2003 (as amended) nevertheless permitted 
foreign-invested enterprises to mortgage assets associ ated with land and the value of land use rights to 
secure loans from all credit institutions permitted to  operate in Viet Nam.  The Law also held 
Provincial Committees and Vietnamese partners respons ible for establishing clear procedures relating 
to land use rights and, if necessary, offering comp ensation.  Foreign-invested enterprises could also 
lease land in connection with investment projects.  Pursuant to Article 67.3 of the Land Law (as 
amended), the duration of the lease should normally not exceed 50 years.  However, the lease could 
be extended upon termination of th e initial duration.  In the case of projects with a large amount of 
invested capital, a long capital return or conducted in socio-economic difficult areas, the Government 
could grant leases with maximum 70 year duration.  In his view, Viet Nam's land lease regulations, which were applied in a non discriminatory manner  to domestic and foreign investors, were not 
obstructing business activities, and Viet Nam had no plans to revise these regulations.   
48. As to labour matters, some Members consider ed that Viet Nam applied a discriminatory 
labour system against foreign-invested companies because such companies were requested to hire 
employees through "employment promotion centres" and pay salaries of local workers in U.S. dollars.  The representative of Viet Nam responded that the amended Labour Code, which had been in force 
since January 2003, allowed foreign-invested compan ies to hire local personnel directly without going 
through employment promotion centres.  He added th at all enterprises, whether domestic or foreign, 
State-owned or privately-owned, were require d to comply with Viet Nam's minimum wage 
regulations.  Wage payments to Vietnamese empl oyees were effected in accordance with Decision 
No. 708/1999/QD-BLDTBXH of 15 June 1999. 
49. A Member highlighted specific concerns in the mining sector, including overlapping 
regulatory responsibilities between central and provinc ial authorities, as well as Viet Nam's practice 
of granting investment licenses at the development stag e, rather than at the exploration stage, which 
was the international norm.  In response, the representative of Viet Nam noted that since the 
Government Decree No. 76/2000/ND-CP of 15 December 2000 (Article 52.4), investment licenses - available to foreign individuals and organizations, a nd joint ventures could be granted at the stage of 
exploration, as well as for development and pr ocessing activities.  He added that a Law on 
Amendments 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 
investment 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 Investment Law, 
mining was a conditional investment sector and was,  as such, 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 inv estment 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 WT/ACC/VNM/48 
Page 14  
 
  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 inv estment certificates included (i) compliance with the 
master plans for technical infrastructure, land use, construction, and utilizati on of minerals and other 
natural resources; (ii) compliance with land use requirements; (iii) the project implementation 
schedule; and (iv) environmental measures.  These regulations applied uniformly to domestic and 
foreign investors.  Decisions on approval or refusal  of investment certificates could be appealed in 
accordance with Viet Nam's applicable laws (see the section on "Framework for making and 
enforcing policies"). 
50. A Member noted that Viet Nam's laws and regul ations also encouraged increased Vietnamese 
participation in joint-venture companies through requ irements for foreign investors to transfer equity 
in the enterprise, thereby limiting substantially a fo reign investor's participation.  The representative 
of Viet Nam responded that there no longer existed any requirements in the new Laws on Investment 
and Enterprises for existing/future joint-venture pa rtners 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 Vietnam ese participation in joint-ventures or allowing 
Vietnamese enterprises to purchase part of the capital of a wholly foreign-owned enterprise were not 
binding, and should be applied strictly on the basi s of mutual agreement between the joint venture 
parties or with the consent of the owner of the wholly foreign-owned enterprise. 
51. Some Members raised the issue of participa tion in joint-ventures and the decision-making 
process, including whether personnel and financial decisions in joint-venture companies were 
required to be unanimous.  These Members also noted the provisions of the Enterprise Law setting 
specific percentages of votes required to take cer tain decisions regarding the operation of an 
enterprise.  The representative of Viet Nam noted that under the 2005 Laws on Investment and Enterprises, decisions by management boards of jo int ventures did not require unanimity.  Moreover, 
he recalled that Viet Nam had committed to ensu re that the decision-making procedures of any 
enterprise, including the minimum percentage of votes required to make any decisions, could be 
prescribed in the enterprise's Charter, and that Vi et Nam would give such provisions legal effect as 
part of Viet Nam's WTO commitments. 
Enterprises that are State-owned or –controlle d, or with special or exclusive privileges 
52. 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 (including 2,66 3 State-owned) by the end of 2005.  Under 
Viet Nam's law, State-owned enterprises were ente rprises, including equitized enterprises, in which 
the State owned more than 50 per cent of the shares.  State-owned enterprises had accounted for 39.2 per cent of GDP in 2004 (38.4 per cent in 2005), the non-State sector (i.e., wholly Vietnamese 
privately-invested enterprises) for 45.6 per cent ( 45.7 per cent in 2005), and the foreign-invested 
sector for 15.2 per cent (15.9 per cent in 2005).  Proprietorships and house holds also played an 
important role in small scale production in Viet Nam.  He provided statis tics 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-TTg of 24 August 2004, in Table 4.     
53. He noted that wholly Vietnamese privately-in vested enterprises were now 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 related to national defence and security, but the State retained a controlling 
share in already existing State-owned enterpri ses because these sectors were vital economic and 
technological sectors with high risks, requiring large investments, or involving a long pay-back time,  WT/ACC/VNM/48 
 Page 15 
 
 
  or to ensure that the needs of inhabitants of disa dvantaged socio-economic areas were met.  The State, 
for example, would retain 100 per cent ownershi p in existing State-owned enterprises producing 
scientific films, documentaries and films for childre n, as Vietnamese private producers of these types 
of films faced difficulties recovering their costs and we re not interested in, or  unable to, produce these 
goods.   
54. Foreign investors may participate 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 and to narrow the scope of such 
existing enterprises.  The list of sectors where th e 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.  A specific 
list of State-owned enterprises could not be provided  at this time as ministries and local authorities 
were in the process of reviewing and classifying State-owned enterprises in accordance with that 
Decision (see the section on "Privatization and equitization").   
55. The State-owned sector had been restructured and reorganized since 1986, and in particular 
since 1991.  Their assets had been  re-evaluated and audited.  The State had abolished direct 
monitoring and administration of enterprises by governmental agencies.  The management of 
State-owned enterprises had been given autonomy, an d were held accountable for the performance of 
their business operations.   
56. In the late 1990s, the Government had begun an equitization programme for State-owned 
companies.  Pursuant to this programme, State-ow ned enterprises were "equitized", i.e., they were 
converted into joint-stock or limited liability compan ies, in which the State may continue to hold any 
percentage of shares.  As a result of this conve rsion, these equitized State-owned enterprises were 
subject to the Enterprise Law, the most recent vers ion of which had been en acted in 2005, and thus 
subject to the same provisions on establishment, business registration, rights and obligations, closure and bankruptcy as private enterprises  (see the sec tion on "Privatization and equitization").  The 
representative of Viet Nam confirmed that all equitized enterprises had limited liability status; 
shareholders and capital contributors were respons ible for the debts and other liabilities of the 
company within the limits of their respective c ontributions.  The 2005 Enterprise Law additionally 
required all State-owned enterprises to be transforme d into joint-stock companies or limited liability 
companies within four years after the entry into for ce of the Law on 1 July 2006.  Thus, as of 1 July 
2010, all enterprises, including all State-owned enterp rises, would be subject to the Enterprise Law.  
57. A Member requested information on Viet Nam's plans for equitization of State-owned 
enterprises, in particular, on how Viet Nam planned to  participate as a partial owner of an equitized 
enterprise.  This Member noted that a government c ould exercise control of an enterprise even if it 
held less than a majority of shares, such as through appointment of members of the Board of Directors 
and asked if Viet Nam maintained the ability to take  certain decisions regarding the operation of the 
enterprise even if the State was a minority share-holde r.  In response, the representative of Viet Nam 
stated that, where the State retain ed shares in an equitized enterpri se, the State would operate in the 
same manner as any private investor owning shares in th e equitized enterprise.  In particular, he noted 
that the State's rights as a shareholder would be  governed by the Enterprise Law and the Law on 
State-owned Enterprises, as would those of any priv ate shareholder, and that, accordingly, the State 
would not be able to appoint directors to the Board, nor would it be able to control or direct the decisions of the enterprise, without owning a majo rity of shares.  Where the State was a minority 
shareholder, it might be able to exercise a blocki ng minority as any private shareholder, depending on 
the percentage of shares owned by others, but it wo uld not, on its own, be able to effect decisions 
governing the operations of the enterprise.   
58.
 In conjunction with the ongoing equitization progr amme, and in order to address State-owned 
enterprises that had not yet been equitized, the National Assembly had adopted a revised Law on WT/ACC/VNM/48 
Page 16  
 
  State-owned Enterprises in December 2003 to improve  the effectiveness of State-owned enterprises 
and ensure that they would compete with privat e enterprises on an equal basis.  Under the 2003 Law 
on State-owned enterprises, profits of State-owned en terprises were paid to the members' contributing 
capital; used to cover losses of preceding years; a nd transferred - up to 10 per cent - to the financial 
reserve fund of the company (provided this fund di d not exceed 25 per cent of the chartered capital) 
and, in case of companies providing banking and insura nce services, to the risk  insurance fund.  The 
rest was distributed in accordance with the ratio  of invested State capital and the average capital 
raised by the company in that year.  Profits dist ributed according to the capital raised could be given 
as bonuses to employees and used for re-investment .  Profits distributed according to the capital 
invested by the State were re-invested.  The new Law also included provisions on owners' obligations 
and modification of the ownership structure. 
59. While in the past, the profits of State-owned enterprises had been transferred to the State 
budget and losses had been covered by subsidies from the State, insolvent State-owned enterprises 
were at present treated as any other enterpri ses under the 1994 Law on Bankruptcy, last revised 
in 2004.  Since the promulgation of the Bankrupt cy Law, 17 State-owned enterprises had gone 
bankrupt.   
60. State-owned shares were held by line ministri es, including the Ministry of Industry, the 
Ministry of Construction, the Ministry of Transp ortation, the Ministry of Agriculture and Rural 
Development, the Ministry of Trad e, the Ministry of Posts and Te lecommunication, the Ministry of 
Fisheries, the Ministry of Cultu re and Information, and the Gene ral Department of Tourism, and 
People's Committees.  However, pursuant to the new Law, State-owned enterprises were responsible 
for their own operation and survival, 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 a llowance regimes, including dir ectors' salaries, independently 
without any government interference in line with the Labour Code and mini mum wage regulations.  
Ministers and Chairmen of provincial People's Committees could not interfere in the business 
operations of the enterprises.  They were only r esponsible for managing the State equity in the 
enterprise and for supervising and evaluating the effi ciency of State capital use and compliance with 
the law in accordance with Prim e Minister's Decision No. 271/2003/QD-TTg of 31 December 2003.  
State-owned enterprises were responsible for fulf illing their tax obligations , conducting business, and 
utilizing the State invested capital efficiently.  St ate-owned enterprises having failed to fulfil their tax 
obligations could be liable for an administrativ e penalty or prosecution for criminal offence, 
depending on the seriousness of the offence.  Efficien t use of State capital was assessed in the light of 
profits.  In the case of inefficient use, the Director and Board of Management members could be deprived of bonus and pay raise and asked to co mpensate for the company's losses.  Government 
Decree No. 199/2004/ND-CP of 3 August 2004 provided for State-owned enterprises to be liable for debts and other asset obligations within the extent  of the State capital invested therein.  The 
Government conducted periodic reviews and unsch eduled assessments of State-owned enterprises' 
business efficiency.  Results of such reviews could be published, posted in the company's offices, or 
presented at employees' and shareholders' meetings .  In response to a question, he noted that 
Viet Nam's legislation did not address the qu estion of the relationship between the National 
Competition Council and the supervis ion and evaluation of State-owned companies' efficiency.  
61. General Directors and Directors of State-ow ned enterprises having a Board of Management 
were selected by the Board.  Under Vietnamese la w, 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 State-owned enterprises that did not have a Board of Management were selected by the 
Minister or Chairman of the provincial Peopl e's Committee having established the enterprise.   WT/ACC/VNM/48 
 Page 17 
 
 
  62. 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 ente rprise, or less than the value specified in the 
enterprise's Charter, and decisions on borrowi ng, lending, leasing and other economic contracts 
valued at less than the enterprise' s chartered capital.  State-owned enterprises' Boards of Management 
could make decisions on investment projects representing less than 50 per cent of the total remaining 
asset value in the accounting book of the enterprise, or  less than the value spec ified 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 such equitized State-owned 
enterprises was the Board of Management.  
63. In response to a Member who enquired about the sanctions to be applied if the State 
influenced the decisions of the State-owned compan y 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 representative of Viet Nam said that representatives of State 
ownership had to ensure the business autonomy and shareholder responsibility of the enterprise.  
All corrupt activities in Viet Nam were subject to criminal law.   
64. 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 enterp rise 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 comp etitive bidding in accordance with Decree 
No. 16/2005/ND-CP of 7 February 2005.  In respons e to a question concerning the valuation of land-
use rights for use in asset valuation, he said that th e valuation of land-use rights was subject to the 
Land Law and Government's regulations on price ba nds - price bands depended on the type of land, 
region, period and land-use purposes.  Procedures fo r valuation of land-use rights applied uniformly 
to State-owned and private enterprises.  
65. Under Viet Nam's 2003 Law on State-Owned Enterprises, State-owned enterprises were 
subject to accounting, auditing, financial and stat istical reporting obligations in accordance with the 
Law and upon request of the State owner (Article 16.5 of the Law).  State-owned enterprises were 
required to comply with the same accounting st andards as other enterprises.  These standards had 
been developed in conformity with international accounting standards.  State-owned companies were 
responsible for the reliability and legality of their financial operations.  They were required to observe 
requirements on annual financial reporting, to make  financial information public, and to provide 
information necessary for a reliable assessment of the efficiency of the company's operations (Articles 18.4 and 18.5).  State-owned enterprises' financial statements were subject to audit in 
accordance with Viet Nam's laws on auditing (Article  89.1).  State-owned enterprises were required to 
make public their financial information to the State management authorities mandated to receive 
financial reports (financial State agencies, taxa tion department, business 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.  
66. 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 WT/ACC/VNM/48 
Page 18  
 
  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").   
67. 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 forms of ownership to provide  public goods and services through or ders placed or tenders put up 
by the State.  Public goods and services were purch ased by the Government for final consumption of 
the Government and non-governmental entities.   Government Decree No. 31/2005/ND-CP of 
11 March 2005 on the Production and Distribution of Public Services set out three criteria 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., el ectricity supply and distribution in rural areas; 
management and operation of sm all and medium irrigation work s; production and preservation of 
plant varieties/seeds and animal breeds; protection of  natural forests, etc.); (ii) their production and 
distribution was not viable under market conditions; and (iii) they had been procured for government 
entities or were produced under governmental planning w ith prices and charges set by the State.  The 
list of public goods and services was attached to th e Decree.  Goods and services not mentioned in the 
list were not deemed public goods and services.   
68. All enterprises irrespective of their ownershi p could produce and supply, through competitive 
bidding, public goods and services, with the excep tion of goods and services related to national 
security and defence which were carried out by orde r or task assignment.  Prices of public goods and 
services were determined by bidding or, in the cas e of goods and services related to national security 
and defence, by the Government.  He confirmed that public goods and servi ces open to public bidding 
were treated as any commercial goods or services within the m eaning of the WTO Agreement.  
Enterprises supplying public goods and services c ould import goods and services to produce such 
public goods and services.  Investment in the produc tion and supply of public services were subject to 
the Investment Law and thus to the same proc edures as other investment projects.  Detailed 
procedures for the application of bidding and orde ring procedures for the procurement of public goods 
and services had been submitted to the Prime Mini ster for approval.  In response to a question 
concerning power transmission and distribution, he noted that the national electric transmission system was still under the control of Electricity of Viet Nam.  However, his Government planned to 
equitize the companies supplying power and a pilo t equitization of the Khanh Hoa Electricity 
Company, the Vinh Son-Hinh River Hydro-Electric Pl ant, the Thac Ba Hydro-Electric Company, and 
the Pha Lai Therma-elect ricity Company had already been conducted.   
69. A Member requested Viet Nam to clarify why several major State-owned enterprises involved 
in agricultural trade had not been included in Viet Nam's notifications on State-trading enterprises, 
noting that a Vietnamese website listed several en tities as State enterprises, including the Viet Nam 
National Coffee Corporation (VINACAFE), the Vi et Nam National Tea Corporation (VINATEA), 
and the Viet Nam Dairy Products Company (VINAM ILK).  The representative of Viet Nam provided 
information on the trading activities of these ente rprises 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 for VINAMILK, it had been entirely 
equitized.  The State owned 50.1 per cent of VINAMILK's shares.  VINAMILK's activities were 
based on commercial considerations and free from any government intervention.  He confirmed that 
no regulation prohibited VINAMILK from selling impor ted products on the domestic market.  He 
further noted that six salt companies of the Salt General Corporation had been equitized as of 
mid-2005.  The State had retained a majority of shar es in four companies and kept a minority stake in 
two enterprises.  The percentage of shares owne d by the State in these companies now ranged from 
51-57 per cent.  Salt production and business enterp rises under the management of local authorities  WT/ACC/VNM/48 
 Page 19 
 
 
  would also be equitized.  He noted that these co mpanies did not have any commercial operations 
underwritten by the State.   
70. In response to a question on the rationale for State involvement in the distribution of salt, the 
representative of Viet Nam said that salt production was the main source of revenue for more than 
100,000 poor farmers in coastal areas where the use of land for agriculture w as almost impossible.  
State involvement in the distribution of salt aime d at ensuring income stability for these farmers and 
guaranteeing that inhabitants in disadvantaged soci o-economic areas were adequately supplied.  The 
General Corporation of Salt had ten member ente rprises specialized in salt production and trade.  
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 production and joint production of its member enterprises, represented about 
15-20 per cent of the domestic salt production.  The General Corporation of Salt purchased 
30-40 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. 
71. A Member asked Viet Nam to provide information on enterprises with special or exclusive 
privileges.  This Member expressed a general concer n that such enterprises engaging in export could 
use their special rights and privileges to disguise export subsidies or to otherwise engage in anti-
competitive behaviour.  Viet Nam was requested to provide details on the specific steps it would take 
to ensure that the operations and policies of such enterprises would not distort trade, and otherwise be 
consistent with the principles of non-discriminatory treatment prescribed by Article XVII of the 
GATT 1994.  Information on products subject to  non-tariff barriers provided by Viet Nam in 
document WT/ACC/VNM/9, Annex I, indicated that many products subject to State-trading were 
subject to additional measures such as quantitative restrictions, surcharges and import licensing.  
Some of Viet Nam's enterprises appeared to be i nvolved in trade as well as industry regulation, and 
Viet Nam was encouraged to separate these func tions to ensure a more open and transparent 
regulatory and purchasing environment. 
72. The representative of Viet Nam provided informa tion on State-trading enterprises with special 
or exclusive privileges in document WT/ACC/VNM/3/ Add.1, Annex 6, and a "Notification on State 
Trading Enterprises" in document WT/ACC/VNM/14 of 28 June 2000, subsequently revised in 
documents WT/ACC/VNM/14/Add.1 of 31 October 2003, WT/ACC/VNM/14/Add.2 of 
21 April 2006, and WT/ACC/VNM/14/Rev.1 of 6 Oct ober 2006.  The entities identified by Viet Nam 
as State-trading enterprises with special or exclus ive privileges, and the products traded by them, 
listed by HS numbers, are enumerated in Table 5.  He  noted that all such enterprises 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 i ndustries in which they operated.  Regulatory 
functions were under the authority of government agencies. WT/ACC/VNM/48 
Page 20  
 
  Table 5:  State-Trading Enterprises in Viet Nam
 
No Products HS Code Name of ente rprise Functions of enterprise 
1. Crude oil 2709 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 domestic 
consumption 
3. Aircraft, aircraft 
spare parts, 
aviation 
equipment, and 
aviation facilities 8802, 8803 Airlines Import Export Corporation 
(AIRIMEX) Ensuring the supply of aircraft, 
equipment, facilities and 
materials used in aviation;  
Sole importer of aircraft and 
aviation materials, spare parts 
4.  Video tapes and 
VCDs ex8524 Viet Nam Films Import/Export and 
Distribution Company (FAFILM 
VIET NAM) Sole importer and wholesale 
distributor  
5. Newspapers, 
journals, and  
periodicals 4902 Books and Newspapers Import Export 
Company (XUNHASABA) Sole importer and wholesale 
distributor  
6. Cigarettes, cigars, 
and other 
manufactured 
tobacco 2402, 2403 Viet Nam National Tobacco Corporation 
(VINATABA) Sole importer  
Note:  See Table 8(c) in Annex II for full listing of  HS import tariff lines subject to State-trading. 
73. 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 of products subject to State-trading and asked Viet Nam to explain the process and reforms undertaken to eliminate these State-trad ing activities and how importation and exportation 
would now take place.   
74. 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-trading list.  As for fertilizer, the system of fertilizer 
import quotas and designated importers had b een 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 registered to tr ade in fertilizer could import and trade 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  WT/ACC/VNM/48 
 Page 21 
 
 
  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. 
75. Noting that Viet Nam had reserved the right to preclude foreign companies from engaging in 
the import and/or export of certain products (Tab les 8(a)-(c)), a Member enquired whether State-
trading enterprises existed or were planned in re lation to these products and whether the enterprises 
involved had been or would be notified as State-tr ading enterprises.  The representative of Viet Nam 
replied that all the enterprises trading the products subject to State-trading had been notified.  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 interpreta tion of this Article.   
76. He added that Viet Nam had no specific rules governing the procurement activities of State-
owned or other State-trading enterprises.  All decisions of these enterprises to purchase or import were based on actual demand and made on comme rcial considerations via a bidding process. 
77. 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").   
78. 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 exclusive 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. 
79. 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 , and XVII of the GATS and Article III of the 
GATT 1994.  The Working Party took note of these commitments. 
Privatization and equitization  
80. 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 –WT/ACC/VNM/48 
Page 22  
 
   State-owned, collective, private individual, house holds, 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. 
81. The representative of Viet Nam noted that Viet Nam had undertaken a programme of 
"equitization", i.e., transformation of 100 per cent State-owned enterprises (SOEs) into joint-stock or 
limited liability companies subject to the Enterprise La w, to help restructure, upgrade and enhance the 
efficiency of SOEs.  The level of the State's equ ity in an equitized company was not set and could 
therefore vary.  The equitization process foresaw dive rsity of ownership, including by the State and 
the employees of the equitized enterprise, and was im plemented with consideration to the interests of 
the employees.  Pursuant to Prime Minister's  Decision No. 155/2004/QD-TTg of 24 August 2004, 
which had superseded Prime Minister's Directiv e No. 20/1998/CT-TTg of 21 April 1998, SOEs had 
been classified in three groups: (i) enterprises wh ich would remain 100 per cent State-owned and 
would not be equitized, (ii) enterprises in which the State would retain a majority of shares (i.e., greater than 50 per cent but less than 100 per cent) , and (iii) enterprises in which the State would 
dispose of all its shares or retain a minority stake.   
82. Group 1 were 100 per cent SOEs which were cons idered essential to ensure national security 
and public order, implement the Government's pove rty eradication policy and guarantee the provision 
of goods and services that would not be viable for private enterprises.  For such enterprises, 
100 per cent State ownership should be retained.  Group 2 were enterprises in which the State would 
retain a majority of the shares, i.e., more than 50 per cent of the chartered capital, when equitizing, as 
their businesses were related to security or defen ce; their activities involved the supply 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 activities 
contributing in a substantial way to the State budget or playing an important role in stabilizing the 
economy; or enterprises playing a leading role in high technology); or the Government believed the 
private sector was unwilling or unable to engage in such activities.  Group 3 consisted of enterprises 
in which the State would not hold a majority share interest, i.e., it would hold less than 50 per cent of 
the shares in the equitized enterprise, having disposed of all or part of its shareholdings.  Group 1 and 
Group 2 sectors, as provided in Decision No. 15 5/2004/QD-TTg of 24 August 2004, are listed in 
Table 4.   
83. The representative of Viet Nam added that Stat e-owned commercial banks were also subject 
to equitization pursuant to Government Decree No . 187/2004/ND-CP.  Viet Nam's Prime Minister 
had decided to equitize two State-owned commercia l banks, the Bank for Foreign Trade of Viet Nam 
(Vietcombank) and the Mekong Delta Housing Deve lopment Bank.  The Vietcombank would be 
equitized 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.  Preparator y work for the valuation process (verification 
of assets and outstanding debts, resolving of financ ial 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 majority 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.    WT/ACC/VNM/48 
 Page 23 
 
 
  84. With respect to SOEs falling under the authorit y of the Prime Minister, i.e., SOEs established 
by Prime Minister's Decision and State-owned co rporations established by decision of the Prime 
Minister or provincial People's Committees, equiti zation would be decided by the Prime Minister on 
the basis of proposals by the enterp rises' Board of Directors.  With respect to other SOEs, 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.  The list of sectors where the State would retain 
100 per cent or a majority of shares in existing SOEs was set out in Decision No. 155/2004/QD-TTg.   
85. 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, composed of up  to five members: the leader of the agency 
making the decision on equitization or an authori zed person (e.g., representatives of ministries, 
People's Committees of provinces or cities); represen tatives of the relevant units of the agency 
proposing equitization; directors of the company to be equitized; and, in the case of a general 
corporation, a representative of the Ministry of Finance.  An assistant group compiled factual 
information about the enterprise to be equitized ( documents on establishment of the enterprise, assets, 
liabilities, uncompleted capital construction works, l ong-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 pr ocess), carried out a valuation of the enterprise 
(inventory, classification of assets), settled outsta nding financial and tax i ssues, and designed the 
equitization plan.   
86. The second step was the sale of the shares.  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 enterprises 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 Boar d, 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 equiti zation paid to the relevant bodies.  Shares were 
then issued to the compan ies' shareholders.  These steps had to be completed within nine months.  
After this period, the body making the decision on e quitization was responsible for any extra expenses 
incurred.   
87. 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.  Strate gic 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 had a 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 
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 WT/ACC/VNM/48 
Page 24  
 
  shares, which should amount to minimum 20 per cent  of the chartered capital (Article 27.4), were 
publicly auctioned to investors. 
88. The representative of Viet Nam stated that c onsistent with Viet Nam's commitments under 
international treaties, foreign investors were allo wed to participate in the equitization process by 
purchasing shares of SOEs in certain sectors.  The  representative of Viet Nam explained that 
participation of foreign investors did not depend on  whether their enterprises  produced for the local 
market or for exportation.  Furthermore, Viet Nam did not prohibit the establishment of foreign-
invested enterprises competing with SOEs underg oing equitization.  For equitized Group 2 and 
Group 3 enterprises, however, the total value of shares  sold to foreigners could not exceed 30 per cent 
of the company's registered capital pursuant to Government Decree No. 187/2004/ND-CP. 
89. As of 1 July 2006, procedures for selling shares in equitized firms to foreign investors are 
subject to the 2005 Investment Law (Article 25) and its implementing regulations.  Shares purchased 
by foreign investors would continue to be paid for in local currency.  Foreign exchange would 
continue to be converted at the average inter-b ank exchange rate announced by the State Bank of 
Viet Nam at the time of the sale.  Asked whether foreign investors would be able to increase their 
holdings above 30 per cent after the initial distribution of shares, the representa tive of Viet Nam said 
that the 30 per cent cap remained ef fective after the initial distribution of shares.  However, in the case 
of services sectors included in Viet Nam's Schedule of Specific Commitments, limitations on share-holding by foreign investors would be applie d in accordance with the terms of Viet Nam's 
commitments for individual sectors.  He confirmed th at these changes would apply to SOEs in service 
sectors that had already been equitized.   
90. 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.   
91. The representative of Viet Nam explained that e quitized firms were subject to the Enterprise 
Law and were managed by a General Meeting of Shareholders, a Bo ard of Management elected by the 
General Meeting of Shareholders, and a General Di rector appointed by the Board of Management.  
Decisions of the General Meeting of Shareholders  were adopted by vote during meeting sessions or 
written opinions (Article 104 of the 2005 Enterprise Law).  Shareholders holding 10 per cent or more 
of the ordinary shares during at least six months, whether as individuals or as a group, were entitled, 
inter alia , to nominate a representative to particip ate in the Board of Management; request 
convocation of the General Meeting of Shareholde rs; and receive copies and extracts of lists of 
shareholders entitled to participate in sessions of th e General Meeting of Shareholders.  He noted that 
employees or their representatives had been involved in the management of some large shareholding 
companies.  In response to a question, he adde d that most equitized enterprises had experienced 
changes in their boards of management.  However, no specific data was available. 
92. In response to a Member's question, the representa tive of Viet Nam stated that shareholders of 
shareholding companies, including equitized compani es, were free to transfer their shares to other 
investors, except strategic shareholders during the first three years of registration of the company.  They could, in special cases, tran sfer their shares prior to this date upon approval of the Board of 
Management through public auction at the share holding company or at an intermediate financial 
institution (Article 38.2(b) of Decree No. 187/2 004/ND-CP).  Shareholders possessing preferential 
voting shares were also subject to restrictions on tran sfer of their shares.  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 St ate shares were subject to the same regulations.   WT/ACC/VNM/48 
 Page 25 
 
 
  Shares were sold through public auction at intermed iate financial institutions or securities exchange.  
Offers and transfers of shares were regulated by the Enterprise Law.  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 equitiz ed companies in which the State held a majority 
of shares to list in the securities exchange.  
93. In the case of equitized enterprises without Stat e capital, the State acted only 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.   
94. As of 31 December 2005, a total of 2,935 ente rprises had been "equitized", among which 682 
had State-owned capital exceeding VND 10 billion each.  He provided information about the number 
of enterprises equitized since 1992 in Table 6.  Am ong the equitized enterprises were big companies 
such as Viet Nam Dairy Products Company (VI NAMILK with a capital of VND 2,500 billion, 
1,500 billion of which was from the State), Song Hi nh-Vinh Son Hydroelectric Plant (with a capital of 
VND 2,114 billion, of which VND 1,253 billion was from the State), and Hochiminh City Insurance Company (BAO MINH with a capital of VND 1,311 billion, of which 63 per cent was from the State).  On average, the State held 46.5 per cent of the ch artered capital of equitized enterprises, employees 
38.1 per cent, and other shareholders 15.4 per cent.  The State had retained a majority of 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 per cent).  Following the ownership transformation, most of these enterprises were operating more efficiently and 29 of them were listed on Viet Nam's stock exchange.  Under the current 2005-2007 
restructuring plan, about 50 additional State-owne d enterprises would be subject to bankruptcy.  
From 2005 onward, 1,472 State-owned enterprises woul d be equitized, transferred, sold, closed or 
subject to bankruptcy; approximately 1,800 enterpri ses at the end of 2006 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 reduced in the following years to be restricted 
only to national security sectors and large corporations.   
95. The representative of Viet Nam confirmed that Viet Nam would ensure the full transparency 
of its ongoing privatization and e quitization programmes and that, to this end, from the date of 
accession, Viet Nam would provide WTO Members with annual reports on the status of its 
equitization programme and reform of equitized en terprises in which the State retained a controlling 
share as long as the privatization and equitization pr ogramme would be in existence.  The Working 
Party took note of this commitment. 
Pricing policies  
96. 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 WT/ACC/VNM/48 
Page 26  
 
  implementation of a number of Articles of this Ordi nance, confirmed that direct State intervention in 
pricing would be limited.  His Government w ould use measures directly affecting prices only 
(i) in case of dumping or abuse of monopoly position, (ii) to stabilize the socio-economic environment, or (iii) to protect the legitimate inte rests of producers, consumer s and the State.  These 
government-imposed prices, the enterprises and indi vidual businesses subject to price control, and the 
implementing period, were published widely in the me dia (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 conti nued to apply to local subscription charges, 
charges for using local fix-line, universal service charges, and service charges imposed by providers 
with a dominant market share, regardless of the mode of supply.  Service charges were approved by 
the Ministry of Posts and Telematics pursuant to  Prime Minister's Decision No. 217/2003/QD-TTg of 
27 October 2003. 
97. 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.   
98. 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 
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 368).  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. 
99. 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.   WT/ACC/VNM/48 
 Page 27 
 
 
  He confirmed that freight subsidies were not dependent on whether the input had been produced 
domestically or imported.  
100. 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 increasing prices, had automatical ly ceased to have effect after expiration of the 
period of public education.  He confirmed that private sector companies were allowed to set prices - and include VAT payments into the price − according to the dictates of the market, without 
"guidance" or other such "encouragement" from the Government.   
101. 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).   
102. Some Members welcomed the information on Viet Nam's elimination of dual prices.  These 
Members reminded Viet Nam that in order to meet WTO requirements, price controls applied to trade 
should be, inter alia , transparent and applied without prejudicial effects on imports vis-à-vis  domestic 
products, consistent with Article III of the GATT 1994.   
103. The representative of Viet Nam confirmed that, from the date of accession, Viet Nam would 
apply price controls in a WTO-consistent fashion and take account of the interests of exporting WTO 
Members as provided for in Article III:9 of th e GATT 1994, and in Article VIII of the General 
Agreement on Trade in Services (GATS).  He also confirmed that Viet Nam had published the list of 
goods and services subject to State price control and any changes in its Official Gazette and would 
continue to do so after accession.  He further confirmed that pricing policy in Viet Nam would be applied in compliance with the provisions of the WTO Agreement, including Ar ticle 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 
104. 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"). 
105. 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 enterprises,  whether State-owned, private, State-controlled, 
equitized or foreign-invested, and to trade associatio ns (Article 2).  It recognized enterprises' freedom 
to compete and protected the right to business co mpetition.  The Law prohibited anti-competitive acts 
and unfair competition.  It also prohibited State management agencies from performing certain acts, 
such as forcing enterprises, organizations or indi viduals to buy or sell goods or provide services to 
designated enterprises (except for areas where th e State held a monopoly or in emergency cases); WT/ACC/VNM/48 
Page 28  
 
  discriminating between enterprises; forcing enterprises or trade associations to align with one another 
with a view to precluding, restricting, or prev enting other enterprises from competing on the market; 
and performing any other act preventing the lawful business activities of enterprises. 
106. Anti-competitive acts prohibited under the Law included anti-competitive agreements, abuse 
of dominant and monopoly position,  and economic concentration (A rticle 8).  Anti-competitive 
agreements comprised agreements fixing, directly  or indirectly, the price of goods and services; 
agreements on the distribution of outlets, sour ces of supply of goods, or provision of services; 
agreements restricting or controlling produced, pur chased or sold quantities or volumes of goods or 
services; agreements restricting technical and techno logical development or investments; agreements 
imposing on other enterprises conditions to pur chase or sell goods or services or forcing other 
enterprises to accept obligations which had no direct connection with the subject of such contracts; 
agreements preventing, restraining, or disallowing other enterprises to enter the market or develop 
business; agreements eliminating from the market ente rprises other than the parties of the agreements; 
and agreements enabling one or a ll of the parties to the agreement 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 those agreements had a combined share exceeding 
30 per cent of the relevant market, except as provide d for in Article 10.  Abuse of dominant position 
was defined in Article 13 of the Law, and a buse of monopoly position in Article 14.  Economic 
concentration (merger, amalgamation, acquisiti on, joint-venture and other acts of economic 
concentration) was prohibited under Article 18 if the combined market sh ares of the enterprises 
participating in the economic c oncentration accounted for more than 50 per cent of the relevant 
market.  There were three exceptions to this prohib ition:  (i) after implementation the enterprises were 
still small or medium-sized enterprises as prescribed by Law (Article 18); (ii) one or more of the 
participants was/were in danger of dissolution or  bankruptcy; or (iii) the economic concentration 
contributed to socio-economic deve lopment, technical and technological development, or increased 
exports as specified in Article 19.  Projects of economic concentration had to be notified before 
implementation if the combined market shares of  the participants in the project accounted for 
30-50 per cent of the relevant market, except if afte r implementation the enterprises were still of small 
or medium size.  The procedures for notification were set out in Articles 21 to 38 of the Law. 
107. Unfair competition acts were defined in Chapte r III of the Law and included the provision of 
misleading information; infringement of business se crets; coercion in business; defamation of other 
enterprises; disruption of business activities of othe r enterprises; advertisement or promotion aimed at 
unfair competition; associative discrimination; illega l multi-level (pyramid scheme) sale; and other 
unfair competition acts according to the criteria dete rmined in Clause 4, Article 3 of the Law and 
prescribed by the Government. 
108. 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 Ag ency was responsible for conducting preliminary 
investigations aimed at determining whether there was evidence of violation (Articles 59 and 86).  In 
the event of such evidence, an official investigation was launche d (Article 87).  The Competition 
Administration Agency could also, if it detected si gns of violations, launch an investigation upon its 
own initiative.  Once finalized, the investigation report was transmitted to the Competition Council 
(Article 93), which set up a Tribunal responsible  for handling the competition case.  The Tribunal 
could hold an open hearing, return the file  to the Competition Administration Agency for 
supplementary investigation, or suspend the ha ndling of the case (Articles 99 and 100).  Hearings 
were public.  Decisions of the Tribunal were made by secret ballot on the basis of a majority of the votes (Article 104).  Decisions took effect 30 days after 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 Competitio n Council and decisions of the Competition  WT/ACC/VNM/48 
 Page 29 
 
 
  Administration Agency to the Ministry of Trade (A rticle 107).  Should the complainant disagree with 
the decision of the Competition Council or Ministry of  Trade, he/she could initiate an administrative 
law suit before the competent provincial-level pe ople's court against one part of, or the whole, 
decision (Article 115).  Enforcement of the deci sion was monitored by the provincial-level civil 
judgment enforcement agencies of the province or c ity where the party against which the decision had 
been taken had its headquarters or residency.   
109. In response to a specific question, he added that no provision of the law addressed whether  
State-owned or State-controlled firms retained competitive privileges under the law as compared to 
other enterprises.  The Law could be consulted in English at the website of the Ministry of Trade 
(http://www.mot.gov.vn/en/Files/1727D5D2C1F.PDF ).    
FRAMEWORK FOR MAKING AND ENFORCING POLICIES  
110. 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 
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 add ition, 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 the Prime Minister's proposed appointments, removals 
from office and discharges of the Deputy Prime Minister, Ministers and other members of the Government.   
111. 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, inter alia , to interpret the Constitution, laws and ordinances; to enact 
ordinances and resolutions; to supervise the implem entation of the Constitution, laws and resolutions 
of the National Assembly, its ordinances and resolu tions; and to suspend the implementation of legal 
documents of the Government, Prime Minister, S upreme People's Court, Supreme People's Procuracy 
if such documents contravened the Constitution, laws  and resolutions of the National Assembly and to 
annul the implementation of resolutions of the Pe ople's Councils of provinces and cities under direct 
central government. 
112. The State President was the Head of State.  He/she represented the Socialist Republic of 
Viet Nam internally and externally.  The State Pr esident was elected by the National Assembly from 
among its Members and was responsible before and reported to the National Assembly.  The State 
President was empowered, inter alia , to promulgate laws and ordinances which had been adopted by 
the National Assembly, to appoint, remove from office or discharge the Deputy Prime Minister, 
Ministers and other members of the Government.  The State President could negotiate and conclude 
international treaties in the name of the State of th e Socialist Republic of Viet Nam with other heads 
of State − once signed by the State President, such tr eaties were then submitted to the National 
Assembly for ratification.  The State President decided on the ratification of or accession to international treaties, except in  cases where such treaties had to  be submitted to the National 
Assembly for decision.  
113. The Government was the executive organ of the National Assembly and the highest organ of 
State administration.  The Government was responsible, inter alia , for the unified management of 
foreign policy; negotiated and concl uded international treaties in the name of the State of the Socialist WT/ACC/VNM/48 
Page 30  
 
