_doi moi)._ Measures that have been taken include: (i) relaxation of the restrictions to establish FTCs, allowing for a rapid increase in the number of enterprises allowed to engage in trade from about 30 in 19882 to over 1,200 by the end of 19943 and 16,200 in 20014; (ii) introduction of trade policy instruments including quantitative restrictions (QRs) and tariffs followed by a gradual significant liberalization, with a gradual reduction in import barriers and improvements in export incentives; and (iii) liberalization of foreign exchange regime. Reform measures have been motivated by the overall reform efforts of the World Bank and the International Monetary Fund (IMF) as well as a number of regional and multilateral trading arrangements.

Table 1: Major Changes in Trade Policy since 2000

|Year|||Objectives||
|---|---|---|---|---|
||**Increasenumbers**<br>**of**FTCs|**Developtradepolicy**<br>**Instruments**|**Remove exchange**<br>**ratedistortions**|**Becomea memberofinternational**<br>**tradingarrangements**|
|2000||**o**Removedquantitative<br>importrestnctionson8out<br>ofremaining19groupsof<br>products**i**e.including<br>fertilizer,liquid soda,<br>ceramicgoods, plastic<br>packaging,DOP plasticizer,<br>ceramicsanitaryware,<br>electncfans,andbicycle||**o**Signed abilateraltrade agreementwith<br>theUSinJulypavingthewayforMFN<br>accessofVietnamese exportsto theUS<br>market,gradual openingupofVietnam's<br>economy,forgoodsandservices as well<br>asinvestnents|
|2001|**a**Pemuttedall<br>legalentities<br>(companies and<br>individuals)to<br>exportmost<br>goods without<br>havmgtoacquire<br>aspecial**license**<br>byrevisingthe<br>implementing<br>decreeofthe<br>|<br>**o**RemovedQRs<br>multilaterally onalltanff<br>linesofthe following<br>groupsofproducts liquor,<br>clinker,paper,floortiles,<br>constructionglass,some<br>typesofsteel,andvegetable<br>oil|**o**Reduced the<br>foreignexchange<br>surrender<br>requirementfrom<br>50to40percent|**a**Moved713tarifflinesfromthe<br>TemporaryExclusionList(TEL)to the<br>InclusionList(IL)|
||Tradelaw||||
|2002|||**o**Reduced the<br>foreign exchange<br>surrender<br>requirementfrom<br>40to30percent<br>(May)|**o**Detailedalistofgoods andtax ratesfor<br>implementingtheAgreementonthe<br>CommonEffectPreferentialTanffs<br>(CEPT)SchemeofASEANcountriesfor<br>theyear 2002.<br>**o**Issuedtheimplementingdecisionforthe<br>USBTA,includingguidelinesfor<br>responsibilities andactions(March)<br>**o**AGovernmentnegotiatonteamstarted<br>workingsessionsonWrOaccession**in**<br>Geneva(April)|

Quantitative restrictions: Since 1986, the quotas and targets, which were at the base of the central planning system, have been progressively eliminated. By early 2003, all QRs on imports will be abolished with the exception of sugar (to be kept until 2005) and petroleum products.<sup>5</sup> With the exception of textile and garment (whose quotas<sup>6</sup> are currently allocated

> **2** CIE, 1998, p.l<sup>0</sup>

3 CIE, 1998, p.<sup>1 0</sup> 4 World Bank, 2002, p. 35

**5** QRs on imports of cement, motorbikes and vehicles for fewer than nine passengers are scheduled to be abolished by end-2002

6 Textile quotas under the Multi-Fiber Agreement (MFA) of the WTO are scheduled to be phased<sup>outbyend-</sup> 2004. A WTO Agreement on Textile and Clothing (ATC) is expected to take effect starting<sup>in2005. Since</sup> 3