RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VNM/3/Rev.4 
7 April 2005 
 (05-1456) 
Working Party on the 
Accession of Viet Nam Original:   English 
 
 
  
ACCESSION OF VIET NAM 
Domestic Support and Export Subsidies in the Agricultural Sector
 
Revision  
 
 The following submission, dated 31 March 2005, is being circulated at the request of the 
Delegation of the Socialist Republic of Viet Nam. 
 
_______________ 
 
   
 WT/ACC/SPEC/VNM/3/Rev.4 
Page 2 Supporting Table DS: 1 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 – 2001 
 
Measures exempt from the reduction commitment -- "Green Box" 
 
Monetary value of measure in year in 
question 
( VND billion) Measure type Name and description of measure with reference to criteria in Annex 2 of the 
Agreement on Agriculture 
1999 2000 2001 Average 
1999-2001 Data 
sources 
1 2 3 4 5 6 = 
(3+4+5):3 7 
(a) General Services       
(i) Research Budget expenditures for running Agricultural research system 243.98 367.83 292.10 301.30 MOST; 
MARD; MOF; Prov 
(ii) Training services Expenditures to set up, mainta in and develop agricultural training institutions and 
centers  146.2 
 185.0 
 433.5 
 254.9 
 MARD; 
MOF; Prov 
(iii) Extension and 
 advisory services Budget allocations to establish and maintain a nationwide network of provision of 
agricultural extension and advisory services; improving quality of plant 
varieties/seeds, animal breeds.  163.01 1,499.85 1,590.61 1,089.49 MARD; 
Prov 
(iv) Infrastructure services Budgetary expenditures to  construct, maintain and develop farm irrigation 
systems, water supply facilities and drainage works, etc. for agricultural sector 5,491.10 6,787.14 4,863.00 5,713.75 GDS; 
MARD; Prov 
(v) Pest and disease 
 control, inspection 
 services Budgetary expenditures in activities related to plant and animal health protection; 
sanitary and phytosanitary defence and alertness; pest and disease surveillance, 
prevention and control; prov ision of vaccines, etc. 247.76 277.25 264.02 263.01 MARD; 
Prov 
(b) Public stockholding 
 for food security 
 purposes Budgetary expenditures in activities relate d to accumulation, storage and handling 
of products for food security purposes including rice (under the management 
responsibility of the State Reserve Department); some plant varieties/seeds such 
as  seeds of rice, maize, and vegetabl es; insecticides, veterinary medicines, 
vaccines, etc. (under the mana gement responsibility of MARD) 686.90 578.40 2,271.40 1,178.90 MARD; 
Prov 
(c) Domestic food aid  Budgetary outlays in activities related to food aid distribution to deprived people 
in remote, mountainous and other disadvantaged areas for hunger relief purpose 92.50 85.44 197.07 125.00 MARD; 
Prov 
(d) Decoupled income 
 support  0.00 0.00 0.00 0.00  
(e) Income insurance and 
 income safety-net 
 programs  0.00 0.00 0.00 0.00   
  WT/ACC/SPEC/VNM/3/Rev.4
 Page 3Monetary value of measure in year in 
question 
( VND billion) Measure type Name and description of measure with reference to criteria in Annex 2 of the 
Agreement on Agriculture 
1999 2000 2001 Average 
1999-2001 Data 
sources 
1 2 3 4 5 6 = 
(3+4+5):3 7 
(f) Payments for relief 
 from natural disasters  Budgetary outlays related to provision basi c necessities to farmers in areas hit by 
natural disasters to assist them to stabilize their lives and recover production; relief in form of electricity assistance payments to use pumps to irrigate drought-
stricken land or to drain flooded land; relief in form of financial support (cash 
payments) to suffered farmers to purchase seeds, veterinary medicines, insecticides, etc. to continue with production 901.20 2,192.07 1,434.36 1,509.21 MOF; Prov 
(g) Structural adjustment 
 assistance provided 
 through producer  retirement 
 programmes   0.00 0.00 0.00 0.00  
(h) Structural adjustment 
 assistance provided 
 through resource 
 retirement  programmes Support to move from the low efficient and unstable productive crops to 
aquaculture. 5.61 15.98 109.8 43.80 MARD 
(i) Structural adjustment 
 assistance provided 
 through investment  aids Support to move from the low efficient and unstable productive crops to grow 
more efficient industrial crops  181.78 270.74 170.44 207.65 MARD 
(j) Environmental 
 programmes  0.00 0.00 0.00 0.00  
(k) Regional assistance 
 programmes Budget allocations for resettlement of ethnic minorities, establishment and 
development of new economic zones; Priority investments to develop 1,500 communes under harsh and especially disadvantaged conditions in remote and 
distant areas etc.  800.7 1,124.0 3,063.0  
 