  Republic of Viet Nam, except in cases where the State President decided to negotiate and sign 
international treaties in the name of the State w ith the heads of other States; negotiated, signed, 
approved and acceded to international treaties in the name of the 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 Stat e, and the legitimate interests of Vietnamese 
organizations and citizens in foreign countries.  People's Committees were elected by the People's 
Council.  They were the People's Council's executiv e organ and were in charge of local State 
administration.  People's Committees were responsib le for implementing the Constitution, laws, legal 
documents issued by higher State organs and resolutions of the People's Council.  People's 
Committees could, within their ar eas of duties and powers, issue decisions and directives and 
supervise their implementation. 
114. 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 
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. 
115. The representative of Viet Nam confirmed that the National Assembly was the only organ 
empowered to adopt the Constitution and laws.  Pu rsuant 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 must be consistent with those issued by the higher State 
organs.  Legal normative documen ts contrary to the Constituti on 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 prov isions of various legal normative documents at the same hierarchy 
rank, which were issued by the same State organ,  the most recently promulgated provisions would 
prevail.  In regard to a suggestion that Viet Nam should make its laws self-enforcing, he stressed that 
Viet Nam was making every effort to issue nece ssary regulations and other guidance necessary for 
enforcing laws immediately after promulgation. 
116. 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 in 
the preparation of legal documents, the Law on Am endment and Supplement of Some Articles of the 
Law on Promulgation of Legal Normative Instruments stipulated that social organizations, economic  WT/ACC/VNM/48 
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  organisations, State bodies and individuals had the righ t to contribute their opinions to the preparation 
of legal instruments.  During the process of prepar ation of legal instruments, the agency and/or 
organization concerned would facilitate other agencies,  organizations and individuals to participate by 
providing their opinions, and organize the collection of  opinions from those directly affected by the 
proposed legal instrument in an appropriate scope and form.  Opinions which were contributed on a 
project or draft of a legal instrument would be studied in order to improve the project or draft 
document.   
117. In response to a Member's question about legislation addressing the right to invest in 
particular sectors, the representative of Viet Nam co nfirmed that any amendment or deletion to the list 
of prohibited or conditional investment sectors, set out in Tables 1 and 2 of this Report (also annexed 
to Government Decree No. 59-2006-ND-CP of 12 June 2006), would comply with Viet Nam's WTO 
obligations, including those relating to transparency .  In this respect, the Ministry of Planning and 
Investment or the line ministries, in coordinatio n with the relevant agencies, would submit any 
proposed changes to the Government, or in the case of investment activities regulated by other laws 
(e.g. Law on Credit Institutions, Law on Insurance Busi ness, etc.), to the co mpetent authority, for 
consideration.  He further confirmed that comment s received during the drafting stages and changes to 
proposals would be made public, in accordance with the Law on the Promulgation of Legal Normative Documents.  The Working Party took note of these commitments. 
118. 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, withdraw al, and suspension 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 negotia tion and signing of treaties (Article 11).  The 
National Assembly, the State President or the Government decided on the accession to multilateral 
treaties (Article 50).  The National Assembly and th e State President decided to ratify treaties and the 
Government to approve them (Articles 31, 32, 44 and 43).  Article 69 of the Law provided for the 
publication of international treaties in the Official Gazette and the "Series of International Treaties".  
He confirmed that accession to the WTO would re quire ratification of Viet Nam's Protocol of 
Accession.  The National Assembly and its St anding Committee were competent to oversee the 
implementation of international treaties in Viet Nam. 
119. 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, 
the National Assembly, the State President or the Go vernment, in making the decision to accept to be 
bound by the treaty, would, at the same time, make decisions 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 part y, 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 the same subject matte rs.  The National Assembly would make the 
determination, upon ratification of the Protocol of Accession, as to whether such differences existed 
between the Protocol and a legal normative document in the context of ratification of Viet Nam's 
Protocol of Accession.  If the National Assembly were  to conclude that such differences existed, it WT/ACC/VNM/48 
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  would determine at that time the precise manner in which the relevant treaty commitment(s) would 
prevail over the legal normative document, namely, thro ugh either direct application of the treaty (or 
portions thereof) or amendment of the domestic measu re at issue.  The Working Party took note of 
these commitments. 
120. 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 courts s hould conduct public trials, except for special cases 
provided by laws.  The legally effective judgments a nd decisions of courts had to be respected by all 
State bodies, political organizations, socio-political  organizations, social organizations, socio-
professional organizations, economic organizati ons, people's armed forces units and people. 
121. 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 
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 for initiating a lawsuit to resolve a civil case was two 
years from the date of infringement of the lawful right s and benefits of individua ls or organizations, or 
infringement of the 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 occu rrence of the right to make such a request.  
Judgments of first instance courts  were legally effective if not appealed within the time-limit for 
appeal.  Pursuant to the Civil Procedure Code and Ordinance on Civil Judgment Execution 
No. 13/2004/PL-UBTVQH11 of 14 January 2004, already effective judgments and decisions of courts 
had to be respected and implemented by individuals and organizations.  The party in favour of which 
the judgment had been made was entitled to ask th e judgment execution authority to issue a writ of 
judgment execution if the party against which the judgment had been made (the "judgment debtor") 
had not voluntarily paid the judgment.  The ju dgment execution authority could take compulsory 
measures against judgment debtors consisting of, inter alia , account deductions, income deductions, 
and seizure of property.  In addition, under th e Criminal Code, a person not having implemented a 
civil court's verdict could be crim inally prosecuted for three years of re-education or six months to 
three years of imprisonment. 
122. 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 con cerned parties at the hearing, within 15 days from 
the date when a copy of the judgment had been deli vered to the parties or from the date of posting of 
the judgment, all parties were entitled to appeal agai nst the first instance court's judgment or decision 
and ask the higher people's court to conduct the sec ond instance trial.  The judgment or decision of the 
court of appeal would become legally effective upon  being announced.  Noting that the international 
norm for filing an appeal was 30-45 days, a Memb er asked Viet Nam whether it was considering 
lengthening the 15 day period provided under Vietnamese legislation.  In response, the representative 
of Viet Nam said that he considered 15 days approp riate to enable the parties concerned to protect 
their legal interests and to accelerate the procedure for civil dispute resolution.  His Government had 
no plans to amend this regulation.  WT/ACC/VNM/48 
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  123. Asked how Viet Nam guaranteed that a private company in an economic dispute with a 
government entity or a State-owned enterprise or State-controlled enterprise would receive an 
impartial hearing, the representative of Viet Nam replied that there were a number of mechanisms aimed at ensuring impartial hearing in economic ca ses.  For example, 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 fo rm of organization or ow nership, and Article 12 
of the Civil Procedure Code and Article 4 of th e Ordinance on Judges and People's Jurors provided 
for the principle of judicial independence.  Pursua nt to Article 16 of the Civil Procedure Code, judges 
and People's jurors (lay assessors) were not allowe d to adjudicate if they could be prejudiced in 
fulfilling their tasks and authority.  Articles 46 a nd 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).   
124. 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); and the Ordinance on Procedures for the 
Settlement of Administrative Cases and its amendm ents (the latest amendment was the Law on 
Amending and Supplementing a Number of Articles of the Ordinance on Procedures for the Settlement of Administrative Cases No. 29/2006/ PL-UBTVQH of 5 April 2006).  According to the 
Law on Complaints and Denunciations, individuals, agencies and organi zations had the right to lodge 
a complaint against administrative decisions issued  by, or administrative actions taken by, a State 
administrative agency or a competent person of the St ate administrative agency if they considered that 
such decisions or actions were illegal, or violated their legitimate rights and interests.  The complaints 
were settled through administrative procedures or in the court should the complainants not agree with 
an administrative settlement of the case.  The Admi nistrative Court was a judicial tribunal in the 
system of People's Courts and was independent fro m the executive branch.  He confirmed that all 
administrative decisions on WTO-related matters could be challenged in administrative courts. 
125. 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 Denunciations 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 relate d matters, including complaints against administrative actions 
concerning domestic and international trade in goods, and such actions in the sector of State 
management of intellectual property and technology transfers.  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 mo re favourable conditions for complainants. 
126. Legally effective court judgments or decisions  could be challenged according to re-opening 
(re-trial) and review procedures.  The Chief Justice of the Supreme People's Court and the Head of the 
Supreme People's Procuracy were entitled to protest , in accordance with the review and re-opening 
procedures, against effective court judgments or deci sions that had been rendered by courts of all 
levels according to the procedure laws.  The Ch ief Judge of the provincial People's Court and the 
Head of the provincial People's Procuracy were entitle d to protest, in accordance with the review and 
re-opening procedures, against effective judgments or  decisions rendered by district people's courts WT/ACC/VNM/48 
Page 34  
 
  according to the procedure laws.  The trial panel was entitled to reject a protest, to remand, or to set 
aside the judgments or decisions of the case. 
127. Procedures for the settlement of economic disput es by arbitration were provided in Ordinance 
No. 08/2003/PL-UBTVQH on Commercial Arbitration.  If the parties to a commercial dispute did not 
want to file a petition to the People's court, they c ould choose, by consensus, to resolve the dispute by 
an economic arbitration centre.  Once established,  arbitration centres operated according to their 
charter, arbitration rules and Vietnamese laws.  Un less specified otherwise, the deadline for filing an 
arbitration case was two years from the date the dispute had arisen.  The Ordinance expanded the concept of commercial activities to be consistent with international practice and stipulated that 
arbitration decisions would be fi nal and binding, unless nullified by a court.  Arbitration decisions 
could be nullified by a court if there was no agre ement on arbitration; the agreement on arbitration 
was void under the Ordinance; the members of the ar bitration tribunal and the arbitration proceedings 
were not consistent with the agreement of the par ties; the dispute did not fall under the authority of 
the arbitration tribunal; the requesting party ha d 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 definition of "pub lic interest" was in conformity with international 
norms and the 1958 New York Convention on Rec ognition and Enforcement of Foreign Arbitral 
Awards.  Asked whether a court had already nullified an arbitration decision based on this principle, 
he said he had no information about such cases. 
128. Arbitration decisions became effective upon anno uncement (Article 44.4).  If the arbitration 
decision had not been voluntarily implemented within  30 days from its date of announcement, the 
interested party could file a request for enforc ement in writing to a provincial judgment execution 
agency.  He confirmed that the Ordinance on Co mmercial Arbitration guaranteed non-discriminatory 
treatment.  Foreign arbitral awards were recogni zed and enforced in accordance with the Civil 
Procedure Code and other relate d legal normative documents for implementation in Viet Nam. 
129. Arbitration proceedings were not open to the p ublic.  However, if the parties agreed, the 
arbitration tribunal could permit othe r persons to attend the hearings (Article 38).  In response to a 
question concerning the publication 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 Government ha d therefore no plans to revise this regulation.   
130. 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.  
131. 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. 
132. 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/VNM/48 
 Page 35 
 
 
  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.  As a result, policies and measures in troduced by sub-central entities were consistent 
with those adopted by the central government.  To ensure the uniform application of laws throughout 
Viet Nam's customs territory and other territories und er its control, Viet Nam had set up mechanisms 
to identify and invalidate inconsis tent legal normative documents issued by sub-central entities.  The 
People's Procuracies supervised judicial activities a nd exercised the right to initiate public prosecution 
within their jurisdictions.  He confirmed that local  authorities had no right to promulgate any kind of 
fees on imported goods. 
133. 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.   
134. 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 under the WTO Agreement.  He added that, when informed of a 
situation where WTO provisions were not being a pplied or were being 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 these commitments. 
135. The representative of Viet Nam further confirmed that Viet Nam would revise its relevant 
laws and regulations so that its relevant domestic laws and regulati ons would be consistent with the 
requirements of the WTO Agreement on procedures fo r judicial review of administrative actions, 
including but not limited to Article X:3(b) of the GATT 1994.  He further stated that the tribunals 
responsible for such reviews woul d be impartial and independent of the agency entrusted with 
administrative enforcement, and would not have any s ubstantial interest in the outcome of the matter.  
The Working Party took no te of these commitments. 
POLICIES AFFECTING TRADE IN GOODS  
Trading rights (the right to import and export)  
136. Members sought a commitment from Viet Nam that  from the date of accession, any natural or 
legal person, domestic or foreign, wo uld have the right to be the importer or exporter of record of any 
product allowed to be imported into  or exported from Viet Nam, and in the case of importation, would 
have the right to sell or otherwise provide those pr oducts to any legal or na tural person, domestic or 
foreign, having the right to distribute them.  A Member noted that currently the right to import required investment in Viet Nam.  A Member also  sought confirmation that trading rights would be 
administered in conformity with all relevant WTO provisions by the time of Viet Nam's accession.  
Several Members also sought a commitment from Viet Nam that Viet Nam would grant trading rights 
for all goods subject to State-trading by a specific date and would ensure that State-owned, State-controlled and enterprises with special or exclusiv e benefits observe commercial considerations and 
the principles of non-discrimination.   
137. In response, the representative of Viet Na m observed that Vietnamese individuals and 
enterprises had been granted full trading rights, with  the exception of certain products required to be 
imported through specific enterprises (set out in Table 8( c)).  Individuals were required to register as 
traders pursuant to the Decree No. 88/2006/ND-CP of 29 August 2006 on Business Registration in WT/ACC/VNM/48 
Page 36  
 
  order to engage in importation and exportation.  He said 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 al l foreign individuals and enterprises (including 
foreign-invested enterprises) full trading rights no later than 1 January 2007, except for some products 
subject to "State-trading" set out in Table 8(c), and requested that Members grant Viet Nam a 
transition period until 1 January 2009 for the right of foreign individuals and enterprises to import 
certain products set out in Table 8(a) and until 1 Janua ry 2011 for the right to export rice (Table 8(b)).  
The full trading rights accorded su ch individuals and enterprises woul d include the right to sell the 
imported product to any individual or enterprise having the right to distribute such product in 
Viet Nam.  
138. He confirmed that, during the transition periods, the goods listed in Tables 8(a) and 8(b) could 
be imported and exported by any wholly Vietnam ese-invested enterprise, while the products in 
Table 8(c) could be traded only by the designated enterprises.  He further confirmed that Viet Nam 
would ensure that these enterprises complied with WTO rules.   
139. He noted that the right to import required no minimum investment in Viet Nam other than 
registration (mainly for administrative purposes) of the individual or firm seeking to be the importer of record.  He confirmed, in addition, that Viet Nam's commitments on trading rights would be 
applied to all WTO Members on an MFN basis.  He further expressed his understanding that the 
granting of trading rights would not affect the rights of the Government of Viet Nam to adopt or enforce WTO-consistent requirements for custom s and fiscal purposes; or to adopt or enforce 
regulations that were consistent with relevant provisions of the WT O Agreement and with Viet Nam's 
WTO commitments, such as those relating to import licensing, State-trading, technical barriers to trade or sanitary and phytosanitary measures.  De crees on the right to import and export guiding the 
implementation of the amended Commercial Law we re being drafted.  These Decrees would be 
applied in a transparent, uniform and non-discrimin atory manner, in compliance with WTO rules and 
Viet Nam's commitments on trading rights.  The Working Party took note of these commitments. 
140. A Member requested additional information on the registration requirement for importers of 
record, in particular, on the nature and form of this registration.  This Member also inquired as to what 
legal normative document(s) set out the details of th is registration process and, in this respect, what 
relevance, if any, the recent Decree on Inte rnational Sales and Purchases of Goods (Decree 
No. 12/2006-ND-CP) held for registration and the right to import/export. 
141. 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 input s and finished goods for resale, and to export 
consistent with WTO requirements.  The process should be completed prior to or by the time of accession to the WTO, as national treatment was a b asic requirement of the WTO.  Viet Nam should 
provide additional information to the Working Party on its plans to ensure national treatment in this 
regard.   
142. 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  WT/ACC/VNM/48 
 Page 37 
 
 
  November 2005.  Under the new Laws, domestic inv estors wishing to import or export were required 
to hold a Business Registration Certificate and fore ign investors an investment certificate.  With 
respect to Vietnamese investors, procedures for business registration were set out in the 
2005 Enterprise Law and Government Decree No. 88/2006/ND-CP of 29 August 2006 on Business 
Registration.  Domestic investors, whether enterp rises or individual business households, were free to 
register any business line, except those prohibi ted under Vietnamese law (see paragraph 33).  
Registration of some business lines was subject to specific conditions.  His Government did not limit 
or otherwise intervene in the scope of business chos en by Vietnamese enterprises and, except in the 
prohibited sectors and some business lines that was subject to specific conditions, wholly Vietnamese-owned enterprises were entitled to determine their scope of business at their own discretion (see 
Tables 1 and 2 for lists of prohibited sectors and busi ness lines subject to specific conditions).  He 
noted that, although previously domestic investor s could only import goods listed in their Business 
Registration Certificate, this restriction was no l onger in force by virtue of Article 3 of Decree 
No. 12-2006-ND-CP on International Purchases and Sales of Goods.   
143. With respect to foreign investors, procedur es for issuing investment certificates were 
described in the 2005 Investment Law and Government Decree No. 108/2006/ND-CP of 
22 September 2006 providing for implementation of this  Law.  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.  Investment certificates also served as business 
registration certificates.  Foreign investors would not be limited to importing goods related to their 
business lines or specified in their investment certificate, nor would they be prohibited from importing 
goods on the basis that these goods were of the same kind as those produced under the investment 
licence.  He confirmed that, in his view, procedures for importation of goods by foreign-invested companies were not more restrictive than tho se applicable to wholly domestic enterprises.  
144. 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 to be in contradic tion with Article III of the GATT 1994.  The Decree 
also seemed to impose conditions on existing fore ign-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.   
145. 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 a dded that Article 5 of the draft Decree abolished 
minimum capital investment requirements.  
146. The representative from Viet Nam confirmed that Viet Nam would ensure that its laws and 
regulations relating to the right to trade in goods and all fees, charges or taxes levied on such rights 
would be in conformity with its WTO obligations, including Articles VIII:1(a), XI:1 and III:2 and 4 of 
the GATT 1994 and its commitments in its Schedule on Specific Commitments in Services.  In 
particular, he confirmed that, from the date of acces sion, all foreign firms and individuals (including 
foreign-invested firms) would be able to engage in importation and exportation of products other than 
as set out in Tables 8(a)-(c), as importers or exporte rs of record, subject only to the obligation to 
register such activity with the relevant Vietnam ese authorities.  There would be no requirement for 
foreign firms and individuals without physical presen ce in Viet Nam to invest  in Viet Nam.  In WT/ACC/VNM/48 
Page 38  
 
  addition, without prejudice to Viet Nam's Schedul e of Specific Commitments in Services, importers 
of record would be permitted to sell or otherw ise provide the imported product to individuals and 
firms in Viet Nam that have the right to distribute  such product in Viet Nam.  The representative of 
Viet Nam noted that compliance with its trading rights obligations would not, in any case, automatically grant importers the right to distribute goods in Viet Nam.  He further observed that, 
under Vietnamese law, Viet Nam's Protocol of Accession would serve as the legal basis for the 
Government to issue a decree codifying the trading rights of individuals and firms without physical 
presence in Viet Nam; accordingly, he confirmed th at this decree would be issued promptly upon 
Viet Nam's ratification of the Protocol of Accession, and in any event, before the 30th day following such ratification.  These rights would also accrue wi th respect to importation and exportation of other 
products in accordance with the timetable in Tables 8(a) and 8(b).  The Working Party took note of 
these commitments. 
147. The representative of Viet Nam confirmed that, without prejudice to Viet Nam's Schedule of 
Specific Commitments in Services, any foreign firm or individual (including foreign-invested firms) registered to engage in import activities would be fr ee to select a distributor or distributors of their 
choice provided that such distributor or distributors had the right to distribute the respective 
product(s) in the customs territory of Viet Nam.  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 representative of Viet Nam noted that compliance with its trading rights 
obligations would not, in any case, automatically grant importers the right to distribute goods in 
Viet Nam.  The Working Party took note of this commitment. 
1. Import Regulation  
Customs tariff 
148. 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 152 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.   
149. As of 20 April 2005, Viet Nam's trade-weighted average tariff was 11 per cent and 
Viet Nam's simple average tariff was 17.8 per cen t.  The simple average tariff on major imported 
items was 21.4 per cent for agricultural products , 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.  Tariffs  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 had come 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 afte r 2000 and replaced them with import duties and 
surcharges (see also the section on "Other duties a nd 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 exc eeding 60 per cent.  The representative of Viet Nam  WT/ACC/VNM/48 
 Page 39 
 
 
  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. 
150. 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. 
151. 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.   
152. Concerning the tariff rates, he noted that th e Standing Committee of the National Assembly 
had established statutory MFN tariff ceilings at the four-digit HS level ("Current Statutory Ceiling 
Rates of Duty"), which constituted the legal basis fo r the "effective rates of duty" established by the 
Government at the eight-digit level, currently stipulated in Decision No. 110/2003/QD-BTC of 
25 July 2003.  He provided a copy of Viet Nam's statutory MFN tariff ceilings in document WT/ACC/VNM/28/Add.1.  Changes in tariff rates we re decided in consultation with the business 
community and the ministries and agencies concerned.  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 and 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 compensate for th e 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 petroleum products had been brought down to 
zero.  In 2004, imports of oil and petroleum pr oducts had amounted to US$3,547 million and imports 
of iron and steel products to US$2,572 million. 
153. 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 did not intend to align its 
statutory tariff ceilings with the bound rates of dut y and that the statutory ceiling rates set by the 
National Assembly's Standing Committee would con tinue to serve as the domestic legal basis for 
determining tariff rates.  He confirmed that these rates would not conflict with Viet Nam's WTO obligations. 
154. Some Members expressed a strong preference for the application of ad valorem  duties rather 
than specific duties on imports because ad valorem  duties were more transparent and predictable for 
traders.  Members were also concerne d that any conversion from the current ad valorem  duty rate to a 
specific rate or compound rate 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 WT/ACC/VNM/48 
Page 40  
 
  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.  
Members asked Viet Nam to provide a list of those 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. 
155. 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 XXVIII of the GATT 1994.  The Working Party took 
note of these commitments. 
156. 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 we re subject to tariff treatment as "special 
preferential", MFN (preferential), or  "standard" rate (also referred 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 union agreements and 
agreements to facilitate border trade, such as the Common Effective Preferential Tariffs implementing 
the ASEAN Free Trade Area.  Such countries incl uded Brunei, Cambodia, China, Indonesia, Lao 
PDR, Malaysia, Myanmar, the Philippines, Singapo re, and Thailand.  MFN rates (or "preferential 
rates") were levied on goods imported from count ries 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, standard rates could not 
exceed 170 per cent of the MFN rates.  Current standa rd rates were applied uniformly at 150 per cent 
of the MFN rate.  He added that standard rates we re rarely applied as Viet Nam had signed bilateral 
trade agreements with almost all of its trading part ners.  General provisions also allowed Viet Nam to 
impose additional import duties on goods origin ating in countries discriminating against goods 
originating in Viet Nam on the basis of tariffs or other measures.  However, Viet Nam had never 
invoked these general provisions and had no speci fic provisions regulating such cases, and he could 
therefore not indicate the criteria Viet Nam would u se to identify such discriminatory treatment.  He 
confirmed that after accession to the WTO, a ny measure taken by Viet Nam in response to 
discriminatory treatment would be consistent with the principles stipulated in the WTO Agreement.  
The Standing Committee of the National Assembly  had adopted the Ordinance on Most Favoured 
Nation and National Treatment on 22 May 2002, whic h required Viet Nam to comply with MFN and 
national treatment provisions of international treaties.   
157. Viet Nam's commitments on bound tariffs are contained in the Schedule of Concessions and 
Commitments on Goods (document WT/ACC/VNM/48/Add. 1) annexed to Viet Nam's draft Protocol 
of Accession to the WTO. 
158. 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 Working Party took note of this commitment.  WT/ACC/VNM/48 
 Page 41 
 
 
  Other duties and charges  
159. 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.   
160. 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 re ndered, or other charges authorized by the WTO 
Agreement.  Consequently, Viet Nam was requested to bind all "other duties and charges" (ODCs) 
within the meaning of Article II:1(b) of the GATT at "zero" in its Schedule of Concessions and Commitments on Goods.   
161. The representative of Viet Nam replied that Viet Nam had been eliminating non-tariff 
measures on imports gradually since 2000 under an ex tended structural adjustment programme.  The 
non-tariff measures had in some cases been replaced temporarily by import surcharges, including on 
cement, clinkers, ceramics, paper, and steel.  Howe ver, all import surcharges had been eliminated in 
December 2004.  The last import surcharges on PVC and welded steel pipe had been eliminated by 
virtue of Decision No. 81/2004/QD-BTC of 15 Oc tober 2004 and Decision No. 102/2004/QD-BTC of 
27 December 2004, respectively.  
162. 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  
163. 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 force − including information on the in-quota and out of 
quota tariff rates; proposed quota volumes and annual growth rates; and supporting data on domestic 
production, consumption and impor ts for 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, predic table, 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 w ould be requested to adopt detailed commitments 
relating to the allocation of tariff quotas and ot her aspects of tariff rate quota administration. WT/ACC/VNM/48 
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  164. The representative of Viet Nam replied th at his Government had issued Decision 
No. 91/2003/QD-TTg on 9 May 2003, introducing 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 D ecision 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 allo cation mechanism of tariff rate quotas, as laid down in Circular 
No. 09/2003/TT BTM of 15 December 2003, in Annex 4 of document WT/ACC/VNM/33.  Imports of tobacco (HS 2401) were subject to a 30 per cen t 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 tobacco products had b een imported annually betw een 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 imported a nnually on average between 1999 and 2001 and 
130,000 metric tons in 2004.  As for eggs, a 40 pe r cent rate was applied up to 30,000 dozens 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 da iry products, 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, licenses or import quotas affecting the same products.   
165. Some Members requested that Viet Nam consider  eliminating the TRQs on salt a fortiori as 
no other non-agricultural product would be subject to a TRQ in Viet Nam upon accession.  The 
representative of Viet Nam noted that salt productio n involved farmers and was therefore considered 
an agricultural activity in Viet Nam.  Asked to e xplain further the rationale for the TRQ on salt, he 
noted that salt was the main sour ce 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 fo r these farmers.  In his view, a TRQ was the 
most efficient measure to satisfy this objective compared to other import restrictions such as non-
automatic licensing.  The annual volume of tariff rate  quota for salt was determined by the Ministry of 
Trade, the Ministry of Agriculture and Rural Deve lopment, and the Ministry of Industry on the basis 
of production output, demand for salt for ma nufacturing and processing, manufacturing and 
processing capacity, and utilization of the tariff rate quota in the previous year.  Pursuant to Decree 
No. 86/2003/ND-CP of 18 July 2003, enterprises us ing salt in their production could lodge an 
application for allocation of TRQs with the Mini stry of Trade.  Allocation was based on production 
capacity, type of materials used and import perform ance through the 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 reallocatio n 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 consum ption.  Salt could be imported directly at the 
out-of-quota rate by enterprises that did not use salt in  their production.  In response to a question, he 
added that the General Corporation of Salt operate d 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 Genera l Corporation of Salt possessed some capacity to 
produce salt as materials for other industries and was therefore eligible to apply for salt quota 
allocations to use in its own prod uction (see also paragraph 70).   
166. Noting that tariff quota allocations were not available to manufacturers 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 subject to a separate tariff-only commitment.    WT/ACC/VNM/48 
 Page 43 
 
 
  167. 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 cond itions and that diversification from suga r cane to other crops was often very 
difficult.  However, his Government would replace discretionary licensing by a tariff rate quota 
mechanism as from the date of accession (D ecision No. 19/2006/QD-BTM of 20 April 2006).  
In response to a request from a Member for more  information about the allocation mechanism and 
administrative arrangements that Viet Nam intende d to apply to a TRQ on sugar, he said that 
Viet Nam would apply and administer tariff rate quot as in conformity with WTO applicable rules and 
regulations, including the MFN and national treatment provisions of the GATT 1994.   
168. 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 Memb er, auctioning of tariff quot a would be inconsistent 
with a number of WTO provisions, including Articl es II, X and XI of the GATT 1994 and Article 4 of 
the Agreement on Agriculture, as bi ndings 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 predictability with respect to the terms of importation would not be 
met, and any starting prices would themselves represent minimum import prices.  This Member also raised concerns over any non-automatic licen sing associated with the allocation or other 
administration of tariff quotas that would have trad e-restrictive or distortive effects on imports beyond 
those occasioned by the quantity-limited in-quota ra te and the out-of-quota rate, contrary to the 
provisions of the Agreement on Import Licensing Pro cedures.  Another Member noted that importers 
were to be designated by the Government under allo cation method B.  This Member was of the view 
that the allocation of tariff quotas by the State was inconsistent with the transparency and 
predictability required in tariff 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. 
169. 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 su ch measures under Article XI of the GATT 1994, 
Article 4 of the Agreement on Agriculture and Article 2 of the Agreement on Trade-related 
Investment Measures; to allocate tariff quota cont ingent upon the approval of import plans by the 
Government, inconsistently with Article XI of  the GATT 1994 and Article 4 of the Agreement on 
Agriculture; to allocate tariff quota on the conditions that the importer uses amounts imported only for 
its own production, inconsisten tly with Articles III and XI of the GATT 1994 and Article 4 of the 
Agreement on Agriculture, and that the importer re frains from internal 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 th e 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 holder 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), in consistently with Article XI of the GATT 1994 and 
Article 4 of the Agreement on Agriculture; and to prohibit the sale, purchase and transfer of allocated 
quota quantities to other parties, inconsistently with  Article XI of the GATT 1994 and Article 4 of the 
Agreement on Agriculture.  This Member called upo n Viet Nam to allocate tariff quotas consistently 
with the WTO from the date of accession.  Viet Na m was also asked to clarify whether a TRQ could 
be filled by materials importe d under a TRQ and subsequently exported under Viet Nam's duty 
drawback scheme. 
170.
 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.  
The TRQs on salt, un-manufactured tobacco and eggs were administered pursuant to Circular WT/ACC/VNM/48 
Page 44  
 
  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.  Method A foresaw the allocation of quotas to end-users.  Under method B, importers were to be designated by the Government.  He noted that this 
method only applied to un-manufactured tobacco (H S 2401).  As for method C, quotas were allocated 
on the basis of past performance.  He noted that existing legislation did not refer to auctioning as a 
method of TRQ allocation, and that the three methods of TRQ allocation that Viet Nam had proposed and agreed upon with Members and that were specifi ed in Viet Nam's Schedule of Concessions and 
Commitments on Goods (WT/ACC/VNM/48/Add.1) did not include auctioning.  He confirmed that 
the licensing mechanism used for the allocation of TRQs would comply with WTO rules, including 
the Agreement on Import Licensing Procedures.  Quot a allocations would be made in accordance with 
Viet Nam's Schedule of Concessions and Commitments on Goods (document WT/ACC/VNM/48/Add.1).   
171. In the case of un-manufactured tobacco, under the current practice, imports were subject to 
State-trading:  quotas for importation were allocated  to State-trading entities or groups of producers 
by the Government.  Under the new system that would be in place by the date of accession, a TRQ 
was established.  Using method B, the Government  would designate current domestic producers as 
importers, and TRQ allocations would be made in  line with each domestic producer's share of the 
domestic production quota for tob acco products.  These firms were free to import additional 
un-manufactured tobacco at the out-of-quota duty rate.  Imported tobacco for the production of exports was subject to Viet Nam's duty drawback re gime or could be imported duty free if the related 
exports occurred within two months.   
172. The representative of Viet Nam added that th e 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 pr ovision did not breach WTO rules as enterp rises were free to register their own 
business lines and activities.  In particular, designati on of producers of tobacco products as the sole 
importers of un-manufactured tobacco supported Viet Nam's long term efforts to regulate tobacco 
consumption and prevent production of tobacco pr oducts outside the mandated production quota.  
As for the provision requiring enterprises to se nd a report on import performance of TRQs to the 
Ministry of Trade by each quarter-end, the require ment aimed at guaranteeing up-to-date and accurate 
information so as to enable the au thority to adjust the TRQs when enterprises so needed.  He was of 
the view that Viet Nam's provisions of TRQ alloca tion and administration 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.   
173. A Member also asked Viet Nam to clarif y whether materials imported under a TRQ and 
subsequently exported under Viet Nam's duty drawb ack scheme would be counted against the TRQ.  
The representative of Viet Nam noted that traders could either apply for TR Qs or import the goods 
directly.  They could, in both cases, benefit from duty drawback (see also paragraph 281).  He added 
that goods imported under the TRQ and subsequently exported did not count towards exhaustion of 
the TRQ.  
174. 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 a non-discriminatory and transparent manner, in 
conformity with the WTO Agreement, including Articles I, II, III, VIII, X, XI and XIII of the 
GATT 1994, Article 4 of the Agreement on Agricultur e, Article 2 of the Agreement on Trade-Related 
Investment Measures, and the Agreement on Import Licensing Procedures.  The Working Party took 
note of this commitment.  WT/ACC/VNM/48 
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  - Tariff exemptions  
175. The representative of Viet Nam said that pursuant to Law No. 45/2005/QH11 of June 2005, 
goods subject to tariff exemptions included the followi ng:  (i) goods in transit or being transported to 
other countries across Viet Nam's borders; (ii) goods transited at Viet Nam's border-gates as stipulated 
by the Government; (iii) humanitarian goods and non -refundable aid; (iv) temporary imports and 
re-exports, temporary exports and re -imports for exhibitions and promotions; (v) machines, equipment 
and devices temporarily imported and re-exported or  temporarily exported and re-imported for use 
within a specified period of time; (vi) moveable ass ets; (vii) exports and impor ts of organizations and 
individuals eligible to di plomatic immunity as stipulated by th e Government in accordance with the 
provisions of international treaties to which Viet Nam was a signatory or a participant; 
(viii) goods imported for outward pr ocessing and re-exported or goods exported to foreign individuals 
or organizations for inward processing and re-i mported in accordance with processing contracts; 
(ix) exports and imports of indivi duals entering or leaving Viet Nam within the tariff exemption limit 
for luggage stipulated by the Government; (x) goods imported to form fixed assets by investors 
having projects funded by Official Development Assistance (ODA); (xi) goods imported to facilitate 
oil and gas activities; (xii) imported goods used directly for scientific research activities and 
technology development; (xiii) raw materials, ma terials, components imported for production of 
projects in sectors where investment was especially encouraged or in regions with specially difficult 
socio-economic conditions (five year exem ption from the commencement of production); 
(xiv) imports specifically for national defence and s ecurity, education and training; and (xv) gifts and 
sample goods of international or ganizations and individuals to Vietnamese organizations and 
individuals and vice versa.  Under the new Law, im porters claimed the tariff exemptions they were 
entitled to upon importation of the products.  Importe rs' claims were processed by the local customs 
authorities upon importation.  He confirmed that the import duty exemptions mentioned in this 
paragraph were not contingent upon export perform ance, export ratios or local content requirements. 
176. 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. 
177. 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, without prejudice to Viet Nam's commitments on subsidies (see paragraphs 286 and 288), Viet Nam would not provide tariff reducti ons and exemptions contingent upon export 
performance, export ratios, or local content require ments.  The Working Party took note of these 
commitments. 
Fees and charges for services rendered  
178. 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 customs pr ocedures, customs supervision and customs 
fees; and the Ordinance on Fees and Charges that had come into effect on 1 January 2002.  The Ministry of Finance and General Department of Cu stoms had issued an Inter-Ministerial Circular 
No. 71/2000/TTLT/BTC-TCHQ on 19 July 2000 pr oviding 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); WT/ACC/VNM/48 
Page 46  
 
  (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 22(a) and 22(b).  The Inter-Ministerial Circul ar 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 ce nt 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. 
179. In response to questions about the purpose of th e cargo and luggage transit fees and the cargo 
escort and sealing fees, he noted that the transit fees aimed at covering the costs of the customs 
services rendered for the transit of goods from a thir d country through the territory of Viet Nam.  
Sealing fees aimed at covering the costs of materials (paper seals, lead seals, and seal rings) and 
labour involved in the sealing process.  As for escort fees, they corresponded to the costs involved to 
escort the goods, including management costs.  Th ese costs varied substantially depending on the 
distance and the volume to escort.  He noted that fees and charges were being reviewed to ensure that 
the actual collectible fees did not exceed the costs i nvolved.  Fees found to be higher than the cost of 
services rendered would be adjusted downward to ab ide by the principle that no fee should exceed the 
cost of services rendered.  
180. 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 Nam 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.   
181. 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 had replaced Decisions 
Nos. 61 and 62).  In addition, since 1 January 20 06, 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 those applied in Thailand.  WT/ACC/VNM/48 
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  182. A Member was concerned that Viet Nam maintained "minimum" fee regimes for importers of 
certain goods, such as cust oms clearance fees for automobiles a nd motorcycles, and special customs 
warehouse fees for IT products, which were higher than  the ordinary fees.  This Member noted that 
such fees seemed to be a revenue- or policy-driven measure, not fees related to the cost of customs 
processing.  This Member asked Viet Nam to provi de a justification for the higher fees applied for 
customs clearance of these products.  The Worki ng Party would need to examine these fees and 
charges to determine those that would have a ne gative impact on trade in possible violation of 
Article III or Article VIII of the GATT.  The 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.   
183. The representative of Viet Nam confirmed that his Government was revising its current 
regime for customs clearance and warehouse fees to bring it into conformity with Article VIII of the GATT 1994.  Customs clearance fees would be charge d on both imports and exports at the same rates 
based on specific fees for specific services rendered and there were no exemptions based on the 
country of origin or destination.  Fees for warehou se storage would be based on either the weight or 
the volume of goods placed in government warehouses.   Revenues from these fees were retained by 
customs to cover customs warehousing and processing costs, supplemented as necessary by contributions from the State budget.  The representa tive of Viet Nam indicated that his Government 
would issue a new Ministerial Decision on customs processing fees implementing, prior to accession, 
the new regime that would replace the fees described in Tables 9, 22(a), and 22(b). 
184. The representative of Viet Nam confirmed that from the date of accession Viet Nam would 
apply all fees and charges for services rendered, applied on or in connec tion with importation or 
exportation, including those discussed in paragraphs  178 to 183 above, in conformity with relevant 
provisions of the WTO Agreement, in particular Articles VIII and X of the GATT 1994.  He further confirmed that they would be limited to the approxima te cost of services rendered.  He added that the 
practice of higher special fees for some imports would be eliminated upon accession, and that fees 
that varied based on the value or volume of im ports 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 applicati on 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 
185. 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 17 June 2003.  The tax system was explained in further detail in 
Circular No. 98 TC/TCP of the Ministry of Fina nce.  Taxes initially ranged from 32 to 70 per cent on 
tobacco, 75 to 90 per cent on beer, 15 to 90 per cen t on other alcoholic beverages, 100 per cent on 
pyrotechnic articles (excluding firecrackers), 30 to 100 per cent on motor vehicles and 15 per cent on petroleum products.  Bottled, canned, and fresh beer were taxed differently depending on the 
consumption pattern, and thus the elasticity of  demand, for each type of beer.  Effective 
1 January 1999, the coverage of the Law on Excise Tax had been extended to  various "non-essential" 
goods and services, including automobiles (less th an 24 seats); air conditioners; votive paper and WT/ACC/VNM/48 
Page 48  
 
