RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/VNM/14/Add.1
31 October 2003
(03-5815)
Working Party on the
Accession of Viet NamOriginal:  English
ACCESSION OF VIET NAM
Notification on State Trading Enterprises
Addendum
The Government of the Socialist Republic of Viet Nam has submitted the following
Notification on State Trading Enterprises in 2002 (Under Article XVII:4(a) of GATT 1994 and
Paragraph 1, Understanding on Interpretation of Article XVII), with the request that it be circulated tothe members of the Working Party.
_______________WT/ACC/VNM/14/Add.1
Page 2LIST OF STATE TRADING ENTERPRISES OF VIET NAM (2002)
No Products HS Name of enterprise Functions of enterprise
1 Crude oil 27090010 Viet Nam Oil and Gas Corporation (PETROVIETNAM) - Searching, exploring, exploiting, processing and
dealing in oil and gas products, providing oil andgas related services.
2 Refined petrol &gasoline271011
271019
271099- PETROLIMEX
- PETEC
- PETECHIM
- SAIGON PETRO- PETROMEKONG- VINAPCO (Airlines Petrol & Gasoline Company which is theexclusive re-exporter of aircraft gasoline)- Petroleum Processing and Trading Company;
- MARINESUPPLY
- Military Petroleum and Gas Corporation- Dong Thap Petroleum Import-Export Company- Authorised importers of gasoline and petrol for
supplying to domestic consumption.
3 Aircraft spare partsand aviationequipment, facility8802, 8803 Airlines Import Export Corporation (AIRIMEX) - Ensuring the supply of aircraft, equipment,
facility and materials used in aviation;- Sole importer of aircraft and aviation materials,
spare parts.
4 Film 8524 Viet Nam Films Import/Export and Distribution Company
(FAFILM VIET NAM)Sole importer and distributor of feature films
(video tape, VCD).
5 Newspapers 4902 Books and Newspapers Import Export Company
(XUNHASABA)Sole importer and distributor of newspapers.WT/ACC/VNM/14/Add.1
Page 3
1. STATE TRADING ENTERPRISES ON:  CRUDE OIL
I. Enumeration of State Trading Enterprises
A. Identification of state trading enterprises
Viet Nam Oil and Gas Corporation (PETROVIETNAM)
Address: 22 Ngo Quye n, Hanoi, Viet Nam
Tel: 84 4 8252526
Fax: 84 4 8265942
B. Description of products affected (including tariff item number(s) encompassed in product
description)
Crude oil (HS 27090010)
II. Reason and Purpose
A. Reason for establishing
PETROVIETNAM was established with the aim at doing researches, exploration,
exploitation, processing, stock, transportation of oil and gas and providing oil & gas related
services, exportation and importation of petroleum materials, equipment, crude oil, petroleum
products, distribution of petroleum products, carrying out other trading activities permitted by
the law and performing other tasks assigned by the State.
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges,
including legal provisions and summary of statutory or constitutional powers
- Petroleum Law ratified by Vietnamese National Assembly on 7 July 1993;
- Decree No. 84/CP dated 17 December 1996 of the Government on detailed
stipulation of implementation of Petroleum Law;
- Decrees No. 37/CP dated 29 May 1995 Decr ee No. 38/CP dated 30 May 1995 of the
Government.
III. Description of the Functioning of the State Trading Enterprise
A. Summary statement providing overview of operations of the state trading enterprise
PETROVIETNAM operates in the field of doing researches, exploration, exploitation,
processing, stock, transportation of oil and gas and providing oil & gas related services,
exportation of crude oil allocated to Vietnamese side and on behalf of tenders.
B. Specification of exclusive or special rights or privileges enjoyed by the state trading
enterprise
PETROVIETNAM has the exclusive right of doing researches, exploration, exploitation,
exportation of crude oil.WT/ACC/VNM/14/Add.1
Page 4
C. Type of entities other than the state trading enterprise that are allowed  to engage in
importation/exportation and conditions for participation
Foreign contractors have the right to export crude oil allocated according to gas and oil
production sharing contract.
D. How export levels are established by the state trading enterprise
In accordance with the approved production and exportation plan.
