RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/VNM/29
30 October 2003
(03-5773)
Working Party on the
Accession of Viet NamOriginal:  English
ACCESSION OF VIET NAM
Additional Questions and Replies
The Government of the Socialist Republic of Viet Nam has submitted the following replies to
additional questions raised with the request that they be circulated to members of the Working Party.
_______________WT/ACC/VNM/29
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TABLE OF CONTENTS
II. ECONOMY, ECONOMIC POLI CIES AND FORE IGN T RADE ......................................1
2. Economic Policies............................................................................................................ ..........1
(a) Main directions ............................................................................................................. ............1
(c) Foreign exchange and payments system .................................................................................1
(d) Foreign and domestic investment policies ..............................................................................2
III. FRAMEWORK FOR MA KING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES ...........................................7
5. Laws and Legal Acts.......................................................................................................... .....11
IV. POLICIES AFFECTING TRADE IN GOODS ...................................................................12
1. Import Regulation............................................................................................................ .......15
(b) Characteristics of  national tariff .......................................................................................... .15
(c) Tariff quotas, ta riff exemptions............................................................................................ .18
(d) Other duties and charges.................................................................................................... ....20
(e) Quantitative impo rt restrictions............................................................................................ 22
(f) Import licensing procedures ................................................................................................. .27
(h) Customs valuation........................................................................................................... ........29
(i) Other custom s formal ities ................................................................................................... ...34
(j) Pre-shipment  Inspection..................................................................................................... ....35
(k) Application of internal taxes on imports ..............................................................................35
(m,n,o) Anti-dumping, countervailing duty and safeguard regimes ...............................................362. Export Regulation............................................................................................................ .......36
(f) Export financing, subsidy and promotion policies...............................................................36
3. Internal policies affectin g foreign trade in goods.................................................................39
(a) Industrial policy, including subsidy policies.........................................................................39
(b) Technical regulations and standards, including measures taken at the border
with respect to imports ........................................................................................................ ...40
(c) Sanitary and phytosanitary measures, including measures taken with respect to
imports ........................................................................................................................ .............42
(d) Trade-related inve stment measures ......................................................................................45
(f) Free zones .................................................................................................................. ..............48
4. Policies affecting foreign tr ade in agricultu ral products.....................................................48
(a) Imports..................................................................................................................... ................48
(e) Internal policies........................................................................................................... ............49
- Core Labour Standards......................................................................................................... .51
5. Policies affecting foreign trade in oth er sectors ...................................................................51
(a) Textile s Regime ............................................................................................................. ..........51WT/ACC/VNM/29
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V. TRADE-RELATED INTELLECTUAL  PROPERTY REGIME.......................................53
1. General...................................................................................................................... ...............53
(a) Intellectual Pr operty Policy ................................................................................................ ...55
(c) Membership of international intellectual property conventions and of regional
or bilateral agreements........................................................................................................ ...57
(d) Application of national and m.f.n. treatment to foreign nationals .....................................58
2. Substantive standards of protection, in cluding procedures for the acquisition
and maintenance of intelle ctual property rights ..................................................................59
(a) Copyright and related rights................................................................................................ ..59
(b) Trademarks, includi ng service marks...................................................................................60
(c) Geographical indications, incl uding appellations of origin.................................................61
(e) Patents..................................................................................................................... .................63
(g) Layout designs of in tegrated circuits ....................................................................................65
(h) Requirements on undisclosed information, including trade secrets and test data............66
4. Enforcement .................................................................................................................. ..........66
(c) Any administrative procedures and remedies......................................................................67
(d) Any special bo rder measures ................................................................................................. 68
5. Laws, decrees, regulations and other legal acts relating to the above................................69
VI. TRADE-RELATED SE RVICES RE GIME .........................................................................70
1. General...................................................................................................................... ...............70
(f) Provisions relating to international transfers and payments for current
transactions of services....................................................................................................... ....71
2. Policies Affecting Trade in Services ......................................................................................71
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS
WITH THIRD COUNTRIES ................................................................................................72WT/ACC/VNM/29
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II. ECONOMY, ECONOMIC POLICIES AND FOREIGN TRADE
2. Economic Policies
(a) Main directions
Question 1
Dual pricing.  According to the Vietnamese response, the dual-pricing mechanism is now only
applied to the price of electricity and domestic airfares, and that such dual-pricing will be
abolished in advance of 2005.  We hope that Viet Nam will accelerate its plan for abolishment,
and, further, that it will make commitments to fully abolish the dual-pricing system prior to
accession.
Answer:
The dual pricing mechanism is now only applied to the price of electricity and domestic airfares. The
difference between the price applied to Vietnamese residents and the price applied to foreigners hasbeen narrowed down considerably over the past years. Viet Nam shall eliminate these dual prices by
2005 as already notified.
The implementation of this action plan shall en sure that the dual-pricing mechanism shall be
abolished upon Viet Nam’s accession to the WTO.
 (c) Foreign exchange and payments system
Question 2
Paragraph 19 of the draft factual summary indicates that Viet Nam would completely phase out
its foreign currency surrender requirements by the end of 2003. Can Viet Nam please provide
an update on the current status of these requirements?
Answer:
In accordance with Decision No. 46/2003/QD-TTg issued on 2 April 2003 by the Prime Minister, the
obligatory foreign currency-surrendering ratio applicable to current transactions of resident economic
and social entities has been set at zero percent (0%).