  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.   
186. 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. 
187. 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. 
188. 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.   
189. Some Members noted that Viet Nam applied discriminatory excise taxes on imported tobacco, 
a possibly WTO-inconsistent lower rate of excise duty on herbal wines, and preferential excise tax 
rates on domestically-produced beer and automobiles.  The excise taxes applied to cigarettes and beer 
were in clear contrast to Article III of the GATT 1994 as they taxed like products differently, and 
these Members requested Viet Nam to submit a deta iled plan for the elimination of the existing 
discrimination to the Working Party.  In their view, the preferential tax treatment for domestic 
producers was also inconsistent with the national treatment principle of Article III and should be 
abolished prior to accession.  These Members sought  a commitment from Viet Nam that it would 
equalize the excise tax rates on these products by the date of accession and that from this date 
Viet Nam would apply its taxation measures in fu ll compliance with Article III of the GATT without 
affording protection to domestic production. 
190. 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  WT/ACC/VNM/48 
 Page 49 
 
 
  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 manufacturi ng 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 license s 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.  
191. Concerning the lower excise rates on herbal and medicinal wine, he noted that herbal and 
medicinal alcohol had a low alcohol content compar ed to other wines and was used for medication 
purposes, to treat or cure illness, rather than as an ordinary alcoholic beverage .  This product was not 
in direct competition with other alcoholic produc ts, and the amount of medicinal alcohol produced 
and consumed was insignificant.  Nevertheless, a provision introducing a common excise tax rate of 
20 per cent on herbal and medicinal wines, spir its under 20 per cent volume alcohol, and fruit-based 
wines had been introduced in a new Law on Amendmen ts of and Additions to some Articles of the 
Law on Excise Tax and the Law on Value Added Tax adopted 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 WT/ACC/VNM/48 
Page 50  
 
  No. Goods, services Tax rate (%) 
II.  Services: 
1. Operating discotheques, massage lounges, karaoke parlors 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 are not subject to excise tax.  
192. 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. 
193. 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.   
194. 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.   
195. Noting that Viet Nam exempted from VAT ma chinery equipment imported for fixed asset 
purposes by foreign-invested 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.   
196. 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,  WT/ACC/VNM/48 
 Page 51 
 
 
  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.   
197. The issue of taxation of alcoholic beverages was of considerable interest to a large number of 
Members.  Some Members noted th at a specific tax per litre of pure alcohol would be the way to 
ensure non-discriminatory treatment, as required by  Viet Nam's commitments on excise taxes.  
Moreover, an excise tax regime based on a specifi c tax per litre of pure alcohol would discourage 
smuggling and counterfeiting, increase overall excise tax revenue and be easier to administer than an 
ad valorem  system.  These same Members noted that Viet  Nam would need to change its legislation 
to make its excise tax regime consistent with Viet Nam's WTO obligations.  These Members recalled extensive WTO jurisprudence on excise tax systems based on ad valorem  rates and urged Viet Nam's 
National Assembly to take this jurisprudence in to account when implementing these commitments.  
The representative of Viet Nam noted that in becomi ng a Member of the WTO, Viet Nam retained the 
sovereign right to implement tr ansparent and non-discriminatory ta x policies in furtherance of 
domestic policy objectives and in accordance with its obligations under the WTO Agreement.   
198. 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, except for those relating to distilled spirits  and beer, would be in full conformity with its 
WTO obligations, in particular Article III of th e GATT 1994, and that Viet Nam would implement 
such laws, regulations and other measures in full conformity with those obligations.  The 
representative of Viet Nam further confirmed that, within three years after the date of accession, Viet Nam would apply excise taxes and other internal  taxes on distilled spirits and beer in accordance 
with the WTO Agreement, including Articles I and I II of the GATT 1994.  To this end, he further 
confirmed that, within three years after the date of accession, all distilled spirits with an alcohol 
content of 20 per cent or higher would be subject to either a single specific rate per litre of pure alcohol or a single ad valorem  rate.  The Working Party took note of these commitments.  
199. Further, the representative of Viet Nam confirme d that, within three years after the date of 
accession, Viet Nam would apply a single ad valorem  rate to all beer products without regard to the 
packaging of the product, i.e., draught, draft, bottle, or can.  The Working Party took note of this 
commitment. 
Quantitative import restrictions, including prohibitions, quotas and licensing systems 
200. The representative of Viet Nam said that Vi et Nam had been liberalizing its quantitative 
import restrictions, but stated that Viet Nam curre ntly applied import prohib itions, import-restrictive 
licensing/quotas and line management measures.  Me mbers noted that quantitative restrictions were 
inconsistent with GATT Article XI and that Viet  Nam should provide a single comprehensive and 
consolidated list of its current quantitative restri ctions, including all bans, quotas and restrictive 
licensing requirements.  Viet Nam should also provide a timetable for each measure currently in place, to either be eliminated, revised or replaced  with a specific WTO-consistent alternative, or 
present an appropriate WTO justification for the retention of the measure.  In response, the 
representative of Viet Nam provided the following inform ation:  a list of import prohibitions and their 
rationale (Table 12); a list of toxic chemicals pr ohibited from importation or subject to conditional 
approval (Tables 13(a) and 13(b)); and a list of products subject to line management measures 
(Table 14).  He noted that the notion of "prohi bited business sector" (see paragraph 33 and Table 1) 
implied a prohibition on both the domestic bus iness activities and the importation of corresponding 
products.  He added that, in his view, all WTO-incons istent import restrictions, with the exception of WT/ACC/VNM/48 
Page 52  
 
  the restrictions applied to sugar, had been elimin ated (see paragraph 222 below).  In response to a 
question, he noted that payment method restric tions established in 1998 had been abolished on 
1 May 2001 by Decision No. 46/2001/QD-TTg of 4 April 2001.   
201. The main agencies responsible for issuing detailed regulations a nd guidance concerning 
products subject to import prohibitions included the Ministry of Public Security, the Ministry of 
Culture and Information, the Ministry of Industry and 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, where products were 
imported for security reasons (i.e., the importation of arms), procedures used in such cases could not 
be officially published. 
202. Some Members questioned whether Viet Nam was using the least trade restrictive means to 
address health, environmental, safety and other concer ns.  In response, the representative of Viet Nam 
replied that due to administrative capacity constrai nts in Viet Nam, the health, environmental, and 
safety objectives sought through the imposition of import prohibition could not, in his view, be 
achieved through alternative measures.   
203. The representative of Viet Na m noted that Viet Nam prohibited imports of second-hand 
clothing to protect public health as it had no enfo rceable internal mechanism and no processing and 
disinfection facilities for used clothing.  He noted that no domestic organizati ons or individuals were 
granted Business Registration Certificates to conduct business in second-ha nd consumer products 
subject to import restrictions.  He  added that some WTO Members w ith a higher level of development 
than Viet Nam maintained such an im port prohibition on certain used items.   
204. He also noted that cigarettes were currently prohibited from importation as part of an anti-
smoking programme aiming at restricting the produc tion and consumption of cigarettes.  Although 
existing tobacco production facilities were being utili zed, Viet Nam had no intention to develop its 
cigarette industry and discouraged the establishm ent of new 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 20 00-2010, and in Decree  No. 76/2001/ND-CP of 
22 October 2001.  Viet Nam had also signed the Framework Convention on Tobacco Control, adopted 
by the World Health Organization on 25 May 2003, in order to limit the incr easing number of deaths 
due to tobacco-related diseases.  The representative of  Viet Nam confirmed, however, that Viet Nam 
was seeking alternative WTO-consistent measure s to achieve its objectives, and accordingly 
committed to eliminate the prohibition on imports of cigarettes and cigars upon accession.  The representative of Viet Nam explained that Vi et Nam intended to establish a production quota that 
would take into account imports, i.e., the quantity of  cigarettes imported would be counted against the 
production quota.  A State-trading enterprise would be the sole importer and wholesale distributor of 
cigarettes, as well as other manufactured t obacco products.  Upon accession, Viet Nam would 
designate the Viet Nam National Tobacco Corporatio n (VINATABA) as the responsible State-trading 
enterprise.  Currently, VINATAB A was a State-owned enterprise producing domestic tobacco 
products and foreign brands under licence.  It was al ready the major producer of tobacco products in 
Viet Nam, and the largest distributor.    
205. A Member expressed concern about Viet Nam's designation of an enterprise engaged in the 
production and distribution of tobacco products as the enterprise responsible for importing and 
wholesaling imported tobacco products.  In this Member 's view, the interests of a producer of tobacco 
products could conflict with providing transparen t and non-discriminatory access for imports in an 
amount that met demand for the product.  Under WTO rules, VINATABA, having a monopoly for the 
importation of manufactured tobacco products, woul d be obligated to ensure non-discriminatory  WT/ACC/VNM/48 
 Page 53 
 
 
  market access for these imports and could not fa vour the production and di stribution of domestic 
product.  
206. The representative of Viet Nam confirmed that from the date of accession, the import ban on 
cigarettes and other manufactured tobacco products would be eliminated and replaced with a production quota that included imports.  The dome stic production quota would be reduced by the 
quantity of cigarettes imported.  A State-tradi ng enterprise would provide access to Viet Nam's 
market for manufactured tobacco products, includi ng cigarettes, in accordance with WTO provisions, 
and would operate in a transparent and non-discriminatory manner.  The Working Party took note of these commitments.   
207. The representative of Viet Nam said that importation, registration and circulation of 
motorcycles with engine capacity exceeding 175 cm³ ha d been prohibited to ensure traffic safety.  
Importation of motorcycles with engine capacity ex ceeding 175 cm³ had been allowed only for special 
purposes such as for the armed forces, security pers onnel, or for competitive sports.  Responding to 
calls for removal of this ban upon accession, as motorc ycles of this size were produced and sold as a 
commercial good for non-military use in many countr ies, the representative of Viet Nam noted that 
the prohibition had been applied on a non-discrimin atory basis and that Viet Nam had no domestic 
production of such motorcycles.   
208. 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 before 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 w ith relevant WTO provisions, e.g., the GATT 1994 
and the Agreement on Import Licensing Procedures, w ithout 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 programmes.  The Work ing Party took note of these commitments.   
209. A Member asked Viet Nam to provide data on domestic production and registration of cars 
and trucks in Viet Nam and to justify Viet Na m's current ban on imports of second-hand vehicles.  
In response, the representative of Viet Nam said that 51,500 cars had been registered annually 
between 2003 and 2005, including 18,980 trucks and 24,200 passenger cars.  In 2003-2004, 
approximately 43,850 cars and trucks had been produced annually. 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 traffi c safety that Viet Nam could implement under the 
current conditions, as there was no alternative enforceab le internal mechanism.  Asked to reconsider 
the ban, which in the view of Members was not the least trade restrictive measure to ensure traffic 
safety, the representative of Viet Nam subsequently  confirmed that Viet Nam would eliminate the 
import prohibition on used motor-vehicles and replac e it with increased import duties from the date of 
accession.  Detailed information on the proposed system  is provided in Table 15.  Importation of used 
motor vehicles had effectively been allowed as from 1 May 2006.  He further confirmed that 
Viet Nam was developing a system of quality st andards for traffic, environment, and human 
health/safety applicable to means of transportati on in compliance with WTO rules.  Regulations in WT/ACC/VNM/48 
Page 54  
 
  this regard would be issued promptly.  Viet Nam would only apply technical measures to second-hand 
motor vehicles in compliance with the TBT Agreem ent.  The Working Party took note of these 
commitments. 
210. A Member noted that the additional import duty to be imposed on second-hand motor 
vehicles could only be used for products in a separ ate tariff line for used vehicles.  This Member 
urged Viet Nam not to introduce additional duties th at would not be consistent with WTO rules.  
In response, the representative of Viet Nam acknowledged that Viet Nam's nomenclature only provided for breakouts at the 8-digit level for used motor vehicles under heading 8703.  Under Viet Nam's Tariff Schedule, all used automobil es 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 exceptio nal cases upon approval of the Prime Minister.  
Viet Nam would replace the current ban with a ta riff on used automobiles upon accession, as set out 
in Viet Nam's Schedule of Specific Commitments on Market Access for Goods.   
211. Members also asked Viet Nam to provide an indication of the types of children's toys 
considered to have adverse effects on moral edu cation and social security, and provide examples of 
depraved and reactionary cultural products.  The re presentative of Viet Nam stated that 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.  This prohibition had been detailed in several  documents, including the 
Law on Publishing, the Law on the Press, the Ordina nce on Advertising, Decree No. 88/2002/ND-CP 
of 7 November 2002 on the management of the impor t 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.  He provided the list of legal 
documents prohibiting the importati on, production and circulation of cultural products in Annex I to 
document WT/ACC/VNM/44.   
212. He noted that none of these specific legal docum ents stipulated the criteria for determining 
"superstitious, depraved and reactiona ry cultural products".  However,  "depraved" goods were defined 
as pornographic cultural products running counter to Viet Nam's traditional morals.  "Reactionary" 
cultural products were those propagating or co mmunicating hatred and violence; destroying the 
solidarity of the Vietnamese ethnic community; di sclosing national, military, security, and other 
secrets provided for in Viet Nam's laws and regula tions; or distorting historic truth, damaging the 
nation's reputation or national heroes, etc.  "Supe rstitious" cultural products  were cultural products, 
including pictures, the sounds or contents of whic h caused paranoia, went against nature, or enchanted 
people to commit crimes or go against the law.  He suggested that depraved, reactionary, and superstitious cultural products c ould include books, ne wspapers, magazines, pictures, paintings, 
calendars, posters, catalogues, leaflets, circulars, handbills, pamphlets, tracts/propaganda leaflets, 
slogans, couplets, scrolls, sound or pictures reco rding tapes and discs of various kinds, films 
(including cinematographic film s and video films), photos, prac tical arts, and other cultural 
documents and products with depr aved, reactionary, superstitious or morally pernicious content.  
He provided a more detailed description of supers titious, depraved, and reactionary cultural goods in 
documents WT/ACC/VNM/38, page 3; WT/ACC/ VNM/39, page 10; and WT/ACC/VNM/44, 
page 38.   
213. 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 the 
following children's toys as "having an adverse effect  on moral education, children's health and social 
security" and, therefore, prohibited in Viet Nam:  (i) gun-shaped toys; (ii) airguns or guns using 
compressed spring as propelling force for firing plastic bullets or ot her kinds of bullets; 
(iii) guns firing water or water vapour; (iv) guns flaring or making noise while shooting; (v) weapon-
shaped toys other than gu n-shaped toys (e.g., shaped like grenad es, bombs, mines, explosives, swords,  WT/ACC/VNM/48 
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  spears, bayonets, daggers, bows and crossbows); (vi) firecrackers of all kinds; (vii) certain types of 
virtual toys; (viii) toys in the form of cultural products (publications, cassettes, discs) and electronic 
games containing images, sound, actions describing brutal combats, fights, murderous attacks or other actions degrading or offending human dignity, d estroying the environment, or detrimental to 
children's aesthetic sense or adversely affecting ch ildren's education; (ix) computer software and 
electronic games with content inciting the users to violence or prostitution; (x) remote-controlled 
electrical toys that could interfere with the ope ration of other equipment/devices or be unsafe for 
children; and (xi) toys using the national flag, Vi et Nam's map, Vietnamese leaders' pictures, and 
photographs inconsistent with regul ations, or for bad intentions. 
214. Asked to provide a specific list of HS cate gories for children's toys and superstitious, 
depraved or reactionary cultural products prohib ited from importation, he said such products could 
fall under HS numbers 9501 to 9505 for toys havi ng an adverse effect on personal development, 
social order, security and safety, and under HS numbers 3706, 4901-4904,  4909-4911, 8524, and 
9701-9706 for superstitious, deprav ed, or reactionary cultural products.  However, as the 
HS nomenclature did not classify goods according to their content, it was not possible to provide a 
more specific list. 
215. The representative of Viet Nam confirmed that the prohibition against superstitious, depraved, 
and reactionary cultural products applied to all organizations, individuals, domestic and foreign 
economic entities on a non-discriminatory basis.  He further confirmed that this prohibition was based 
exclusively on the harmful content of the particul ar product and would not be applied in such a 
manner as to deny entry or access to distribution cha nnels to products that did not fall within these 
prohibited categories.  To this end, he noted that the Ministry of Culture and Information's 
management agencies (which included the Department of the Press, Department of Publishing, Department of Cinema, and Department of Perform ing Arts) conducted inspections in all economic 
sectors and assessed whether a cultural product was s uperstitious, reactionary or depraved on the basis 
of applicable laws, including the Commercial Law,  the Law on the Press and the Law on Publication.  
He confirmed that cultural products  would be permitted into Viet Na m, and would be allowed equal 
and non-discriminatory access to distribution channels, unless, following such inspection of the given product, the relevant management agency of the Mini stry of Culture and Information determined that 
the product fell within one of the prohibited cate gories prescribed by the Vietnamese laws.  The 
Working Party took note of these commitments. 
216. In response to a request for clarification fro m a Member, the representative from Viet Nam 
confirmed that the Ministry of Culture's line management requirements for cultural goods did not 
apply to products that did not contain images, so unds, or text of a cultural nature, including blank 
computer disks, storage or memory devices, a nd application software.  The representative of 
Viet Nam further confirmed that inspections of cu ltural products pursuant to the licensing requirement 
applied only to the first instance of importation of a given product, consistent with the requirements 
applied to domestic producers; if, upon inspection in the first instance of importation, the Ministry of 
Culture and Information approved the product for entr y, any subsequent importation of the identical 
good from the same exporter would not be subject to  inspection pursuant to the cultural licensing 
requirement, and could therefore be granted automa tically an import licence and be imported directly 
into Viet Nam.  The Working Party took note of these commitments.   
217. 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, exclud ing commercially traded electronic goods with 
encryption technology.  The representative of Viet  Nam confirmed that the import prohibition did not 
apply to general, commonly traded goods equipped with encryption technology and destined for mass 
consumption.  Only specialized encryption machines a nd software subject to State secret could not be WT/ACC/VNM/48 
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  imported (Decision No. 46/QD-TTg of 4 April 2001) .  For security reasons, however, his Government 
could not provide a specific list of specialized encryp tion software and machines used in Viet Nam.  
218. 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 confirmed 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 
were subject to the import restriction set out in Table 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.  
219. A Member was concerned by a ban imposed 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 prohib ited 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 Deci sion No. 93/2005/QD-UBND, which temporarily 
suspended the allocation of new liquor selling licenses w ithin District 1.  This measure applied to all 
liquor with over 30 per cent alcohol content, whet her domestic or imported.  Sellers who had already 
been granted liquor selling licenses were allowed to  continue selling liquors as usual, including these 
with over 30 percent alcohol content.  
220. Noting that Table 13(a) seemed to include so me 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 toxic chemicals that caused canc er 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.  A Member noted that Decree 
No. 68/2005/ND-CP set out the framewo rk for trade in, including importation of, the chemicals listed 
in Table 13(b) but cautioned that the Decree lacked  details of the specific procedures and technical 
standards relevant to obtaining appr oval for importation.  This Member encouraged Viet Nam to issue 
appropriate guiding circulars to further clarify the necessary procedures and technical standards for 
importation of these chemicals.   
221. 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; these Members further sought an explanation as to why government 
ministries needed to supervise the quality of importe d products, as this should be an issue determined 
between buyers and sellers.  Members requested Viet Nam to clarify, for each tariff line item, the WTO rationale of the measure applied and the precise conditions under which licenses would not be 
issued or would be restricted in volume or otherwise.  A Member noted that Viet Nam was using  WT/ACC/VNM/48 
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  discretionary licensing to restrict imports of dair y products, eggs, maize, tobacco, salt, cotton, and 
sugar.  This Member invited Viet Nam to elimin ate all such measures without an appropriate WTO 
justification by the date of accession.   
222. 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.  Althoug h Viet Nam had initially envisaged phasing out 
quotas and restrictive licensing requirements on some  non-agricultural products after accession, the 
representative of Viet Nam subsequently confirme d that Viet Nam would eliminate all quantitative 
import restrictions in the form of quotas or restrictive licenses upon accession and provided a 
timetable for phasing out such measures in Annex 2 to document WT/ACC/VNM/33.  In his view, all 
WTO-inconsistent import restrictions, with the exce ption of the restriction applied to sugar, had 
effectively been eliminated pursuant to Pr ime Minister's Decision No. 46/2001/QD-TTg of 
4 April 2001, Prime Minister's Decision No. 91/2003/QD-TTg of 9 May 2003, and Prime Minister's Decision No. 187/2003/QD-TTg of 15 September 2003.  The restriction on sugar would be replaced 
by a TRQ upon accession (see paragraph 167 above).  He nce, as from the date of accession, all import 
licensing measures would be imposed in the form of TRQ licensing and automatic licensing (automatic licensing for large motorcycles − see paragraph 208 above; lin e management measures; 
and automatic licensing as required under internati onal treaties to which Viet Nam was a party).  
He added that import licenses were delivered automa tically and were valid for one year, a period 
which could be extended upon request.  However,  as import licenses were granted automatically, 
traders preferred, in practice, to apply for a ne w import licence rather than request extension.   
223. 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., havi ng duly completed their business registration.  
He provided in Table 14 a comprehensive list of a ll line management measures applied in Viet Nam 
in the period 2001-2005, including the products co vered, the WTO justification for such measures, 
and the agency in charge of issuing the import licen ce, where applicable.  He noted that not all line 
management measures involved licensing.  In his view, existing line management measures were in 
compliance with international practice and WTO provi sions.  The fees associated with the issuance of 
line management licenses were consistent with the Ordinance on Fees and Charges and, in his 
opinion, modest and commensurate with the related ad ministrative costs.  For example, licensing fees 
for the importation and exportation of cultural products amounted to VND 50,000 per licence (about 
US$3) for commercial transactions and VND 2,000 pe r licence (about US$0.12) for non-commercial 
products, pursuant to Decision No. 203/2000/QD- BTC of 21 December 2000; licensing fees for 
imported plant protection medici ne and materials were VND 200,000 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 pr oducts imported, exported,  or in transit were 
VND 50,000  (about US$3), pursuant to Decision No. 08/2005/QD-BTC of 20 January 2005.  He added that a new line management mechan ism for the post-2005 period had been established 
pursuant to Decree No. 12/2006/ND-CP of 23 January 2006.  He confirmed that this new mechanism 
was designed with a view to ensuring that it did not impose quantitative restrictions on imports and 
that it complied with WTO rules, including Articles XX and XXI of the GATT 1994.   
224. 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 Resources Conservation; the Convention on Wetland of 
International Importance, especially of Waterfowls Habitat (Ramsar); the Convention on International 
Trade in Endangered Species of Wild Flora and Faun a (CITES); the Montreal Protocol on Substances 
that Deplete the Ozone Layer; the Framework Convention on Climate Change; the Convention on WT/ACC/VNM/48 
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  Biological Diversity (CBD); the Convention on Marine  Law; the Basel Convention on controlling the 
transit and disposal of dangerous waste; the Un ited Nations Convention to Combat Desertification 
(CCD); the Cartagena Protocol on Biosafety;  and the Vienna Convention on the Ozone Layer 
Protection.   
225. Some Members sought a commitment from Viet  Nam that, upon accession to the WTO, it 
would maintain only those import restrictions that could be justified under WTO rules.  Viet 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.  
226. 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 th e revised plan, Viet Nam was to ensure full 
compliance with the Agreement by 1 January 2 005, except for the submission of publications 
containing information on import licensing procedures to the Secretariat (obligation under Article 1.8), and the provision of all relevant info rmation to Members interested in the trade in a 
product subject to non-automatic licensing (Article 3. 5(a)).  In application of this action plan, 
Viet Nam's Prime Minister had issued Decision No. 41/2005/QD-TTg on 2 March 2005.  The Decision had come into effect on 1 Septembe r 2005 and  sought to ensure compliance with WTO 
rules and regulations.  The representative of Viet  Nam confirmed that under Viet Nam's legislative 
system, "line management" was defined as administrative oversight by line government agencies of measures to be applied consistent with WTO rule s, in particular those on SPS, TBT and import 
licensing procedures.  He further confirmed that unde r Viet Nam's regulations, in particular Decree 
No. 12/2006/ND-CP (which had replaced D ecision No. 46/2001/QD-TTg) and Decision 
No. 41/2005/QD-TTg, line management measures could no t constitute quantitative  import restrictions 
or be administered in such a way as to have any trade-restrictive or distortive effects, and thus were expected to be in compliance with the Agreement on Import Licensing Procedures.  
227. The representative of Viet Nam confirmed that, from the date of accession, Viet Nam would 
eliminate and not introduce, re-introduce or appl y quantitative restrictions  on imports, or other non-
tariff measures, such as quotas, bans, permits, prior authorization requirements, licensing 
requirements and other restrictions having equivale nt effect, that could not be justified under the 
provisions of the WTO Agreement.  He confirmed th at, to this end, Viet Nam would eliminate no 
later than the date of accession the import prohi bition on cigarettes and cigars and used motor-
vehicles and all quantitative import restrictions in the form of quotas or restrictive licenses 
inconsistent with WTO provisions.  Viet Nam woul d also convert the discretionary import licensing 
regime applied to sugar into a TRQ upon accession.  He further confirmed that, from the date of 
accession, the authority of his Government to su spend imports and exports, or to apply licensing 
requirements that could be used to suspend, ban, or  otherwise restrict the quantity of trade, including 
those listed in Tables 12, 13(a-b), and 14, would be a pplied in conformity with the requirements of the 
WTO Agreement.  The Working Party took note of these commitments. 
Customs valuation  
228. 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).   WT/ACC/VNM/48 
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  Viet Nam provided information on the implementati on and administration of the Customs Valuation 
Agreement in document WT/ACC/VNM/3/Add.1, Annex 4, subsequently revised in document WT/ACC/VNM/35.  He acknowledged that sev eral 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 detailed procedures and processes to conduct 
post-clearance examination for exported and imported goods.  Viet Nam had also introduced measures to combat commercial fraud.  In add ition, customs officers and the business community 
needed training to use the new valuation procedures.   
229. 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.   
230. In reply, the representative of Viet Nam subm itted an action plan for the implementation of 
the Customs 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 amendi ng 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 Cust oms Valuation Agreement.  The new system had 
been applied on a pilot basis for certain target groups of countries from 1 January 2004 and had been 
expanded gradually.  On 15 December 2005, D ecree 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.   
231. He further noted that minimum customs values had been eliminated in September 2004 
pursuant to Circular No. 87/2004/TT-BTC of 31 Au gust 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 
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.  Th e representative of Viet Nam stated that to assist its WT/ACC/VNM/48 
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  customs officials in assessing potential risk regardin g the truth or accuracy of the declared customs 
value for imported goods, Viet Nam was establishi ng a valuation database.  He added that the 
database would be used only as a risk assessment tool  and that it would not be used to determine the 
customs value for imported goods, as a substitute value for imported goods, or as a mechanism to 
establish minimum values.  In this regard, Viet Na m would amend Article 6 of Decree No. 155 before 
accession to clarify that the database would not be used to determine the customs value for imported 
goods.  In addition, the representative of Viet Nam c onfirmed that the Ministry of Finance would soon 
issue guidelines on the use of the valuation data base that would be consistent with the "Guidelines on 
the Development and Use of a Nati onal Valuation Database As a Risk Assessment Tool" prepared by 
the Technical Committee on Customs Valuation and set forth in Annex D to Document VT0388E3.  
A copy of Viet Nam's valuation database guidelines w ould be provided to WTO Members for review.  
232. In response to a specific question concerning the implementation of Article 6.2 of the 
Customs Valuation Agreement, according to whic h no Member could require or compel any person 
not a resident in its own territory to produce for examination or to allow access to, any account or 
other record for the purpose of determining a comput ed value, the representative of Viet Nam noted 
that such a provision had not been included in Viet  Nam's legislation, but that the Government would 
add such a provision prior to accession when it revised Decree No. 155/2005/ND-CP.  
233. In response to a question, the representative of Viet Nam agreed that Viet Nam's legislation 
lacked provisions (required by Article I and the Interp retative Note to Article I:2) to provide for the 
"circumstances of sale" method of determining whet her the relationship betw een the buyer and seller 
influenced the price.  He stated that Viet Nam would amend Decree No. 155 and Circular 113 to 
establish this provision prior to accession.   
234. In response to a question regarding the a pplication of Generally Accepted Accounting 
Principles (GAAP) as set forth in the General No te of Annex 1 of the WTO Customs Valuation 
Agreement, the representative of Viet Nam stated that the Law on Accounting of 2003 (Article 7) and 
Viet Nam's Accounting Standards of 2002 (Standa rd No. 1) had provisions on basic accounting 
principles and principal accounting requirements whic h were in accordance with the General Note of 
Annex 1 of the WTO Customs Valuation Agreement.  In addition, he explained that the provisions of 
Article 10 of the WTO Customs Valuation Agreem ent were addressed in Article 15.4 of Decree 155 
which required Customs to keep secret, at the request of declarants, information provided by 
declarants related to customs valuation purposes, ex cept otherwise provided for legitimate reasons in 
law, such as Article 7 of the Ordinance on Organi zation of Criminal Investigations (No. 23/2004/PL-
UBTVQH11) of 20 August 2004, which required discl osure of information to authorities conducting 
criminal investigations. 
235. 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 Compla ints 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 Article 1.1 of Ordinance 
No. 10/1998/PL-UBTVQH10 of 25 December 1998 amending the Ordinance on Procedures for 
Settlement of Administrative Disputes.  Cases 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 Customs Valuation 
Agreement, 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  WT/ACC/VNM/48 
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  confirmed that under the new legislation, the importe r or other person liable for the payment of duty 
in customs valuation could appeal initial determina tions without penalty, first to the customs agency, 
which made the initial determinations , then either to the higher leve l competent administrative agency 
or to the judicial authority, that notice of the decision on appeal should be given to the appellant and the reasons for such decision should be provided in writing (Articles 17, 38 and 45 of the Law on 
Complaints and Denunciations and the Ordinance on  Procedures for Settlement of Administrative 
Disputes (as amended)), and that the appellant shall al so be informed of any rights of further appeal.  
He further noted that Article 16 of Decree No. 155/2005/ND-CP had introduced a guarantee system for release of imported goods from customs pending th e final determination of the customs value.  
Customs would accept the clearance of goods provi ding that the declarant provided sufficient 
guarantee in the form of a deposit, a surety bo nd or other appropriate instruments covering the 
ultimate payment of customs duties for which the goods  may be liable, as stipulated in Article 13 of 
the Agreement on the implementation of Article VII of the GATT 1994.  The representative of 
Viet Nam confirmed that guidance on this guarantee system would be issued upon accession.  
236. He added that transparency requirements were provided for in Decree No. 155/2005/ND-CP 
of December 2005, in particular Ar ticles 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 webs ite (see the "Transparency" section below).  
He confirmed that customs authorities consulted w ith 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 Pr ime Minister and regular meetings with Customs.  
He added that a transparent post-clearance audit syst em had been established pursuant to Article 32 of 
the revised Customs Law No. 42/2005/QH11 of 14 J une 2005.  Under this Article, post-clearance 
audit was carried out in case of signs of tax or  commercial fraud or violation of import-export 
regulations or in the event of suspicion of fraud or  violation based on data analysis, customs controls, 
or information from agencies, organizations, indivi duals or foreign 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 legisl ation.  He further noted that importers were 
informed about Customs' classification decisions in  writing pursuant to Circular No. 85/2003/TT-BTC 
of 29 August 2003 (Item IV, Section B).  
237. A Member sought a commitment from Viet Nam to implement fully the provisions of 
Decision 3.1 of the Committee on Customs Valuation (T reatment of Interest Charges in the Customs 
Value of Imported Goods) and paragraph 2 of D ecision 4.1 of the Committee on Customs (Valuation 
of Carrier Media Bearing Software for Data Pro cessing Equipment).  Paragraph 2 of Decision 4.1 
provides for the determination of the customs va lue of imported carrier media bearing data or 
instructions only on the cost or value of the carrier medium.    
238. The representative of Viet Nam confirmed that, from the date of accession, Viet Nam would 
fully apply the WTO provisions concerning customs valuation, including the Agreement on the Implementation of Article VII of the GATT 1994 a nd Annex I (Interpretative Notes).  Viet Nam 
would ensure that any customs valuation method to  be applied would be in accordance with these 
WTO rules.  In this regard, he confirmed that mi nimum prices and any system of reference prices or 
fixed valuation schedule applied to imports in lie u of the transaction value to determine customs 
valuation had been eliminated and would not be re introduced and that that all methods of valuation 
used were in strict conformity with those provi ded for in the WTO Customs Valuation Agreement.  
He added that Viet Nam was currently applying para graph 2 of Decision 4.1, the Valuation of Carrier 
Media Bearing Software for Data Processing Equi pment (G/VAL/5), as provided in Annex 1 to WT/ACC/VNM/48 
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  Circular 113.  Viet Nam committed to implement Decision 3.1 as soon as possible, but in any event 
no later than two years from the date of accessi on and paragraph 2 of Decision 4.1 upon accession.  
He further confirmed that any modification to or  amendment of the Decree 155 or Circular 113, 
including the Annex thereto, would be in complia nce with the WTO Customs Valuation Agreement, 
including the Interpretative Notes.  Viet Nam would inform the WTO Customs Valuation Committee 
of any changes to Decree 155 or Circular 113, includ ing the Annex to Circular 113, or any other laws, 
regulations, decrees or circulars that were releva nt to the WTO Customs Valuation Agreement, in 
accordance with Article 22 of the Agreement, incl uding relevant changes in the administration of 
these provisions.  The Working Party took note of these commitments. 
Rules of origin 
239. 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 rules 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 20 04, Joint Circulars of the Ministry of Trade 
and the General Customs Department No s. 09/2000/TTLT-BTM-TCHQ of 17 August 2000 and 
22/2001/TTLT-BTM-TCHQ of 2 October 2001,  and 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 Origin.  Viet Nam 
was participating in the ASEAN Free Trade Area (A FTA) and the preferential rules of origin of 
AFTA, and importers we re thus required to submit certificates of origin (form D), proving 40 per cent 
ASEAN cumulative origin, for goods imported under the Common Effective Preferential Tariff 
(CEPT) implementing the ASEAN Free Trade Area.   
240. Certificates of origin were required for goo ds (i) 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; (ii)  subject to import management regulations in 
accordance with Vietnamese laws or international treaties or agreements to which Viet Nam was a 
party; (iii) announced by the Government of Viet Na m or international organizations as likely to harm 
social security, public health or the environmen t; and (iv) imported from countries subject to trade 
remedy measures.  Certificates of origin issued by manufacturers 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 ordina ry (standard) duty rate, i.e., not the MFN rate. 
241. 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 certificate 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 collectors, 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 information contained in their certificates of 
origin. 
242. 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. 
243. The representative of Viet Nam stated that, in his view, existing legal documents were 
consistent with the Agreement on Rules of Origin , although they did not elaborate fully all aspects  WT/ACC/VNM/48 
 Page 63 
 