E. How export prices are determined
Export prices are determined on the basis of market price.
F. How the resale prices of imported products are determined
Resale prices are determined on the basis of market price.
G. Whether long-term contracts are negotiated  by the state trading enterprise. Whether the state
trading enterprise is used to fulfill contract ual obligations entered into by the government
The enterprise is allowed to negotiate long-term contracts. However, the Government has not
used PETROVIETNAM to fulfill its contractual obligations.
H. Brief description of market structure
Information not available.
IV. Statistical Information
Viet Nam's crude oil export over the past three years:
- 2000: 15.4 million tons
- 2001: 16.7 million tons
- 2002: 16.9 million tons
V. Reason why no foreign trade has taken place
-
VI. Additional Information
Not available.WT/ACC/VNM/14/Add.1
Page 5
2. STATE TRADING ENTERPRISES ON:  PETROLEUM AND GASOLINE
I. Enumeration of State Trading Enterprises
A. Identification of state trading enterprises
Viet Nam National Petroleum Corporation (PETROLIMEX)
Address: 1 Kham Thien, Hanoi, Viet Nam
Tel: 84 4 8512603/512898
Fax: 84 4 8519203
Telex: 411241
B. Description of products affected (including tariff item number(s) encompassed in product
description)
- Mogas, Diesel, Kerosene, Mazut  (HS 271011, HS 271019, HS 271099)
II. Reason and Purpose
A. Reason or purpose for establishing and/or maintaining state trading enterprise
PETROLIMEX is established to ensure the efficient supply of fuels for production and
consumption in order to meet socio-economic development objectives.
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges,
including legal provisions and summary of statutory or constitutional powers
Decision No. 46/2001/QD-TTg dated 4th April 2001 of the Prime Minister on the
administration of export and import in the 2001-2005 period.
III. Description of the Functioning of the State Trading Enterprise
A. Summary statement providing overview of operations of the state trading enterprise
PETROLIMEX's function is to import petrol and gasoline for domestic consumption, supply
to foreign liners operating in Viet Nam’s waters, provide for industrial zones, export
processing zones in Viet Nam and re-export.
B. Specification of exclusive or special rights or privileges enjoyed by the state trading
enterprise
PETROLIMEX is one of 5 authorized importers and re-exporters of petrol and gasoline. The
Corporation is allocated 60% of annual import quota of petrol and gasoline.WT/ACC/VNM/14/Add.1
Page 6
C. Type of entities other than the state tradin g enterprise that are allowed to engage in
importation/exportation and conditions for participation
- 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
Note: The list of the above enterprises are subject to changes according to the annual
petroleum import administration mechanism.
D. How import/export levels are established by the state trading enterprise
- Based on the previous year's demand;
- Based on the overall demand of the domestic market;
- Based on commercial considerations.
E. How export prices are determined
- Based on importing price to determine the re-exporting price
- Based on actual trading cost
- Based on price and cost of other suppliers
F. How the resale prices of imported products are determined
The ceiling price is determined by the Government.
G. Whether long-term contracts are negotiated  by the state trading enterprise. Whether the state
trading enterprise is used to fulfill contract ual obligations entered into by the government
The Corporation is allowed to negotiate long-term contracts. The  Government has used
PETROLIMEX to fulfill its contractual obligations.
H. Brief description of market structure
The Corporation covers around 60% market share in Viet Nam.
IV. Statistical Information
V. Reason why no foreign trade has taken place
-
VI. Additional Information
Not available.WT/ACC/VNM/14/Add.1
Page 7
3. STATE TRADING ENTERPRISES ON:  AIRCRAFT AND PARTS OF AERO-
PLANES OR HELICOPTERS
I. Enumeration of State Trading Enterprises
A. Identification of state trading enterprises
Name: Airlines Import-Export Company (AIRIMEX)
Address: 100 Nguyen Van C u, Gialam, Hanoi, Viet Nam
Tel: 84 4 8271351/8271939
Fax: 84 4 8271925
B. Description of products affected (including tariff item number(s) encompassed in product
description)
1. Aircraft (HS 8802)
2. Parts of aero-planes or helicopters (HS 8803)
II. Reason and Purpose
A. Reason or purpose for establishing and/or maintaining state trading enterprise
Airplanes, spare parts of airplanes and related equipments and facilities are the kinds of
products which are required to meet highly exact and specialized standards, and not readily
available or popular. Therefore, trading in these products has to be handled by an enterprise
with relevant expertise so as to meet the necessary quality and technical requirements.