Question 3
Paragraph 19 of the Factual Summary notes that Viet Nam will completely phase out its foreign
currency surrender requirements by the end of 2003. We request Viet Nam to provide an
update on progress that has been made in this area.
Answer:
In accordance with Decision No. 46/2003/QD-TTg issued on 2 April 2003 by the Prime Minister, the
obligatory foreign currency surrendering ratio applicable to current transactions of resident economic
and social entities has been set at zero percent (0 per cent).WT/ACC/VNM/29
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(d) Foreign and domestic investment policies
Question 4
Investment Regime--National treatment.  With regard to Paragraph 25-28 related to investment
regime (or Paragraph 99 related to VAT), accord ing to Article 60 of the Foreign Investment
Regulation, the import of machinery equipment by  foreign investing enterprises for the purpose
of being used as fixed capital is not exempt from VAT if Viet Nam can already produce the
same kind of equipment. This requirement seems to be in violation of Article 3 of the national
treatment principle in GATT 1994. We therefore ask that Viet Nam uniformly exempt from
VAT all machinery equipment imported for fixed asset purposes.
Answer:
According to Article 60, Decree No. 24/2000/ND-CP , equipment, machinery and specialized means
of transportation which form parts of a technological line, are not yet domestically produced, and areimported to form fixed assets of FDI enterprises or  to implement business co-operation contracts shall
not be subject to value added tax.
In our opinion, the above regulation is not inconsistent with the National Treatment principle in
Article III of GATT 1994. In this case, no comparison can be made since there is no “like domestic
product”, and the application of this measure is not to afford protection to domestic production.Please note that equipment and machinery produced in Viet Nam are also subject to value added tax
as imported products.
Question 5
Investment policy
(a) We welcome Viet Nam’s efforts to simplify procedures relating to investment, and to
increase transparency and the predictability of the legal and policy system, as described
in the response to Question 3 of document WT/ACC/VNM/23.  However, there still
remain some problems, such as the necessity to go through more than 2 procedures
involving different Ministries in order to carry out investment in Viet Nam, and the
existence of many ambiguous matters regarding requirements and procedures.  We,therefore, continue to urge Viet Nam to in troduce a “one-stop” service and to make the
relevant system clearer.  A uniform application of an investment-related regime should
also be secured throughout the entire region.
(b) We also consider that stock-holding comp anies should be allowed as one form of
investment.  Since Viet Nam has not yet provided a response to this question, please
explain in detail Viet Nam’s position in this regard.
Answer:
(a) Viet Nam has been carrying out administrative reforms towards establishing “one-stop”
mechanism for foreign investments. According to Decree No. 61/2003/ND-CP issued by the
Government dated 6 June 2003 specifying competence, responsibilities, authority and
organisation of Ministry of Planning and Inve stment, Department of Foreign Investment was
set up in order to uniformly administer foreign investment activities throughout the country.
On 19 March 2003, the Government issued Decree No. 27/2003/ND-CP on the amendment of
and addition to some articles of Decree No. 24/2003/ ND-CP guiding the implementation ofWT/ACC/VNM/29
Page 3
the Law on Foreign Investment. This Decree extends the list of projects subject to registration
for investment licence, narrows the list of sectors in which investment licensing is
conditional, and clarifies the criteria for issuing or rejecting licence.  Ministry of Planning and
Investment is studying plans to further decentralize the authority to issue investment licenses
to provincial people’s committees and industrial zones’ management boards.
Together with decentralizing the authority to grant investment licenses and to administer
investment activities in order to simplify administrative procedures and lower costs for
foreign investors, Viet Nam has developed close coordination among license issuing agencies
to ensure the consistency of foreign investment policies.
Besides, in order to ensure the effective and uniform enforcement of the legal system, the
Ministry of Planning and Investment, in cooper ation with concerned Ministries and Agencies,
is reviewing existing regulations aiming at abolishing those provisions, procedures andlicenses which are out-dated, overlapping or impeding the operation of FDI enterprises.
(b) On 15 April 2003, the Government of Viet Na m issued Decree No. 38/2003/ ND-CP allowing
the transformation of FDI enterprises into stock-holding companies. Viet Nam is also
considering a uniformly applied enterprise law governing both domestic and foreign
investments with a view to creating a common legal framework regulating the establishment,organization and operation of domestic and foreign invested enterprises.
Question 6
Land policy.  As the Vietnamese land regime is complicated and confusing, this has become a
barrier to foreign companies when establis hing a commercial presence and engaging in
business.  For example, problems, such as an imperfect land register system and the unclearmanner for calculating land prices, have come to our attention.  We request Viet Nam to
improve its laws and regulations regarding land, and to make its provisions clearer.  In
addition, we request extension of the right to use land (i.e. for 100 years or for an indefinite
period).
Answer:
In an effort to improve the investment environment, Viet Nam has continuously simplified the
regulations and procedures on land usage to facilitate foreign investments. The Amended Law on
Foreign Investment of 2000 allows foreign investors to mortgage the value of land use rights and the
assets attached to the land  in order to obtain loans from all credit institutions operating under
Vietnamese laws (previously they were only allowed to mortgage with and borrow from Vietnamese
credit institutions). The Amended Law also provides for the responsibilities of provincial people’s
committee and the Vietnamese party to the FDI enterprise in the fulfilment of site clearancecompensation as well as other formalities relating to land usage.