1,662.6 
 MOF; SB; 
MARD   
(l) Other  0.00 0.00 0.00 0.00  
Total   8,960.7 13,383.7 13,945.0     12,096.5  
  
 WT/ACC/SPEC/VNM/3/Rev.4 
Page 4 Supporting Table DS: 2 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Measures exempt from the reduction commitment -- Speci al and Differential Treatment -- "Development Programmes" 
 
Monetary value of measure in year in question 
(VND billion) Measure type Name and description of measure with reference to criteria in Article 6:2 
of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6=(3+4+5):3 7 
(a) Investment subsidies 
 generally available to 
 agriculture Interest rate support applicable to investment activities3 
  524.30 1,137.85 886.78 849.64 MARD; SB; 
MOF; Prov 
(b) Input subsidies generally  available to low-income or  resource-poor producers Short-term soft loans
4 
Budget allocations for freight subsidies to offset the high cost of transportation of policy commodities and production inputs to 
mountainous, remote regions, etc.  1,037.05 1,463.97 925.8 1,142.27 SB; MARD; 
Prov  
(c) Support to encourage  diversification from  growing illicit narcotic 
 crops Provision of support in the form of plant varieties/seeds, seeds, breeds; 
dissemination of farming techniques; administrative costs to assist the diversification from illicit opium poppy cultivation to other crop 
production  9.60 11.10 1.47 7.39 MARD; 
Prov 
Total  1,586.75 2,629.12 1,828.05 2,014.64  
 
 
 
                                                      
3 The Government compensates commercial banks for the difference between prevailing market interest rate and preferential interes t rate charged by commercial banks for mid-term or 
long-term investment loans applicable for projects to establish and develop processing premises for agricultural products  and  projects of growing pe rennial plants under the Government's direction. 
4 The State establishes a banking network for the poor in order to  allow the poor to have access to short-term loans at preferen tial interest rate  equivalent 50 per cent of the prevailing 
commercial market interest rate  to develop their own production.   
  WT/ACC/SPEC/VNM/3/Rev.4
 Page 5Supporting Table DS: 3 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2000 
Measures exempt from the re duction commitment -- Direct Payments under Producti on-Limiting Programmes --"Exempt Direct Payments  
 
Monetary value of measure in year in 
question (VND billion) Measure type Name and description of measure with reference to criteria in Article 6:2 
of the Agreement on Agriculture 1999 2000 2001 Data 
sources 
1 2 3 4 5 6 
NIL  
 WT/ACC/SPEC/VNM/3/Rev.4 
Page 6 Supporting Table DS: 4 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Calculation of the Total Aggregate Measurement of Support (Total AMS) 
Value of production (billion dong) 
 Description 
of basic 
products Calculated AMS Value 
(VND billion) 10% of value 
(VND billion) Total AMS (aggregate) 
(VND billion) 
 1999 2000 2001 Average 1999 2000 2001 1999 2000 2001 1999 2000 2001 Average 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
Total Product-specific AMS  (from Supporting Tables DS:5 to DS:7)           
(1)Rice 27.20 61.94 0.00 29.71 76,869.40 63,691.60 63,088.10 7,687.00 6,369.10 6,308.81 0.00 0.00 0.00 0.00 
(2)Sugar 3,379.1 3,504.73 1,966.95 2,950.26 6,956.00 6,102.73 6,831.27 695.60 610.27 683.13 3,379.1 3,504.73 1,966.95 2,950.26 
(3)Cotton 2.00 9.57 13..35 8.31 122.10 103.40 150.10 12.21 10.34 15.01 0.00 0.00 0.00 0.00 
(4) Pork 3.20 0.00 0.00 1.07 16,641.24 17,472.14 16.969.47 1,664.12 1,747.2 1,697.00 0.00 0.00 0.00 0.00 
Total 
product-
specific 
AMS 3,411.5 3,576.24 1,980.3 2,989.35       3,379.1 3,504.73 1,966.95 2,950.26 
Total non-product-specific AMS (from Supporting Table 
DS:9 below)           
 1,111.82 1,152.72 1,300.82 1,188.45       0 0 0 0 
Total AMS 4,523.32 4,728.96 3,281.12 4,177.80 124,075.3 122,389.3 122,247.7 12,407.5.3 12,238.93 12,224.77 0 0 0 0 
  