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges,
including legal provisions and summary of statutory or constitutional powers
AIRIMEX was established under the Decision No.197/TCHK dated 21 March 1989 of Viet
Nam Civil Aviation General Department.
III. Description of the Functioning of the State Trading Enterprise
A. Summary statement providing overview of operations of the state trading enterprise
Following are scope of activities of AIRIMEX:
- Import and export of airplanes, equipment, materials, spare-parts for aviation industry
and other materials;
- Providing cargo forwarding services, air-ticket booking and ticket agency services.
B. Specification of exclusive or special rights or privileges enjoyed by the state trading
enterprise
The Company is the exclusive importer and distributor of spare parts of airplanes and most of
other equipments and facilities in the aviation industry.WT/ACC/VNM/14/Add.1
Page 8
C. Type of entities other than the state trading enterprise that are allowed to engage in
importation/exportation and conditions for participation
Other organisations are only permitted to export and import similar products upon the
approval and assignment of Vi et Nam Civil Aviation General Department or the Government.
D. How import/export levels  are established by the state trading enterprise
Based on the consumption demand for products in the aviation industry.
E. How export prices are determined
Not applicable.
F. How the resale prices of imported products are determined
Based on commercial consideration.
G. Whether long-term contracts are negotiated by the state trading enterprise. Whether the state
trading enterprise is used to fulfill contract ual obligations entered into by the government
The Corporation is allowed to negotiate and sign long-term contract.
H. Brief description of market structure
AIRIMEX covers 100% of domestic market share of aviation specialised materials and
equipment.
IV. Statistical Information
Year Total import turnover
2000 10,181,685 US$
2001 20,847,536 US$
2002 26,405,911 US$
V. Reason why no foreign trade has taken place
There are no exporting activities. Viet Nam has virtually no aviation industry. Therefore,
there is no product for export.
VI. Additional Information
Not available.WT/ACC/VNM/14/Add.1
Page 9
4. STATE TRADING ENTERPRISES ON:  VIDEO TAPES AND VIDEO COMPACT
DISCS OF FEATURE FILMS
I. Enumeration of State Trading Enterprises
A. Identification of state trading enterprises
Name: Viet Nam Film Import Export and Distribution Company (FAFILM VIET NAM)
Address: 19 Nguyen Trai, Thanh Xuan District, Hanoi, Viet Nam
Tel: 84 4 8533374/8534566
Fax: 84 4 8531611
B. Description of products affected (including tariff item number(s) encompassed in product
description)
Video tapes and video compact discs of all kinds (HS 8524)
II. Reason and Purpose
A. Reason or purpose for establishing and/or maintaining state trading enterprise
The Company was established under the Decision on establishment No. 801/QD dated 24
June 1993 of Ministry of Culture and Information to distribute products of domestic film
producers, to import feature films of all kinds for supply to all localities in the country.
The reason for maintaining state trading enterprise:- Culture, including cinematography, is a very sensitive aspect that requires  tight
administration to maintain national identities.
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges,
including legal provisions and summary of statutory or constitutional powers
- Decree No.48/CP dated 17 July 1995 of the Government.
- Decision No. 474/TC-QD dated 20 April 1992;
Legal basis for granting the exclusive rights of enterprise:
- Under Article 15, Decree No. 48/CP dated 17 July 1995 of the Government, the
importation of feature films for commercial purpose in any form is carried out by
FAFIM Viet Nam of Ministry of Culture;
- According to Decree No. 26/CP dated 3 August 2000 of the Government and Article
3, Circular No. 28/2000/TT-BVHTT dated 31 October 2000 of the Ministry ofCulture and Information, FAFIM has only exclusive right to import video tape, video
compact disc of feature films of all kinds, but the imported amount is negligible.WT/ACC/VNM/14/Add.1
Page 10
III. Description of the Functioning of the State Trading Enterprise
A. Summary statement providing overview of operations of the state trading enterprise
The Company has trading capital of VND 41,773 million, of which budgeted capital and self-
financed capital is VND 23,093 million.