In particular, the National Assembly of Viet Nam in June 2001 ratified the preliminary amendments
to a number of Articles of the Land Law, focusing on some issues related to land rental tariff,
authority to assign or to lease the land; responsibi lities of the administrative authorities at different
levels in making decisions relating to plans for using land and compensating tariff for recovered land.The Amended Law requires provincial people’s comm ittees to lease the land to all foreign investment
projects.
In order to further improve the procedures related to land lease in the above direction, the last session
of the National Assembly in 2003 will consider comprehensive amendments to the Land Law. The
draft of the Amended Law is being published for public comments.WT/ACC/VNM/29
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Regarding the land-lease duration, according to the existing regulations, foreign invested enterprises
are allowed to lease the land in accordance with the duration of the investment projects, but not
exceeding 50 years. In cases stipulated by the Standing Committee of the National Assembly, the
Government may decide a longer duration of land leasing, but this duration, in all cases, should not
exceed 70 years.
According to these regulations, foreign investors are free to decide on the duration of land leasing
corresponding to their project’s objectives and natures of operations. Investors may also apply for the
extension of such duration where necessary. In our view, regulations regarding land-lease duration do
not obstruct business activities. In fact, they are also applied on a non-discriminatory basis between
domestic and foreign investors.
Question 7
We request Viet Nam to amend its laws governing land use rights to extend the right to use land
to a period longer than that currently permitted. Would Viet Nam please advise on timetables
for this legislative action?
Answer:
Regarding the land-lease duration, according to the existing regulations, foreign invested enterprises
are allowed to lease the land in accordance with the duration of their investment projects, but notexceeding 50 years. In cases stipulated by the Standing Committee of the National Assembly, the
Government may decide a longer duration of land leasing, but this duration, in all cases, should not
exceed 70 years.
According to these regulations, foreign investors are free to decide on the duration of land leasing
corresponding their project’s objectives and natures of operations. Investors may also apply for theextension of such duration where necessary. In our view, regulations regarding land-lease duration do
not obstruct business activities. In fact, they are also applied on a non-discriminatory basis between
domestic and foreign investors.
Question 8
Paragraph 27 of the Factual Summary notes that in some sectors (for example
telecommunications) investment is restricted to a Business Cooperation Contract (BCC).  We
are concerned with this requirement, as in a B CC the investor bears the risk without recourse to
ownership of equity and management control. We request Viet Nam to advise when BCCs will
be phased out in favour of more attractive investment arrangements.
Answer:
Viet Nam is prepared to discuss this issue within the framework of bilateral market access
negotiations on trade in services.
Question 9
With regard to Paragraph 31 of the Factual Summary, some members consider the granting of
a tax preference upon the fulfilment of an export requirement to be contrary to WTO
provisions, most notably the Agreement on Subsidies and Countervailing Measures. Viet Nam,
however, is not considering the abolishment of this measure.  The Viet Nam Ministry ofPlanning and Investment announced Decree No. 718/200/QD-BKH, on Dec. 7, 2001, which
stipulates that there are 14 categories of products, including motorized two wheeled vehiclesWT/ACC/VNM/29
Page 5
and audio-visual products, must guarantee to export at least 80 per cent of their products. This
imposes real difficulties in the operations of these companies and affects willingness to invest,
and it also has a negative impact on attracting foreign investment. We are of the view that the
measure is contingent upon the domestic content regulation of TRIMs.  Viet Nam is therefore
requested to remove this export ratio req uirement on foreign-invested companies.
Answer:
The granting of income tax preference to enterprises achieving a certain export ratio is an incentive
aimed at encouraging foreign investments. As a low-income country, Viet Nam needs to attract
foreign investments. As a result, Viet Nam hopes that WTO Members, on the basis of Annex VII of
the Agreement of Subsidies and Countervailing Measures, give Viet Nam some flexibility to maintain
this measure to achieve its development objectives. Viet Nam commits to remove this type of subsidy
when the average income per capita reaches US$1,000 per annum.
As we understand, the export ratio requirement is not covered by the TRIMs Agreement. However, in
order to show goodwill in the negotiations, Viet  Nam commits not to apply this requirement upon
accession.
Question 10
In many sectors where Joint Ventures are permitted, foreign investment is restricted to 49 or 50
per cent for quite long time periods. We request Viet Nam to abolish the restrictions on foreign
investment in these sectors (advertising services, market research services, distribution services,
telecommunications and banking services). Would Vi et Nam please advise on timetables for this
legislative action?
Answer:
Viet Nam is prepared to discuss this issue within the framework of bilateral market access
negotiations on trade in services.
Question 11
With regard to paragraphs 32 and 34 of the Factual Summary, we request Viet Nam to advise
of progress being made to reform the current restrictive Mining Law. We are particularlyinterested to receive an update on the state of progress of amendments to the Mining Law which
will provide for an investment licence to be grante d at the start of the exploration stage and that
the licence be effective throughout the duration of the mining process. We also request an
update on reform of current unclear provisions stipulating the conditions for the export of raw
materials, land tax obligations and incentives, and dispute resolution.