  WT/ACC/SPEC/VNM/3/Rev.4
 Page 7Supporting Table DS: 5 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Product-Specific Aggregate Measuremen ts of Support: Market Price Support 
 
                                                      
5 Price support was not applicable in 2001. Average export price of  rice (FOB Ho Chi Minh port) in 1999: US$ 251.6/ton, in 2000:  US$ 224.1/ton, in 2001: US$ 186.2 /ton 
6 Mandatory requirement by the Government on  sugar plants to purchase farmers' sugarcan es at determined prot ective price (minimu m purchase price)  to protect farmers' income (e.g. the minimum 
purchase price of sugarcane was determ ined at 240,000 dong per ton in 1999); 
As a consequence, domesti c price of sugar is higher than world price.  
 - Eligible production for sugar equals to the total production of all domestic sugar plants. 
 - Average import price of sugar (CIF Vietnam's port) in  1999: US$ 162/ton, in 2000: US$ 220/ton, in 2001: US$ 262.3/ton  (Source: General Department of Customs)  
  Description of 
basic products Calendar year Measure type(s) Applied 
administered 
price (1,000 
dong/ton) External 
reference price 
(1,000 dong/ton) Eligible 
production 
(1,000 ton) Associated 
fees/levies 
(VND billion) Total market 
price support 
(VND billion) Data sources 
1 2 3 4 5 6 7 8= 
((4-5)*6)-7  
(1) Rice5 1999 3,166.00 3,508.97 20,406.00 0.00 0.00 
       
 2000 2,990.00 3,170.87 21,160.10 0.00 0.00 
  Price support 
     
 2001 None 0.00 2,758.47 0.00 0.00 0.00 
 Average 
1999-2001      0.00 
(2) Sugar6 1999 5,819.00 2,259.00 947.30 0.00 3,372.4 
       
 2000 5,687.00 3,112.00 1,208.70 0.00 3,112.4 
       
 2001 5,555.00 3,886.00 1,057.80 0.00 1,765.5 MARD 
 Average 
1999-2001 Price support 
    2,750.1   
 WT/ACC/SPEC/VNM/3/Rev.4 
Page 8 
 
                                                      
7 Cotton plants are required by the Government to purchase the w hole quantity of raw cotton produced  by farmers at a minimum dete rmined price to protect farmers' income. As a result, cotton 
plants sometimes suffer from losses due to the sharp drop of co tton price in the world market that significantly influence on t he price of domestically produced cotton (textiles plants would only 
purchase cotton supplied by the domestic cotton plants at respecti ve low price). The Government provides financial payments to assist the cotton plants to cover these losses. 
The average price of imported cotton ( CIF Vietnam’s port): 
 - In 1999: 1,233 US$/T  
 - In 2000: 1,214 US$/T 
 - In 2001: 1,160 US$/T 
 (Source: The General Depa rtment of  Customs ) 
 Description of 
basic products Calendar year Measure type(s) Applied 
administered 
price (1,000 
dong/ton) External 
reference price 
(1,000 dong/ton) Eligible 
production 
(1,000 ton) Associated 
fees/levies 
(VND billion) Total market 
price support 
(VND billion) Data sources 
(3) Cotton7 1999 17,417 17,193 5.9 0.00 1.32  
        
 2000 18,252 17,173 6.6 0.00 7.17  
        
 2001 18,202 17,185 9.9 0.00 10.06  
 Average 
1999-2001 Price support 
17,957 17,170 7.5 0.00 6.18   
  WT/ACC/SPEC/VNM/3/Rev.4
 Page 9 
Supporting Table DS: 6 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Product-Specific Aggregate Me asurements of Support: Non-Exempt Direct Payments 
 
 
Description of 
basic product Calendar year Measure 
type(s) Applied administered 
price (1,000 
dong/ton) External 
reference price 
(1,000 
dong/ton) Eligible 
production (1,000 
ton) Associated 
fees/levies (VND 
billion) Total direct 
payments 
(VND billion) Data sources 
1 2 3 4 5 6 7 8 = ((4-5)*6)-7 9 
NIL  
 WT/ACC/SPEC/VNM/3/Rev.4 
Page 10 Supporting Table DS: 7 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Product-Specific Aggregate Measuremen ts of Support: Other Product-Specific  Support and Total Prod uct-Specific AMS 
Description of 
basic product Calendar 
year Measure type(s) Other product-
specific 
budgetary outlays 
(VND billion) Other product 
specific 
support (VND 
billion) Associated 
fees/levies Total other 
product-
specific 
support 
(VND 
billion) Market price 
support 
(Supporting 
Table DS:5) 
(VND billion) Non-exempt direct 
payments 
(Supporting Table 
DS:6) 
(VND billion) Total 
product - 
specific 
AMS Data 
sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = 
(7+8+9) 11 
(1) Rice8 1999 27.20   27.20 0.00  27.20 MOF 
          