 
  governed by the Agreement.  He confirmed that th e requirements of Article 2(h) and paragraph 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 transforma tion as a means of determining the origin of goods 
and included provisions on verifica tion and audit.  In response to a question, he said that 
administrative decisions on origin were subject to the same administrative and judicial review 
mechanisms as other administrative decisions.   
244. 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 provisi ons 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 pref erential rules of origin, Viet Nam's customs 
authorities would provide an assessment of the orig in of the import 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 th e measure or instrument of commercial policy to 
which they were linked, Viet Nam would not use the rules of origin as an instrument to pursue trade 
objectives directly or indirectly.  The Working Party took note of these commitments. 
Other customs formalities 
245. 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. 
246. 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 customs proce dures expected to be compliant with the Revised 
Kyoto Convention; simplified and harmonized customs procedures to reduce the number of documents required; and introduced a system of el ectronic 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.  Th e 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 overseas suppliers and the Customs service.  He stated further that, in his 
view, Viet Nam had qualified for 81 of the 148 norms and standards provided for by the Kyoto Convention, including norms on clearance, customs pr ocedures, customs tariff and taxes, and customs 
inspections. WT/ACC/VNM/48 
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  247. 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 
legislation had been passed in 2005, which, in  his assessment, strengthened intellectual property 
control over exported and imported goods in comp liance with the TRIPS Agreement (see section on 
"Trade-Related Aspects on Intellectual Property Righ ts").  The General Department of Customs had 
organized training courses to enhance the knowle dge of Viet Nam's customs regulations among 
customs officials, and cooperated with the Viet  Nam Chamber of Commerce and Industry to raise 
awareness of the Law on Customs and its guiding legal documents among ot her agencies and the 
business community.  Customs procedures were pub licly known and transparent.  They were 
discussed with interested parties during the draftin g process and published in the Official Gazette 
once finalized.  They entered into force 15 days af ter their publication.  All customs procedures, 
regulations and policies related to  importation and exporta tion were disclosed officially through mass 
media (customs news, customs journal, webs ite 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 
248. Some Members noted that Viet Nam did not a pply pre-shipment inspection requirements.  
Some Members asked to Viet Nam to ensure, in  case it contracted the services of pre-shipment 
inspection firms, that the operations of such firms be consistent with the relevant WTO provisions, in 
particular GATT Article VIII, the Agreement on Pr e-shipment Inspection and the Agreement on the 
Implementation of Article VII of  the GATT 1994.  A Member requested a commitment that Viet Nam 
not apply PSI measures until WTO-consistent  legislation had been implemented. 
249. 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 PSI system and was not preparing an y legislation covering this subject matter.   
250. The representative of Viet Nam confirmed that if pre-shipment inspec tion requirements were 
introduced, they would be temporary and in confor mity with the requirements of the Agreement on 
Pre-shipment Inspection and other relevant WTO agreem ents.  Viet Nam would take full responsibility 
to ensure that pre-shipment enterprises operating on its behalf comply with the provisions of WTO 
Agreements including the Agreements  on Technical Barriers to Trad e, Sanitary and Phytosanitary 
Measures, Import Licensing Proced ures, the Implementation of Article VII, Rules of Origin, the 
Implementation of Article VI (An tidumping), Subsidies and Counterva iling Measures, Safeguards, and 
Agriculture.  The establishment of charges and fees  would be consistent 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 Ar ticle X of the GATT 1994, would be  applied.  Decisions by such 
firms could be appealed by importers in the sa me way as administrative decisions taken by the 
Government of Viet Nam.  The Workin g Party took note of these commitments. 
Anti-dumping, countervailing duties, safeguard regimes 
251. The representative of Viet Nam said that Vi et Nam at the outset had had no provisions on 
anti-dumping, countervailing duty or sa feguard measures in its legislati on.  He noted, however, that the  WT/ACC/VNM/48 
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  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 th e National Assembly on 20 May 199 8, allowed the imposition of 
additional duties on goods imported at a price lowe r than the "normal price as a result of dumping 
practices, and consequently causing difficulties to domestic  producers of like prod ucts" or "normal price 
resulting from subsidy in the exporting country, conse quently causing difficulties to domestic producers 
of like products".  Viet Nam could also impose a dditional duties on goods originating in countries that 
applied "discriminatory treatment against Vietnamese g oods with respect to tariff  rates and/or any other 
measures".  He consider ed this provision necessary to ensure that Viet Nam, as  a non WTO Member, 
would not be disadvantaged in international trade. 
252. The representative of Viet Nam acknowledged that Viet Nam needed to establish a proper legal 
and institutional framework to enforce provisions on  anti-dumping and count ervailing measures.  New 
Ordinances on Anti-Dumping, Countervailing, and Safegu ard Measures had been dr afted to this effect.  
The Standing Committee of the National Assembly had approved the Ordinance on Safeguard Action on 
25 May 2002, Ordinance No. 20-2004-PL-UBTVQH11 "A gainst Dumping of Imported Goods into 
Viet Nam" on 29 April 2004, and Ordinance No. 22-2004-PL-UBTVQH11 "O n Measures against 
Subsidized Products Impor ted into Viet Nam" on 20 August 2004.  Implementing regulations for these 
Ordinances were being drafted.  The regulations wo uld be ready prior to Viet Nam's accession to the 
WTO.  A Decree on the implementation of the Ordi nance on Measures against Subsidized Products 
Imported into Viet Nam had already been adopt ed (Decree No. 90/2005/ND-CP of 11 July 2005).  The 
Decree had been promulgated with a view to ensuri ng conformity with the Agreement on Subsidies and 
Countervailing Measures.  The Decr ee included detailed provisions on confidentiality, provision of 
information, organization of cons ultations, obligation to publish elem ents or decisions  relevant to 
investigations, procedures for inve stigations, application of countervailing duties, etc.  Anti-dumping, 
countervailing and safeguard deci sions were made public via news papers, official communication 
channels, the Ministry of Trade's website, etc.  He added that the Ministry of Trade would issue an Official Bulletin on anti-dumping, countervailing a nd 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 Me asures against Subsidized Produc ts Imported into Viet Nam, the 
provisions of international agreements to which Vi et Nam was a party would prevail over Vietnamese 
anti-dumping and countervailing legisl ation in the event of a conflict .  In his view, Viet Nam's new 
legislation on anti-dumping and countervailing measures complied fully with the WTO Agreement on 
Subsidies and Countervailing Measures and the Anti-D umping Agreement.  In response to a question, 
he noted that no trade remedy cases had been initiated in Viet Nam so far.   
253. 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 Anti-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 countervailing duty purposes  after accession until legi slation in conformity 
with the provisions of these WTO Agreements had been notified and implemen ted.  In the future 
elaboration of any legislation c oncerning anti-dumping, counterva iling duty and safe guard measures, 
Viet Nam would ensure their full  conformity with the relevant WTO provisions, including the 
Agreement on the Implementation of Article VI , the Agreement on Subsidies and Countervailing 
Measures and the Agreement on Safeguards.  The Working Party took note of these commitments.  
254. Several Members noted that Viet Nam was conti nuing the process of transition towards a full 
market economy.  Those Members noted that under those circumstan ces, in the case of imports of 
Vietnamese origin into a WTO Member, special diffic ulties 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 importing WTO Member might find it necessary to take WT/ACC/VNM/48 
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  into account the possibility that a strict comparison w ith domestic costs and pr ices in Viet Nam might 
not always be appropriate. 
255. The representative of Viet Nam confirmed that, 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 shall 
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 shall use either Vietnamese prices or costs for the industry under investigation or a methodol ogy that is 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 can cl early show that market economy conditions 
prevail in the industry producing the like product with regard to the manufacture, 
production and sale of that product, the importing WTO Member shall use Vietnamese prices or costs for the industry  under investigation in determining price 
comparability; 
(ii) The importing WTO Member may use a methodology that is not based on a strict 
comparison with domestic prices or costs in Viet Nam if the producers under investigation cannot clearly show that market economy conditions prevail 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 shall apply; however, if there are special difficulties in that application, the importing WTO Member may then use alternative methodologies for identifying and measuring the subsidy benefit which take into account the 
possibility that prevailing terms and conditions  in Viet Nam may not be available as 
appropriate benchmarks. 
(c) The importing WTO Member shall notify methodologies used in accordance with 
subparagraph (a) to the Committee on An ti-Dumping Practices and shall notify 
methodologies used in accordance with subpara graph (b) to the Committee on Subsidies and 
Countervailing Measures. 
(d) Once Viet Nam has est ablished, under the national law of th e importing WTO Member, that it 
is a market economy, the provisions of subparagr aph (a) shall be terminated provided that the 
importing Member's national law contains ma rket economy criteria as of the date of 
accession.  In any event, the provisions of  subparagraph (a)(ii) shall expire on 
31 December 2018.  In addition, should Viet Na m establish, pursuant to the national law of 
the importing WTO Member, that market economy conditions prevail in a particular industry 
or sector, the non-market economy provisions of  subparagraph (a) shall no longer apply to 
that industry or sector. 
The Working Party took no te of these commitments.  WT/ACC/VNM/48 
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  2. Export Regulation 
Customs tariffs, fees and charges for services rend ered, application of internal taxes to exports  
256. The representative of Viet Nam said that Viet Nam levied export duties on some minerals and 
natural resources exported 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 accordan ce with the Law on Impor t, Export Duties, and 
Decision No. 45/2002/QD-BTC of 10 April 2002.  Viet Nam's export duties were applied on an MFN 
basis.  Rates of export duty ranged from one per cent on certain precious stones to 45 per cent on scrap 
metal.  Goods subject to export dut ies are listed in Table 16.   
257. 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 representative 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. 
258. 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. 
259. Some Members asked Viet Nam to negotiate bi laterally to reduce its export duties on ferrous 
and non-ferrous scrap metal in  the context of accession to the WTO.  In their view, the results of such 
negotiations would form part of the balance of co mmitments and concessions in Viet Nam's terms of 
accession.  These Members emphasized that if Vi et Nam subsequently increased these export duties 
above the commitment level, it woul d disturb the balance of concession s established in the bilateral and 
multilateral negotiations for WTO accession, a nd these Members would have the right to take 
appropriate action to rebalance the concessions.  Some other Members stated that this was without 
prejudice to their views in respect of the status and legality of export taxes in the framework of WTO Agreements. 
260. The representative of Viet Nam confirmed that Viet Nam would apply export dutie s, export fees 
and charges, as well as internal  regulations and taxes a pplied on or in connection with exportation in 
conformity with the GATT 1994.  W ith regard to export duties on fe rrous and non-ferrous  scrap metals, 
he confirmed that Viet Nam would reduce export duties in accordan ce with Table 17, and that Table 17 WT/ACC/VNM/48 
Page 68  
 
  included all export duties that Viet Nam applied to  ferrous and non-ferrous scrap metal.  The Working 
Party took note of these commitments. 
Export restrictions 
261. 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 products "for the purpose of pr otecting 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 expor t quotas unless applied 
temporarily to prevent or reli eve critical food shortages. 
262. The representative of Viet Nam replied that th e import-export licensi ng 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 18.  Certain exports were subject to line management 
approval.  The Ministry of Aqua-culture licensed expo rts of certain aquatic species (see Table 19).  The 
list of products subject to export pr ohibition, in his view, conformed to  the requirements of Article XX 
of the GATT 1994.  An enterprise wishing to e xport a product on the prohibi ted list, submitted an 
application, including justifications  for the exports, to the Ministry or  People's Committee concerned.  If 
these institutions considered the demand justifiable,  the application would be submitted to the Prime 
Minister for final decisi on.  He added that Viet Nam restricted the cutting volume of wood and 
maintained an annual 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 fo r 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.  
263. 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 Minist er "On the Administration of Rice Exports and 
Fertilizer Imports in 1997" of 8 Marc h 1997, rice export quotas had been  allocated to provincial People's 
Committees based on the output of rice paddy in co mmercial quantities in each province, and the 
provincial People's Committees allo cated their quotas to enterprise s based on their actual export 
capacity.  Quotas had also been dist ributed to certain Central Food Cor porations based on their capacity.  
Enterprises had been required to be members of the Vietnamese Foods  Association to be eligible for 
quota allocations.  An enterp rise unable to fill its a llocated quota would need to  report promptly to the 
Ministry of Trade and the Ministry of Agriculture and Rural Development.  The Prime Minister could 
transfer unused entitlem ents to other enterprises; no other form of  quota transfer or sale was permitted. 
264. 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 confir med that minimum export prices on rice and crude 
oil, serving only as guidance prices, had been abolished. 
265. Noting that export quotas were generally not justified under WTO rules, some Members 
requested a commitment that Viet Nam would only maintain those expor t restrictions that could be 
justified under WTO rules upon accession to the WTO.   Some Members did not  consider Viet Nam's  WT/ACC/VNM/48 
 Page 69 
 
 
  export controls, in particular thos e on rice and timber, in conformity  with WTO provisions.  Viet Nam 
was requested to revise its regi me to introduce WTO consistent measures to achieve its policy 
objectives, and to provide a clear timet able for the elimination of measures inconsistent with WTO rules. 
266. In reply, the representative of Viet Nam said th at rice was considered vital for Viet Nam's socio-
economic security, and Viet Nam th erefore did not intend to elimin ate controls on production (and 
trade).  However, rice export quotas had been el iminated and Viet Nam wa s not applying any export 
restriction on rice at present.  Instead, a flexible  control mechanism had been  developed.  Under this 
mechanism, at the beginning of each year, the G overnment would announce an indicative export volume 
to all enterprises, based on annu al production and consumption fore casts, and reserve volumes.  The 
indicated export volume applied to the economy as a whole; there was no indi cative export volume of 
rice allocated to individual enterprises and no oblig ations were imposed on en terprises.  All traders 
having legally registered their business were free to sign rice export c ontracts at their own discretion, but 
the contracts 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 food security purposes (see Ta ble 8(b)).  The Viet Na m Food Association was a 
non-governmental socio-professional a ssociation operating on the principles  of voluntary participation, 
self administration, self finance and self responsibili ty 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 memb ers, policies related to food production and trade, 
and protected the legitimate intere sts of its members.  The association was responsible for informing 
enterprises about accumulated contracted export volum es.  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.  
267. In response to a question concerning the su spension of export contracts for unprocessed 
minerals, the representative of Viet Nam said that  following serious mining accidents due to the illegal 
exploitation of solid minerals and the non-application of safety measur es, the Prime Minister had issued 
Instruction No. 10/2005/CT-TTg of 5 April 2005 suspe nding the signing of new contracts to export raw 
solid minerals until the issuance of new safe ty regulations that would supersede Circular 
No. 02/2001/TT-BCN of 27 April 2001 on the conditions to export minerals.  The suspension was only 
temporary.  Enterprises having signed legal mineral export contracts were allowed to continue exporting 
normally.  
268. Asked to justify the provisions of Article 5. 4 of the Law on Changi ng 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 mine rals affected by this Article, the 
representative of Viet Nam said that, under the Mi neral Law, minerals which would meet the quality 
requirements and conditions s tipulated in the Mi nistry of Industry Circular No. 04 of 2 August 2005 in 
the period 2005-2010 would be allowed for exportati on.  These conditions aimed at preventing the 
illegal exploitation, and subsequent exportation, of minerals. 
269. 
The representative of Viet Nam confirmed that, upon accession, any remaining export 
restrictions and management meas ures would be applied in a manner fully consistent with WTO 
provisions.  The Working Party took note of this commitment. 
3. Internal Policies Affecting Foreign Trade in Goods 
Industrial policy, including subsidies  
270. 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, WT/ACC/VNM/48 
Page 70  
 
  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 poor 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.   
271. 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 also submitted a new no tification, covering the period 2003-2004, in 
document WT/ACC/VNM/42/Rev.1.   
272. According to the notification for 2003-2004, Vi et Nam provided preferential import tariff 
rates contingent upon localization ratios with respect to products and parts of two-wheel motorbikes; 
preferential import tariff rates contingent upon locali zation ratios with respect to products and parts of 
mechanical-electric-electronic industries; support for the implementation of projects manufacturing 
priority industrial products; investment incentiv es contingent upon export performance for domestic 
businesses; other investment incentives for domestic  businesses; investment incentives contingent 
upon export performance for foreign-invested enterp rises; other investment incentives for foreign-
invested enterprises; preferential investment cred it for development contin gent upon export criteria; 
preferential development credit for investment con tingent upon localization ra tios; other preferential 
investment credit for development; support for devel opment of the textile and garment sector; export 
promotion; trade promotion; support for mechanical products; support for the shipbuilding industry; 
assistance for commercial development in mountainous, island and ethnic minority areas; assistance to enterprises facing difficulties due to objective re asons; and incentives for investment projects in 
science and technology.  Two other programme s 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 provided under these programmes were not industry- or enterprise-
specific.  Subsidies granted under the programme for labour-intensive domestic enterprises included 
exemption or reduction of land rental and land use ta x, and extended corporate income tax exemptions 
and reductions.  The programme aimed primarily at creating employment and improving people's 
incomes and conditions of living.  The incentives pr ovided under this programme were linked entirely 
to the number of employees.  As for domestic and foreign-invested enterprises employing a large 
number of female employees, they were entitled to corporate income tax reductions.  The enterprises 
could also deduct expenses related to the employment  of female workers from the taxable income.   
273. He noted that most of the subsidy programmes were based on reduction of 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, in Tables 20(a), (b) and (c), 
information on investment incentives granted during the period 1996-2003 according to the type of 
enterprise, the number of investment projects and the investment areas having benefited from 
investment incentives between 2001 and 2003.  Tax in centives were listed in the investment licenses, 
i.e., the Government guaranteed the provision of in centives.  There was no standard duration for an 
investment licence.  Both domestic and foreign- invested enterprises, including joint-ventures and 
100 per cent foreign-owned enterprises, were eligible for incentives on an equal basis, as described in 
Programmes IV, V, VI and VII of document WT/ACC/ VNM/42/Rev.1.  He confirmed that all direct 
subsidies available to State-owned enterprises were al so available to private companies.  He further 
noted that Viet Nam's 2005 Investment Law, wh ich had come into force on 1 July 2006, had 
eliminated the practice of granting prohibited subsid ies to encourage investment; granted investment  WT/ACC/VNM/48 
 Page 71 
 
 
  incentives on equal terms to both foreign and domestic investors; and, provided that, if the provisions 
of an international treaty to which Viet Nam was a si gnatory were different than the provisions of the 
Investment Law, the provisions of the international treaty would prevail.       
274. Questioned about the difference between the land use tax and land rental, he explained that 
the land use tax was a tax collected annually by th e Government for the use of land allocated by the 
Government to entities or individuals on a long-term  basis for the purpose of agricultural production, 
residence, construction or business.  The land rental  was an annual collectib le on the use of land 
allocated on the basis of land rental contracts.  The criteria for land rental and land use tax exemptions 
and reductions were stated in Viet Nam's No tification on Industrial Subsidies (document 
WT/ACC/VNM/42/Rev.1). 
275. In response to questions about the programme of preferential import tariff rates contingent 
upon localization ratios for domestic and forei gn-invested enterprises producing or assembling 
mechanical, electric, or electronic products and/ or parts of these products, he noted that this 
programme was part of Viet Nam's overall industria lization strategy, although he recognized that the 
programme only played a useful role in the devel opment phase of these industries.  He stated that 
Decision No. 43/2006/QD-BTC dated 29 August 2006 abolished programmes of preferential import 
tariff rates contingent upon localization ratio s with respect to products and parts of 
mechanical/electric/ electronic industries as from 1 October 2006.  He also confirmed that the 
programme of preferential import tariff rates conti ngent upon localization ratios with respect to two-
wheel motorcycles and parts had been terminated as of 1 January 2003.    
276. 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 Promotion Fund had amounted to VND 193 billion 
in 2004.  Asked to define the terms "financial support" and "export reward", the representative of 
Viet Nam said that financial support covered any ki nd of financial benefit, and that both financial 
support and export reward could be considered as grants.   
277. The representative of Viet Nam stated that the Export Promotion Fund had also been 
providing support to enterprises for expenditures on tr ade promotion activities such as participation in 
trade fairs and exhibitions, market surveys, c onsultancy fees and the opening of trade promotion 
centres and representative offices abroad since ea rly 2001.  Payments under this Fund 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 expenditures of enterprises on such activities.  He stated that Decision 
No. 279/2005/QD-TTg established a new trade prom otion programme for 2006-2010 and confirmed 
that this new programme would be appl ied in conformity with WTO rules.  
278. The Development Assistance Fund − which had been established in 1999 to assist in the 
implementation of important economic projects a nd the development of disadvantaged areas - had 
been providing:  (i) preferential investment cred it for development conti ngent upon export criteria; 
(ii) preferential development credit for invest ment contingent upon localization ratios; and 
(iii) other preferential investment credit for develo pment.  He provided statistics on lending through 
the Development Assistance Fund for the years 2003 and 2004 in Annex 1 to document 
WT/ACC/VNM/39.  The representative of Viet Nam further confirmed that, as stated in document 
WT/ACC/VNM/42/Rev.1, Viet Nam would remove the prohibited elements of the first two 
programmes by eliminating the export requirements or  localization requirements, as relevant, by the 
date of accession.   WT/ACC/VNM/48 
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  279. He added that, among the investment incentives provided to foreign-invested enterprises, 
Viet Nam granted a five year tariff exemption on the importation of production raw materials to foreign-invested enterprises exporting at least 80 pe r cent of their products, or 50 per cent in the case 
of agricultural, forestry or aqua-cultural products .  Investment in such projects was "specially 
encouraged" according to Decree No. 24/2000/ND-CP.  In addition, preferential rates of corporate 
income tax (10, 15 or 20 per cent against the sta ndard rate of 28 per cent)  and tax reductions or 
exemptions of up to nine years, could be grante d to foreign-invested enterprises depending on their 
export ratio or area of investment.  The incentives a pplicable and their duration were specified in the 
investment licence.  Foreign-invested enterprises we re also allowed to purchase goods that were not 
produced by them in the domestic market and were  to be processed for export or exported without 
processing (except products listed as prohibited to trade for exportation, or conditionally exported 
goods).   
280. Investment incentives for domestic firms produc ing goods for export included an exemption 
from import duties on the importation of equipment, machinery, and specialized transportation means 
used in the establishment of th e enterprises' fixed assets.  Fixed assets used in the production, 
processing or assembly of exported goods had been subject to accelerated depreciation (half the 
normal duration).  In addition, enterprises in the software and mechanical industry benefited from 
duty exemption on the exportation of their products.   
281. He added that Viet Nam operated a duty drawb ack regime to refund duties paid on imported 
products used in the manufacturing of goods for export.  A Member noted that the volumes of products entering Viet Nam's territory under a duty drawback arrangement should not be considered 
as part of, or linked to, any tariff rate quota and asked Viet Nam to clarify the link between the duty 
drawback regime and its TRQ arrangements.  The representative of Viet Nam replied that traders 
could apply for tariff rate quotas or import directly  the goods to be used in the manufacture of 
products for export, in both cases benefiting from dut y drawback.  He further confirmed that from the 
date of accession, Viet Nam would apply import duty exemptions and drawback practices in full 
conformity with the Agreement on Subsidies and Countervailing Measures, in particular, Annexes I 
and II thereto, consistent with the commitments undertaken in paragraphs 286 and 288.  The Working 
Party took note of this commitment.    
282. In response to a question about the support pr ogramme for shipbuilding, he added that 
incentives under this programme were not in any way contingent upon exportation.  Thus, incentives 
were provided for both exported vessels and vessels re gistered domestically.  In 2003, four vessels 
had been exported and 12 had been registered dom estically.  In 2004, all vessels (21) had been 
registered domestically.   
283. Some Members noted that Viet Nam considered itself a low-income developing country 
eligible to maintain export subsidies under th e 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 Ar ticle 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 expiry of the phase-out period for expo rt subsidies by developing countries, Viet Nam 
should phase out its export subsidy schemes upon accession.    WT/ACC/VNM/48 
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  284. Members noted that Article 32 of the 2005 Investme nt Law, by stipulating that investments in 
export processing zones would be entitled to in centives, meant that all incentives listed under 
Section 2 of the Law could be granted for expor t activities and therefore considered prohibited 
subsidies under Article 3 of the WTO Agreement on Subsidies and Countervailing Measures.  These 
Members asked Viet Nam to explain how it reconcile d this provision with the expectation that all 
prohibited subsidies be eliminated upon accession.   A Member noted that aspects of the Price 
Stabilization Fund, which had been maintained in  the Export Promotion Fund, i.e., surcharges 
assessed based on difference between national and world market prices, appeared to be a price band, and that the use of these funds for export pr omotion could be an export subsidy.     
285. The representative of Viet Nam noted that the i nvestment incentives referred to in Article 32 
of the 2005 Investment Law were spelled out in the implementing Decree and would be offered only 
in accordance with Viet Nam's commitments on subs idies (i.e., incentives 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.   
286. 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 Deci sion No. 55/2001/QD-TTg had been provided since 
31 May 2006, and that Decision No. 55/2001/QD-TTg had been repealed on 30 May 2006.  He also confirmed that Viet Nam would eliminate all prohi bited subsidies (i.e., subsidies contingent upon 
export performance or the use of domestic over impo rted goods) to the textile and garment industries, 
including but not limited to investment incentives contingent upon export performance for domestic 
businesses, investment incentives contingent up on 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. 
287. 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.   
288. 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 
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 WT/ACC/VNM/48 
Page 74  
 
  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 took note of these commitments. 
Technical barriers to trade, standards and certification 
289. 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 organizati ons and which reported to the Ministry of 
Science and Technology - was responsible for advising the Government on issues related to 
standardization, metrology and quality management , and representing Viet Nam in international 
standardization fora.  STAMEQ had been desi gnated as Viet Nam's central contact point for 
standards, technical regulations and conformity assessment issues, and Viet Nam's TBT Notification 
Authority and Enquiry Point pursuant to Deci sion No. 356/2003/QD-BKHCN of 25 March 2003 of 
the Ministry of Science and Technology.  He c onfirmed that the enquiry point would be fully 
operational as from the date of accession.  He pr ovided initial information on technical barriers to 
trade in document WT/ACC/VNM/3/Add.1, Annex 5. 
290. The main tasks of STAMEQ included preparation of rules and regulations on standardization, 
metrology and quality control for approval by the co mpetent authorities; supervision and control of 
the implementation of approved rules and regulatio ns; to organize and guide activities relating to 
standardization, metrology and quality control; to formulate national standards; to perform quality 
system certification, product certification and accr editation of testing and calibration laboratories, 
quality inspection bodies and quality certification bodi es; to implement State supervision of quality 
requirements related to goods; to keep the nationa l measurement standards; to organize and guide 
activities of verification, calibration, and certifi cation of measuring instruments and patterns; to 
conduct studies on standardization, metrology and quality control; to participate in international 
cooperation on standardization, me trology 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 developed 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.  
291. 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 Decembe r 1999, the Ordinance on Consumer Rights 
Protection No. 13/1999/PL-UBTVQH10 of 27 April 1999, the Ordinance on Food Safety and 
Hygiene No. 12/2003/PL-UBTVQH11 of 26 July 2003, issued by the National Assembly Standing Committee, and other related regulations such as De crees or Decisions issued  by the Government or 
Prime Minister, including Decision No. 444/2005/QD-TTg of 26 May 2005 approving the scheme of implementation of the TBT Agreement, and inter-M inisterial or Ministerial Circulars and/or 
Decisions issued by ministries or Ministers to guide the implementation of the Ordinance on  WT/ACC/VNM/48 
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  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.   
292. The main ministries involved in standards, technical regulations and conformity assessment 
procedures were the Ministries of Science and T echnology; Industry; Fisheries; Health; Trade; 
Agriculture and Rural Development; Post and Te lematics; Resources and Environment; Transport; 
and Construction.  Asked to define  the term "quality" more precisely, he said that the term should be 
understood in a broad sense.  The Ordinance on Goods Quality governed the State administration of 
quality through technical regulations with the aim to protect human health, safety, the environment 
and other legitimate objectives as indicated in the TBT Agreement. 
293. 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 of 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 ot her 4,350 standards, in his view, were in part based 
on foreign regional and internationa l standards.  Sectors with a lo w level of harmonization included 
shipbuilding, aviation, garments, cosmetics, wooden articles and glassware, and sectors with 
geographical, cultural and custom specificities (e.g . food products, garments, and toys may be 
dependent on cultural and custom specificities).  Beca use of changes in fashion and consumers' needs, 
harmonization of garment standards focused on materials and auxiliary parts of garments. 
294. Draft standards were prepared by tec hnical 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 expected to operate in accordance with the 
guidelines of the International Standardization Orga nization (ISO).  To facilitate the collection of 
comments, STAMEQ posted at the beginning of each y ear 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.   
295. 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 that issued technical 
regulations, developed them in c ooperation with the relevant State management agencies, scientific 
and technological organizations, enterprises, cons umers, 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 - submitted to the 
relevant bodies, organizations  and individuals for comment.  Notices of proposed technical 
regulations were, for that purpose, published in the Appendix of the Official Gazette by decision of 
the competent State bodies (Article 5.4 of Government 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 these were published in the media.  He said further WT/ACC/VNM/48 
Page 76  
 
  that his Government was considering publishing draft laws and regulations, including technical 
regulations, in the electronic Official Gazette.  He added that the issue of ensuring quality and 
integrity in the development of legal documents was provided for in the Law on the Enactment of 
Legal Normative Documents.  In response to a qu estion, he noted that the Law on Standards and 
Technical Regulations provided for a period of si x months between adoption and implementation of a 
technical regulation − except in very special cases such as national security − which he considered to 
be in line with TBT rules.  He added that a netw ork 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.   
296. All standards were voluntary unless specifically indicated in the relevant regulation.  Among 
the 5,800 national standards listed in the Viet  Nam Standards Catalogue in 2004, 231 were 
mandatory.  Mandatory requirements aimed at protec ting the environment or human, animal or plant 
life or health, or at preventing deceptive practices or  national security.  Requested to provide a list of 
the mandatory requirements /technical regulations applicable in Viet Nam, he referred Members to the 
internet homepage of STAMEQ ( http://www.tcvn.gov.vn
).  Providing an example, he noted that on 
24 December 1999, the Standing Committee of th e National Assembly had adopted Ordinance 
No. 18/1999/PL-UBTVQH10 which stipulated that goo ds related to food, safety, sanitary, human 
health, environment, and other goods specified by laws and regulations, were obliged to be in 
conformity with Viet Nam's national standards.  Th e Ordinance had entered into force on 1 July 2000, 
superseding an Ordinance on Goods Quality of 27  December 1990.  The Ordinance stipulated that 
both domestic and imported goods could be subject to either quality inspection − the list of goods 
would be determined by the Government - or quality certification, to be determined by Ministers.  
Both methods were being develope d and revised on the basis of ISO Guides.  Quality certification to 
establish conformity with Viet Nam's standards was mostly carried out on a voluntary basis.  
Conformity assurance procedures were la id down in Decree No. 179/2004/ND-CP of 
21 October 2004 guiding the implementation of  the 1999 Ordinance on Goods Quality. 
297. 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 establi shed by the Ministry of Finance (Circular 
No. 83/2002/TT-BTC of September 2002), based on th e Ordinance on Fees and Charges promulgated 
by the National Assembly Standing Committee on 28 August 2001, and Government Resolution 
No. 57/2002/ND-CP of 3 June 2002.  According 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.  A revi sed list of products cove red had been promulgated 
on 7 March 2006 (Decision No. 50/2006/QD-TTg).  Im ported products were also subject to this 
method.  He expected supplier's declaration of pro duct conformity 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 guidelin es, Codex (GMP, HACCP) and on the systems of 
other countries such as New Zealand and Japan.  WT/ACC/VNM/48 
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  298. The representative of Viet Nam stated that the Ordinance on Goods Quality stipulated that the 
Government should issue a list of goods subject to ma ndatory quality inspection.  The most recent list 
had been published in Prime Minister's Decisi on No. 50/2006/QD TTg of 10 March 2006.  He added 
that mandatory registration of product quality ha d been abolished in early 2001.  Inspection 
procedures for imported and exported goods had been simplified by moving towards a system of type 
testing.  The requirement to inspect each individua l consignment could be waived for companies with 
a proven track record of quality (i.e., when confor mity with relevant standards and/or technical 
regulations had been demonstrated several times fo r the same goods).  The principle of simplified 
inspection procedures applicable to imported and ex ported goods had been approved by the Minister 
of Science and Technology in Decision No. 1091/1999/QD-BKHCNMT of 22 June 1999.  
The detailed conditions unde r which simplified inspection procedur es could be applied were specified 
in regulations issued by the Directorate for Sta ndards and Quality and line management ministries for 
each type of good.  Complaints against decisions by the authorities responsible for conformity assessment or quality inspection procedures were re solved in accordance with Viet Nam's Ordinance 
on Claim and Denouncement.  In response to a Member who enquired why line government agencies 
had to be involved in the inspection for quality/co nformity 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 di d not have testing faciliti es and were not able to 
test the quality and conformity of import produc ts.  He noted that these testing facilities were 
financially independent. 
299. 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 Inter- Circular No. 37 upon arrival of the goods at the 
port of entry.  In order to facilitate customs clea rance and save importers the costs of storing 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 Affa irs.  He noted that goods processed for re-
exportation by Vietnamese enterprises - i.e., Vi etnamese-owned enterprises and foreign-invested 
enterprises in Viet Nam - for foreign traders outside Viet Nam were not subject to State quality 
inspection.  
300. 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; inspecti on procedures were shifting from 
consignment-by-consignment inspection to type t esting 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 WT/ACC/VNM/48 
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  question, the representative of Viet Nam said that  Viet Nam had signed bilateral agreements with 
China, the Russian Federation and Ukraine, whic h included provisions on ha rmonization 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 existing Mutual Recognition Agreements to the 
website of STAMEQ ( http://www.tcvn.gov.vn
). 
301. 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 cases, test  results and certifications undertak en by foreign organizations were 
accepted by the sellers and buyers.  For goods subjec t to quality inspection and certification, testing 
and certification results were accepted under, fo r 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.   
302. Some Members asked Viet Nam to confirm th at full compliance with the TBT Agreement 
would be ensured by the time of accession, and requested a detailed plan of action addressing all 
outstanding issues.  A Member was of the view  that mandatory certification was not the right 
approach.  The representative of Viet Nam submitte d an Action Plan for the Implementation of the 
WTO Agreement on Technical Barriers to Trad e in document WT/ACC/VNM/24, subsequently 
revised in documents WT/ACC/VNM/24/Rev.1 and Rev.2.   According to the revised plans, Viet Nam 
would ensure that all technical regulations, sta ndards, and conformity assess ment procedures would 
be in full compliance with the Agreement from the date of accession.  The Ministry of Science and 
Technology developed, revised and implemented Vi et 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 documen ts 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.   
303. The representative of Viet Nam confirmed that Viet Nam would comply with all the 
obligations under the TBT Agreement from the da te of accession without recourse to any transitional 
period.  Further, for the purpose of greater tran sparency and predictability, he confirmed that 
Viet Nam would issue measures that specifically set out Articles 2.1, 2.2, 5.1, 5.2, 5.4 and Annex 1.1 of the TBT Agreement.  The Working Party took note of these commitments. 
Sanitary and phytosanitary measures  
304. 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; subsequently, the pl an had been revised five times.   He noted that Viet Nam was 
working on the establishment of an SPS regime b ased on international standards, guidelines and  WT/ACC/VNM/48 
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  recommendations.  Among the main challenges facing Viet Nam were the limi ted capability of staff 
to conduct pest risk analysis and the absence of  a phytosanitary database.  The representative of 
Viet Nam stated that his Government was facing difficulties in performing its own independent risk 
assessment and was seeking international assistance to address these issues.  He continued that 
Viet Nam applied international standards in acco rdance with the SPS Agreement in the areas where 
Viet Nam could not conduct its own independent risk assessment.   
305. 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 
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. 
306. Phytosanitary measures were regulated by th e Ordinance on Plant Protection and Quarantine 
on 15 February 1993, amended on 25 July 2001; th e 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).  
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.  The Decree on Plant Quarantine would lay down the regulations to implement the Ordinance on Plant Quar antine.  The procedures for Pest Risk Analysis 
(PRA) had been developed in line with standards adopted by the IPPC, namely ISPM No. 2 and ISPM 
No. 11, and with the PRA procedures employed by several other WTO Members.  
307. The principal legal framework for sanitary m easures was the Veterinary Ordinance enacted 
on 15 February 1993; Decree No. 93/CP of 27 Nove mber 1993 for implementation of the Ordinance; 
Regulations on animal protection and inspection a ttached 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 15 March 2 004 (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  confirmed that the owners of goods, or their 
representatives, would be notified as to the dispos ition of the good in the event that the good was 
subject to inspection and quarantine measures.  He added that Decisions Nos. 45/2005/QD-BNN, 
46/2005/QD-BNN, 47/2005/QD-BNN, 48/2005/QD-BNN, and Decree No. 129/2005/ND-CP on 
Administrative Infringement in Veterinary Servi ces provided a detailed legislative framework for 
veterinary hygiene and food safety inspection pro cedures, registration and inspection procedures for 
veterinary drugs and vaccines.  Fees charged for ve terinary services, including the cost for additional WT/ACC/VNM/48 
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  quarantine, testing and/or destruction of animal s, were regulated by Decision No. 08/2005/QD-BTC 
of 20 January 2005.  He confir med that such fees would not exceed  the cost of the service rendered 
consistent with the provisions of the GATT 1994 and the WTO SPS Agreement.  He added that 
Viet Nam was revising its food safety inspection procedures for production and commercialization of 
fishery products and developing approval and ve terinary hygiene and food safety inspection 
procedures for aquatic animals and products thereo f (see paragraph 374) and that regulations on 
treatment of infected animals and animal prod ucts were expected to be issued in 2006. 
308. 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.   
309. Viet Nam was a Member of Codex, FAO and OI E and had become a contracting member of 
the International Plant Protection Convention (IPPC) in February 2005.  Viet Nam sought to base its 
national regulations and standards on those provide d 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 fo od and foodstuffs, in his view, 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, in this r espect, 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.  The Law provided 60 days from the date of notification for public comment, which period would be shortened 
solely in urgent cases of harm to health, safety, environment, or national security.  The representative 
of Viet Nam confirmed that, if the period of tim e for comment were so shortened, WTO Members 
would be notified immediately, as called for under Annex B, paragraph 6 of the WTO SPS 
Agreement.   
310. 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 to be 
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 ten agricultural products at the outset and applicable to ASEAN 
members only.  Work on a phytosanitary certification management system had been completed.  So far, ASEAN countries had concentrated mainly  on exchanging legal normative documents, results 
of scientific studies relating to the phytosanitary ar ea, and developed a pest list on some major crops 
for conducting risk assessment.  He confirmed th at, in his assessment, the ASEAN harmonization 
framework was in line with th e rules of the WTO SPS Agreement.  Some Members noted, and 
Viet Nam acknowledged it, that only the Codex Alim entarius Commission, the International Animal 
Health Organization (OIE) and the Internationa l Plant Protection Convention (IPPC) have been 
recognized by the Agreement on the Application of Sanitary and Phytosanitary Measures as 
international standard setting bodies. 
311. 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, in his view, Viet Nam's line management measures 
complied with the WTO SPS Agreement − Viet Nam's import requirements for animals and animal 
products, in particular, had been drafted to be based on the International Animal Health Code − and 
that the possible harmful character of a product woul d be assessed on the basis of  scientific evidence.  
Unsuitable import requirements, if any, would be revised to meet OIE standards.  A Joint Circular  WT/ACC/VNM/48 
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  guiding the examination and supervision of exports  and imports of animals, plants, and fishery 
products subject to inspection had been adopt ed on 14 March 2004 (Circular No. 17/2003/TTLT-
BTC-BNN&PTNT-BTS) to simplify the examination a nd supervision procedures applied to imports.  
Animals and animal products subject to quarantine were stipulated in Decision 
No. 45/2005/QD-BNN.  Aquatic animal health in spection and quarantine procedures for import, 
export and in-country movements were also being revi sed to bring them in line with the Veterinary 
Ordinance and OIE regulations and standards.  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 gates.  Information about Viet Nam's veterinary hygiene and food 
safety inspection procedures and inspection pro cedures for veterinary drugs and vaccines was 
available on www.mard.gov.vn/DAH  or www.cucthuy.gov.vn.   
312. 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 product s, the representative of Viet Nam said that, in 
his view, Viet Nam's requirements for imported meat were based on the Recommendations of the 
OIE, the regulations of CODEX, agreements between Viet Nam and exporting countries, and 
domestic regulations that were c onsistent with the SPS Agreement.  Poultry meat importers were 
required to obtain a sanitary certificate issued by the National Veterinary Authority of the exporting 
country, certifying that (i) the meat originated from healthy poultry, which comes from a country, customs territory, or zone free of highly pa thogenic notifiable avian influenza (HPNAI); 
(ii) the poultry had been examined ante-mortem a nd post-mortem and found free from clinical signs 
of animal infectious disease; and (iii) met all vete rinary 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, in his assessment , meat requirements were generally based on OIE 
standards.  In the remaining cases, Viet Nam's st andards were not stricter than internationally 
established standards.  Plants im ported for consumption, including grains, were required to be free 
from plant quarantine pests of Viet Nam and be accompanied by a Phytosanitary Certificate of the 
exporting country.  Live plants imported for propag ation or planting should have a quarantine permit 
issued by the competent Vietnamese authority, a Phytosanitary Certificate of the exporting country, 
and be free from plant quarantine pests.  As for technical requirements for the certification of food 
products, Viet Nam sought to apply certification procedures based on national and international 
standards, and certified the quality management  system based on ISO 9000, Good Manufacturing 
Practices (GMP) and Hazard Analysis and Critical  Control Point (HACCP) for food producing units.  
Labelling and packaging of food products was regula ted 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, an d Circular No. 15/2000/TT-BYT of 30 June 2000. 
313. A Member expressed concerns about Viet Nam' s poultry import requirements, which imposed 
burdensome obligations on foreign su ppliers, and asked Viet Nam to bring its import requirements for 
poultry into conformity with the provisions on na tional treatment, harmonization, regionalization and 
burdensome entry requirements of the SPS Agreement.  In response, the representative of Viet Nam 
said that veterinary hygiene requirements for poultr y imports 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 English on the webs ite 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 standa rds and to have been quarantined and certified by 
the competent professional State veterinary agency.  Slaughter or preliminary processing had to take place at premises for slaughter and processing.  Pr oducts of animal origin were inspected by the 
competent authority prior to, during, and after slaughter or preliminary processing.  He noted that 
these requirements applied to both domestic and im ported poultry.  He added that Viet Nam was 
reviewing, amending and supplemen ting its poultry import measures to ensure conformity with the 
SPS Agreement. WT/ACC/VNM/48 
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  314. 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 raw food materials a nd food additives to be used in the production of 
food products and not to final food products.  This  measure had not affected bulk commodities, final 
processed products or consumer-rea dy products.  The measure had been put in place to avoid the 
importation of raw food materials and food additives cl ose to expiration and thereby limit the risk that 
expired material and food additives be used in the production of food products as had been revealed 
by some on-site inspections.  Asked to provide a lis t, by HS codes, of the products covered by this 
limitation, he added that no such list was availa ble.  In response to a Member who questioned the 
rationale of requiring that all pre-packaged f ood 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 manufac ture date, the expiration da te or the shelf-life, not 
all three.  In addition, paragraph 2, Article 11( a) of Prime Minister's Decision No. 178/1999/QD-TTg 
of 30 August 1999 required that some products su ch as food, cosmetics and pharmaceutical products 
be labelled with the expiration date. 
315. Viet Nam was in the process of implementing t echnical regulations on shelf life for raw food 
materials and food additives.  The implementing re gulation for these products shall be implemented 
upon Viet Nam's accession to the WTO.  For all ot her food products, Viet Nam will accept voluntary 
manufacturer-determined best-if-used-by dates.  Th e Working Party took note of this commitment. 
316. A Member noted that it considered the restriction on the entry of some food products to no 
more than two-thirds of their expi ration date to be arbitrary, non-tr ansparent, and not consistent with 
relevant international standards.  The representative of Viet Nam confirmed that any entry restrictions 
based on shelf-life measures applied to raw food materials and food additives would be based on 
scientific principles including, for example, relevant  international standards.  The Working Party took 
note of this commitment. 
317. Asked to describe the process in place to enable the recognition of measures, the 
representative of Viet Nam said that Viet Nam re quired other countries to identify the relevant SPS 
measures in detail to allow the Vietnamese aut horities to evaluate them  in accordance with the 
Decision on Equivalence of the SPS Committee.  On-site investigations were conducted in the 
countries if necessary to check the implementation of the measures.  Viet Nam had signed a number 
of bilateral agreements on food hygiene and saf ety, and sanitary and phytosanitary measures with 
other countries.  As of November 2005, Viet Nam had agreements and Memoranda of Understanding 
on plant protection and quarantine co-operation with  11 countries and agreements and Memoranda of 
Understanding on animal health and quarantine w ith 13 countries.  SPS agreements and Memoranda 
of understanding had also been si gned with Canada, China, the Repub lic of Korea, and Thailand, as 
well as a Mutual Recognition Agreement on fishery with the EC.  Viet Nam expected to sign an 
agreement on mutual recognition regarding pr ocessed food with ASEAN countries and bilateral 
agreements on food safety with Lao PDR and Cambodi a in 2007.  He added that Viet Nam intended 
to develop more concrete equiva lent recognition procedures for SPS measures.  His Government was 
seeking technical assistance to address this issue. 
318. Due to lack of technical capacity and knowle dge of risk assessment techniques, Viet Nam 
also faced difficulties in conducting risk assessments.   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  WT/ACC/VNM/48 
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  in line with international standard No. 2, and co llected guideline documents and pest risk analysis 
reports from different WTO Members and websites as reference and information input for pest risk 
analysis in Viet Nam.  A programme had been laun ched to set up a datab ase on plant health control 
for pest risk analysis purposes, which listed the pests for each plant in acco rdance with international 
standards.  In addition, Viet Nam had starte d conducting pest risk assessment on a number of 
imported plants, had established a ne twork of specialists in plant protection to support plant risk 
analysis, and collaborated with institutes and univer sities to conduct surveys and collect information 
about plant pests.  However, further technical assist ance was needed to train staff, provide equipment, 
set up databases, and establish guidelines for risk assessment procedures.  Nonetheless, the representative of Viet Nam stated that Viet Nam would comply with the SPS Agreement upon 
accession. 
319. 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 insuffi cient scientific evidence 
would only justify the application of a provisional measure (Article 5.7).  Viet 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.     
320. 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.   
321. He confirmed that, in his assessment, Viet Nam took into account regional conditions in its 
application of SPS measures, as required by Ar ticle 6 of the SPS Agreement, and applied SPS 
measures in a non-discriminatory manner. 
322. 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-trialled in 
Viet Nam, which generated additional costs and duplicated the trials already performed by the 
producer, and that the quality of a drug be review ed in case of complaints and denunciations, which 
could lead to abuse for non-health and safety reasons .  In response, the representative of Viet Nam 
said that under Article 48 of the Veterinary Ordina nce, 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 re gistered for importation.  Viet Nam was developing 
procedures on drug registration for circulation in Viet Nam, which would specify the types of drugs subject to re-trial.  The procedures on veterinary dr ug registration have been promulgated by Decision 
No. 10/2006/QD-BNN of 10 February 2006.  Concerni ng the requirement for quality review in case 
of complaints and denunciations, he noted that th e assessment would be based on inspection or testing 
results by the veterinary drug control agencies upon request of the government management body.   
323. 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 WT/ACC/VNM/48 
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  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.   
324. 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 measures, drafting agencies were require d 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 Developmen t on the organization 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 related to SPS  were posted on the enquiry 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 a minimum 15 days thereafter in acco rdance with the amended Law on the Enactment of 
Legal Documents.  At present, SPS-related lega l documents were accessible at two websites 
(http://www.mard.gov.vn/dah or www.cucthuy.gov.vn
 and www.ppd.gov.vn ).  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. 
325. 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 and to the IPPC or an associated regi onal body in accordance with IPPC regulations.  Such 
information would also be sent to other stakehol ders as agreed in bilateral agreements or upon 
request. 
326. Some Members noted that Viet Nam appear ed to be taking appropriate account of 
international standards, guidelines and reco mmendations in establishing its SPS regime, and 
welcomed a commitment from Viet Nam to impl ement 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.   
327. While the representative of Viet Nam had initia lly indicated that his Government lacked 
human resources and technical equipment and faciliti es to implement fully its obligations 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 of the SPS Agreement upon accession 
without recourse to any transitional arrangements.  He noted, however, the importance to Viet Nam of 
receiving technical assistance in the area of SPS, as provided in Article 9 of the SPS Agreement.  
In particular, he hoped that concrete technical assi stance would be delivered to train staff and help  WT/ACC/VNM/48 
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  build up notification procedures and an SPS official  journal, and that technical equipment and 
expertise (in particular for disease risk analysis, assessment, inspection, control, and approval procedures) would be provided to develop Viet Na m's laboratories, information systems and control 
procedures. 
328. The representative of Viet Nam confirmed that Viet Nam would apply the Agreement on the 
Application of Sanitary and Phytosanitary Measu res 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 disci plines of the SPS Agreement.  The Working Party 
took note of these commitments. 
Trade-related investment measures (TRIMs)  
329. 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 Agreement) and 
specifying a timetable for their elimination.  In th e view of some Members, Viet Nam should comply 
fully with the TRIMs Agreement from the date of accession to the WTO without invoking a transition period.  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 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 requ ested 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 consistency with the TRIM s Agreement.  Furthermore, a Member asked 
Viet Nam to abolish the regulations restricting the maximum level of motorcycle production for 
foreign-invested enterprises.  Several Members not ed that most TRIMs had been introduced after 
Viet Nam's application to join the WTO, and re minded Viet Nam that acceding governments were 
expected not to implement new restrictive measur es.  Some Members encouraged Viet Nam not to 
enforce contracts imposing requirements inconsistent  with the TRIMs Agreement, assuming that the 
Government of Viet Nam would also eliminate 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 because, under paragraph 2(a) of the Anne x to the TRIMs Agreement, such measures were 
inconsistent with Article XI of the GATT 1994. 
330. The representative of Viet Nam replied that follo wing its application to the WTO, Viet Nam 
had amended its legislation to make it increasi ngly compliant with WTO provisions on TRIMs.  
He noted that in 2000, the Law on Amendment a nd Supplement to some Articles of the Law on 
Foreign Investment had removed the requirement  on foreign exchange self-balancing and the 
obligation for foreign-invested enterprises to gi ve priority to the purchase of domestic products; 
foreign-invested enterprises were free to choose thei r own markets for products other than those listed 
in Decision No. 718/BKH-QD.  Viet Nam had no intention to reintroduce self-balancing 
requirements.   
331. 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 WT/ACC/VNM/48 
Page 86  
 