Answer:
In accordance with Article 52.4, Decree No 76/2000/ND-CP dated 15 December 2000 by the
Government providing for detailed guidelines for the implementation of the Amended Mining Law,
investment licenses granted to foreign individuals and organisations, or joint-ventures to carry out
mining projects may cover exploring, exploiting and processing activities.
Viet Nam is reviewing the 7-year implementation of the Mining Law with a view to further amending
this Law. In this process, we encourage and facilitate foreign investors to carry out exploring,exploiting and processing projects in Viet Nam on the basis of effective and reasonable use of natural
resources, protection of the environment and ecology, preservation of historical and cultural relics,WT/ACC/VNM/29
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and due consideration of other public interest. Viet Nam will respond to questions relating to
conditions for the export of raw materials, land tax obligations and incentives, and dispute resolution
right after the above Project is completed.
Question 12
With regard to paragraph 33 of the Factual Summary, we request Viet Nam to provide an
update on progress to pass the new Construction Law.
Answer:
- The Construction Law was submitted for comments during the 3rd Meeting, Session XI of the
National Assembly, and was amended and supplemented accordingly. Then it was submitted
to the Standing Committee of the National Assembly for further comments.
- After being approved by the Standing Comm ittee of the National Assembly in August 2003,
the draft law would be sent to each Member of the National Assembly for comments.
- In September 2003, the draft Law would be circulated for discussion at the meeting of full
time members of the National Assembly.
- The Standing Committee of the National Assemb ly would modify the draft Law on the basis
of these comments, and then submit to the 4th meeting, Session XI of the National Assembly
in October 2003.
Right after the Construction Law is passed by the National Assembly, 5 Decrees will be issued to
provide guidelines for implementation of the Law. These are: a decree on the administration of
planning activities, a decree on the qualifications to engage in construction activities, a decree on the
management of construction investment projects, a decree on construction tendering, and a decree on
managing the quality of construction works.
Question 13
With regard to paragraph 33 of the Factual Summary, we request Viet Nam to issue a clear
policy statement indicating where private (including foreign) participation in infrastructure
projects is encouraged.
Answer:
The Government of Viet Nam plans to mobilise all resources (including private investments from
domestic and foreign sources) to develop the infrastructures. According to Article 3 of the Law on
Foreign Investment and Decree N o. 24/2000/ND-CP dated 31 July 2000, infrastructure development
projects are listed as encouraged investment projects, and infrastructure development projects in the
form of BOT, BTO and BT are subject to the list of specially encouraged investment projects.
In order to provide more detailed guidance and to set up a favourable legal framework for
encouragement of infrastructure development investments, the Government of Viet Nam issuedDecree No. 62/1998/ND-CP dated 15 August 1998 providing guidelines on foreign investment in the
forms of BOT, BTO and BT. A similar mechanism applied to domestic investments is also being
developed to regulate the encouragement of domes tic investments. According to these regulations,
BOT, BTO and BT projects are entitled to enjoy corporate income tax at the most favourable rates,
exempted from land rent, supported to meet foreign exchange requirement, and exempted from importduties applied on inputs and raw materials for the implementation of the projects.WT/ACC/VNM/29
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Question 14
With regard to paragraph 33 of the Factual Summary, we request Viet Nam to provide
information on its tendering process, including how these are made open to tenderers, and how
Viet Nam ensures the tender process is fair and transparent. We request information on the
criteria used in tender-related decision making and the relevant agencies responsible for taking
this decision.  We request Viet Nam to provide all the relevant rules, regulations and laws
governing the tender process in Viet Nam.
Answer:
Regarding the information on tendering process, Viet Nam provides herewith the unofficial
translation of the 3 following legal documents (i) Decree No. 88/1999/ND-CP issued by the
Government on 1 September 1999 providing for tendering regulations; (ii) Decree
No. 14/2000/ND-CP, 5 May 2000 which amended Decree No. 88/1999/ND-CP; (iii) Decree
No. 66/2003/ND-CP dated 12 June 2003 which amended the two above-mentioned Decrees.
The criteria for selecting tenderers are stipulated in a concrete and transparent manner in the above-
mentioned documents. Currently, the draft Ordinance on Tendering is being completed. Compared
with the current regulations on tendering, this draft Ordinance has some new provisions making
procurement process more transparent:
- In most cases, procurements should be made by the open tendering process.  The
procuring agency should publish the terms and conditions as well as timing of the
tender in the Procurement Gazette.
- All information relating to the tender should also be made public through the
Procurement Gazette, including:
- The tender invitation;
- The list of tenderers participating in a limited tendering proceeding;
- The results of selection of tenderers;
- The list of contractors who are unqualified to participate in the tender for
violating the Ordinance on Tendering;
- List of contractors who have been forced to terminate the contract before the
expiry date, or who have been unable to fulfil the signed contract.
III. FRAMEWORK FOR MA KING AND ENFORCING POLICIES AFFECTING
FOREIGN TRADE IN GOODS AND TRADE IN SERVICES
Question 15
We encourage Viet Nam to continue with its public sector reform process. These reforms will
assist Viet Nam's accession to the WTO and fost er greater trade facilitation. We seek a report
on developments so far and intended future acti on.  We request that, in addition to this
information, Viet Nam provides to the Working Party information on reforms with respect to:
- Communication and cohesion between ministries; and
- Management of public information.WT/ACC/VNM/29
Page 8
Answer:
Viet Nam takes note of these comments. The public administration reforms have been undertaken
since 1990. The Government’s commitment to reforms has been further confirmed by the issuance of
the Public Administration Reform Master Plan for the period 2001-2010 in 4 key areas: institutional
reform, organizational reform, human resource development and public financial reform.