 
 2000 Interest rate support to 
purchase rice during 
harvest time 61.94 
   61.94 0.00  61.94 
  
           
 2001 None 0.00   0.00 0.00 Nil 0.00  
 
 Average 
1999-2001       
 
  29.71  
(2) Sugar 1999 Support to import new 
varieties of sugarcane 6.70   6.70 3,372.4  3,379.1 
 
 2000 - Interest rate support     
for investment loan 
and purchase sugar. 
-Finance working 
capital;  
 392.33   392.33 3,112.4  3,504.73 MARD 
 2001 - Interest rate support 
to develop the areas of 
sugarcane growing. 
- Support to cover losses caused by local 
currency devaluation.  
- Interest rate support 
for investment loan 201.45   201.45 1,765.5  1,966.95  
 Average  200.16   200.16 2,750.1  2,950.16  
 
 
 
 
                                                      
8 The Eligible amount of rice was 500, 000 MT in 1999 and 1,400,000 MT in 2000.  
  WT/ACC/SPEC/VNM/3/Rev.4
 Page 11Description of 
basic product Calendar 
year Measure type(s) Other product-
specific 
budgetary outlays 
(VND billion) Other product 
specific 
support (VND 
billion) Associated 
fees/levies Total other 
product-
specific 
support 
(VND 
billion) Market price 
support 
(Supporting 
Table DS:5) 
(VND billion) Non-exempt direct 
payments 
(Supporting Table 
DS:6) 
(VND billion) Total 
product - 
specific 
AMS Data 
sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = 
(7+8+9) 11 
(2) Cotton9 
 1999 0.68   0.68 1.32  2.00  
          
 2000 2.40   2.40 7.17  9.57  
          
 2001 - Support to lower the 
selling price of 
imported cross- line 
cotton seeds  
3.29   3.29 10.06  13.35  
 Average 
1999-2001  2.13   2.13 6.18  8.31  
           
(4) Pork10 1999 3.20   0.00 0.00  3.20 
 2000 0.00   0.00 0.00  0.00 MARD 
 2001 Interest rate support to 
purchase pork 
0.00   0.00 0.00  0.00  
 Average 
1999-2001  1.07      1.07  
                                                      
9 The Government provides financial support to lower the selling price of imported cross- line cotton seeds with a view to reduc e the production cost of cotton farmers who could 
otherwise hardly afford to purchase these high-yielding varieties/seeds to for cultivation due to their high import price.  
10 The Government provides interest rate support to enable trading enterprises to purchase pork  when  the domestic market prices d rop sharply causing losses to farmers. 
  
 WT/ACC/SPEC/VNM/3/Rev.4 
Page 12 Supporting Table DS: 8 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Product-Specific Equivalent Measurements of Support 
Description of 
basic product Calendar year Measure 
type(s) Applied 
administered 
price (1,000 
dong/ton) Production 
eligible to 
receive the 
applied 
administered 
price 
(1,000 tons) Market price 
support 
budgetary 
outlays (VND 
billion) Equivalent 
measurement 
of support 
(EMS) 
(VND billion) Non-exempt 
direct 
payments 
(VND billion) Other 
product-
specific 
support (VND 
billion) Associated 
fees/levies 
(VND billion) Total 
monetary 
value of 
equivalent 
commitment 
(VND billion) Data sources 
1 2 3 4 5 6 7 8 9 10 11= (7+8+9-
10) 12 
 
NIL 
   
  WT/ACC/SPEC/VNM/3/Rev.4
 Page 13Supporting Table DS: 9 
DOMESTIC SUPPORT: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Non-Product-Specific AMS 
Measure type(s) Calendar 
year Non-product-specific 
budgetary outlays 
(VND billion) Other non-product-specific 
support 
(VND billion) Associated fees/levies Total non-product-specific 
support (VND billion) Data 
sources 
1 2 3 4 5 6 = (3+4-5) 7 
1999 101.82   101.82 MARD 
2000 147.72   147.72  
2001 301.82   301.82  Support to cover losses for electricity 
used in irrigation11 
Average 
1999-2001    183.79  
1999 1,010.00   1,010.00  
2000 1,005.00   1,005.00  Support  irrigation fee12 
2001 999.00   999.00  
                                                      
11 The Government has charged at the average of 572.72 dong/kwh fo r electricity used in water pumping, irrigation in comparison w ith the average of 700 
dong/kwh for other sectors. The difference will be covered by the G overnment. The electricity consumption in agriculture is 800  million kwh per annual. 
 