  and assembling motorcycles specified in the Inter-Ministry Circular No. 176/1998/TTLT-BTC-BCN-
TCHQ had been eliminated in 2003.  Decision No. 43/2006/QD-BTC of 29 August 2006 also abolished policies of preferential import tariff rates c ontingent upon localization ratios with respect to 
products and parts of mechanical/electric/electroni c industries as from 1 October 2006.  In addition, 
the export ratio requirement had been eliminated  by Decree No. 27/2003/ND-CP of 19 March 2003, 
and the 2005 Investment Law and its Implementi ng Decree no longer conditioned the granting of 
investment licenses or the receipt of investment incentives in the manner described in the TRIMs 
Agreement.   
332. The representative of Viet Nam confirmed that, without prejudice to Viet Nam's commitments 
in paragraphs 286 and 288 of this Report, Viet Nam would comply fully with the TRIMs Agreement 
upon its accession to the WTO.  The Workin g Party took note of this commitment. 
Free zones, special economic areas  
333. The representative of Viet Nam said that Viet Nam had established 124 industrial and export 
processing zones as of the end of July 2005 (see Ta ble 21).  Industrial zones were established by 
Government Decision or Decision of the Prime Minister.  The establishment and operation of 
enterprises in export processing zones were govern ed by Government Decree No. 108/2006/ND-CP 
of 22 September 2006 guiding the implementa tion of the 2005 Investment Law.   
334. 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 billio n and VND 109,000 billion respectively.  Ninety-
two per cent of these projects were from private investment sources and 8 per 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 enterprises 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. 
335. The representative of Viet Nam confirmed th at establishment in such zones was not 
contingent upon export performance or the use of do mestic inputs.  Government agencies responsible 
for regulating the operations of industrial and export processing zones included the Ministry of 
Planning and Investment, the Ministry of Industry, the Ministry of Construction, the Ministry of 
Science and Technology, the Ministry of Trade and the Ministry of Home Affairs, in accordance with 
their functions, competences, and mandates.  In a ddition, 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 
provincial People's Committee had authorized provi ncial management boards of industrial zones, 
high-tech zones and economic zones to grant, amen d, and withdraw foreign investment licenses for 
projects valued at less than US$40 million.  The Ministry of Planning and Investment would be 
primarily responsible for ensuring the WTO compli ance of the operations of industrial and export 
processing zones. 
336. Most incentives previously granted to enterpri ses located in industrial and export processing 
zones took the form of exemptions and reductions of corporate income ta x (see programmes V, VI 
and VIII in document WT/ACC/VNM/42/Rev.1).  In centives were awarded to domestic and foreign 
investors without discrimination.  The 2005 Invest ment Law no longer provided for corporate income 
tax incentives contingent upon export performance.  Enterprises in export processing zones were 
exempt from import and export duties for goods importe d from or exported to foreign countries.  They 
were allowed to sell their products in the domestic market upon approval by the Ministry of Trade.   WT/ACC/VNM/48 
 Page 87 
 
 
  However, all such products entered the domestic ma rket of Viet Nam under the same tariff treatment 
and customs procedures applicable 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 production of exports were subj ect to import duty, which would subsequently be 
refunded in proportion to the amount of those materials/parts used in exported products.  He 
confirmed that, in his assessment, regulations on  import duty exemption were consistent with 
Annexes II and III of the Agreement on S ubsidies and Countervailing Measures.  
337. Some Members stated that Viet Nam was usi ng prohibited subsidies as incentives for firms 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 all prohibited subsidies upon accession.  
Viet Nam was also asked to ensure  that its legislation made the 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, industrial zones and export processing zones 
would not be granted in a manne r inconsistent with the Agreem ent on Subsidies and Countervailing 
Measures. 
338. 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 2005 Investment Law.  He confirmed 
that under the Decree guiding the implementation of the Law, all incentives for investments in export 
processing zones would be WTO-consistent, i.e., incentives would not be contingent upon export 
performance or local content.  Specifically, en terprises in export processing zones would not be 
required to export their products and would be entitled only 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 
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 Subsidi es and Countervailing Measures in document 
WT/ACC/VNM/13/Add.2.  He conf irmed that, upon accession, and without prejudice to Viet Nam's 
commitments in paragraphs 286 and 288 of this Re port, preferential treatment for investments in 
export processing zones would be granted only in  a manner consistent with the Agreement on 
Subsidies and Countervailing Measures.   
339. The representative of Viet Nam confirmed that from the date of accession the Government of 
Viet Nam would ensure enforcement of its WTO obl igations in its export processing zones, industrial 
zones, high-tech parks, and any other zones with si milar 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 establishment in the zones, or the qua lification for or receipt of tax or any other 
incentives, on export, export performance or the u se of locally produced goods.  The representative of 
Viet Nam confirmed that, without prejudice to Viet  Nam's commitments in pa ragraphs 286 and 288 of 
this Report, all industrial and expor t processing zone subsidies that fell within the meaning of Article 
3 of the WTO Agreement on Subsidies and Count ervailing Measures would be eliminated on or 
before the date of accession, and that such subs idies would not be reintroduced.  Moreover, no new 
subsidies inconsistent with Article 3.1(a) or (b) would be introduced after accession.  In addition, 
from the date of accession, goods produced in e xport processing zones or industrial or other zones 
with similar benefits and objec tives under tax and tariff provisions  that exempted imports and 
imported inputs from tariffs and certain taxes, w ould be subject to normal customs formalities when 
entering the rest of Viet Nam, including the application of tariffs and taxes.  The Working Party took 
note of these commitments. WT/ACC/VNM/48 
Page 88  
 
  Government procurement  
340. 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. 
341. 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 
organizations 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.   
342. 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. 
343. 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 
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. 
344. 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  WT/ACC/VNM/48 
 Page 89 
 
 
  announcements should be made at least five days be fore the issue of tender invitation documents for 
contracts worth less than VND 2 billion, and minimum 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. 
345. 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.   
346. 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 Government Procurement 
Agreement.  Noting that membership in the Government Procurement Agreement would bring 
Viet Nam benefits both in terms of access to th e 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 the Government Procur ement Agreement as part of its WTO accession and 
to table an entity offer at the time of accession.  Viet Nam was also enco uraged to identify its 
challenges and needs for technical assistan ce in implementing the Agreement.   
347. 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 Government Pr ocurement Agreement after WTO Accession.  
Trade in civil aircraft 
348. A Member stated 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. 
349. 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 
350. Noting that permission from the Ministry of Tr ade was required for goods to transit through 
the territory of Viet Nam, some Members questioned whether Viet Nam's regulations restricted the freedom of transit as provided fo r under GATT Article V:2.  Viet Na m was invited to provide further 
justifications for its transit procedures and the c onditions for granting transit permits, and to explain 
how Viet Nam would bring its transit regime into conformity with the WTO Agreement. WT/ACC/VNM/48 
Page 90  
 
  351. 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 2005 Commercial Law had 
eliminated the requirement of prior permission.  Pu rsuant to Article 242 of this Law, all goods owned 
by foreign organizations or individuals were allowe d to transit through the territory of Viet Nam, 
except arms and ammunitions; and explosive an d other highly dangerous commodities.  These 
excepted goods required permission from the Prime Mi nister to transit through the territory of 
Viet Nam, and commodities subject to business prohi bition or import and export prohibition required 
permission from the Minister of Trade.  Foreign or ganizations and individuals were required to hire 
Vietnamese carriers or carriers from countries whic h had signed bilateral tr ansit agreements with 
Viet Nam (China, the Lao PDR and Cambodia).  The selection of Vietnamese carriers was based on 
past performance.  Regulations were strict fo r 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 house included:  (i) for goods transported in their original condition, a list of 
the goods in transit, to be submitted by the customs declarant or his/her representative; and 
(ii) for goods that had to be warehoused or tran shipped onto another type of transport means, a 
customs declaration and a list of the goods in trans it.  For arms and ammun itions, explosives and other 
highly dangerous commodities, and prohibited goods, a transit permit was also required.  Customs 
authorities allowed or denied transit on the basis of  the list of restricted transiting goods, the customs 
declaration and the transit permit, if required.  Phys ical inspection of goods in transit was carried out 
only if signs of a violation of law were detected .  While in transit, goods were required to be 
transported along the prescribed route and within th e time allowed.  Warehousing of goods in transit 
was subject to approval by Customs.  Consumpti on of goods in transit within the territory of 
Viet Nam was forbidden, unless otherwise permitted by the Ministry of Trade, and any discrepancy 
between the amount of goods entering and leavin g Viet Nam required certification by Customs.  
Domestic legislation did not stipulate any time-li mit for Customs to process transit shipments, but 
normal transit shipments were processed within f our hours on average.  Current procedures were, in 
his view, not in violation of GATT Article V, and Viet Nam would therefore commit to observe fully 
WTO rules on transit upon accession.   
352. 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. 
353. The representative of Viet Nam replied that the 1 per cent transit fee had been abolished.  
Current fees applicable to goods, including postal pack ages 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 22(a) and 22(b).  Tr ansiting 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.  
354. 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 rat es specified by those enterprises.   
355. 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.  WT/ACC/VNM/48 
 Page 91 
 
 
  Agricultural policies  
(a) Imports – description of the typ es of border protection maintained 
356. 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 re minded 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 
available to acceding governments.  Viet Nam was as ked to enter a commitment not to seek recourse 
to SSGs. 
357. 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 167).  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. 
358. 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.   WT/ACC/VNM/48 
Page 92  
 
  359. 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 
360. The representative of Viet Nam said that Viet Na m imposed export restrictions or controls on 
the products listed in Table 18 (see the section on "Export restrictions" for a discussion of these 
measures).  He noted that rice export quotas had been eliminated 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 regardless of form of ownership.  However, 
the right of foreign-invested ente rprises was still restricted.  Vi et Nam proposed to grant foreign-
invested enterprises full rights to export rice as of 1 January 2011 (see the sections on "Trading rights" 
and "Export restrictions"). 
361. 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. 
362. 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. 
363. 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.   
364. 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 
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. 
365. 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  WT/ACC/VNM/48 
 Page 93 
 
 
  export bonus programme had been continued in 2002 , and extended to also cover beef and poultry 
meat; fresh, dried and semi-processed fruit and vege tables; 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. 
366. 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 existing WTO rules.  The Working Party took note of this 
commitment. 
(c) Internal policies 
367. 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 
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 unstabl e 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. 
368. 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 
August 2006 (WT/ACC/SPEC/VNM/3/Rev.7).  In cal culating the Total Aggregate Measurement of 
Support, Viet Nam applied a de minimis  level of 10 per cent.  He not ed 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 Schedule of Concessions and Commitments on 
Goods annexed to Viet Nam's draft Protocol of Accession to the WTO. 
369. 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. 
370. 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 WT/ACC/VNM/48 
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  export subsidies.  Viet Nam was asked to confirm that its coffee sector was now operating according 
to market principles.  
371. 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 pr ojects:  (i) a technical assistance programme to 
strengthen the research capacity of the coffee industry, and (ii) a VND 700 billion project to plant an additional 40,000 hectares of arabica in North Viet Nam.  About VND 400 billion 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.   
372. 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. 
373. 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/Rev.7 and contained in  Viet Nam's Schedule of Concessions and 
Commitments on Goods. 
Fisheries 
374. The representative of Viet Nam said that his Government was implementing a comprehensive 
programme to develop aqua-cultu re industries.  The industries 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, with a view to conforming to regulations on hygiene, food safety 
and veterinary requirements issued  by Codex and the Code of Con duct for Responsible Fisheries. 
375. As of 31 December 2003, 1,468 fisheries enterpri ses operated in Viet Nam, with an average 
capital of approximately VND 0.5 billion.  Fisheri es industries, including related-services sectors, 
employed about 5.4 million people .  In 2004, this sector had c ontributed to VND 27,474 billion 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  WT/ACC/VNM/48 
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  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 also had risen in this period. 
376. Import licenses for specialized fishery products mentioned in Decision No. 344/2001/QD-
BTS of 2 May 2001 and Decision No. 20/2003/QD-B TS of 12 December 2003 of the Ministry of 
Fisheries, including seeds, feed, medicines, vaccines,  bio-chemical treatments, and growth stimulants, 
applied only to new products, in which case a lic ence for experimental import was required.  The 
Decision stipulated the requirements and procedur es relating to import and export of specialized 
fishery products.  Quarantine requirements and quarantine certificates were applied for health 
protection purposes − to prevent the spread of infectious  diseases in the aqua-culture industry − in 
accordance with the 2004 Veterinary Ordinance,  Decree No. 33/2005/ND-CP and the Quarantine 
Directive No. 2596/CLTY-TY for NAFIQAVED.  Importe d 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 were free from diseases listed on the OIE Diseases of 
Concern and met the requirements of the OIE A quatic Animal Health Code.  Upon entry into 
Viet Nam, Vietnamese quarantine authorities check ed both the documentation and the animals.  
Infected animals were either retu rned to the exporting country or destroyed.  He added that, in his 
view, Viet Nam's export quarantine requirements conf ormed to the OIE regulations and requirements 
of the importing country, and Viet Nam's quara ntine certification on export and import of aqua-
products conformed to the requirements of the Qu arantine Certification Form of the OIE and the 
Aquatic Animal Health Code.  The Ministry of Fish eries could ban exportation of rare marine species 
threatened by extinction and set conditions for th e export of rare living marine species with high 
economic value if considered necessary to preserve resources. 
TRADE-RELATED INTELLECTUAL PROPERTY RIGHTS (TRIPS) 
1. General (a) Intellectual property protection   
377. 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. 
378. The representative of Viet Nam explained that in 2005, Viet Nam had promulgated 
amendments to the Civil Code, which reaffirmed the basic civil principles of intellectual property 
rights (Part VI of the Code), as well as an In tellectual 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 Intellectual Prope rty Law), it became effective on 1 July 2006.  
These two texts formed a complete and uniform system  of regulations on intellectual property, which 
would replace previous legislation.  He noted that the new system was, to a large extent, based on the 
previous one.  In case of conflict between the 2005 Intellectual Property Law and the provisions on WT/ACC/VNM/48 
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  intellectual property of the 2005 Civil Code, th e former would apply (Article 5.2 of the 
2005 Intellectual Property Law).  Various decisions  and decrees on copyright, industrial property, 
plant varieties and enforcement of intellectual pr operty rights guiding the implementation of the 
2005 Intellectual Property Law had been adopted in September 2006:  Decree No. 100/2006/ND-CP 
of 21 September 2006 guiding the implementation of a number of articles of the Civil Law and 
Intellectual Property Law concerning copyright an d related rights; Decree No. 103/2006/ND-CP of 
22 September 2006 providing detaile d provisions and guidelines for implementing certain articles of 
the 2005 Intellectual Property Law concerning industrial property; Decree No. 104/2006/ND-CP of 22 September 2006 providing detaile d provisions and guidelines for implementing certain articles of 
the 2005 Intellectual Property Law concerning rights to plant varieties; Decree No. 105/2006/ND-CP 
of 22 September 2006 providing deta iled provisions and guidelines fo r implementing certain articles 
of the 2005 Intellectual Property Law regarding the pr otection of intellectual property rights and State 
management of intellectual property; Decree No. 106/2006/ND-CP of 22 September 2006 on handling 
administrative violations in the industrial property field; Decision No. 69/2006/QD-BNN of 13 September 2006 of the Minister of Agriculture a nd Rural Development on data confidentiality of 
testing data of agro-chemical products; and D ecision No. 30/2006/QD-BYT of 30 September 2006 of 
the Minister of Health on promulgation of regulati ons on data protection applied to Drug Registration 
Dossiers.  In addition, the Ministry of Culture  and Information, the Ministry of Science and 
Technology and the Ministry of Agriculture and Rural Development would promulgate circulars 
guiding the implementation of procedures on registra tion of copyright and related rights, industrial 
property rights, and plant varieties; on industrial pr operty representatives; and on transfer of industrial 
property. 
(b) Responsible agencies for policy formulation and implementation 
379. 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 Copy right Office (under the Mi nistry 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. 
380. 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, 
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 had been detailed in Government Decree No. 106/2006/ND-CP of 
22 September 2006 on handling administrative viola tions in the industrial property field.   
(c) Participation in international intellectual property agreements 
381. The representative of Viet Nam said that Viet Na m had been party to the Paris Convention for 
the Protection of Industrial Property and the Madr id Agreement on International Registration of 
Marks since 1949; the Convention establishing the World Intellectual 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 th e Geneva Convention on 6 July 2005, to the 
Brussels Convention on 12 January 2006, and to the Protocol relating to the Madrid Agreement 
concerning the international registration of marks on 11 July 2006.  Viet Nam had concluded bilateral  WT/ACC/VNM/48 
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  agreements on the protection of intellectual prope rty 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 Plants (UPOV) Convention in la te 2006.  He confirmed that Viet Nam's Law on 
Conclusion, Accession and Implementation of Intern ational Treaties of 2005 provided for the direct 
application, in whole or in part, of international treaties to which Viet Nam was a party (see 
paragraph 119) as decided by the National Assembly .  In case of differences between Vietnamese 
laws on intellectual property rights and internationa l treaties to which Viet Nam was a party, the 
provisions of the latter would apply, as prescribed in Article 5.3 of the 2005 Intellectual Property 
Law. 
382. 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 
383. The representative of Viet Nam said that Viet Nam applied the national treatment principle in 
accordance with the Paris Convention for the Prot ection of Industrial Property.  Viet Nam also 
provided Most Favoured Nation treatment to nationa ls of other countries consistent with other 
international agreements to which Viet Nam was a party. 
384. 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.   
385. In reply, the representative of Viet Nam said  that the 2005 Intellectual Property Law did not 
require foreign natural or legal persons to establish or enforce c opyright nor to carry out any procedure 
other than the establishment of industrial proper ty rights through intellectual 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 was 
aimed at protecting the interests of the right hold er and facilitating his/he r communication with the 
competent State authorities and was, in his view , in conformity with in ternational practice and 
exceptions to national treatment a llowed under the TRIPS Agreement.   
(e) Fees and taxes  
386. The representative of Viet Nam said that current regulations specified ten types 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 re lated to the establishment of rights in respect of 
inventions amounted to US$100, and the annual ma intenance 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.   
387. A Member stated that if Viet Nam charged a f ee in addition to the application fee to enjoy a 
priority right, then this practice would be contrary  to the Paris Convention.  The representative of WT/ACC/VNM/48 
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  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.   
388. Some Members noted that Viet Nam had reconsidered amending Circular No. 23 TC/TCT of 
the Ministry of Finance of 9 May 1997 to provide uniform fees and charges for both foreigners and 
Vietnamese, as Viet Nam had taken the view that f ees and charges levied in the area of industrial 
property were a matter of administrative proce dures and thus a permitted exception to the national 
treatment principle (Article 2 of the Paris 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. 
389. 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 
390. 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 contrary to the social morality, public 
order or harmful to national defence and security.  
391. 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 2005 Civil Code were protected in accordance with Article 220 of the 2005 Intellectual 
Property Law and paragraph 2 of the National As sembly Resolution on the implementation of the 
2005 Civil Code if their term of protection had not e xpired 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.  With  regard to unregistered copyrights/related rights, 
authorship will be presumed where on a copy of the original work the author's name appears in the 
usual manner.  With regard to a registered copyri ght, unless the declarati on in the application for 
copyright registration was false, an author or owne r 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  WT/ACC/VNM/48 
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  guaranteed the implementation of Article 3 of th e TRIPS Agreement and Article 3 of the Berne 
Convention.  Pursuant to Article 13 of the Law, nationals from any Member of the Berne Convention 
or the WTO would be eligible for copyright protection in Viet Nam. 
392. A Member noted that Article 7 of the Ordinance on Copyright Protection of 1 July 1994 
contained broad provisions for denial of copyright  and asked Viet Nam whether it intended to amend 
its law 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. 
393. 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 and did not require re gistration for protection of copyrights. 
394. The voluntary registration process was now governed by Articles 49 to 55 of the 
2005 Intellectual Property Law.  The author or the co pyright owner of a work filed the application and 
related documents with the Copyright Office of Viet Nam (COV).  The COV decided on the granting 
of a Registration Certificate within 15 days from the date of receipt of the application (Article 52 of 
the 2005 Intellectual Property Law). 
395. Pursuant to Article 13.2 of the 2005 Intell ectual Property Law, the works of foreign 
individuals or foreign organizati ons 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 with interna tional treaties to which 
Viet Nam was a party.   
396. Right holders had the exclusive right of repr oduction, broadcasting/performance, distribution, 
and creation of derivative works (Article 738.3 of the 2005 Civil Code and Articles 20, 29.3, 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.  A Memb er noted that the terms "cultural gatherings" 
and "promotional campaigns" used in Article 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 response,  the representative of Viet Nam said that this 
provision only referred to cultural performances wit hout a commercial purpose.  A Member noted that 
the parameters in Article 25 and Article 32 for u se without permission or compensation appeared to 
be broader than allowed under the Berne Conve ntion and the TRIPS Agreement and requested 
Viet Nam to clarify the scope of these provisions.  A Member also asked Viet Nam to confirm that its 
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.  The representative of Viet Nam 
confirmed that, in response to Members’ con cerns, Viet Nam had narrowed the scope of the 
limitations and exceptions to copyright in Articl es 25 and 32 of the 2005 Intellectual Property Law, 
with a view to conforming to the TRIPS Agre ement and the Berne Convention, in Decree 
No. 100/2006/ND-CP of 21 September 2006 guiding the implementation of the 2005 Intellectual 
Property Law relating to copyright and related rights. 
397. A Member noted that Articles 26 and 33 of the 2005 Intellectual Property Law provided that 
broadcasting organizations may use "published works"  and "related rights" without the authorization 
of the right holder, but must pay royalties or remuneration.  The Member asked how Viet Nam would WT/ACC/VNM/48 
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  ensure that the remuneration was equitable as required under the Berne Convention.  The 
representative of Viet Nam stated that Berne Article 11 bis would be implemented directly and thus 
the equitable remuneration standard would be applie d.  Furthermore, he confirmed that collecting 
societies existed to carry out activities on behalf of the right holder, including the collecting of 
remuneration, but only as authorized by the right holder.  
398. 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 owners, performers, sound/video recording 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 excepti ons provided for in Articles 26 and 33 appeared to 
be too broad and therefore inconsistent with th e TRIPS 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 progra mmes, programmes with advertisements, or 
programmes involving money collection. 
399. 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 2005 Intellectual Property Law).  Criminal remedies 
were stipulated in Article 131 of the Criminal Code. Violators could face a fine of VND 200 million 
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.  Pu rsuant 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. 
400. 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. 
401. The representative of Viet Nam replied that all films being shown in theatres in Viet Nam 
were legally authorized.  The Ministry of Cultu re and Information approved all imports of motion 
pictures, videotapes and DVD.  Imports were effect ed through FAFIM under the Ministry of Culture 
and Information (Article 15 of Government De cree No. 48/CP of 17 July 1995).  However, 
Government Decree No. 26/CP of 3 August 2000 an d Article 3 of Circular No. 28/2000/TT-BVHTT 
of the Ministry of Culture and Information au thorized cinema businesses possessing or having held 
using rights for cinema theatre motion pictures for minimum five years, and whose cinema theatres 
met the requirements set by the Ministry of Culture and Information 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 FAFIM extended onl y to the importation of video tapes and DVD.  
In deciding the number of foreign films approved for importation, the Ministry would take into 
account the number of films produced locally and the capacity of the domestic distribution network.  
All locally-produced and imported films were screened pursuant to Decision No. 2455/QD-DA on  WT/ACC/VNM/48 
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  movie inspection of 8 August 1997.  Viet Nam television coordinated im portation of films for 
broadcasting with the Ministry of Culture and Information. 
402. 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.   
403. 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 televisi on 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 not infringe the copyright of such software.  Such measures would regulate the 
acquisition and management of all software for use by government agencies.  The representative of 
Viet Nam also confirmed that prior to the date of accession, Viet Nam would issue appropriate legal instruments mandating that all cable television purv eyors provide only fully licensed products to their 
customers.  The Working Party took note of these commitments. 
(b) Trademarks, including service marks 
404. 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.  
Mandatory registration was not required for any good s or services.  All trademark registrations were 
published in the Official Gazette of Industrial Property. 
405. A trademark could be words, letters, pictures, figures − including three-dimensional figures − 
or a combination of such elements represente d in one or many colours (Article 72 of the 
2005 Intellectual Property Law).  A sign capable of  distinguishing goods or services of different 
owners could be protected as trademark, unless it was excluded 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 emblems; flags, emblems, armorial bearings, 
abbreviations, full names of State agencies, politi cal organizations, socio-political organizations, 
socio-political professional organizations, social orga nizations or socio-professional organizations of 
Viet Nam or international organizations, unless so permitted by such agencies or organizations; real 
names, alias, pen names or images of leaders, na tional heroes or famous pe rsons of Viet Nam or 
foreign countries; certification seals, control seals, warranty seals of international organizations; and 
signs likely to mislead, confuse or deceive consumer s as to the origin, functional parameters, intended 
purposes, quality, value or other characteristics of the good or service.  While Viet Nam'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 register ed pursuant to Article 72.1 of the 2005 Intellectual 
Property Law.  Applications for registration of ma rks were filed with the competent State 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 industrially or WT/ACC/VNM/48 
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  commercially established in Viet Nam were required to file applications for trademark registration 
through a legally operating industrial property represen tative of their choice.  Use was not a condition 
for entitlement to file an application for registra tion of a trademark.  A sign which did not possess a 
distinctive character could be protected if it ha d 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 we re, in his view, in compliance with the Paris 
Convention and the TRIPS Agreement. 
406. 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 busin ess in compliance with Article 21 of the TRIPS 
Agreement.   
407. 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 Pr operty Law.  However, charitable entities not 
engaged in business activities were protected agai nst non-authorized registration of signs and 
designations identical with or similar to their embl ems or designations according to Article 73.2 of the 
2005 Intellectual Property Law. 
408. Concerning co-ownership of trademarks, a Memb er noted that Viet Nam appeared not to 
allow a trademark to have more than one owner.   Several countries allowed joint ownership of 
trademarks, not to be confused with collective trademark rights, and against this background 
Viet Nam's provisions would seem unduly restrictive - possibly due to a 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 Conve ntion required recognition of jointly owned 
trademarks.  Nevertheless, provisions on the right to register such marks had been included in 
Article 87.5 of the 2005 Intellectual Property Law.   
409. 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 
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 acc ordance with Article 39 of the Law on Complaints 
and Denunciations of 1998, as ame nded 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.   
410. 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.  The provisions of Decree No. 06/2001/ND-CP had subsequently been included in Article 129.1 of the 2005 Intellectual Property Law.  In particular,  WT/ACC/VNM/48 
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  Article 129.1 stipulated as infringement of a tradem ark owner's rights the use of signs identical with 
or similar to a protected mark for goods or services id entical with, similar to or related to those in the 
list registered with the mark if such use was likely to cause confusion as to the origin of the goods or 
services.  He further noted that Articles 46, 181,  287, and 289 of the 200 5 Commercial Law required 
the concerned parties to ensure the legality of in tellectual 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. 
411. 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 Property  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 trademarked goods 
and services were being sold, providing trademar k protection or recognizing the trademark as well-
known; generated sales revenue; period of continuous use; indications of widespread reputation; the 
value of the trademark in terms of licensing, contri bution 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 confirmed 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.  
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 6bis of the Paris Convention.   
(c) Geographical indications, including appellations of origin 
412. 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 attributable to the geogra phical 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. 
413. 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 geographical indication, a nd could not grant licenses to other persons.   WT/ACC/VNM/48 
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  414. Article 129.3 of the 2005 Intellectual Property Law provided for additional protection for 
wines and spirits.  Under this Article, the use of a protected geographical indication identifying wines or spirits that were not originating in the territo ries corresponding to the geographical indication, even 
where the true origin of the goods was indicated or the geographical indication was used in translation or transcription or accompanied by words such as "ki nd", "type", "style", "imitation" or the like was 
considered an infringement of the rights to a prot ected geographical indication.  Infringements could 
be dealt with under civil, administrative or crimin al procedures and the provisions were, in his view, 
consistent with the requirements of Ar ticle 23.1 of the TRIPS Agreement.   
415. As to the relationship between the protection of geographical indications and trademarks, 
Articles 73.5 and 74.2(l) of the 2005 Intellectual 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).   
416. 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 geographical indi cations were treated under the 2005 Intellectual 
Property Law as the State was the owner of Viet Na m's geographical indications and regulated the use 
of Vietnamese geographical indications pursuant to Article 121.  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 
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 of a conflict. 
417. A Member raised the issue of whether Viet Nam would protect and register Geographical 
Indications of a Member that provided protection to geographical indications through a means other 
than registration, such as through certification marks or unfair competition laws.  This Member 
requested that Viet Nam recognize such form s of protection and permit registration.   WT/ACC/VNM/48 
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  418. The representative of Viet Nam confirmed that since a form of protection was accorded to 
Geographical Indications in the country of origin, even if such protection was through means other than through "registration as a Geographical Indicati on", geographical indications from that Member 
could be registered and recorded in Viet Nam's Registry of Geographical Indications. 
(d) Industrial designs 
419. 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 worldwide 
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). 
420. 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.  
421. 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   
422. The representative of Viet Nam said that any invention involving worldwide 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 in vention possessing worldwide novelty with industrial 
applicability − even if it did not involve an inventive step but was not of common knowledge − could 
be protected by a Utility Solution Patent (Article 58.2 of the 2005 Intellectual Property Law).  By 
31 December 2005, 5,342 invention patents had been  granted, and the National Office of Intellectual 
Property had a staff of approximately 200. 
423. Subject matter excluded from protection fell within  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; computer  programmes; designs and planning schemes for 
construction works; and projects for regional development and planni ng; (ii) subject matters which WT/ACC/VNM/48 
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  should be protected under othe r forms of protection than patents, i. e., plant and animal varieties; and 
(iii) those not industrially applicab le such as methods for the preven tion, diagnosis, and treatment of 
human or animal diseases, essentially biological proc esses for the production of plants or animals other 
than non-biological and microbiological processes (A rticle 59 of the 2005 Intellectual Property Law).  
Pharmaceutical products and processes to manufacture pharmaceutical products were 
protectable under Vietnamese law as they did not fall under the list of the objects excluded from 
protection under Article 59 of the 2005 Intellectual Property Law.  Responding to a Member, who considered that Viet Nam's exclusions from prot ection far exceeded the ex ceptions 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 equiva lent to those of the European Patent Convention and 
did not, in his view, go well beyond the provisions of Article 27.3 of the TRIPS Agreement.  Inventions 
could also be excluded from patentability for reasons of public order and morality in accordance with 
Article 8 of the 2005 Intellectual Property Law.  Th is provision applied irrespective of whether the 
commercial exploitation of such inve ntions was prohibited by law.   
424. 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 Articles 1 23, 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, offering for sale, stoc king for circulation, and importation of a protected 
product or process.  In his view, these Articles fully complied with the provisions of Article 28 of the 
TRIPS Agreement. 
425. A Member noted that Article 124 did not include "selling" and so asked how this Article was 
consistent with Article 28 of the TRIPS Agreemen t.  The representative of Viet Nam stated that 
"circulation" in Article 124.1(c) incl uded "selling" and that the term "c irculation" had been clarified in 
Decree No. 103/2006/ND-CP of 22 Se ptember 2006 providing detailed provisions and guidelines for 
implementing certain articles of the 2005 Intellectual Property Law concerning industrial property. 
426. The terms of Invention Patents and Utility Solu tion Patents were 20 and ten 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.   
427. 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 inventio n (Article 135 of the 2005 Intellectual Property Law).  
He confirmed that importati on would satisfy the "use" requirement s tipulated in Viet Nam's legislation 
(Article 136.1 of the 2005 Intellectual  Property Law).  The representative of Viet Nam stated that this 
issue would be resolved through the implementing decr ee.  The rights 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). 
428. Conditions and procedures for granting compulso ry licenses 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 and security, the pr evention and treatm ent of diseases, 
or other urgent needs of the society; (ii) for reasons of non-use or improper use; (iii) if the proposed user  WT/ACC/VNM/48 
 Page 107 
 