1. Recent progresses in public administrative reforms:
- With respect to institutional reform, a range of important legal documents have been
promulgated, creating a level playing field for enterprises. New regulations have made
fundamental changes in the operation and performance of state agencies, making them more
responsible to the individuals and organisations they serve and reducing their intervention in
enterprises’ activities.
- With respect to organizational reform, there have been important changes in functions and
mandates of the Government, ministries and local administrative authorities in consistence
with the new economic mechanism.
- With respect to human resources development, reforms mainly focus on capacity building for
civil servants nationwide and the mechanism for managing civil servants.
- With respect to public financial reform, the State Budget Law has been adopted. The Law
clarifies the authority of the 4 levels of governments: central, provincial, district and
commune level.
2. Future public administrative reform priorities:
- Preparation and implementation of the proposal on division of competence between central to
local governments;
- Implementation of the Civil Service Ordinance (amended);
- Application of the “one-stop” mechanism nationwide;
- Training and upgrading for capacity building for civil servants.
3. Coordination and information exchange among ministries:
Coordination and information exchange among ministries are undertaken through:
- Regular information exchange and consultation;
- The Official Gazette;
- The statistics provided by the General Statistical Department and the reports of the
Government;
- Monthly Government’s meeting of the Cabinet;
- Direct meetings and discussions between ministries;
- The wide area network (WAN) of the Government administered by the Office of the
Government (the CP Net);
- The Websites maintained by ministries, government agencies and provincial authorities.
4. Management of public information
Management of public information in Viet Nam is undertaken as follows:
- The General Statistics Department is responsi ble for announcing and providing official data
of Viet Nam;
- The Office of the Government is responsible for maintaining the Official Gazette and the
WAN of the Government ;WT/ACC/VNM/29
Page 9
- The Ministry of Culture and Information is responsible for the overall state management of
information;
- Ministries and People’s Committees are responsible for management of their own websites.
Question 16
We note that the existence of many conflicting laws in Viet Nam makes interpretation subjective
and enforcement complicated. We request Viet Nam to provide information on when Viet Nam
is likely to move from a "positive" to a "negat ive" list approach so that activities are permitted
unless expressly prohibited by law. We also request Viet Nam to advise likely timetables for
Viet Nam to make laws self-enforcing, so that implementation is limited to punishment of
violators instead of everyone having to demonstrate positive compliance.
Answer:
The observation that there are many conflicting laws in Viet Nam is not accurate, especially when
referring to those legal documents issued by the National Assembly or the Standing Committee of the
National Assembly in the field of international trad e. However, in a few cases, there are different in
the level of details in the guiding documents that ma y lead to the impression that there are conflicting
legal documents.
Viet Nam takes note of the proposal relating to the movement from a "positive" to a "negative" list
approach when specifying acts not allowed by th e laws. In reality, Viet Nam has been conducting
reforms in the area of trade and economic legislation in such direction. For example, as stipulated in
the Article 57 of the Constitution, Vietnamese citizens have the right to freely conduct business in
accordance with the laws. The Commercial Law, the Enterprise Law and a number of other legal
documents also follow the same approach.
The Decree No. 44/2001/CP dated 2 August 2001 on the amendment of and addition to a number of
articles of Decree No. 57/CP dated 31 July 1998 which provides guidelines for implementation of the
Commercial Law regarding import-export activities, sub-contract processing and acting as agents for
foreigners specifies that: “All goods, except for th ose subject to the list of import-export prohibition,
may be imported or exported”.
- Article 26 of the amended Law on Promulgation of Legal Documents stipulates that “The
drafting committee of a law, ordinance or resolution is also in charge of drafting the legal
documents guiding the implementation of that draft law, ordinance or resolution”.
Article 15.3 of Decree No. 101/CP dated 23 September 1997 by the Government providing guidelines
for implementing a number of articles of the Law on Promulgation of Legal Documents stipulates
that:
“Draft legal document should be of such high quality that the provisions contained in each
article should be readily understandable so that it can be enforced immediately after the legal
document comes into effect.
Where guiding documents are necessary for implementing a legal document which is being
drafted, the drafting committee has the responsibility to draft, or to direct and supervise the
government agencies involved to draft, the gu iding documents so that they can be submitted
to the Government at the same time with the draft legal document (i.e., the draft law,
ordinance, resolutions, decrees, etc.)”.WT/ACC/VNM/29
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The last part of the question is the subject of criminal law, not international trade law. The
“presumption of innocence” principle is still an important one in the Criminal Code when applying
arbitration or penalties on violators.
Question 17
We request Viet Nam to provide information on  when it will speed up the process of issuing
implementing guidelines to accompany relevant laws? We also request Viet Nam to advise what
steps are being made to increase opportunities for consultation (with foreign and domestic
investors) before the passage of laws.