Functions of the Company: import and export video tapes and video compact discs of all
kinds to supply for cinema and home entertainment network.
B. Specification of exclusive or special rights or privileges enjoyed by the state trading
enterprise
- Exclusive importer and distributor of feature films (video tapes and video compact
discs);
- Authorised to export and export on commission basis feature films (video tapes);
- Entitled to import subsidies for some films with high artistic value and films for
children.
C. Type of entities other than the state trading enterprise  that are allowed  to engage in
importation/exportation and conditions for participation
None.
D. How import/export levels are established by the state trading enterprise
Based on the company's financial standing.
E. How export prices are determined
Not applicable.
F. How the resale prices of imported products are determined
According to commercial considerations.
G. Whether long-term contracts are negotiated  by the state trading enterprise. Whether the state
trading enterprise is used to fulfil contractual obligations entered into by the government
The Company is allowed to negotiate and sign long-term contracts.
H. Brief description of market structure
The Company covers 100% market share of video tapes and video compact discs in Viet
Nam.
IV. Statistical Information
Import quantity is negligible.WT/ACC/VNM/14/Add.1
Page 11
V. Reason why no foreign trade has taken place
-
VI. Additional Information
Not available.WT/ACC/VNM/14/Add.1
Page 12
5. STATE TRADING ENTERPRISES ON:  NEWSPAPERS
I. Enumeration of State Trading Enterprises
A. Identification of state trading enterprises
Name:  The Books and Newspapers Export Import Corporation
(XUNHASABA)
Address: 32 Hai Ba Trung, Hanoi, Viet Nam
Tel: 84 4 8247330/8262989
Fax: 84 4 8252860
B. Description of products affected (including tariff item number(s) encompassed in product
description)
Newspapers, magazines and periodicals with or without illustrative pictures or with
advertising contents (HS 4902).
II. Reason and Purpose
A. Reason or purpose for establishing and/or maintaining state trading enterprise
Culture (including newspapers, magazines ...) is a very sensitive aspect that requires tight
administration to maintain national identities.
B. Summary of legal basis for granting the relevant exclusive or special rights or privileges,
including legal provisions and summary of statutory or constitutional powers
- The 1993 Law on Publication;
- Decision No. 2501/Q§-CXB dated 15 August 1997 issuing the regulations on the
organization and operation of publication entities.
- Import and Export licence issued by the Ministry of Culture and Information.
III. Description of the Functioning of the State Trading Enterprise
A. Summary statement providing overview of operations of the state trading enterprise
XUNHASABA was established in 1957 with main functions of exporting and importing of
books, newspapers, magazines, stamps for collection and other kinds of publications. Inaddition, the Company was assigned to introduce and publicize Vietnamese and foreign
books, newspapers, maganizes, and import books and newspapers, maganizes… for domestic
consumption. At present, XUNHASABA has exclusive right only to import newspapers of all
kinds.
B. Specification of exclusive or special rights or privileges enjoyed by the state trading
enterprise
XUNHASABA is currently Viet Nam's exclusive importer of newspapers and magazines.
C. Type of entities other than the state trading enterprise  that are allowed  to engage in
importation/exportation and conditions for participation
None.WT/ACC/VNM/14/Add.1
Page 13
D. How import/export levels are established by the state trading enterprise
- Based on the clients' orders;
- Based on the plan implementation of the previous years;
- Based on the domestic market demand.
E. How export prices are determined
Based on the market price.
F. How the resale prices of imported products are determined
CIF price plus the Corporation's pre-determined profit margin.
G. Whether long-term contracts are negotiated  by the state trading enterprise. Whether the state
trading enterprise is used to fulfill contract ual obligations entered into by the government
No.
H. Brief description of market structure
Newspapers imported by the Corporation are reta iled through the Corporation's outlets or are
distributed to the Corporation's clients such as libraries, schools and institutions, etc.
IV. Statistical Information
Import in 2002: USD 2,500,000
V. Reason why no foreign trade has taken place
-
VI. Additional Information
Not available.
__________