 
  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, compulsory licenses could not be gran ted before the expiration of a fou r-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 licenses in the other cases (Article 147.1 ).  He noted that no compulsory licence had been 
granted in Viet Nam thus far.   
429. 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 had been set out in detail in Government Decree 
No. 103/2006/ND-CP of 22 September 2006 providi ng detailed provision s and guidelines for 
implementing certain articles of the 2005 Intellectual Property Law concerning industrial property.  
According to Decree No. 103/2006/ND-CP, the remune ration should take into account the economic 
value of the right transferred, including the contra ctual licensing price of the invention, the funds 
invested for the creation of the i nvention, the profits gained by us ing the invention, the remaining 
duration of validity of the patent, and the need for licensing the invention. 
430. He added that judicial review of decisions on compulsory licensing and of the use of inventions 
under compulsory licenses was guaranteed by the Law on Complaints  and Denunciations, the Ordinance 
on Procedures for Settlement of Administrative Cases, and Article  147.4 of the 2005 Intellectual 
Property Law.  Pursuant to Article 147.4, decisi ons on compulsory licensing were subject to both 
administrative appeal and judicial litigation.  Aske d specifically about judici al review of decisions 
related to remuneration, he noted that decisions on compulsory lic ensing - which could be appealed 
under Article 147.4 - were required, pursuant to Article 147.2, to pr ovide for appropriate scope and 
conditions in accordance with Article 146, including the right to an adequate remuneration 
(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  Property Law complied fully with the provisions 
of Article 31(j) of the TRIPS Agreement.  
431. 
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. WT/ACC/VNM/48 
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  432. 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). 
433. 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 revi ew", 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.  
434. 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.   
(f) Plant variety protection 
435. 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 164 to 184 of 
the 2005 Intellectual Property Law satisfied the requirements and criteria set out in Articles 10, 11, 
12, 19, 21, and 22 of the UPOV concerning the fili ng 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 Intellectua l 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 
had promulgated Government Decree No. 104/2006/ ND-CP of 22 September 2006 providing detailed 
provisions and guidelines for implementing certain articles of the 2005 Intellectual Property Law 
concerning rights to plant varieties.    WT/ACC/VNM/48 
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  (g) Layout designs of integrated circuits 
436. 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 
had also promulgated Government Decree No . 103/2006/ND-CP of 22 September 2006 providing 
detailed provisions and guidelines fo r implementing certain articles of the 2005 Intellectual Property 
Law concerning industrial property, including thos e related to layout designs of semiconductor 
integrated circuits. 
(h) Requirements on undisclosed information,  including trade secrets and test data 
437. 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 secret s 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 In tellectual Property Law).  The representative of 
Viet Nam explained that Viet Nam had, in practice, provided protection of undisclosed test or other 
data submitted as a condition for approving the marke ting of pharmaceutical or agricultural chemical 
products since 2003.  This protection was codified in Article 128 of the 2005 Intellectual Property 
Law.  Under this Article, the authorities concerned had the obligation, when an applicant requested 
that data submitted as a conditio n for approving the marketing of pharmaceutical or agricultural 
chemical products be kept secret, to take necessary me asures so that such data  were neither used for 
unfair commercial purposes nor disclosed, except if disclosure 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 undisclosed data in 
his applications without permission of the prior applicant, except in cases wh ere the undisclosed data 
had been created independently by the subsequent ap plicant as provided for in Article 125.3(d) of the 
Law.  He noted a new Decree, Decree No. 103/2006/ND-CP providing detailed provisions and 
guidelines for implementing certain articles of the 2005 Intellectual Property Law concerning 
industrial property, and a regulation including pro cedural details, i.e. Decision No. 30/2006/QD-BYT 
of the Minister of Health on promulgation of regulations on data prot ection applied to Drug 
Registration Dossiers, had been issued in September 2006. 
438. He added that the new Law on Competition, which had been adopted by the National 
Assembly on 3 December 2004 (Law No. 27/2004/QH 11), included provisions dealing with unfair 
competition (Article 39) and infringement of  business secrets, including accessing and acquiring 
information on business secrets of others in procedur es for marketing approval of products, using such 
information for business purposes or for obtaining business-related licenses or marketing approval of 
products, or acting against secret-keeping measures of State agencies (Article 41.4).   
3. Measures to control abuse of intellectual property rights 
439. 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 Pr operty Law).  Failure to use or licence a patented 
invention could result in compulsory licensing (Artic le 136.1 of the 2005 Intellectual Property Law).   
440. A Member asked whether importation of a produc t covered by the patent would satisfy the 
requirement of Article 136.1.  The representative of  Viet Nam stated that importation would satisfy 
the requirement, and that this issue would be cl arified through the implementing decree.  He added 
that legal provisions had been included in the 2005 Intellectual Property Law to enable Viet Nam to WT/ACC/VNM/48 
Page 110  
 
  take appropriate measures to prevent or control anti-competitive practices in contractual licenses.  
Article 144.2 of the Law stipulated restrictions on the contractual licensing of industrial property 
between the right owners and the licensees (industrial property licensing contracts), applicable to both 
Vietnamese and foreigners. 
441. 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 licenses.  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.   
442. 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   
443. The representative of Viet Nam said that People's Courts (Civil Court), at district and 
provincial level, had jurisdiction over disputes of in fringement relating to intellectual property rights.  
The People's Court could adjudicate cases with respect to claims of abuse of industrial property rights, disputes concerning royalty or remu neration, claims on regi stration right and the ri ght of authorship, and 
disputes relating to contracts concerning assignment  of ownership right or licen sing contract for the right 
to use objects of industrial property.  Lodging a claim or bringing a suit before the Court, the plaintiff 
or his/her lawful representative would need to provi de evidence of his/her intellectual property right 
as well as evidence of infringement of the rights (A rticle 203 of the 2005 Intellectual Property Law).  
The defendant had the right to refute the evidence a nd arguments of the plaintiff before the Court.  
The Court had the right, upon request of either pa rty or on its own initiative, to demand further 
evidence or documentation and, if necessary, to co llect evidence itself (Articles 85 and 94 of the 
2004 Civil Procedure Code).  The persons or institu tions requested to provide  evidence had 15 days to 
present such evidence.  Concerned parties could a ppeal 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' request.  People's Prosecutors we re responsible for controlling and supervising civil 
courts' judgments and decisions and ensuring their ti mely settlement and conformity with Viet Nam's 
laws and regulations (Article 21 of the 2004 Civil Procedure Code).  All Court decisions were 
provided in written form to the concerned parties and the People' s Prosecutor within ten days 
(Article 241 of the 2004 Civil Procedure Code).  Detailed provisions on necessary evidence had been 
included in Article 203 of the 2005 Intellectual Propert y Law.  Pursuant to Article 203, documentation 
to be submitted to prove owners hip 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 copyright registration, or a certificate of related right registration.  For 
unregistered rights, any document proving the ex istence of copyright, related rights, well-known 
marks etc. could be accepted.  He confirmed that the plaintiff was not require d to submit an affidavit 
of ownership to the court.  Procedures also existed for amicable settlement of disputes over royalty, 
remuneration, licensing contracts and contracts to transfer ownership rights.  WT/ACC/VNM/48 
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  444. 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 damages, and lost inco me (Article 307.2 of the 2005 Civil Code).  "Mental 
damages" included damages to honour, dignity and pr estige of the victim (A rticle 204.1(b) of the 
2005 Intellectual Property Law).  The 2005 Intellect ual Property Law contained detailed provisions on 
calculation of damages (Article 204), compensa tion of right holders (A rticle 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, 
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.   
445. The representative of Viet Nam explained that detailed provisions conc erning indemnification 
of the defendant in the case of abuse of civil enforcement procedures by the complainant 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 ce nt 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 Intell ectual Property Law).  The intellectual property 
right owner having registered his right at a Cust oms Unit (or a Customs Department or the General 
Department of Customs if he wished to register his right at two or more 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 (Article 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 paid the prescribed fee (Article 49.1 of Decree 
No. 154/2005/ND-CP of 15 December 2005).  In response  to a Member who noted that the requirement 
to deposit 20 per cent of the value of the good c ould place an unreasonable burden on effective border 
enforcement and enquired about the alternative guarantee, the repres entative of Viet Nam said such 
alternative guarantee had been in cluded in Article 217.2(b) of the 2005 Intellectual Property Law. 
446. 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 a minimum of three years in  order to provide sufficient protection.  The 
representative of Viet Nam replied that Article 159.3 of the 2004 Civil Procedure Code provided for a 
two-year period for filing suits for the settleme nt of civil disputes, including those involving 
infringement of intellectual property rights.  He c onsidered this period sufficient compared to other 
types of violations. 
447. 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. 
(b) Provisional measures 
448. 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, WT/ACC/VNM/48 
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  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.   
449. 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 
450. 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). 
451. 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 
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 produc tion 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 th e Economic Police Depart ment - 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, had been in cluded in Government Decree No. 106/2006/ND-CP 
of 22 September 2006 on handling administrative vi olations in the industr ial property field.  WT/ACC/VNM/48 
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  452. In 2005, Science and Technology Inspectorates, in coordination with the Hanoi Police, had 
investigated several infringing bus iness bases and imposed fines on ei ght enterprises for a total of 
VND 64 million.  Science and Techno logy Inspectorates had also orga nized two board meetings with 
the participation of trade represen tatives from the French and US embassies to destroy intellectual 
property infringing products.  Furthermore, the National Office of Intellectual Pr operty of Viet Nam had 
conducted a legal assessment of the handling of 592 industrial property infringement cases by 
enforcement agencies.  It had also  participated in an inter-minist erial group under the lead of the 
Ministry of Industry to control th e implementation of exis ting intellectual property laws and regulations 
in 30 domestic enterprises producing and assembling mo torbikes 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 Inspecto rates, in coordination w ith local Departments of 
Science and Technology and other related agencies, had inspected 17,317 business bases and imposed 
1,953 fines for a total of VND 842 million. 
453. Asked about the allocation of staff to fight IPR infr ingement 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 investigation and prosecution of IPR infringements.  He noted that Government 
Decree No. 106/2006/ND-CP of 22 September 2006 on handling admini strative violations in the 
industrial property field included detailed provision s clarifying the scope of dut ies, responsibilities and 
jurisdiction of each enforcement agency.  Pursuant to this Decree, the Economi c Police was entitled to 
investigate intellectual property infringement and im pose administrative remedies, but not to prosecute 
or adjudicate crimes.  In addition, with a view to  further improving the efficiency of law enforcement 
staff, specific provisions on training had been includ ed in the 2005 Intellectual Property Law.  He noted 
that capacity building had been 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 inform ation 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 ex periences in the application of remedies and modes 
of infringement.  His authorities were also considering plans to develop statistics  and a general 
assessment system of infr ingements of intellectu al property rights to ensure a good coordination 
between enforcement agencies.  
454. Administrative measures and re medies were governed, under the new legislative framework, by 
Government Decree No. 106/2006/ ND-CP of 22 September 2006 on hand ling administrative violations 
in the industrial property field and Governme nt Decree No. 105/2006/ND-CP of 22 September 2006 
providing detailed provisions and guidelines for impl ementing certain articles of the 2005 Intellectual 
Property Law regarding the protec tion of intellectual property rights and State management of 
intellectual property.  Under the 1998 Law on Compla ints and Denunciations, as  amended in 2005, any 
natural or legal person, includi ng non-resident foreigners or foreign legal entities without a 
representation in Viet Nam, had the right and oblig ation to denounce a violation by informing the 
competent authorities in writing or by other means.   
455. 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 representativ e of Viet Nam explained that it was the practice to apply each of 
these administrative measures in a single case, unless,  for example, the infringer did not have a business 
licence.  The cumulative effect of these measures would, in his view, deter further infringement. WT/ACC/VNM/48 
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  456. He noted, however, that the imposition of a compensation for damages - up to VND 1 million 
- under administrative pr ocedures had been abolished in 2002 by the Ordinance on handling 
administrative violations No. 44/2002/PL-UBT VQH10.  Compensation for damages was now 
conducted only under civil procedures.  Customs proce dures for imports and exports could be suspended 
to protect intellectual property rights in accordance with Articles 57, 58, and 59 of the Customs Law of 
29 June 2001 as amended and supplemented  in 2005 by the Law No. 42/2005/QH11, Decree 
No. 154/2005/ND-CP of 15 December 2005, and Arti cle 218 of the 2005 Intell ectual Property Law. 
457. A Member expressed concern regarding the method of calculating fines under the 
2005 Intellectual Property Law.  It appeared that  fines would be levied based on the price of the 
infringing good rather than the price of the legiti mate good.  This limited the deterrent effect of 
imposing fines, and made them a cost of doing business for pirates and counterfeiters.  The 
representative of Viet Nam, as noted previously, st ated that as multiple administrative measures are 
imposed in addition to the fine, the cumulative effect  of these measures woul d serve as deterrent to 
future infringing actions. 
458. Decisions to impose an administrative measure were  issued in writing within ten days following 
the reporting of the violation, or 30 days in comp licated cases.  Appeals procedures were regulated 
according to the 1996 Ordinance on procedures for ju dgment of administrative cases, and the Law on 
Complaint and Denunciation of 1998 as amended by  Law No. 58/2005/QH11 (Articles 1.19 and 2.2).  
Administrative decisions could be appealed by eith er party, first to the authority having issued the 
decision and subsequently either to the administra tive court or to a superi or administrative body.  
Decisions of the superior administ rative body could be further appealed to the administrative court.  
459. In his view, administrative proc edures were speedy, simple, in expensive, and equitable, and 
right owners relied heavily on the administrative authorities, especially the market control agencies.  The injunctions were powerful enough to prevent furthe r infringement as most infringements addressed 
through administrative procedures were minor and unin tentional.  However, th e administrative system 
had been further strengthened under the 2005 Intellectual Property Law.   In particular, the scope of 
application of administrative remedies  had been limited and emphasis ha d been shifted to civil remedies, 
administrative procedures had been further elaborat ed (Chapter XVII of the 2005 Intellectual Property 
Law), the principle of administrative fines exceed ing the benefit gained from infringement had been 
established (Article 214.4 of th e 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 es tablished (Article 200 of the 2005 In tellectual Property Law).  The 
combination of administrative procedures and remedies, compensation under civil procedures, and 
recourse to criminal prosecution in cases of tr ademark counterfeiting and copyright piracy on a 
commercial scale provided, in his view, the deterre nt effect foreseen in Article 41 of the TRIPS 
Agreement, the indemnification of the defendant stipul ated in Article 48, and criminal actions stipulated 
in Article 61. 
(d) Special border measures 
460. 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  WT/ACC/VNM/48 
 Page 115 
 
 
  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 intellectual property right of the detained goods.  The Customs office 
would take a decision to release or prohibit circul ation of the goods in consultation with the State 
management bodies for Intellectual Property (the National Office of Intell ectual Property and the 
Copyright Office).  He added that Joint Circ ular No. 58/2002/TTLT-BVHTT -BTC of 17 October 2003 
contained detailed provisions on the implementation of border control me asures for copyright.  Specific 
provisions on the implementation of  border control measures concerni ng industrial property had also 
been included in the Joint Circular No. 129/2004/ TTLT-BTC-BKHC N of the Ministry of Finance and 
Ministry of Science and Technology on border control measures in resp ect of industrial property rights 
for imports and exports, pr omulgated on 29 December 2004. 
461. A Member was concerned that the provisions on suspension of customs clearance included in 
the 2005 Intellectual Property Law required the right  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 infringing 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 increased to three work ing days in the 2005 Intellectual 
Property Law.  He added that  detailed provisions had been included in Government Decree 
No. 105/2006/ND-CP of 22 September 2006 providi ng detailed provision s and guidelines for 
implementing certain articles of th e 2005 Intellectual Property Law rega rding protection of intellectual 
property rights and State manageme nt of intellectual property. 
462. 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 Circular No. 129/2004/TTLT-BTC-BKHCN 
(Article 2.2).   
463. Asked whether Viet Nam's Customs Law 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. 129/2004/TTLT-BTC-BKHCN of 29 December 2004 of the Ministry of Finance and 
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 WT/ACC/VNM/48 
Page 116  
 
  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 counterfeiting a nd pirating and for imposing strong administrative 
remedies for counterfeiting and pirating. 
(e) Criminal procedures  
464. The representative of Viet Nam said that the crimin al courts of the People's Courts, at district 
and provincial level, had jurisdiction over crimes re lating to intellectual property rights.  The Criminal 
Code of 1999 included provisions on copyright in fringement (Article 131), production and trade in 
counterfeits (Articles 156-158), dece ptive practices (Artic le 162), false advertis ing (Article 168), and 
infringement of industrial property rights (Art icle 171).  Any person ap propriating 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).  Infringements of or ganized character or carrying very serious consequences, and repeated 
offence were punishable by imprisonme nt from six months to three years.  Offenders also risked fines 
from 10 to 100 million dong and being banned from hol ding certain positions or  practising certain 
professions during one to five years.  Persons  producing or trading counterfeits valued up to 
150 million dong risked six months to five years impr isonment, or three to ten years for organized or 
professional counterfeiting, recidivism, abuse of posit ion, abuse of names of organizations, counterfeits 
priced between 150 to 500 million dong, large illicit  profits, and acts re sulting in very serious 
consequences (Article 156).  In ca se of counterfeited va lue exceeding 500 million dong, very large illicit 
profits and extremely seri ous consequences, the penalty would be increased from seven to 15 years 
imprisonment.  Offenders would also face a fine  of 5 to 50 million dong, possible confiscation of 
property, interdiction to hold certain positions and practise ce rtain professions during one to five years.  
Persons falsely advertisi ng goods or services were subject to a fine ranging from 10 to 100 million dong, 
non-custodial probation for up to th ree years or imprisonment of six months up to three years 
(Article 168).  They also risked a fine of 5 to 50 million dong and an interdiction to practise certain 
professions during one to five years.  According to  Article 171, infringements  of industrial property 
rights constituting criminal acts wo uld be subject to a fine of 20 to 200 million dong or non-custodial 
probation of up to two years.  Violations of organi zed character or carrying very serious consequences, 
and repeated infringements, were puni shable by six months to three y ears imprisonment.  Offenders also 
risked a fine of 10 to 100 million dong and an interd iction 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 
counterfeiting and copyright piracy on a comm ercial scale were considered crimes under 
Articles 156-158 of the Criminal Code and Article 213 of the 2005 Intellectual Property Law.  Criminal 
liability for these acts would be further clarified in the regulations on the implementation of the 2005 Intellectual Property Law and th e Criminal Code that would be issued prior to accession.  He 
added that criminal intellectual property enforcement officials were entitled to take ex-officio actions 
against criminal infringement of  intellectual property rights. 
465. A Member noted that Article 131 of the Criminal  Code did not appear to provide criminal 
liability for all commercial scale copyright piracy.  Th e Member also noted that Viet Nam's laws did not 
provide criminal liability for a ll activities involving commercial scal e trademark counterfeiting nor did 
they provide the authority to their competent auth orities, in criminal cases,  to seize and destroy 
infringing goods and material an d implements the predominant use of which had been in the 
commission of the offence.  The representative of Viet Nam explained that a circular was currently 
being drafted to clarify that all commercial scal e trademark counterfeiting and copyright piracy was  WT/ACC/VNM/48 
 Page 117 
 
 
  subject to criminal prosecution and that competent au thorities had seizure and destruction authority in 
criminal cases.  The Working Party took note of these commitments. 
466. The representative of Viet Na m explained that pursuant to  Article 170 of the Criminal 
Procedure Code, as amended in 2003, the District People's Courts had the ju risdiction as the first 
instance over offences subject to less than seve n years imprisonment, exce pt offences harmful to 
national security and peace, war crimes, crimes agai nst humanity, and other sp ecific cases as specified 
by law.  District People's Courts th erefore had jurisdiction as the first instance over offences in respect 
of intellectual property rights.  Cr iminal proceedings for intellectual  property infringement cases were 
identical to procedures for other criminal cases and involved the denouncement of the crime before the 
competent police, an investigation, the transfer of the file to the prosecution agency (Supreme People's 
Prosecution Institute), criminal proceedings at the competent court, judgment and enforcement of the 
judgment.  
467. Some Members considered the application of  death penalty for serious counterfeiting of 
trademarks unacceptable and requested Viet Nam to eliminate th is 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 
Code.  An infringement of organized character had an  intentional nature, not an infringement causing 
serious consequences. 
468. 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 Civil Procedure Code of 2004.  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 lo w gravity.  Any person involved in an act including a 
criminal element or having repeated an offence sanctioned administratively was subject to criminal 
prosecution.  The provisions of the 2005 Intellectual Property Law togeth er with the Circulars issued by 
the Supreme People's Court and Ministry of Justice were a clear indication of Viet Nam's commitment 
to provide effective enforcement of intellectual prop erty rights, including through use of the criminal 
laws. WT/ACC/VNM/48 
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  469. 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.   
470. In reply, the representative of Viet Nam referr ed to the 2005 Intellectual Property Law and 
implementing Decrees.  He also noted that an Ac tion Plan on Cooperation for Preventing and Fighting 
Infringements of Intellectual Property Rights fo r the period of 2006-2010 had 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 Inform ation, Science and Technology, Ag riculture and Rural Development, 
Finance, Trade, and Public Security).  
471. The representative of Viet Nam c onfirmed that his Government wo uld take all actions necessary 
to fully comply with all of the provisions of the Agreement on Trade-Related Aspects of Intellectual 
Property Rights from the date of accession to the WTO,  without recourse to any transitional period.  The 
Working Party took note of this commitment. 
POLICIES AFFECTING TRADE IN SERVICES 
472. 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 
37.98 per cent of Viet Nam's GDP in 2004.   
473. 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 and Technology; Natural Resources and 
Environment; Labour, War Invalids and Social Affairs;  Health; Education and Training; and Industry; 
the State Bank; the Ministry of Posts and Telematic s; the General Department of Tourism; and the 
Directorate for Standards and Quality.  In addition to governmental agencies, provincial level people's 
committees were 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 docu ment WT/ACC/VNM/5 of 24 August 1998. 
474. 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).   
475. In response to questions from Members, the representative of Viet Nam confirmed that 
foreign service suppliers were free to choose their partners unless otherwise specified in Viet Nam's 
Schedule of Specific Commitments.  He further confir med that foreign investors were not obliged to 
establish a representative office in Viet Nam. 
476. Concerning professional services, the representative of Viet Nam explained that the 
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 practise in Viet Nam in the form of a branch of a foreign lawyer 
organization, a foreign law firm, or a foreign-Vi etnamese law partnership.  Foreign lawyers could 
practise foreign and international law as members or employees of foreign lawyers' law-practising  WT/ACC/VNM/48 
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  organizations' commercial presence in Viet Nam, or as employees of Vietnamese lawyer offices or 
Vietnamese law partnerships.  To work as a lawyer in Viet Nam, foreigners were required to hold a 
valid practising certificate issued by a competen t foreign agency or organization, show goodwill 
towards the State of Viet Nam, and be employed  by a foreign lawyer organization's commercial 
presence in Viet Nam, or by a Vietnamese lawyer or ganization.  Foreign aud iting firms could operate 
in Viet Nam in the form of a joint-venture with  a Vietnamese auditing firm or as wholly foreign-
owned auditing firms.  Wholly foreign-owned auditi ng firms had to be licensed as provided for in the 
Foreign Investment Law and other related legal acts.   
477. Domestic and foreign engineers and architect s had to be certified in accordance with the 
Regulation on Granting Certificate for Design Pract ice 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 granted by th e Construction Departments of cities and provinces.  
The Ministry of Construction was responsible for supervising the granting of certificates.  Activities 
covered by the Regulation included ge neral layout design, architectural design, exterior and interior 
design, structural design, electrical and mechanic al design, as well as design relating to water supply 
and sewage, energy supply, ventilation and air c onditioning, communications, and fire protection.  
Engineering and architectural services providers, in cluding foreign providers, were required to hold a 
Bachelor or higher degree, have minimum five year s' experience in the design of construction works, 
and have participated in the design of a minimum of  five projects.  He added that the Vietnamese 
authorities recognized practising certificates granted by competent foreign organizations.  Foreign architects holding such certificates were allowed to  practise in Viet Nam without applying for a 
Vietnamese certificate in accordance with the requirements of Vietnamese laws and regulations.  
Foreign architects could also practise 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.   
478. The Ordinance on Posts and Telecommunications had been enacted in October 2002.  The 
representative of Viet Nam explained that the Or dinance governed the regulatory, operational and 
business activities in posts, telecommunications a nd radio frequency management, and created an 
important legal framework for market liberalization and a level playing field for competitors.  Together with this Ordinance, several governmental  decrees, Ministerial circulars and decisions had 
been promulgated on interconnection,  tariffs and pricing, frequency and numbering, inspection, the 
settlement of disputes, and illegal services.  The us e of telecommunications gateways and networks 
was regulated by Article 43 of the Ordinance and Articles 27 to 33 and 60 of the implementing 
Decree.  These Articles were designed to ensure the rights and obligations of telecommunications 
services providers to access and use each other's p ublic telecommunications transport networks.  
Non-discrimination in granting access to and use of  public telecommunications transport networks 
was guaranteed by Article 43.2 of the Ordinance.  Under this Article, public telecommunications 
services providers had an obligation to allow othe r public telecommunications services providers to 
interconnect with their own network under equ itable and reasonable conditions.  Long-term 
development plans and strategies had been approved and published.  In his view, the regulatory and 
business environment had been improved to become more transparent, predictable and pro-competitive.   
479. A Member raised questions about licensing pro cedures in the telecommunications and express 
delivery sectors.  In response, the representative of  Viet Nam confirmed that licensing decisions for 
both facilities-based and non-facilities-based services would be made in accordance with transparent 
and objective criteria.  He also confirmed that Vietnamese enterprises that were not State-owned or State-controlled were eligible to be licensed to  provide non-facilities-based services in Viet Nam and 
to form joint-ventures with foreign firms, in  accordance with Viet Nam's Schedule of Specific 
Commitments.  With respect to express delivery ser vices, he further confirmed that Viet Nam would 
adopt licensing requirements that were consistent with the WTO Agreement and Viet Nam's accession WT/ACC/VNM/48 
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  commitments.  He noted that his Government did not currently have a legal basis under Vietnamese 
law to issue a decree providing for such licensing; because Viet Nam's Protocol of Accession was 
needed to provide that necessary legal basis, he confirmed that Viet Nam would issue such a decree 
promptly upon ratification of Viet  Nam's Protocol of Accession, an d in any event, within three 
months of ratification.  He further confirmed that licensing of express delivery services during those 
three months would proceed in a manner consistent with the commitments set out in paragraph 507 of 
this Report.  The Working Party took note of these commitments. 
480. 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 internatio nal calls into Viet Nam and a system of allocation 
of calls by quota among six Vietnamese carrier s (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 104-109.  
This Member invited the representative of Viet Nam to confirm that Viet Nam would abolish these measures prior to accession.  Noting that these measur es had been introduced without prior notice nor 
possibilities for comment, this Memb er asked the representative of Viet Nam to confirm that any 
future measure of this sort would be subject to  advance notice and comment procedures as described 
in paragraphs 510-513.  The representative of Viet Nam was also invited to explain how an Official 
Letter, which was not recognized as a legal nor mative document according to the information 
provided in paragraph 517, 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 Decision.  The Letter was available on the website of the Ministry 
of Post and Telecommunications.  He noted that the quota allocation system had been agreed 
beforehand by consensus among the six carriers and s ubmitted to the Ministry.  By limiting the traffic 
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.  The Working Party took note of this commitment. 
481. The representative of Viet Nam further explained that the organization and operation of credit 
institutions and the banking activities of other or ganizations 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 representative office, a foreign 
bank branch, a joint-venture bank, or a 100 per cen t foreign-owned bank, a joint-venture finance 
company, or a 100 per cent foreign-invested finance company, a joint-venture financial leasing company, or a 100 per cent foreign-invested financ ial leasing company.  Pursuant to Articles 11 and 
12 of the Decree No. 22/2006/ND-CP of 28 February 200 6, the term of operation of a foreign bank 
branch, a joint-venture bank, or a 100 per cent foreign-owned bank of a foreign credit institution 
should not exceed 99 years; the term of operation of  a foreign bank branch should not exceed the term 
of operation of the parent foreign bank; and the term of operation of a representative office of a 
foreign credit institution sh ould not exceed the term of operation of that foreign credit institution.  The 
term of operation should be specifically stipulated  in the granted licence and could be extended upon 
request.  However, the maximum term of extension should not exceed the term of operation 
previously stipulated in the licence (a domestic bank was also required to apply for the extension of its 
term of operation).  The maximum term of ope ration was 50 years for a joint-venture finance 
company, a 100 per cent foreign-invested finan ce company, a joint-venture financial leasing 
company, and a 100 per cent foreign-invested fina ncial leasing company, and these operating licenses 
could be extended.  The contribution of the fo reign party in a joint-venture bank acting as a 
commercial bank could not exceed 50 per cent of the ba nk's registered capital, while the foreign party 
in a joint-venture non-banking credit institution need ed to account for at least 30 per cent of the  WT/ACC/VNM/48 
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  registered capital.  The aggregate share of forei gn institutions and individuals could be limited to 
30 per cent of the registered capital of a Vietna mese joint stock commercial bank, unless otherwise 
permitted by Viet Nam's laws or the relevant Vietnamese authority. 
482. 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.  
483. He further explained that 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 condition for establishing a 100 per cent foreign-invested finance company, a joint-venture finance company, a 100 per cent 
foreign-invested financial leasing company or a join t-venture financial leasing company was that the 
foreign credit institution had total assets of more than  US$10 billion at the end of the year prior to 
application.  The Government of Viet Nam view ed these conditions to be prudential in nature.  
Similarly, the representative of Viet Nam stated that his Government anticipated that its future 
licensing requirements for 100 per cent foreign-owne d banks would be prudential and address issues 
such as capital adequacy, liquidity and corporate governance.  Further, the criteria for both foreign 
bank branches and 100 per cent foreign-owned banks w ould 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 furthe r confirmed that a 100 per cent foreign-owned bank 
in Viet Nam was not treated as a foreign instituti on 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. 
484. 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 
allowed foreign bank branches to operate based on the capital of the parent bank for the purpose of 
lending.  The representative of Viet Nam further confirmed that Viet Nam would progressively bring its regulatory regime for foreign bank branches, in cluding minimum capital requirements, in line with 
commonly accepted international practice.  The Wo rking Party took note of these commitments. 
485. The representative of Viet Nam confirmed that a foreign bank branch would not be permitted 
to open transaction points, which we re dependent on the capital of the branch.  The representative of 
Viet Nam further confirmed that there was no quantitative limit on the number of foreign bank 
branches.  Transaction points did not, however, in clude offsite Automatic Teller Machines (ATMs).  
Foreign banks operating in Viet Nam were granted full MFN and national treatment in the placement 
and operation of ATMs.  The Working Party took note of these commitments. WT/ACC/VNM/48 
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  486. The representative of Viet Nam further explai ned that securities trading centres had been 
established in Ho Chi Minh City and Hanoi.  Fore ign securities companies wishing to trade securities 
in Viet Nam would be required to operate in c onformity with the Enterprise Law and Government 
Decree No. 144/2003/ND-CP on securities and stock exchange, and other applicable laws and 
regulations.  In addition, foreign securities companie s wishing to trade secur ities in Viet Nam would 
be subject to limitations, as indicated in Viet Nam's Schedule of Specific Commitments. He provided 
information on criteria for granting securitie s services licenses in Annex II to document 
WT/ACC/VNM/44.  
487. The representative of Viet Nam explained that  the National Assembly had approved the Law 
on Insurance Business on 9 December 2000 and the La w had entered into force on 1 April 2001.  
In addition, he provided information on the cr iteria for granting insurance services licenses in 
Annex II to document WT/ACC/VNM/44. 
488. A Member noted that Viet Nam had provided clarifications on the licensing criteria for 
insurance services licenses and secu rities services licenses in Annex II of WT/ACC/VNM/44.  This 
Member sought assurance that in th e event that these criteria were in consistent with the commitments 
undertaken by Viet Nam in its Schedule of Specific Commitments, or elsewher e in the Working Party 
Report, the commitments would prevail.  In respon se, the representative of Viet Nam confirmed that 
in the event that the licensing cr iteria described in Annex II of WT/ACC/VNM/44 were inconsistent 
or incompatible with Viet Nam's commitments in its Schedule of Specific Commitments, or elsewhere 
in the Working Party Report, the commitments would prevail.  The Working Party took note of this 
commitment. 
489. 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 Vietnamese-invested insurance companies 
and intermediaries were accorded meaningful and fair opportunities to be informed of, comment on, 
and exchange views with officials regarding measure s relating to or affecting 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 basis.  The Working Party took note of these 
commitments. 
490. In response to a question from a Member, the representative of Viet Nam confirmed that, 
provided that separate applications were submitted for life and non-life insurance, there was no limit, 
in law or in practice, on the number of new licens es that a foreign insurance company could submit at 
one time.  He further stated that there was also no limitation on the number of product approval 
applications that a foreign-invested insurance company could submit at one time, and that no 
requirement or regulatory practice restricted a foreign-invested insurance company from submitting 
additional applications based upon whether the Govern ment of Viet Nam had completed its review of 
that company's previous applications.  
491. In response to a Member's question concerning transparency in the regulation 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 505-507.  He further confirmed that  administrative guidance would be delivered in 
writing.  The Working Party took note of these commitments. 
492. 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  WT/ACC/VNM/48 
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  Articles of the Ordinance on Procedures for th e Settlement of Administrative Cases (OPSAC) 
No. 29/2006/PL-UBTVQH11. 
493. 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. 
494. 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 
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. 
495. 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. 
496. 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 companies to supply express delivery services.  
In response, the representative of Viet Nam c onfirmed that foreign-invested express delivery 
companies licensed to supply express delivery servi ces 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. 
497. A Member noted that Viet Nam had scheduled phase-in periods for foreign equity 
participation in many services sectors, and asked wh ether there were transparent and pre-established 
procedures for increasing foreign equity in a joint-ve nture and for transitioning from a joint-venture to 
a 100 per cent foreign-owned enterprise.  This Member  further stated that foreign partners in joint 
ventures 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 WT/ACC/VNM/48 
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  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). 
498. 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 from a joint-venture to a 100 per cent foreign-owned 
enterprise were laid out in detail in the D ecree No. 108/2006/ND-CP of 22 September 2006 on the 
Implementation of the 2005 Investment Law.  The representative of Viet Nam further confirmed that 
such re-allocation of capital within a joint-ventur e, or the transition from a joint-venture to a 
100 per cent foreign-owned enterprise would be subjec t to transparent and pre-established procedures, 
which in themselves would not require any disrupti on of the company's normal operations.  He also 
confirmed that joint-ventures seeking to transiti on to a 100 per cent foreign-owned enterprise may be 
required to apply for and receive an amended lic ence/investment certificat e to supply the same 
services, with a comparable scope of business.  A decision on such applica tions would be provided 
promptly so that the enterprise could continue ope ration without disruption.  The Working Party took 
note of these commitments. 
499. A Member noted that Viet Nam's market access commitments for retailing services included 
gradual phase-in to 100 per cent foreign particip ation.  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. 
500. In response to a Member's request for clarification of the scope of Viet Nam's mode 1 
distribution services commitment, the representative  of Viet Nam confirmed that its commitment 
included the electronic distribution of legitimate co mputer software.  This commitment was without 
prejudice to the ongoing discussion in the WTO, and Viet Nam's position, on the appropriate classification of computer software delivered electronically. 
501. 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 ownership.  This Member voiced 
strong concerns about how certain provisions of th e 2005 Enterprise Law would affect the ability of a 
majority share-holder (i.e., owning  at least 51 per cent but less than 65 or 75 per cent) to control an 
investment and make fundamental decisions about the operation of the enterprise.  Provisions on 
limited liability companies of more than one me mber and provisions on shareholding companies 
stipulated how fundamental decisions were to be ma de within an enterprise, by requiring that these 
fundamental issues be subject to approval by the Members' Council or Shareholders' Meeting and specifying a minimum percentage of votes necessar y for the Members' Council or Shareholders' 
Meeting to make such a decision.  According to these provisions, making certain fundamental 
decisions about the enterprise would require at le ast a majority of 65 per cent of the Members'  WT/ACC/VNM/48 
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  Council in the case of a limited liability company of  more than one person, or a majority of 
75 per cent of the Shareholders' Meeting in the case of a shareholding company.  
502. In response, the representative of Viet Nam confirmed that the Enterprise Law established 
minimum percentages of votes re quired to make fundamental decisions in various forms of 
enterprises.  He recognized the validity of Member s' concerns regarding the capability of majority 
shareholders (i.e., owning at least 51 per cent) to  make these fundamental decisions, especially in 
sectors in which Viet Nam had included foreign equity limitations in its Schedule 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, investors establishing a commercial presence as a joint-venture under the commi tments in Viet Nam's Schedule of Specific 
Commitments would have the right to establish, th rough 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 pr ocedures; and the precise percentages of voting 
majorities necessary to make all decisions, including a simple majority of 51 per cent.  He further 
confirmed that Viet Nam would give legal effect to these provisions of such enterprises' Charters.  
In addition, prior to accession, Viet Nam would give  effect to the obligations in this paragraph 
through appropriate legal m eans.  In this respect, the representativ e of Viet Nam noted that Article 3.3 
of the 2005 Enterprise Law provided that treaties woul d prevail in the event of discrepancies between 
provisions of that Law and treaty commitments, and confirmed that, pursuant to Article 6.3 of the 
Law on Treaties, Viet Nam would make a determin ation, upon ratification of the Protocol of 
Accession, as to the existence of such discrepancies and whether they would be resolved by direct 
application of the treaty or amendment of the Law.  The Working Party took note of these 
commitments. 
503. 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 ente rprise's original Charter related to all the types 
of decisions that had to be submitted to the Memb ers' Council or Shareholders' Meeting for approval; 
the quorum rules, if any, that governed voting procedures; and the precise percentages of voting majorities necessary to make all decisions, incl uding a simple majority of 51 per cent, as the 
enterprise deemed appropriate.  Approval of such modifications of enterprise Charters during the 
period stipulated would be granted expeditiously in  order to avoid disruption of business operations.  
The Working Party took no te of these commitments. 
504. 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 cr iteria; identified activities, terms, and conditions; 
included all critical information for valid completion of applications; included relevant timeframe and 
critical deadlines; and identified the competent aut hority for granting the licence.  This Member also 
requested Viet Nam to ensure that licensing pro cedures and conditions would be published prior to 
becoming effective and include a reasonable timeframe  for review and decision in that publication.  
Furthermore, any fees charged would not constitute an independent barrier to market access and the 
applicant would be informed whether the appli cation was complete or, in case of incomplete 
application, what additional information was required.   This Member requested that decisions on an WT/ACC/VNM/48 
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  application be taken promptly and if an application was terminated or denied, the applicant would be 
informed in writing and without delay of the reasons for such action.  The Member also requested that 
examinations to licence professionals be scheduled at reasonable intervals.   
505. 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 a nd 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.  
506. 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 activities for each service sector.  In addition, from the 
date of accession Viet Nam would publish in the official journal all of its existing licensing 
procedures and conditions.  The Working Party took note of these commitments. 
507. 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 
Schedule of Specific Commitments, Viet Nam would ensure that:  (a) Viet Nam's licensing 
procedures and conditions were published prior to becoming effective; (b) in that publication, 
Viet Nam would specify the timeframe for the relevant authorities' decision on the license; 
(c) relevant authorities would revi ew and make a decision on licensing within the period specified in 
official procedures; (d) any fees charged in connec tion with the filing and review of an application 
would not constitute an independent barrier to ma rket access; (e) on the request of an applicant, 
Viet Nam's relevant regulatory authority would inform  the applicant of the status of its application 
and whether it was considered complete.  An app lication would not be considered complete until all 
information specified in the relevant implementing measure was received.  If the authority required 
additional information from the applicant, it woul d notify the applicant without undue delay and 
specify the additional information required to complete  the application.  Applicants would  have the 
opportunity to cure deficiencies in the application;  (f) on the request of an unsuccessful applicant, a 
regulatory authority that had denied an applica tion would inform the applicant in writing of the 
reasons for denial of the application; (g) where an application had been denied, an applicant may 
submit a new application that attempted to a ddress any prior problems; (h) where approval was 
required, once the application was approved, the applicant would be informed in writing without 
undue delay; and (i) where Viet Nam required an examination to licence professionals, such examinations would be scheduled at reasonable in tervals.  The Working Party took note of these 
commitments.  
508. 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  WT/ACC/VNM/48 
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  other measures the publication of which would impede law enforcement, Viet Nam would 
(a) publish in advance any regulations or other impl ementing measures of general application that it 
proposed to adopt and the purpose of the re gulation or other implementing measure; 
(b) provide interested persons and other Members a reasonable opportunity to comment on such proposed regulation or other implementing measu re; and (c) allow reas onable time between 
publication of the final regulation or other implemen ting measure and its effective date.  The Working 
Party took note of these commitments. 
TRANSPARENCY 
Publication of information on trade 
509. 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 provisions 
of the WTO Agreement.  These Members asked whet her a legal obligation existed in Viet Nam to 
publish in an official journal all laws, regulati ons, decrees, judicial decisions and administrative 
orders or rulings of general app lication or other measures having similar effect relating to trade or 
economic policy "in such a manner as to enable gove rnments and traders to become acquainted with 
them".  These Members further inquired as to what  extent publication occurred prior to entry into 
force, and whether any such measures could enter in to force without being published in the Official 
Gazette. 
510. 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. 10 4/2004/ND-CP on the Official Gazette, Circular 
No. 04/2005/TT-VPCP guiding the implementation of Decree No. 104/2004/ND-CP, and the Prime Minister's Directive No. 28/2001/CT-TTg of 28 November 2001 on the Continuous Improvement of 
the Business Environment.   
511. 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 pub lished the drafts in news papers to elicit comments 
from the general public.  Articles 62.2 and 65.4 of the amended Law on the Enactment of Legal 
Normative Documents required the Office of the Government to publish draft Government 
Resolutions and Decrees, and Decisions and Instructi ons of the Prime Minister, on the Internet or in 
mass media for comments by agencies, organizati ons and individuals.  There was no specialized 
website for the publication of draft legal documen ts; draft legal documents  were published on the 
website of the responsible Ministry and drafting agency, i.e., on the Ministry of Planning and 
Investment's website for documen ts related to investment ( www.mpi.gov.vn
), on the Ministry of 
Trade's website for documents concer ning trade rules and regulations ( www.mot.gov.vn ), and on the 
Ministry of Finance's website for documents on tax and finance ( www.mof.gov.vn ).  A number of 
draft documents were also published on th e website of the Ministry of Justice ( www.moj.gov.vn ).  
Drafting entities could also organize workshops a nd seminars to discuss th e drafts with those 
interested.  He noted that Directive No. 28/2001/CT -TTg required ministries and agencies to seek 
comments from the business community through the Viet Nam Chamber of Commerce and Industry 
in the drafting of any policies or rules affecting business operations.  Draft legal documents affecting 
the business community were published on the Inte rnet site of the Chamber of Commerce and 
Industry ( http://www.vibonline.com.vn ).  He added that a draft Resolution or Decree would not be WT/ACC/VNM/48 
Page 128  
 