12 Under Decree No.112 of the Government da ted 25 August 1984, basic amortization, consid erable repairs of irrigation works and m achinery (estimated round 
3,300 billion dong per annual) are not  calculated and considered subsidies for ag riculture. According to this provision, irriga tion fee should be VND 1,500 billion 
per annual. In fact, due to farmers’ difficulties, the total received in 1999 was VND 490 billion, 2000:  VND 495 billion and 2 001: VND 501 billion. The 
Government has covered unpaid fee according to the Prime Minister’s Decision No. 1116/QD/Ttg dated 22 August 2001.  
 WT/ACC/SPEC/VNM/3/Rev.4 
Page 14 Measure type(s) Calendar 
year Non-product-specific 
budgetary outlays 
(VND billion) Other non-product-specific 
support 
(VND billion) Associated fees/levies Total non-product-specific 
support (VND billion) Data 
sources 
      
       
Average 
1999-2001    1,004.67 
  
Total 1999    1,111.82  
 2000    1,152.72  
 2001    1,300.82  
 Average 
1999-2001    1,188.46   
  WT/ACC/SPEC/VNM/3/Rev.4
 Page 15Supporting Table ES:1 
EXPORT SUBSIDIES: VIET NAM 
REPORTING PERIOD: 1999 - 2001 
Export Subsidies: Outlay and Quantity 
Total product specific export subsidies 
(VND billion) Quantity of subsidized exports 
(1,000 tons) Description 
of products Direct 
export 
subsidies Sales of 
stocks 
(VND 
billion) Producer 
financed 
subsidies 
(VND 
billion) Cost 
reduction 
measures 
(VND 
billion) Internal 
transport 
subsidies 
(VND 
billion) 1999 2000 2001 Average 
1999-
2001 1999 2000 2001 Average 
1999-
2001 Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
(1) Rice (HS 1006 
30)      486.00 600.00 822.77 636.26 1,900 2,500 3,730 2,710  
(2) Pork 
(HS 0203)      49.70 31.30 31.48 37.49 7.10 9.50 20.00 12.20 MOF;  
(3) Coffee 
(HS 0901 
11)      203.00 348.60 536.35 362.65 50 198.7 932 393.57  
(4) Canned 
Vegetables 
and fruits(*)   
 
     12.00 9.90 165.00 62.30 15 12.00 N/a 9.00 MOF;  
Total      750.70 989.80 1,555.61 1,098.5      
 
Note: The Vietnamese Government provi ded financial support to:  
(1) - Rice 
Provision of interest rate suppor t for rice export enterprises 
Support to cover losses of rice export from temporary storage. 
Export bonus: 180 VND/US$ (equivalent 1.2%) 
(2) - Pork 
Support to cover losses of pork export to Russia and Hongkong 
Provision of short- term interest rate support.  
Export bonus: Suckling pig: 280 VND/US$ (equivalent 1.87%) 
Pork: 900/USD (equivalent 6%) 
(3) - Coffee 
Provision of interest rate support to  assist export enterprises to purch ase coffee for temporary storage.  
Refund of export surcharges.  
Support to cover losses of exporting coffee from temporary storage. 
Export bonus: 220 VND/US$ (equivalent 1.46%) 
(4) – Canned Vegetables and fruits 
 Support to export canned pineapples and canned cucumbers to Russian and US. 
 Export bonus: 400 - 500 VND/US$ (equivalent  2.6 - 3.3 %) 
(*) Products which are eligible   for  export bonus has not been described based on packaging criteria in the Vietnamese Harmonized commodity description and c oding System.   
 WT/ACC/SPEC/VNM/3/Rev.4 
Page 16   
ANNEX 
 
Official exchange rate:  This exchange rate used in calculation of all pr ogrammes of domestic support and export subsidies. 
Currency unit: VND (Vietnamese Dong) 1999: US$ 1 = VND 13,944 
 2000: US$ 1 = VND 14,146  
 2001: US$ 1 = VND 14,815  Data sources: General De partment of Statistic. 
 
Explanation of abbreviations for relevant agencies: 
 
GDS General Department of Statistics 
MARD Ministry of Agriculture and Rural Development 
MOF Ministry of Finance 
MOST Ministry of Science and Technology  
MPI Ministry of Planning and Investment 
SB State Bank 
Prov Provinces 
 
__________