Answer:
With respect to speeding up the procedures of promulgating legal documents:
Viet Nam has made considerable progresses in speeding up the procedures of promulgating legal
documents, allowing legal documents to be enforceable right after they come into effect. Article 9 ofthe amended Law on Promulgation of Legal Documents stipulates that: “legal documents issued to
amend, supplement, replace, or invalidate the enforcement of other legal documents have to clearly
specify the names of such documents, articles or provisions of such documents which are subject to
amendment, supplement, replacement, or cancellation”. Furthermore, Article 26 of this Law stipulates
that “The drafting committee of a law, ordinance or resolution is also in charge of drafting the legaldocuments guiding the implementation of that draft law, ordinance or resolution”.
Article 15.3 of Decree No. 101/CP dated 23 September 1997 by the Government providing guidelines
for implementing a number of articles of the Law on Promulgation of Legal Documents stipulates
that:
“Draft legal document should be of such high quality that the provisions contained in each
article should be readily understandable so that it can be enforced immediately after the legal
document comes into effect.
Where guiding documents are necessary for implementing a legal document which is being
drafted, the drafting committee has the responsibility to draft, or to direct and supervise the
government agencies involved to draft, the gu iding documents so that they can be submitted
to the Government at the same time with the draft legal document (i.e., the draft law,
ordinance, resolutions, decrees, etc.)”.
Regarding consultation with domestic and foreign investors before issuing a legal document, Viet
Nam has adopted this approach since the entry into force of the Law on Foreign Investment in 1987.
In addition, the Government of Viet Nam and the World Bank have been the co-Chairs of the
Business Forum for almost 10 years in order to listen to the comments and concerns of domestic and
foreign investors (meetings for this purpose are held every 3 to 6 months). Article 3 of the amendedLaw on Promulgation of Legal Documents also provid es that government agencies involved in the
drafting of legal documents have the responsibility to offer individuals and organisations the
opportunity to commend on the legal document and to consider and take into accounts their
comments.WT/ACC/VNM/29
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5. Laws and Legal Acts
Question 18
Ensuring a uniform application of laws
(a) With regard to Viet Nam’s response to Question 9 of document WT/ACC/VNM/23,
please provide answers in detail with referen ce to the recent developments in Viet Nam
and to the questions described in the first four tirets, since there is no clear explanation
to these questions.
(b) With regard to Viet Nam’s response to the 5th tiret of this question, we note that civil
cases have always been under the authority of the Civil Court.  In this connection, we
would like to obtain Viet Nam’s confirmation that the Civil Court is in charge of not
only giving civil judgement but also executing the given judgement.  Should this not be
the case, we believe that the Civil Court should have the authority to execute itsjudgement.
(c) With regard to the settlement of economic disputes, we continue to request extension of
the period during which a person can file a suit, from 6 months to 2 years after such a
dispute occurs, in line with int ernational commercial practices.
Answer:
a. We are sorry that the full answer to the question has not been received. We would like to
answer that question again as follows:
- For the first paragraph (regarding procedures for public comments as provided in the Law on
the Amendment of and Addition to Some Arti cles of the Law on Promulgation of Legal
Documents):
The Law on the Amendment of and Addition to Some Articles of the Law on Promulgation of
Legal Documents (the amended Law) was approved on 16 December 2002 by the National
Assembly. To ensure the transparency right from the drafting stage of legal documents, the
amended Law has added a number of provisions which require the responsible agencies to
seek public comments, especially the comments of those directly affected, on the draft legaldocuments (Article 1.2 of the Amended Law). With a view to seeking comments from a wider
public, Article 1.19 of the amended Law provides that the Office of the Government publish
the drafted resolutions and decrees on the mass media and the Internet for the public to make
comments.
- For the second paragraph (with regard to the correcting the existing discrepancies among
various laws and regulations):
Viet Nam has made every effort to identify and correct the discrepancies among its laws and
regulations. To ensure the consistency of the legal system, the amended Law has provided a
clear provision that:
“the authority issuing the new legal document shall provide therein a list of those previous
articles, provisions or legal documents which conflict with the newly issued document and
amend or supplement such conflicting articl es, provisions or documents as required”.WT/ACC/VNM/29
Page 12
- For the third paragraph (on the consultation and interpretation of legal documents by relevant
government agencies and people’s committees):
According to the Law on Promulgation of Legal Documents, the Standing Committee of the
National Assembly is the sole State body with the authority to interpret laws and ordinances.
The Decree No 94/CP dated 06/09/1997 on lega l departments in ministries and other
governmental agencies provides that legal departments shall be set up in such ministries and
agencies to help ministers and heads of agencies, to exercise the rule of law within their
auspices; to draft legal documents; to evaluate, review, and systemise the legal documents;
and to disseminate and supervise the implementation of legal documents.
- For the 4th paragraph (on publication of legal documents on the Official Gazette):
With regard to publication of legal documents in the Government Gazette, Viet Nam on
average issues 3 to 4 volumes of Government Gazettes per month.
The Amended Law also provides for the effective dates for each type of legal documents to
ensure that no legal documents shall come into effect prior to publication.
b. The Civil Court, which is part of the people’s court system, is functioned to make judgements
on civil cases. However, it is not the agency responsible for executing judgements and
decisions on civil cases. Executing bodies from central to local levels are under the uniformadministration of the Ministry of Justice. The organization of this system is the matter of
internal affair, not having any direct impact on international trade.
c. Regarding the period for prosecuting an  economic dispute, Article 31.1 of the Ordinance on
Procedures for Settlement of Economic Disputes (which was formulated based on the
recommendations of various international experts) stipulates that within 6 months from thedate on which the economic dispute in question arises, the complainant is required to file the
suit by submitting a written request to the Court. The recent recommendation of Japanese
experts, i.e. to extend this period to 2 years, has been taken into accounts by the drafting
committee for the amended Ordinance on Procedures for Settlement of Economic Disputes. It
is expected that this provision in the amended Ordinance as well as in the Code forProsecution of Civil Cases will be amended so that the period for prosecuting a civil case can
be extended from 6 months to 2 years.