  published for comment if it related to national security, State secrets, or its nature or contents did not 
require such publication. 
512. 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 drafting process, was laid down in Articles 3, 26.4 
and 61.4 of the amended Law on the Enactment of Legal Normative Documents.  Article 3.3 of the 
Law required the drafting agency to synthesize, an alyze 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.   
513. 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 opportuniti es for public comment.  The Law did not stipulate 
any timeframe for the solicitation and provision of comme nts.  Such issues were left to the discretion 
of the drafting entity, taking into account the co mplexity and importance of the proposed legal 
instrument.  Asked about five-day or seven-day  time limits specified in a new Law on the 
Promulgation of Legal Documents of People's Counc ils and People's Committees, he added that the 
limits stipulated in Articles 23, 30 and 41 of this Law were minimum, and not  maximum, timeframes.  
The Law had been drafted to be fully consis tent with WTO rules on transparency, and the 
implementing regulations for the Law would ensure uniform and consistent implementation of this 
Law throughout Viet Nam.   
514. He confirmed that Article 47 of the Law on the Enactment of Legal Normative Documents 
authorized the Standing Committee of the Nationa l Assembly to invite relevant agencies or 
individuals to address the Committee on a draft ordi nance.  Although the Law did not provide similar 
authority to the National Assembly or to his Gove rnment, Article 32.2 allowed the lead examination 
committee of the National Assembly to conduct survey s and study "the reality of the issues belonging 
to the contents of the draft" and agencies, orga nizations and individuals contacted by the committee 
were required to provide information and ma terials to serve this examination.   
515. 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 notices on their premises.  Asked whether laws, regulations 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.   
516. 
A Member noted that Vietnamese ministries appeared to use documents called "official 
letters" - not qualifying as legal nor mative documents in Viet Nam's legislation - to set policy, and 
that most ministries would deny requests to provi de these documents.  Viet Nam was requested to  WT/ACC/VNM/48 
 Page 129 
 
 
  update the Working Party on measures taken to bring th is practice into conformity with WTO rules on 
transparency.  This Member also sought confirma tion that the Government of Viet Nam would no 
longer use "official letters" as policy-setting documen ts, and that the policies contained in existing 
"official letters" would be disconti nued or, if adhered to by ministri es, would be followed in a manner 
consistent with WTO rules on transparency. 
517. In reply, the representative of Viet Nam said th at "official letters" had not been recognized as 
legal normative documents under the Law on the Enac tment of Legal Normative Documents or under 
the Law on the Promulgation of Legal Documents of People's Councils and People's Committees.  
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 
normative documents, such as official letters, noti ces and guidelines, would be invalid and sanctions 
applied for its issuance in accordan ce with the law.  The Government Office had issued Circular 
No. 04/2005/TT-VPCP and the Prime Minister has issued Directive No. 08/ 2005/CT TTg to ensure 
full implementation of the two Laws and to make th e use of "official letters" more transparent and 
consistent with WTO rules.  The Workin g Party took note of this commitment. 
518. 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  a manner that fulfils the WTO requirements, and 
no such laws, regulations, decrees, judicial decisions  and administrative rulings of general application 
would become effective or be enforced prior to su ch publication, except for those regulations, judicial 
decisions and administrative rulings of general application, and other measures involving national 
emergency or security, or for which publication woul d impede law enforcement.  To this end, he 
further confirmed that Viet Nam would, as of the date of accession, establish or designate an official 
journal or website for each of the topics (or an asp ect of a topic) identified above, dedicated to the 
publication, prior to their entry into force, of all regulations, decisions, orders, and administrative 
rulings of general application, pertaining to or aff ecting that topic.  Such journals or websites would 
be updated on a regular basis, notified to the WTO, and readily available to WTO Members, 
individuals, associations and enterprises.  The webs ites or journals where these measures would be 
published are listed in Table 23.  The publication of such regulations and other measures would 
include, as appropriate, the following:  (i) the na mes of the authorities (including contact points) 
responsible for implementing a particular measure; a nd (ii) the effective date of the measure.  The 
representative of Viet Nam confirmed that with r espect to proposed laws, ordinances, decrees and 
other regulations and measures issued by the Nationa l Assembly and the Government pertaining to or 
affecting trade in goods, services, and intellectua l property, 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 su ch measures are adopted.  The Government would 
take into account any comments received during the period for commenting.  The only exceptions to 
this opportunity for comment would be for tho se regulations and other measures involving national 
emergency or security, or for which publication w ould impede law enforcemen t.  The Working Party 
took note of these commitments. 
Notifications 
519. The representative of Viet Nam said that at the latest upon accession, Viet Nam would submit 
all initial notifications required by the WTO Agr eement.  Any laws, regula tions, or other measures 
subsequently enacted by Viet Nam, and which we re required to be notified pursuant to the WTO 
Agreement, would also be notified in a time an d manner consistent with WTO requirements.  
The Working Party took no te of these commitments. WT/ACC/VNM/48 
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  TRADE AGREEMENTS 
520. 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/VN M/3/Add.1, Annex 8.  The trade agreements, 
although concluded on a bilateral b asis, provided for MFN treatment.  At present, preferential rates of 
import duty were applicable only to ASEAN countri es and on 243 tariff lines of textile items imported 
from the European Union (in return for increased im port quotas on Vietnamese exports of textiles to 
the EU).  Viet Nam had become a member of AS EAN 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 in cluded 51 tariff lines.  Viet Nam did not have a 
list of highly sensitive products.  Viet Nam had no t entered into any labour market integration 
agreements. 
521. 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 services commitments as part of the AFTA/China Free Trade Agreement. 
522. The representative of Viet Nam replied that  sensitive unprocessed agricultural products and 
highly sensitive products had not b een included in the CEPT/AFTA framework prior to 1995.  Since 
then, ASEAN members had established a special m echanism for tariff reduction and elimination of 
non-tariff barriers on these products.  Viet Nam had 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 (ACFTA), ASEAN and China had si gned, on 4 November 2002, the Framework 
Agreement on Comprehensive Econom ic Cooperation between ASEAN and China, paving the way 
towards the realization of an ACFTA for goods , which was set to be established by 2010 for 
ASEAN 6 and China, and by 2015 for the newer ASEAN Member States, including Viet Nam.  
According to the Agreement In Goods to impl ement the above-mentioned Framework Agreement, 
which had been signed on 6 December 2004, the partic ipating countries committed to eliminate most 
tariffs over a period of time.  In Viet Nam's case, the bulk of goods would be subject to tariffs ranging 
from 0 to 5 per cent in 2015, with some flexibility for certain products, to 2018.  As part of the 
package, ASEAN and China also co mmitted to eliminate non-tariff barri ers, in particular quantitative 
restrictions, unless otherwise permitted by WTO di sciplines.  Supporting the implementation of the 
Agreement, Rules of Origin and related Operatio nal Certification Procedures, and an Agreement on 
Dispute Settlement Mechanism had also been signed at the same time.  Full texts of the above 
agreements and relevant tariff commitments were available on the official website of the ASEAN 
Secretariat (www.aseansec.org).  The Agreement In Goods would be augmented by services and 
investments with negotiations on agreements on these relevant areas being pursued by ASEAN and 
China, with the aim of achieving concrete results by the end of 2007.  
523. Upon accession, Viet Nam would notify these agreements in conformity with WTO rules.  
The Working Party took note of this commitment.  WT/ACC/VNM/48 
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  524. Some Members noted that Viet Nam was required – 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.   
525. The representative of Viet Nam replied that Viet Nam would comply with the MFN principle 
within the meaning of Article I of the GA TT 1994 upon accession to the WTO.  The bilateral 
agreement with the United States had come  into force at the end of 2001.   
526. 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, with respect to the trade agreements to which it belongs, and would en sure that from the date of accession, it complied 
with the provisions of the WTO Agreement rela ting to notification, consultation and other 
requirements concerning free trade areas and customs unions of which Viet Nam was a member.  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 Co mmittee on Trade in Goods for transmittal to the 
Committee on Regional Trade Agreements (CRTA) for review.  The Working Party took note of this 
commitment. 
CONCLUSIONS 
527. 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 specific matters which are reproduced in paragraphs 31, 78, 
79, 95, 103, 117, 119, 134, 135, 139, 146, 147, 155, 158, 162, 174, 177, 184, 198, 199, 206, 208, 209, 215, 216, 218, 227, 238, 244, 250, 253, 255, 260, 269, 281, 286, 288, 303, 315, 316, 328, 332, 339, 355, 366, 403, 465, 471, 479, 480, 483, 484, 485, 488, 489, 491, 494, 496, 498, 499, 502, 503, 506, 
507, 508, 517, 518, 519, 523 and 526 of this Report.  The Working Party took note that these 
commitments had been incorporated in paragraph 2 of the draft Protocol of Accession of Viet Nam to 
the WTO.   
528. 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/48/Add.1) and its Schedule of Sp ecific Commitments on Services (document 
WT/ACC/VNM/48/Add.2) that are annexed to the draft Protocol.  It is proposed that these texts be 
adopted by the General Council when it adopts th e 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.  Th e Working Party agreed, therefore, that it had 
completed its work concerning the negotiations for the accession of the Socialist Republic of 
Viet Nam to the Marrakesh Agreement Establishing the WTO. WT/ACC/VNM/48 
Page 132  
 
  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 No. 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; - Decree No. 12-2006-ND-CP "On Making Detaile d Provisions for Implementation of the 
Commercial Law with Respect to Internationa l Purchases and Sales of Goods; and Agency 
for Sale and Purchase, Processing and Transit of Goods Involving Foreign Parties" of 
23 January 2006; 
- Decree No. 19/2006/ND-CP "On Making Detailed Provisions for Commercial Law on the 
Origin of Goods" of 20 February 2006; 
- Decree No. 20-2006-ND-CP "On Making Detaile d Provisions for Implementation of the 
Commercial Law with Respect to the Busin ess of Commercial Assessment Services" of 
20 February 2006; 
- Decree No. 35-2006-NP-CP "On Making Detaile d Provisions for Implementation of the 
Commercial Law with Respect to Franchising Activities" of 31 March 2006; 
- Decree No. 37-2006-ND-CP "On Providing Deta iled Regulations for Implementation of 
Commercial Law with Respect to Commercial Enhancement Activities" of 4 April 2006; 
- Decree No. 57/2006/ND-CP "On Electronic Commerce";  WT/ACC/VNM/48 
 Page 133 
 
 
  - Decree No. 59-2006-ND-CP "On Making Detaile d Provisions for Implementation of the 
Commercial Law with Respect to Goods and Services in which Business is Prohibited, 
Restricted and Subject to Conditions" of 12 June 2006; 
- Draft Decree "On Detailed Provisions of the Commercial Law on Enterprises with Foreign-
Invested Capital Specializing in Purchase and Sale of Goods and Other Activities Directly 
Relating to Purchase and Sale of Goods in Vi et Nam (Pursuant to the Commercial Law dated 
14 June 2005); 
- Draft Decree "On Providing Detailed Provisi ons of the Commercial Law on Representative 
Offices and Branches of Foreign Business Entities in Viet Nam" (Pursuant to the Commercial 
Law dated 14 June 2005); 
- Draft Decree "On Business Registration and Busi ness Registries" (Pursuant to the Enterprise 
Law No. 60/2005/QH11 of 29 November 2005); 
- Law on Business Bankruptcy of 30 December 1993; - Law "On Enterprises" of December 2005; - Draft Decree "On Conversion of State-owne d Companies into Limited Liability Companies 
that Operate under the Enterprise Law" (Pursu ant to the Enterprise Law No. 60/2005/QH11 of 
29 November 2005); 
- Law No. 13/1999/QH10 – The Enterprise Law; - Law No. 59-2005-QH11 "On Investment" of December 2005; - Draft Law "On Investment"; - Draft Decree "On Providing Guidelines for Implementation of the Law on Investment" 
(Pursuant to the Law on Investment No. 59-2006-WH11 dated 29 November 2005); 
- 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; 
- Government Decree No. 12/CP of 18 Febr uary 1997 Providing Regulations on Foreign 
Investment in Viet Nam (1997); 
- Circular No. 74 TC/TCT of 20 October 1997 Providing Guidance On the Implementation of 
Tax Provisions Applicable to Various Form s of Investment Under the Law on Foreign 
Investment in Viet Nam; 
- Government Decree Providing Detailed Regula tions on the Implementation of the Law on 
Foreign Investment in Viet Nam (Decree No. 24-2000-ND-CP of 31 July 2000); 
- Ordinance on Price of 26 April 2002; - Petroleum Law of 6 July 1993; - 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"; WT/ACC/VNM/48 
Page 134  
 
  - 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); 
- 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";  WT/ACC/VNM/48 
 Page 135 
 
 
  - Government 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 Government 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; - Decree No. 154/2005/ND-CP Detailing the Implementation of a Number of Articles of the 
Customs Law Regarding Customs Proce dures, 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; WT/ACC/VNM/48 
Page 136  
 
  - 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; 
- Law "On Standards and Technical Regulations" dated 29 June 2006; 
- 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; 
- 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";  WT/ACC/VNM/48 
 Page 137 
 
 
  - Draft Decree "On Making Detailed Provisions  and Providing Guidelines for Implementation 
of Certain Articles of the Law on Intellectual Property regarding Protection of Intellectual 
Property Rights" (Pursuant to Law No. 50/ 2005/QH11 on Intellectual Property dated 
29 November 2005); 
- Draft Decree "On Making Detailed Provisions  and Providing Guidelines for Implementing 
the Provisions of the Intellectual Property Law concerning Intellectual Property" (Pursuant to 
Law No. 50/2005/QH11 on Intellectual Property dated 29 November 2005); 
- 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; 
- Government Decree on Detailed Regulati ons Concerning Industrial Property (Decree 
No. 63/CP of 24 October 1996, amended a nd supplemented by Government 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 No. 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; 
- Draft Decree "On Stipulating in Detail and Inst ructing the Implementation of some Articles of 
the Civil Code, and the Law on Intellectual Property of Copyright and Neighbouring Rights" (Pursuant to Law No. 50/2005/QH11 on Intell ectual Property dated 29 November 2005); 
- Decree on Copyright Providin g Guidelines for the Implementation of a Number of the 
Provisions of the Civil Code with Respect to Copyright (Decree No. 76-CP of 29 November 1996); 
- Circular of the Ministry of Science and Technology No. 30/2003/TT-BKHCN "Guiding the 
carrying out of the Procedures for Establishment of Industrial Property Rights over 
Inventions/Utility Solutions" of 5 November 2003; 
- Decree on the Protection of New Plant Varieties (Decree No. 13/2001/ND-CP) of 
20 April 2002; 
- Circular on the Implementation of 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; WT/ACC/VNM/48 
Page 138  
 
  - 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 No. 48-CP of the Government Dated 17 July 
1995 on Cinematographic Organizations a nd 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/VNM/48 
 Page 139 
 
 
  ANNEX 2 
Table 1: List of Goods and Services in which Business is Prohibited  
(Issued with Decree No. 59-2006-ND-CP of the Government dated 12 June 2006)  
No. Name of Goods and Services Current Legal Instrument1 Industry Management 
Body 
A - Goods 
1.  Weapons, milit ary equipment and 
technical facilities, ammunition and 
specialized facilities for the army and police; military paraphernalia (including 
badges, medals and insignia of the army 
and police); accessories, and materials and technology used to manufacture the 
former items.  Decree 47-CP dated 
12 August 1996; Decree 
No. 100-2005-ND-CP.  Ministry of Defence, 
Ministry of Police.  
2.  Drugs of addiction.  Law on Fighting Drugs of 
Addiction, 2000; Decree No. 67-2001-ND-CP; Decree 
No. 133-2003-ND-CP.  Ministry of Police.  
3.  List I chemicals (stipulated in 
International Treaties).  Decree No. 100-2005-ND-CP. Ministry of Industry.  
4.  Products of reactionary culture and 
pornographic products; products serving 
superstitious purposes or products which are harmful to personal development.  Law on Publishing 2004; 
Decree No. 03 -2000-ND-CP.  Ministry of Culture 
and Information; 
Ministry of Police.  
5.  All types of firecrackers.  Decree No. 03-2000-ND-CP.  Ministry of Police.  
6.  Games and toys which are harmful to the 
personal development and health of 
children or to the security, order and safety of society (including electronic 
games).  Decree No. 03-2000 -ND-CP.  Ministry of Education 
and Training; Ministry 
of Police.  
7.  Veterinary medicine and plant protection 
agents which are prohibited or not yet permitted to be used in Viet Nam 
pursuant to the Ordinance on Veterinary 
Medicine and the Ordinance on Protection and Quarantine of Plants.  Ordinance on Veterinary 
Medicine 2004; Ordinance on Protection and Quarantine of 
Plants 2001.  Ministry of 
Agriculture and Rural Development; 
Ministry of Aquatic 
Products.  
8.  Rare wild animals and plants (including 
both living animals and processed matter 
taken from animals) on the lists in international treaties of which Viet Nam 
is a member, and all types of rare wild 
animals and plants on the lists 
prohibiting their use and exploitation.  CITES Convention;  
Decree No. 32 -2006-ND-CP.  Ministry of 
Agriculture and Rural 
Development; Ministry of Aquatic 
Products.  
9.  Aquatic products which are prohibited 
from use; aquatic products containing toxic chemicals in excess of the 
permissible limits; and aquatic products 
containing life-endangering natural toxins.  Law on Aquatic Products 
2003.  Ministry of Aquatic 
Products.  
                                                      
1 If the current legal instrument has been amended, supplemented or replaced, then the amended, 
supplementary or replacing legal instrument applies. WT/ACC/VNM/48 
Page 140  
 
  No. Name of Goods and Services Current Legal Instrument1 Industry Management 
Body 
10.  Fertilisers not on the list of fertilisers 
permitted to be manufactured, traded and 
used in Viet Nam.  Decree No. 113-2003-ND-CP. Ministry of 
Agriculture and Rural 
Development.  
11.  Plant varieties not on the list of plant 
varieties permitted to be manufactured 
and traded; plant varieties which are 
harmful to manufacture, human health, the environment and the ecosystem.  Ordinance on Plant Varieties 
2004.  Ministry of 
Agriculture and Rural 
Development.  
12.  Animal breeding varieties not on the list 
of varieties permitted to be produced and 
traded; breeding varieties which are harmful to human health, animal genetic 
sources, the environment and the 
ecosystem.  Ordinance on Animal 
Varieties 2004.  Ministry of 
Agriculture and Rural 
Development; Ministry of Aquatic 
Products.  
13.  Specially toxic minerals.  Mineral Law 1996; Decree 
No. 160-2005-ND-CP.  Ministry of Natural 
Resources and 
Environment.  
14.  Imported scrap causing environmental 
pollution.  Decree No. 175-CP dated 
18 October 1994.  Ministry of Natural 
Resources and Environment.  
15.  All types of curative medicine for 
people, all types of vaccine, biological 
products, cosmetics, chemicals and products for the extermination of insects 
and bacteria used in homes and in 
medicine generally which are not yet 
permitted to be used in Viet Nam.  Law on Pharmacy 2005; 
Ordinance on Private Medical 
and Pharmaceutical Practice 2003.  Ministry of Health.  
16.  Medical apparatus not yet permitted to be 
used in Viet Nam.  Ordinance on Private Medical 
and Pharmaceutical Practice 2003.  Ministry of Health.  
17.  Foodstuff additives, preservatives which 
assist processing, nutritional substances, 
functional foodstuffs, high-risk foodstuffs, foodstuffs protected by 
radioactive means and foodstuffs 
containing transformed genes not yet permitted by the competent State body.  Ordinance on Safety and 
Hygiene of Foodstuffs 2003.  Ministry of Health.  
18.  Products and materials containing 
ammonium in the amphibole group.  Decree 12-2006-ND-CP.  Ministry of 
Construction.   WT/ACC/VNM/48 
 Page 141 
 
 
  No. Name of Goods and Services Current Legal Instrument1 Industry Management 
Body 
B - Services 
1.  Brothel businesses, organizing 
prostitution, trafficking in women and 
children.  Decree No. 03-2000 -ND-CP.  Ministry of Police.  
2.  Organized gambling in any form.   Decree No. 03-2000-ND-CP.  Ministry of Police.  
3.  Investigation services into the secrecy or 
infringement of State rights, or of the 
rights and legitimate interests of 
organizations and individuals.  Decree No. 14-2001 -ND-CP.  Ministry of Police.  
4.  Marriage broking involving a foreign 
element for profit-making purposes.  Decree No. 68-2002 -ND-CP.  Ministry of Justice.  
5.  Adoption broking services involving a  
foreign element for profit-making  
purposes.  Decree No. 68-2002 -ND-CP.  Ministry of Justice.  
 WT/ACC/VNM/48 
Page 142  
 
  Table 2:  List of Conditional Business Sectors
 
I. List of Goods and Services in which Business is Restricted*  
(Issued with Decree No. 59-2006-ND-CP of the Government dated 12 June 2006)  
No. Name of Goods and Services Current Legal Instrument2 Industry Management 
Body 
A – Goods 
1.  Hunting guns, sports weaponry and 
ammunition, and protective tools and 
equipment.   Decree No. 47-CP dated 
12 August 1996; Decree 
No. 08-2002-ND-CP.  Ministry of Police; 
Ministry of Defence; 
Committee for Sports and Physical 
Education.  
2.  Goods containing radioactive substances; 
equipment emitting radiation or radiating sources.   Ordinance on Safety and 
Control of Radiation 1996; Decree No. 50-1998-ND-
CP.  Ministry of Science 
and Technology.  
3.  Industrial explosiv es; high concentration 
(98.5% or more) ammonium nitrate (NH4NO3).  Decree 27-CP dated 
20 April 1995;  Decree No. 02-CP dated 
5 January 1995; Decree 
No. 08-2002-ND-CP.  Ministry of Industry.  
4.  Types 1 and 2 toxic chemicals (stipulated in 
International Treaties).  Decree No. 100-2005-ND-
CP.  Ministry of Industry.  
5.  Rare wild animals and plants (including both 
living animals and plants and processed matter taken from animals and plants).  CITES Convention; 
Decree No. 32-2006-ND-
CP.  Ministry of 
Agriculture and Rural Development.  
6.  Cigarettes, cigars and all other forms of 
tobacco finished products.  Decree No. 76-2001-ND-
CP and this Decree.  Ministry of Industry; 
Ministry of Trade.  
7.  All types of spirits.  This Decree. Ministry of Industry.  
B – Services 
1. Karaoke and dancing club services.  Decree No. 11-2006-ND-
CP; Decree No. 08-2001-ND-CP.  Ministry of Culture 
and Information; Ministry of Police.  
* Business is restricted by means of certain conditions stipulated in the applicable legal documents. 
                                                      
2 If the current legal instrument has been amended, supplemented or replaced, then the amended, 
supplementary or replacing legal instrument applies.  WT/ACC/VNM/48 
 Page 143 
 
 
  II. List of Goods and Services in which Business is Subject to Conditions  
(Issued with Decree 59-2006-ND-CP of the Government dated 12 June 2006)  
No. Name of Goods and Services Current Legal Instrument3 Industry Management 
Body 
I.  Goods and services in respect of which a cert ificate of satisfaction of business conditions is 
required: 
A - Goods 
1.  Petrol and oil of all types.  This Decree.  Ministry of Trade.  
2.  Natural gas of all types (including filling and 
storing).  This Decree.  Ministry of Trade.  
3.  Medicine for people.  Law on Pharmacy 2005.  Ministry of Health.  
4.  Foodstuffs on the list of high-risk foodstuffs.  Ordinance on Safety and 
Hygiene of Foodstuffs 
2003; Decree No. 163-2004-ND-CP.  Ministry of Health.  
5.  Veterinary medicine and plant protection 
agents; raw materials for the production of 
veterinary medicine and plant protection agents.  Ordinance on Veterinary 
Medicine 2004; Ordinance 
on Protection and Quarantine of Plants 2001.  Ministry of 
Agriculture and Rural 
Development; Ministry of Aquatic 
Products.  
6.  Antiques, precious objects and national 
treasures.  Ordinance on Cultural 
Relics 2004; Decree No. 92-2002-NDCP.  Ministry of Culture 
and Information.  
7.  Films, tapes and disks (including printing 
and copying).  Decree No . 11-2006-
NDCP.  Ministry of Culture 
and Information.  
8.  Tobacco raw material s.  Decree No. 76-2001-
NDCP.  Ministry of Industry.  
B - Services 
1.  Medical and health services, traditional 
medicine services.  Ordinance on Private 
Medical and 
Pharmaceutical Practice 2003; Decree No. 103-
2003-ND-CP.  Ministry of Health.  
2.  Medicine business services including 
services for preserving and testing medicine.  Law on Pharmacy 2005.  Ministry of Health.  
3.  Veterinary practice.  Ordinance on Veterinary 
Medicine 2004.  Ministry of 
Agriculture and Rural 
Development; 
Ministry of Aquatic Products.  
4.  Disinfecting and sterilizing services.  Ordinance on Protection 
and Quarantine of Plants 
2001.  Ministry of 
Agriculture and Rural 
Development.  
5.  Network installation and provision of 
telecommunications services.  Ordinance on Posts and 
Telecoms 2002; Decree 
No. 160-2004-ND-CP.  Ministry of Posts and 
Telematics.  
6.  Internet access services (ISP).  Decree  No. 55-2001-
NDCP.  Ministry of Posts and 
Telematics.  
7.  Internet connection services  (IXP).  Decr ee No. 55-2001-
NDCP.  Ministry of Posts and 
Telematics.  
8.  Internet applicati on services in posts and 
telecoms (OSP Posts, OSP Telecoms).  Decree No . 55-2001-
NDCP.  Ministry of Posts and 
Telematics.  
                                                      
3 If the current legal instrument has been amended, supplemented or replaced, then the amended, 
supplementary or replacing legal instrument applies. WT/ACC/VNM/48 
Page 144  
 
  No. Name of Goods and Services Current Legal Instrument3 Industry Management 
Body 
9.  Provision of postal services.  Ordinance on Posts and 
Telecoms 2002; Decree 
No. 157-2004-ND-CP.  Ministry of Posts and 
Telematics.  
10.  Domestic and international mail courier 
services.  Ordinance on Posts and 
Telecoms 2002; Decree 
No. 157-2004-ND-CP.  Ministry of Posts and 
Telematics.  
11.  Electricity distribution, wholesale, retail and 
specialized consultancy on electricity.  Law on Electricity 2004.  Ministry of Industry.  
12.  Services for the organization of artistic 
performances.    Decree No . 11-2006-
NDCP.  Ministry of Culture 
and Information.  
13.  Film making co-operative services.  Decree No. 48-CP dated 
17 July 1995. Ministry of Culture 
and Information.  
14.  Multi-modal international transpor t services.  Decree No. 125-2003-ND-
CP.  Ministry of Transport 
and Communications. 
15.  Services being the design of means of 
transportation.  Decree No. 125-2003-ND-
CP.  Ministry of Transport 
and Communications. 
16.  Insurance services: life insurance, non-life 
insurance, reinsurance, insurance brokerage 
and insurance agency.  Law on Insurance 
Business 2000; Decree 
No. 42-2001-ND-CP; Decree No. 43-2001-ND-
CP.  Ministry of Finance.  
17.  Securities and securities market services: 
brokerage, self-trading, portfolio management, underwriting issues of 
securities, financial and securities investment 
consultancy, registration, depository and 
clearing services, underwriting issues of 
government bonds and local government bonds; tendering for government bonds, 
government guaranteed bonds and local 
government bonds.   Decree No. 141-2003-ND-
CP; Decree No. 144-2003-ND-CP.  Ministry of Finance.  
18.  Labour export services.  Decree No. 81-2003-ND-
CP.  Ministry of Labour, 
War Invalids and 
Social Affairs.  
19.  Legal consultancy services (including giving 
advice and acting as counsel) conducted by Vietnamese lawyers.  Ordinance on Lawyers 
2001; Decree No. 94-2001-ND-CP.  Ministry of Justice.  
20.  Legal consultancy services conducted by 
foreign lawyers.  Decree No. 87-2003-ND-
CP.  Ministry of Justice.  
21.  Seal engraving servi ces.  Decree No. 08-2001-ND-
CP.  Ministry of Police.  
22.  Security services.  Decree No . 14-2001-ND-
CP.  Ministry of Police.  
23.  International travel services.  Law on Tourism 2005.  General Department 
of Tourism.  
II.  Goods and services in which business is subject to conditions but in respect of which a certificate 
of satisfaction of business conditions is not required:  
A - Goods 
1.  Toxic chemicals other than those on the Lists 
stipulated in International Treaties.  Decree No. 100-2005-ND-
CP.  Ministry of Industry.  
2.  Foodstuffs other than those on the List of 
high-risk foodstuffs, raw materials for foodstuffs, additives and preservatives which 
assist in processing.  Ordinance on Safety and 
Hygiene of Foodstuffs 2003; Decree No. 163-
2004-ND-CP; Decree 
No. 59-2005-ND-CP.  Ministry of Health; 
Ministry of Aquatic Products.   WT/ACC/VNM/48 
 Page 145 
 
 
  No. Name of Goods and Services Current Legal Instrument3 Industry Management 
Body 
3.  All types of medical equipment and 
apparatus.  Ordinance on Private 
Medical and 
Pharmaceutical Practice 
2003.  Ministry of Health.  
4.  Fishing equipment and apparatus (including 
raw materials to make fishing equipment and 
apparatus) and equipment to exploit aquaculture.  Decree No . 59-2005-
NDCP.  Ministry of Aquatic 
Products.  
5.  Aquaculture feed.  Decree No . 59-2005-
NDCP.  Ministry of Aquatic 
Products.  
6.  Animal breeding varieties permitted to be 
produced and traded.  Ordinance on Plant  
Varieties 2004; Decree No. 59-2005-NDCP.  Ministry of 
Agriculture and Rural Development; 
Ministry of  
Aquatic Products.  
7.  Animal feed.  Decree 15-CP dated 
19 March 1996.  Ministry of 
Agriculture and Rural 
Development.  
8.  Main plant varieties and rare plant varieties 
which need to be protected and preserved.  Ordinance on Plant  
Varieties 2004.  Ministry of 
Agriculture and Rural Development.  
9.  Fertilisers.  D ecree No. 113-2003-ND-
CP.  Ministry of 
Agriculture and Rural 
Development.  
10.  Building materials.  Law on Construction 
2003.  Ministry of 
Construction.  
11.  Coal.  Mineral Law 1996; Decree 
No. 160-2005-ND-CP.  Ministry of Industry.  
12.  Telecommunications equipment and 
materials (except radio broadcasting and 
receiving).  Ordinance on Posts and 
Telecoms 2002; Decree 
160-2004-ND-CP.  Ministry of Posts and 
Telematics.  
13.  Radio broadcasting an d receiving equipment. Ordinance on Posts and 
Telecoms 2002; Decree 24-2004-NDCP.  Ministry of Posts and 
Telematics.  
14.  All types of machinery, equipment, materials 
and substances having strict requirements 
regarding labour safety and hygiene.  Law on Labour; Decree 
No. 06-CP dated 
20 January 1995; Decree No. 110-2002-ND-CP.  Ministry of Labour, 
War Invalids and 
Social Affairs; Ministry of Health.  
15.  Gold.  Decree No. 174-1999-ND-
CP; Decree No. 64-2003-
ND-CP.  State Bank of 
Viet Nam.  
B - Services 
1.  Slaughtering and preliminary processing of 
animals and animal products; preservation 
and transportation of animal products after 
slaughtering.  Ordinance on Veterinary 
Medicine 2004.  Ministry of 
Agriculture and Rural 
Development; 
Ministry of Aquatic 
Products.  
2.  Services regarding plant and animal varieties 
as regulated by the Ordinance on Plant 
Varieties and the Ordinance on Animal 
Varieties.  Ordinance on Plant 
Varieties 2004; Ordinance on Plant Animal 2004.  Ministry of 
Agriculture and Rural Development; 
Ministry of Aquatic 
Products.  
3.  Postal agency services, mail courier agency 
services (including mail courier agency for 
foreign express courier organizations).  Ordinance on Posts and 
Telecoms; Decree 
No. 157-2004-ND-CP.  Ministry of Posts and 
Telematics.  WT/ACC/VNM/48 
Page 146  
 
  No. Name of Goods and Services Current Legal Instrument3 Industry Management 
Body 
4.  Telecomm agency servi ces.  Ordinance on Posts  
and Telecoms 2002; 
Decree No. 160-2004-ND-
CP.  Ministry of Posts  
and Telematics.  
5.  Public internet agency services.  Decr ee No. 55-2001-
NDCP.  Ministry of Posts and 
Telematics.  
6.  Services being distribution of publications.  Law on Publishing 2004.  Ministry of Culture 
and Information.  
7.  Advertising services.  Ordinance on Advertising 
2001; Decree No. 24-
2003-NDCP.  Ministry of Culture 
and Information.  
8.  House leasing servi ces.  Decree No. 08-2001-
NDCP.  Ministry of Police.  
9.  Business services in 10 or more storey 
buildings as hotels, residences or working 
offices.  Decree No . 08-2001-
NDCP.  Ministry of Police.  
10.  Pawn services.  Decree No . 08-2001-
NDCP.  Ministry of Police.  
11.  Printing services.  Decree No . 08-2001-
NDCP.  Ministry of Police.  
12.  Services for making, printing and distributing 
all types of maps not within State 
management authority at the central level.   Decree No . 12-2002-
NDCP.  Ministry of Natural 
Resources and 
Environment  
13.  Inspection services of all types of machinery, 
equipment, materials and substances having 
strict requirements regarding labour safety 
and hygiene.  Decree No. 06-CP dated 
20 January 1995; Decree 
No. 110-2002-ND-CP.  Ministry of Labour, 
War Invalids and 
Social Affairs.  
14.  Occupational training and consultancy 
services.  Decree No . 02-2001-
NDCP.  Ministry of Labour, 
War Invalids and 
Social Affairs.  
15.  Work and career introduction  services.  Decr ee No. 19-2005-
NDCP.  Ministry of Labour, 
War Invalids and 
Social Affairs.  
16.  Automobile transport services.  Law on Road Transport 
2001; Decree No. 92-2001-NDCP.  Ministry of Transport 
and Communications. 
17.  Rail transport services.  Law on Railways 2005.  Ministry of Transport 
and Communications. 
18. Rail Infrastructure business  
19. Rail transport support services  
20. Urban Rail transport services Law on Railways 2005.  Ministry of Transport 
and Communications. 
21. Services for construction, upgrade, repair and 
recovery of inland watercraft.  
22. Services for handling cargo and servicing 
passengers at port and inland waterways 
23. Inland waterway transport services Law on Inland waterway 
transport Decree No. 21-2005-ND-CP. Ministry of Transport 
and Communications.  WT/ACC/VNM/48 
 Page 147 
 
 
  No. Name of Goods and Services Current Legal Instrument3 Industry Management 
Body 
24. Shipping agency  
25. Oceanic transport Agency 
26. Marine Broking services  
27. Services of supplying sea-going ship. 
28. Services of calculati ng and checking cargo.  
29. Ship towing services  
30. Cargo handling services at seaports.  
31. Ship cleaning services  Decree No. 10-2001-ND-
CP. Ministry of Transport 
and Communications. 
32. Oceanic transport services.   
33. Oceanic transport servi ces.  Decree No. 57-2001-
NDCP.  Ministry of Transport 
and Communications. 
34. Customs agency services .  Law on Customs 2001; 
Decree No . 79-2005-
NDCP.  Ministry of Finance.  
35. Accounting services.  Law on Accounting 2003; 
Decree No. 129-2004-ND-
CP.  Ministry of Finance.  
36. Auditing and other related services regarding 
finance, accounting and tax.  Law on Accounting 2003; 
Decree No. 105-2004-ND-
CP.  Ministry of Finance.  
37. Valuation services.  Or dinance on Prices 2002; 
Decree No. 101-1112005-ND-CP.  Ministry of Finance.  
38. Building services as s tipulated in the Law on 
Construction.  Law on Construction 
2003.  Ministry of 
Construction.  
39. Services for foreigners and Vietnamese 
residing overseas to rent houses in Viet Nam.   Decree No. 56-CP dated 
18 September 1995; 
Decree No . 08-2001-
NDCP.  Ministry of 
Construction; 
Ministry of Police.  
40. Tourist lodging services  
41. Domestic travel services  
42. Travel Agency 
43. Tourist transportation services  
44. Tourism services within tourism zones, 
tourism sites and tourist centres. 
45. Tour guide services  Law on Tourism 2005. General Department 
of Tourism. 
46. Commercial evaluation services  Commercial Law 2005; 
Degree No. 20-2005-ND-
CP. Ministry of Trade. 
 WT/ACC/VNM/48 
Page 148  
 
  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/VNM/48 
 Page 149 
 
 
  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/VNM/48 
Page 150  
 
  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.4 
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 VND 30 billion or more 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.  
                                                      
4 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/VNM/48 
 Page 151 
 
 
  Group 2: Enterprises with a Majority of State-Owned Shares 
1. Companies possessing VND 20 billion or more of State-owned capital; having made an average 
annual payment of VND 2 billion 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 fo ods: 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/VNM/48 
Page 152  
 
  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/VNM/48 
 Page 153 
 
 
  Table 7:  Authorities Responsible for Granting Investment Licenses  
Authority Responsible for Granting 
Investment Licenses 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 US$40 million in the 
following fields: electricity, mining, metallurgy, cement, mechanical engineering manuf acturing, chemicals, hotels, 
apartments for lease, or tourism-entertainment areas. 
 - Projects using at least 5 hectares of urban land or at least 
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/VNM/48 
Page 154  
 
  Authority Responsible for Granting 
Investment Licenses 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/VNM/48 
 Page 155 
 
 
  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 form... 2009 Essential to human life 
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/VNM/48 
Page 156  
 
  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/VNM/48 
 Page 157 
 
 
  HS Description Schedule Rationale 
3004.90. 98 - - - Sorbitol    
3004.90. 99 - - - Other    
3006 Pharmaceutical goods in note 4 to chapter 30... 2009 Essential to human life 
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, st ock, etc... 2009 Sensitive to public morals 
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 Sensitive to public morals 
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 Sensitive to public morals 
4910.00. 00 Calendars of any kind, printe d, including calendar blocks   
4911 Printed matter nesoi, incl print pictures & photos... 2009 Sensitive to public morals 
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/VNM/48 
Page 158  
 
  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 Sensitive to public morals 
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 public morals 
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/VNM/48 
 Page 159 
 
 
  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 Sensitive to public morals 
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/VNM/48 
Page 160  
 
  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/VNM/48 
 Page 161 
 
 
  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   2. 
2710. 19. 19  - - - - Other medium oils and preparations   WT/ACC/VNM/48 
Page 162  
 
  No HS Description Rationale 
2710. 19. 21  - - - - Topped crudes   
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/VNM/48 
 Page 163 
 
 
  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/VNM/48 
Page 164  
 
  Table 9:  Customs Fees Levied in Acco rdance with Inter-Ministerial Circular 
 
No. 71/2000/TTLT/BTC-TCHQ of 19 July 2000 of th e 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/VNM/48 
 Page 165 
 
 
  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/VNM/48 
Page 166  
 
  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/VNM/48 
 Page 167 
 
 
  Table 12:  Import Prohibitions (as per August 2006)  
HS Description Rationa le 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 manufactured 
tobacco.  Limit the 
consumption 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 exceeding 175cc. Security and traffic 
safety  Import prohibition to 
be replaced by 
automatic import 
licensing not later 
than 1 June 2007 
ex 8702 
     8703 
     8704 
     8707 
     8708 
 Right-hand steering vehicles 
(including their components 
and those modified to left-
hand drive ones prior to 
importation into Viet Nam), 
except for specialized right-
hand steering vehicles 
operating in small areas such as cranes, trench and canal 
digging machines, garbage 
trucks, road sweepers, road 
construction trucks, airport 
passenger transportation 
buses, fork-lifts used at 
warehouses and ports.       
9301 00 00 Military weapons, other than 
revolvers, pistols and the 
arms of heading 307:  
revolvers, pistols. Military equipment  Decision No. 28/TTg 
dated 13 January 1997 
by PM  
9302 00 00 Revolvers and pistols, other 
than those of heading 9303 
or 9304. Weapons Decision No. 28/TTg 
dated 13 January 1997 
by PM  WT/ACC/VNM/48 
Page 168  
 
  HS Description Rationa le Legal basis Note 
9304  Other arms (for example, 
spring, air or gas guns and 
pistols, truncheons), 
excluding those of heading 
9307. Weapons  Decision No. 28/TTg 
dated 13 January 1997 
by PM  
9305 Parts and accessories of 
Articles of headings 9301 to 
9304. Weapons  Decision No. 28/TTg 
dated 13 January 1997 
by PM  
9306 Bombs, grenades, torpedoes, 
mines, missiles and similar 
munitions of war and parts 
thereof; cartridges and other 
ammunition and projectiles 
and parts thereof, including 
shot and cartridge wads. Weapons  Decision No. 28/TTg 
dated 13 January 1997 
by PM  
9307 Swords, cutlasses, bayonets, 
lances and similar arms and 
parts thereof and scabbards 
and sheaths thereof. Weapons  Decision No. 28/TTg 
dated 13 January 1997 
by PM  
NA Second-hand consumer 
goods, including: 
 
- Textiles and clothes; 
footwear; 
-  Electronic goods; 
-  Refrigerating equipment 
and products; 
-  Household electric 
goods; 
-  Furniture; 
-  Household goods made 
from porcelain, clay, 
glass, metal, resin, 
rubber, plastic, and other 
materials. Product safety Decision No. 28/TTg 
dated 13 January 1997 
by PM  
NA Used materials and 
equipment, including: 
 
- Used machines, 
structures, inner tires, 
tires, accessories, motors 
of automobiles, tractors, 
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; 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 wa ste materials 
which may cause 
environmental pollution and 
epidemics. 
List published by the 
Ministry of Science and 
Technology. Environment 
protection, 
protection of 
human health     WT/ACC/VNM/48 
 Page 169 
 
 
  HS Description Rationa le Legal basis Note 
NA Depraved and reactionary 
cultural products  Public morals    
NA Children toys having 
adverse effect in moral 
education, public order and 
security. Public morals and 
social security   
NA Narcotics. Protection of 
human life   
NA Firecrackers (excluding fire 
signal used for maritime 
safety and other purposes as 
stipulated by the 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 transportation buses, fork-lifts used at 
warehouses and ports.    Traffic safety   
NA Asbestos products and 
materials under amphibole 
group. Protection of 
human health   
NA Specialized encryption 
machines and encryption 
software subject to State 
secret. National security  This restriction shall 
not apply to general, 
commonly traded 
goods equipped with 
encryption 
technology which are destined for mass 
consumption. 
 WT/ACC/VNM/48 
Page 170  
 
  Table 13(a):  Import Prohibitions- Highly Toxic Chemicals
 
  
Persistence Organic Pollutants 
No. Name of chemicals Formula Concentration 
 Aldrin C 12H8Cl6  
 Chlordane   
 DDT   
 Dieldrin   
 Eldrin   
 Heptachlor C 10H5Cl5  
 Captofol   
 Hexachlorobenzen C 6Cl6  
 24,5 T (Brochtoc, Decamine)   
Note: Applied in accordance with the Stockholm Convention on Persistent Organic Pollutants (POPs); 
HS codes are not applicable.  
Severely Hazardous Pes ticide Formulation (PIC) 
No. Name of chemicals Formula Concentration 
10. Methamidophos   C 2H8NO 2PS   
11 Monocrotophos  C 7H14NO 5P   
12 Methyl Parathion  C 8H10NO 5PS   
13 Phosphamidon      
14 Methyl parathion (demetil paranitro photpho, 
volfatoc...)     0.0001 
Note:  These chemicals fall under the Rotterdam Treaty on Prior Informed  Consent as Severely Hazardous 
Pesticide Formulations, which Viet Nam had approved and would officially become a party by the end of 2006.  
No. Name of chemicals Formula Concentration 
15 Isobenzen      
16 Isodrin       
17 Ethyl Parathion      
18 Polychlorocamphere      
19 Captan     
20 BHC (Lindane) C 6H6O6   
Note:  These chemicals fall under Decision No.31/2006/QD-BNN dated 27 April 2006 promulgating the list of 
insecticide allowed, restricted and prohibited to use. 
 
Toxic Chemicals That Can Be Used In Chemical Weapons 
 
SCHEDULE 1 
No. Name of Chemical CAS 
Registry 
number HS 
1. O-Alkyl (<C10, incl. cycloalkyl) alkyl 
 (Me, Et, n-Pr or i-Pr)-phosphonofluoridates 
E.g. Sarin:  O-Isopropylmethylphosphonofluoridate        
  Soman: O-Pinacolyl methylphosphonofluoridate  
 
107-44-8 
96-64-0  
 
 
2931.00 
2. O-Alkyl (<C10, incl. cycloalkyl) N,N-dialkyl 
 (Me, Et, n-Pr hoÆc i-Pr) phosphoramidocyanidates 
 e.g. Tabun:O-Ethyl N,N-dimethyl phosphoramidocyanidate     
 
77-81-6  
 
2931.00  WT/ACC/VNM/48 
 Page 171 
 
 
  Toxic Chemicals That Can Be Used In Chemical Weapons 
 
SCHEDULE 1 
No. Name of Chemical CAS 
Registry 
number HS 
3. O-Alkyl (H or <C10, incl. cycloalkyl) S-2-dialkyl 
 (Me, Et, n-Pr or i- Pr)-aminoethyl alkyl 
(Me, Et, n-Pr or i-Pr) phosphonothiolates and salt corresponding alkylated or protonated salts 
 e.g. VX: O-Ethyl S-2-diisopropylaminoethyl methyl 
phosphonothiolate                     
 
  
50782-69-9 
  
 
  
2930.90 
4.  Sulfur mustards: 
 2-Chloroethylchloromethylsulfide                         
(2625-76-5) 
 Mustard gas: Bis(2-chloroethyl)sulfide                 (505-60-2)  Bis(2-chloroethylthio)methane                             
(63869-13-6) 
 Sesquimustard:  1,2-Bis(2-chloroethylthio)ethane (3563-36-8) 
 1,3-Bis(2-chloroethylthio)-n-propane                    
(63905-10-2)  1,4-Bis(2-chloroethylthio)-n-butane                    
(142868-93-7) 
 1,5-Bis(2-chloroethylthio)-n-pentane                  (142868-94-8) 
 Bis(2-chloroethylthiomethyl)ether                    (63918-90-1) 
 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           (541-25-3) 
 Lewisite 2:  Bis(2-chlorovinyl)chloroarsine      (40334-69-8)  Lewisite 3:  Tris(2-chlorovinyl)arsine              (40334-70-1)  
541-25-3 
40334-69-8 40334-70-1  
 
 2931.00 
6. Nitrogen mustards: 
 HN1:  Bis(2-chloroethyl)ethylamine   
(538-07-8)  HN2:  Bis(2-chloroethyl)methylamine                     
(51-75-2) 
 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)(8) 35523-89-8 3002.90 
8. Ricin 9009-86-3 3002.90 
Precursors 
9. Alkyl (Me, Et, n-Pr or i-Pr) phosphonyldifluorides 
e.g. DF:   Methylphosphonyldifluoride               
676-99-3  
10. O-Alkyl (H or <C10, incl. cycloalkyl) O-2-dialkyl 
 (Me, Et, n-Pr or i- Pr)-aminoethyl alkyl 
 (Me, Et, n-Pr or i-Pr) phosphonites and   corresponding alkylated or protonated salts 
 e.g. QL:  O-Ethyl O-2-diisopropylaminoethyl 
methylphosphonite                          
 
  
57856-11-8  
 
  
2931.00 
11. Chlorosarin:    O-Isopropyl methylphosphonochloridate   1445-76-7 2931.00 
12. Chlorosoman: O-Pinacolyl methylphosphonochloridate  7040-57-5 2931.00 
Note:  These products belong to Schedule 1 of the Convention on the Prohibition of the Development, 
Production, Stockpiling and Use of Chemical Weapons and on their Destruction (CWC), to which Viet Nam is a 
State Party. 
 
 
 WT/ACC/VNM/48 
Page 172  
 
  Table 13(b):  Import Allowed Conditionally 
 
Toxic Chemicals and Products Containing Toxic Chemicals  
 
Toxic Chemicals That Can Be Used In Chemical Weapons 
 
SCHEDULE 2 
No. Name of Chemical CAS Registry 
number HS 
1. Amiton: O,O-Diethyl S-[2-(dieth ylamino)ethyl]phosphorothiolate   
and corresponding  alkylate d or protonated salts 78-53-5 2930.90 
2. PFIB:  1,1,3,3,3-Pentafluoro-2-(trifl uoromethyl)-1-propene     382-21-8 2903.30 
3. BZ:  3-Quinuclidinyl benzilate (*)                   6581-06-2 2933.90 
Precursors 
4. Chemicals, except for those liste d 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  ethylphosphonothiolothionate                             
 
 
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-Dimethylam inoethanol 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-P r) 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-Dime thylbutan-2-ol     464-07-3 2905.14 
SCHEDULE 3 
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. Methyldiethano lamine 105-59-9 2922.19 
17. Triethanolamine 102-71-6 2922.13 
Note: These products are Schedule 2 an d 3 chemicals of the CWC, to which Viet Nam is a State Party. They  
belong to Appendix 2, Circular No. 01/2006/TT-BCN dated 11 April 2006 "Guiding the management of export, 
import of toxic chemicals and products containing toxi c chemicals, drug precursors, and those subject to 
technical standards under the line management of the Ministry of Industry". According to Part II.2 of the  WT/ACC/VNM/48 
 Page 173 
 
 
  Circular No. 01/2006/TT-BCN, export and/or import of those chemicals shall be subject regulated by Decree 
No. 100/2005/NDD-CP dated 3 August 2005 on Implementation of  the CWC.    
Drug Precursors And Chemicals That Can Be Used In Drug Production 
No. Name of chemicals Formula 
1 Acetic anhydride (CH 3CO) 2O 
2 Acetone CH 3COCH 3 
3 Anthranilic acid NH 2C6H4COOH 
4 Diethyl ether (C 2H5)2O 
5 Hydrochloric acid HC l 
6 Methyl ethyl ketone C 4H8O 
7 Phenylacetic acid C 8H8O2 
8 Piperidine C 5H11N 
9 Potassium permanganate KMnO 4 
10 Sulphuric acid H 2SO 4 
11 Toluene C 6H5CH 3 
12 Methylamine CH 3NH 2 
13 Nitroethane CH 3CH 2NO 2 
14 Tartaric acid HO 2CCH(OH)CH(OH)CO 2H 
15 Formic acid HCOOH 
16 Formamide HCONH 2 
17 Ethylene diacetate CH 3CO 2CH 2CH 2O2CCH 3 
18 Diethylamine (C 2H5)2NH 
19 Benzyl cyanide C 6H5CH 2CN 
20 Benzaldehyde C 6H5CHO 
21 Ammonium formate HCO 2NH 4 
22 Acetic acid CH 3COOH 
Note: These products belong to Appendix 1, Circular No. 01/2006/TT-BCN dated 11 April 2006 guiding the 
management of export, import of toxic chemicals and products containing toxic chemicals, drug precursors, and 
those subject to technical standards under the line management of the Ministry of Industry. According to Part 
II.1 of Circular No. 01/2006/TT-BCN, export and/or import of precursors used in industry as listed in  Appendix 1 shall be subject to (i) the Law on Prevention and Fight against Drugs dated 9 December 2000; 
(ii) the Regulations on management of precursors used in industry which was already promulgated as 
attachment to the Decision No. 134/2003/QD-BCN dated 25 August 2003 and Decision No. 04/2004/QD-BCN dated 7 January 2004 of the Ministry of Industry and the provisions of this Circular. 
 
Other Conditional Toxic Chemical Products 
 Chemical Chemical formular 
1 Acetonitril CH 3CN 
2 Acid pechloric HC lO4 
3 Acrolein CH 2=CHCHO 
4 Arsenua hydro AsH 3 
5 Aldehyd acetic CH 3CHO 
6 Asbestos (Row material)  
7 Amoniac; Ammonium hydroxide NH 3; NH 4OH 
8 Anhydrid arsenic (arsen trioxid và arsen pentoxid) As 2O3, As 2O5 
9 Anilin C 6H5NH 2 
10 Antimoan Sb 
11 Acid nitric  HNO 3 
12 Acid phosphoric H 3PO 4 
13 Acid picric C 6H3O7N3 
14 Barium and easily soluble compound of barium Ba; h ợp chất dễ tan 
15 Barium oxide containing 10% free SiO2  BaO 
16 Benzene C 6H6 WT/ACC/VNM/48 
Page 174  
 
  Other Conditional Toxic Chemical Products 
 Chemical Chemical formular 
17 Benzidine C 12H12N2 
18 Bichromat kali K 2Cr2O7 
19 Brom Br 
20 Bromoform CHBr 3 
21 Bromo – methan CH 3Br 
22 Salt based on CN except cyanogen chloride   
23 Calcium chloride CaC l2 
24 Carbon tetrachloride CC l4 
25 Cadmi and the compound od cadmi  
26 Carbon oxide CO 
27 Lead and inorganic compound of lead  
28 Chloroform CHC l3 
29 Chlor C l2 
30 Chlorobenzene C 6H5Cl 
31 1- Chloronaphthalene C 10H7Cl 
32 0-[2-chloro-1-(2,5-dichlorophenyl)-vinyl]-0-0- diethyl 
phosphorothioat  
33 Chlorid mercury HgCl 2 
34 Chloropren C 4H5Cl 
35 Chlorid copper I and copper II CuCl ; CuCl 2 
36 Dichlorobenzene C 6H4Cl2 
37 Dioxit carbon CO 2 
38 Dimethylamine (CH 3)2NH 
39 N,N – dimethylformamide HCON(CH 3)2 
40 Dinitrobenzene C 6H4(NO 2)2 
41 Dinitrochlorbenzene C 6H3(NO 2)2Cl 
42 Dinitrotoluene CH 3C6H3(NO 2)2 
43 Dioxid chlor ClO 2 
44 Ethylene oxide (CH 2)2O 
45 Ethyl chloride C 2H5Cl 
46 Ethylen glycol CH 2OH-CH 2OH 
47 Ethyl mercuric phosphate  
47 Fluorosilicat kim lo ại tan và không tan  
49 Fluorin hydrid HF 
50 Formaldehyde HCHO 
51 Furfurol C 4H3OCHO 
52 Mix of tetra và pentan aphtalin   
53 Hydrazine and its homolog  H 2NNH 2 
54 Isopropaline C1 5H23N3O4 
55 Isopropylnitrate C 3H7NO 3 
56 Oxide iron containg fluor and mangan  FeO, Fe 2O3 
57 Methaldehyde (CH 3CHO)n 
58 Methyl alcohol CH 3OH 
59 Salt of acid fluorhydric   
60 n – Hexane C 6H14 
61 n-Butanol C 4H9OH 
62 Nicotine C 10H14N2  WT/ACC/VNM/48 
 Page 175 
 
 
  Other Conditional Toxic Chemical Products 
 Chemical Chemical formular 
63 Nitrobenzene C 6H5NO 2 
64 2-Nitro-1-hydroxybenzen-4-arsonic acid  
65 Dioxide nitrogen NO 2 
66 Nitrotoluen CH 3C6H4NO 2 
67 Nitrid of metals  
68 Oxide nickel NiO 
69 Oxite chrom CrO 3 
70 Oxynitrogen (NOx) N 2O, NO, NO 2, N 2O3, N 2O5 
71 Ozone O3 
72 Paranitrophenyl C 6H4(NO 2)2 
73 PCB (Polychlorinated bisphenyl)   
74 Parathion (C 2H5O)2PSO-C 6H4NO 2 
75 Phenol C 6H5OH 
76 Phosphor P 
77 Phosphine PH 3 
78 Phosphor (metalic)   
79 Pyridine C 5H5N 
80 Selen and its compound Se 
81 Sulfur carbon SC 2 
82 Sulfur lead PbS 
83 Hydrosulfur  H 2S 
84 Thalium Tl 
85 Tetranitromethane C(NO 2)4 
86 Tetrachloroheptane C7H12Cl4 
87 Tetraethyl thiuram disulfide (C 2H5)4N2S4 
88 Tetraethyl lead Pb(C 2H5)4 
89 Mercury Hg 
90 Compound of mercury  
91 Trichlorobenzene C 6H3Cl3 
92 Trichloroethylene CHCl -CCl 2 
93 Trinitrobenzene C 6H3(NO 2)3 
94 Trinitro compounds   
95 Xylene C 6H4(CH 3)2 
Note: These products belong to Appendix 3, Circular No. 01/2006/TT-BCN dated 11 April 2006 guiding the 
management of export, import of toxic chemicals and products containing toxic chemicals, drug precursors, and 
those subject to technical standards under the line management of the Ministry of Industry. According to Part II.3 of Circular No. 01/2006/TT-BCN, traders importing toxic and dangerous chemicals and products containing 
toxic chemicals under the list of imported chemicals subject to conditional trading as stipulated in Appendix 3 
must have the Certificate for Environmental Protection issued by the Department of Natural Resources and 
Environment (DONRE) at provincial or city level unde r central government in accordance with regulations 
stipulated by the Ministry of Natural Resources and Environment (MONRE). 
 
 WT/ACC/VNM/48 
Page 176  
 
  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 AIL5 
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). 
                                                     
 
5 Automatic import licence.  WT/ACC/VNM/48 
 Page 177 
 
 
  III. LIST OF GOODS SUBJECT TO LINE MANAGEMENT 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 
security6. 
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 TELECOMMUNICATIONS7  
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 X
XI.b.(ii) 
3. Radar equipment, radio support equipment and 
radio remote control equipment. 852610; 
852691; 
85269200 AIL GATT Article X
XI.b.(ii) 
 
                                                      
6 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. 
7 The formerly "General Department of Posts and Telecommunications" is now the "Ministry of Posts 
and Telecommunications". WT/ACC/VNM/48 
Page 178  
 
  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/VNM/48 
 Page 179 
 
 
  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/VNM/48 
Page 180  
 
  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). 
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 Schedule of Concessions and 
Commitments on Tariffs (Chapter 98 – Special classification Provisions).  WT/ACC/VNM/48 
 Page 181 
 
 
  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 
flooring), shingles and shakes, palet.  Shuttering for concrete constructional work of natural wood. 4418 10 
 
14. Doors and their frames, steps, threshol ds, stairs and their parts of natural 
wood. 4418 5 
15. Precious stones (other than diamonds)  and semi-precious stones, whether 
or not worked or graded but not strung, mounted or set; un-graded precious stones (other than diamonds) and semi-precious stones, 
temporarily strung for co nvenience of transport.   
  - Un-worked or simply sawn or roughly shaped. 71031000 5 
  - Otherwise worked.   
  -- Rubies, sapphires and emeralds. 71039100 1 
  -- Other. 71039900 1 
16. Dust and powder of precious stones of 7103. 71059000 3 
17. Steel and iron wastes (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of steel, whether or not in 
bundles). 7204 35 WT/ACC/VNM/48 
Page 182  
 
  No. Description Sub- 
Heading Rates 
(per cent) 
18. Iron and non-alloy steel in ingots or other primary forms (excluding iron 
of heading 72.03). 7206 2 
19. Semi-finished products of iron or non-alloy steel.  7207 2 
20. Copper waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of cooper, whether or not in 
bundles). 74040000 45 
21. Master alloys of copper. 74050000 15 
22. Powders of non-lamellar structure. 74061000 15 
23. Powders of lamellar structure; flakes. 74062000 15 
24. Copper bars, rods and profiles. 7407 5 
25. Nickel waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of nickel, whether or not in 
bundles). 75030000 45 
26. Nickel powders and flakes. 75040000 5 
27. Nickel, not alloyed, in bars, rods and profiles. 75051100 5 
28. Alloyed Nickel bars, rods and profiles. 75051200 5 
29. Aluminium waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of aluminium, whether or not 
in bundles). 76020000 45 
30. Aluminium powders and flakes. 7603 10 
31. Lead waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of lead, whether or not in bundles). 78020000 45 
32. Lead bars, rods and profiles. 7803 5 
33. Lead Powders and flakes. 78042000 5 
34. Zinc waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of zinc, whether or not in bundles). 79020000 40 
35. Zinc powder. 79031000 5 
36. Zinc powder and flakes. 79039000 5 
37. Zinc bars, rods, profiles. 7904 5 
38. Tin waste and scrap (excluding turnings, shavings, milling waste, 
sawdust, filings, trimmings and stampings of tin, whether or not in 
bundles). 80020000 45 
39. Tin bars, rods. 80030010 2 
40. Tin profiles. 80030090 2 
41. Tin powder and flakes. 8005 2 
42. Waste and scraps of metal and metallic ceramics and their products 
(excluding turnings, shavings, milling waste, sawdust, filings, trimmings 
and stampings, whether or not in bundles). 8101 to 
8113 45 
43. Semi-products of metal and metallic ceramics and Products of metal and 
metallic ceramics. 8101 to 
8113 5 
  
   WT/ACC/VNM/48
 Page 183Table 17:  Commitment on Export Duties  
Product Description HS Tariff sub-
heading Current 
Applied Rates Upon 
Accession Accession 
plus 1 yr. Accession 
plus 2 yrs. Accession 
plus 3 yrs. Accession 
plus 4 yrs. Accession 
plus 5 yrs 
Steel and iron wastes (excluding turnings, shavings, milling wast e, sawdust, filings, 
trimmings and stampings of steel, whether 
or not in bundles). 7204 35 33 30 27.5 25 22.5 17 
Copper waste and scrap (excluding 
turnings, shavings, milling waste, sawdust, 
filings, trimmings and stampings of 
cooper, whether or not in bundles). 74040000 45 43 40 37 33 29 22 
Nickel waste and scrap (excluding 
turnings, shavings, milling waste, sawdust, 
filings, trimmings and stampings of nickel, 
whether or not in bundles). 75030000 45 45 40 37 33 29 22 
Aluminium waste and scrap (excluding 
turnings, shavings, milling waste, sawdust, 
filings, trimmings and stampings of 
aluminium, whether or not in bundles). 76020000 45 45 40 37 33 29 22 
Lead waste and scrap (excluding turnings, 
shavings, milling wast e, sawdust, filings, 
trimmings and stampings of lead, whether 
or not in bundles). 78020000 45 45 40 37 33 29 22 
Zinc waste and scrap (excluding turnings, 
shavings, milling wast e, sawdust, filings, 
trimmings and stampings of zinc, whether 
or not in bundles). 79020000 40 40 37 34 31 28 22 
Tin waste and scrap (excluding turnings, 
shavings, milling wast e, sawdust, filings, 
trimmings and stampings of tin, whether or 
not in bundles). 80020000 45 45 40 37 33 29 22 
Waste and scraps of metal and metallic 
ceramics and their products (excluding 
turnings, shavings, milling waste, sawdust, 
filings, trimmings a nd stampings, whether 
or not in bundles). 8101 to 8113 45 45 40 37 33 29 22 
 WT/ACC/VNM/48 
Page 184  
 
  Table 18:  Goods Subject to Export Restriction 
 
(except as indicated in the invest ment licenses 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/VNM/48 
 Page 185 
 
 
  Items Classified as Narcotics8 
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 
 
                                                      
 8 Attached to Decision No. 2033/1999/Q§_BYT dated 9 July 1999 of the Minister of Health. 
 WT/ACC/VNM/48 
Page 186  
 
  Narcotics in the Form of Mixtures
9 
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 
 
                                                      
 9 Attached to Decision No. 2033/1999/Q§_BYT dated 9 July 1999 of Minister of Health. 
  WT/ACC/VNM/48 
 Page 187 
 
 
  Table 19:  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/VNM/48 
Page 188  
 
  Table 20(a):  The Structure of Investment In centives 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 20(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 20(c):  The Structure of Investment Fields 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/VNM/48 
 Page 189 
 
 
  Table 21:  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 
licence 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 WT/ACC/VNM/48 
Page 190  
 
  No. Name of industrial zones and export 
processing zones Location 
(province/city) Date of 
granting 
licence Infrastructure investors 
43 Dien Nam- Dien Ngoc (Phase 1 and 
extension) Quang Nam 1996 
2005 Viet Nam 
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  WT/ACC/VNM/48 
 Page 191 
 
 
  No. Name of industrial zones and export 
processing zones Location 
(province/city) Date of 
granting 
licence Infrastructure investors 
13 Vung Ang I Ha Tinh 2002 Viet Nam 
14 Dai T- Ha Noi Ha Noi 1995 Dai Loan 
15 Deawoo Hanel (SDR) Ha Noi 1996 Korea - Viet Nam 
16 Nam Thang Long (Phase 1) Ha Noi 2001 Viet Nam 
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/VNM/48 
Page 192  
 
  Table 22(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 22(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/VNM/48 
 Page 193 
 
 
  No. Means of transport Calculation 
unit Fee rate 
(VND) 
Fee rates for ships of a weight of more than 1,000 GRT:  
- Escorting distance of less than 200 km Ship 600,000 
- Escorting distance of between 200 km and 300 km Ship 1,200,000 c. 
- Escorting distance of more than 300 km, a surcharge shall be 
collected for every extra 50 km Ship 150,000 
River or sea barges 
- Escorting distance of less than 200 km Barge 240,000 
- Escorting distance of between 200 km and 300 km Barge 300,000 4 
- Escorting distance of more than 300 km, a surcharge shall be 
collected for every extra 50 km Barge 50,000 
Crafts, boats 
- Escorting distance of less than 100 km Boat 60,000 
- Escorting distance of between 100 km and 150 km Boat 120,000 
- Escorting distance of between 150 km and 200 km Boat 180,000 5 
- Escorting distance of more than 200 km, a surcharge shall be 
collected for every extra 50 km Boat 240,000 
II Customs sealing fee 
1 Paper seal fee: 
- Seals which use less than 10 sealing papers Per sealing 
procedure 5,000 
- Seals which use from 10 to less than 20 sealing papers Per sealing 
procedure 10,000 
 Seals which use from 20 to less than 50 sealing papers Per sealing 
procedure 20,000  
- Seals which use more than 50 sealing papers Per sealing 
procedure 30,000 
2 Lead seal fee Per sealing 
case 5,000 
3 Seal ring fee Per sealing 
case 20,000 
 WT/ACC/VNM/48 
Page 194  
 
  Table 23:  List of the WTO-Related Laws and Regulations Publication Journals and Websites
 
 The Official Gazette:  all legal normative docum ents issued by the central State agencies. 
 
No Name of State agencies Website addres s Types of published laws and regulations 
1 
 
 Office of the National 
Assembly www.na.gov.vn 
 
 Legal normative documents passed by the 
National Assembly and its Standing 
Committee 
2 
 
 The Government Office 
 www.chinhphu.vn 
 Legal normative documents issued by the 
Government agencies 
3 
 Ministry of Planning and 
Investment www.mpi.gov.vn 
 Legal normative documents relating to 
investment  
4 
 Ministry of Finance www.mof.gov.vn 
 Legal normative documents relating to 
financial and tax matters 
5 
 Ministry of Trade www.mot.gov.vn 
 Legal normative documents relating to trade 
and commerce 
6  Ministry of Justice www.moj.gov.vn 
 Legal normative documents relating to 
different topics 
7 
 Ministry of Post and Telecom www.mpt.gov.vn 
 Legal normative documents relating to post 
and telecom matters 
8 
 State Bank of Viet Nam www.sbv.gov.vn 
 Legal normative documents relating to 
banking services 
9  Ministry of Science and 
Technology www.most.gov.vn 
 Legal normative documents relating to IPRs 
and TBT  
10 
 Ministry of Industry www.moi.gov.vn 
 Legal normative documents relating to 
industrial policies and measures 
11 
 Ministry of Agriculture and 
Rural Development www.mard.gov.vn 
 Legal normative documents relating to 
agricultural policies and SPS 
 
 
_______________   WT/ACC/VNM/48 
 Page 195 
 
 
  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 Ministerial Confer ence in the 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/VNM/48 
Page 196  
 
  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 reproduced in document WT/ACC/VNM/48, dated 27 October 2006 
(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 527 of the 
Working Party Report, shall be an integral part of the WTO Agreement. 
3. Except as otherwise provided for in para graph 527 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/VNM/48 
 Page 197 
 
 
  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 30 June 2007. 
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 Geneva this [seventh] day of [November  two thousand and six] in a single copy in the 
English, French and Spanish languages, each text being authentic, except that a Schedule annexed hereto may specify that it is authentic  in only one of these languages. 
_______________ WT/ACC/VNM/48 
Page 198  
 
  ANNEX I 
SCHEDULE CLX – THE SOCIALIST REPUBLIC OF VIET NAM 
Authentic only in the English language. 
(Circulated in documen t WT/ACC/VNM/48/Add.1) 
_______________ 
SCHEDULE OF SPECIFIC COMMITMENTS ON SERVICES 
LIST OF ARTICLE II EXEMPTIONS 
Authentic only in the English language. 
(Circulated in documen t WT/ACC/VNM/48/Add.2) 
__________