IV. POLICIES AFFECTING TRADE IN GOODS
Question 19
Viet Nam's replies in Questions 12 and 13 of WT/ACC/VNM/23, which concern trading rights,
refer us to Question 4, which pertains to labour  regulations. We reiterate these questions and
request responses:
- The reply to question 12 of WT/ACC/VNM/16 states that Viet Nam will table its plan for
eliminating its import registration regime will be asymmetrical import registration
requirements for firms as part of its NTM elimination schedule in its accession
negotiations. Viet Nam’s current import registration regime discriminates against
foreign invested enterprises and a violat ion of the GATT Article III on national
treatment for trade in goods and Article XI. National treatment is a basic principal of
the WTO with which all members must compl y. Please provide more details on how Viet
Nam intends to bring this system into compliance with WTO rules.WT/ACC/VNM/29
Page 13
- We seek confirmation from Viet Nam that upon accession a non-discriminatory import
registration regime will be in place that allows both domestic and foreign-invested
entities to import inputs, import items for resale, and to export without any restriction,
other than restrictions consistent with WTO provisions.
Paragraph 70 of the factual summary, and Viet Nam's replies to questions 10, 11 and 14 of
WT/ACC/VNM/23 present a major problem concerning national treatment in trading rights.
Foreign- invested firms clearly face restrictions in importing and exporting that domestic firms
do not face. What is the basis of Viet Nam's claim that "such regulation does not violate the
"national treatment" obligation (of GATT Article III)?
We continue to seek confirmation from Viet  Nam that upon accession a nondiscriminatory
import registration regime will be in place that allows both domestic and foreign invested
entities to import inputs, import items for resale, and to export without any restriction, otherthan restrictions consistent with GATT Articles XX and XXI.
We request that Viet Nam confirm whether and how a foreign individual or firm, which has not
invested or established a commercial presence in Viet Nam, may act as the importer of record
for goods made available for distribution in Viet Nam.
Answer:
Viet Nam confirms that foreign invested enterprises are entitled to export as Vietnamese enterprises.
Foreign invested enterprises are also allowed to import all types of goods consistent with their
investment licenses.
The importation of goods inconsistent with the investment licenses (i.e., importation for resale) is a
matter relating to distribution services. In Viet Nam’s view, it should, therefore, be discussed in thecontext of bilateral negotiations on market access regarding distribution services.
Question 20
Important questions have previously been raised relating to the rights to import, import for
resale and export accorded to foreign-invested firm s.  We note that foreign-invested enterprises
in Viet Nam face restrictions on importing and exporting that national firms do not face. This isin breach of the national treatment requirement  in GATT Article III and is not consistent with
GATT Articles XX and XXI. This matter was raised in questions 11 and 12 of
WT/ACC/VNM/16.  In response, Viet Nam indicated that it would "deal with this issue when
tabling the elimination schedule of existing non-tariff barriers in WTO accession negotiations''.
We request Viet Nam to advise what progress is being made with this, and when it will be ready
to table proposals. We urge Viet Nam to addre ss this issue immediately in order that it can
eliminate all discriminatory import licensing procedures before accession.
Answer:
Viet Nam confirms that foreign invested enterprises are entitled to export as Vietnamese enterprises.
Foreign invested enterprises are also allowed to import all types of goods consistent with their
investment licenses.
The importation of goods inconsistent with the investment licenses (i.e., importation for resale) is a
matter relating to distribution services. In Viet Nam’s view, it should, therefore, be discussed in the
context of bilateral negotiations on market access regarding distribution services.WT/ACC/VNM/29
Page 14
Question 21
Under the current system foreign- invested firms do not have the same rights to import, import
for resale, or export as domestic firms.  As a result, imported goods do not benefit from the
National Treatment Requirements of GATT Article III and the system could also be seen as a
non-tariff barrier to imports prohibited by GA TT Article XI.  At the last Working Party
meeting, although Viet Nam acknowledged that the current regime violated national treatment
it reiterated that it was in the process of "transition" and that it would need to maintain the
differences.  We reiterate that this is an issue Viet Nam needs to begin to address now so that
the discrimination can be eliminated prior to or by the time it accedes to the WTO.
Answer:
Viet Nam confirms that foreign invested enterprises are entitled to export as Vietnamese enterprises.
Foreign invested enterprises are also allowed to import all types of goods consistent with thestipulations in their investment licenses.
The importation of goods inconsistent with the investment licenses (i.e., importation for resale) is a
matter relating to distribution services. In Viet Nam’s view, it should, therefore, be discussed in the
context of bilateral negotiations on market access regarding distribution services.
Question 22
Trading rights.  With regard to Paragraph 72 of the Factual Summary, branches of foreign
traders were allowed to purchase certain goods for export.  These branches were also permitted
to import certain goods for sale in the Vietname se market. We suggest that Viet Nam gradually
broaden the range of merchandise and busine ss categories permitted to foreign company
branches operating in Viet Nam, and to publish as soon as possible its more open regulations
concerning import and export business for foreign enterprises.
Answer:
Viet Nam confirms that foreign invested enterprises are entitled to export as Vietnamese enterprises.
Foreign invested enterprises are also allowed to import all types of goods consistent with the
stipulations in their investment licenses.
The importation of goods inconsistent with the investment licenses (i.e., importation for resale) is a
matter relating to distribution services. In Viet Nam’s view, it should, therefore, be discussed in the
context of bilateral negotiations on market access regarding distribution services.
Question 23
Trading rights.  As Viet Nam has severely restricted the trade activities of enterprises with
foreign capital, these trade activities are extr emely limited in compar ison to those of the
Vietnamese enterprises.  For example, enterp rises with foreign capital are only allowed to
import goods in very limited cases, such as fo r goods used for the manufacturing process.  Since
such action is against national treatment, we request Viet Nam to improve its system.  As this
issue is closely related to the distribution area, Viet Nam is requested to carry out the
liberalization of imports and sales by a foreign firm.WT/ACC/VNM/29
Page 15
Answer:
Viet Nam confirms that foreign invested enterprises are entitled to export as Vietnamese enterprises.
Foreign invested enterprises are also allowed to import all types of goods consistent with the
stipulations in their investment licenses.
The importation of goods inconsistent with the investment licenses (i.e., importation for resale) is a
matter relating to distribution services. In Viet Nam’s view, it should, therefore, be discussed in the
context of bilateral negotiations on market access regarding distribution services.
1. Import Regulation
(b) Characteristics of national tariff
Question 24
We thank Viet Nam for its response to questions 15 and 16 in document VNM 23, which
confirm that Viet Nam has harmonized its ta riff nomenclature with the Asean Harmonized
Tariff Nomenclature (AHTN) and that it will be implemented by 1 July of this year. We request
that Viet Nam clarify the statement" Viet Nam's current tariff nomenclature is basically in full
compliance with the HS96 nomenclature at the 6-digit level." In what area's is it not in
compliance?
We understand Viet Nam intends to harmonize at the 8-digit level concurrent with other Asean
members. What is the current target date for harmonizing the AHTN at the 9-digit level?
We request a response from Viet Nam to the  following questions, which we raised at the
previous Working Party meeting.
In WT/ACC/VNM/2, the Memorandum on the Foreign Trade Regime, Viet Nam stated that its
current rates of duty were basically established by Decision No. 280/TTg dated 25 April 1994,with "some adjustment and modification" made "in response to changes in international and
domestic markets with a view to giving guidance on consumption and developing fair
competition," and that "tariff rates range from 60 per cent to 0 per cent."
Does Decision No. 280/TTg still basically govern Viet Nam's tariff structure, or has there been a
significant revision? Please indicate what chan ges have been made, and provide a copy of Viet
Nam's current applied tariff rates.
Please describe your procedures for "analyzing international and domestic markets. Please
describe the circumstances under which Viet Nam would need to "give guidance on
consumption."
In particular, is Decision No. 280/TTg still valid? Was it revised or replaced as part of the Asean
harmonization exercise?
We thank Viet Nam for its revised goods offer in document WT/ACC/SPEC/VNM/1/rev.1, and
we would like to confirm whether column 3, "Current Statutory Applied Ceiling Rate" refers to
the current applied rate, or some legal maximum. If it is not the current applied rates, we wish
to renew our request for Viet Nam's current applied tariff rates. It is necessary to see these rates
to understand Viet Nam's tariff regime. We have also reached the point in market access
discussions where we must have thes e applied rates to proceed further.WT/ACC/VNM/29
Page 16
Answer:
- As notified at the 6th Meeting of the Working Party, Viet Nam has issued a new import duty
nomenclature, which has been provided to the Working Party before its 7th Meeting;
- The new nomenclature was constructed on the basis of ASEAN Harmonized Tariff
Nomenclature (AHTN) and fully consistent w ith HS 2002. AHTN was constructed at 8-digit
level. Up to now, the harmonization of AHTN at 9-digit level has not been considered.
- The new preferential tariff nomenclature (based on AHTN) was issued by virtue of Decision
No. 110/2003/QD/BTC dated 25 July 2003.
- Decision No. 280/QD/TTg dated 25 April 1994 has been invalid since 1 January 1999.
Decision No. 110/2003/QD/BTC dated 25 July 2003 promulgating the preferential tariff
nomenclature has replaced the previous legal documents governing the same issues.
Therefore, the provisions of Decision No 280/QD/TTg as mentioned in the question are nolonger valid.
- The third column in the revised goods offer (document WT/ACC/SPEC/VNM/1/Rev.1)
contains the maximum tariff rates that could be applied within the tariff bands stipulated by
the National Assembly. They are not the current applied rates. The MFN tariff nomenclature
with current applied rates as mentioned above has been provided to the Working Party before
the 7
th Meeting of the Working Party.
Question 25
Viet Nam has still to submit its current Customs Tariff and Import Statistics for recent years,
by trading partner, and we encourage Viet Nam to provide these to the Working Party.
Provision of this material, in electronic format if possible, would assist in the tariff negotiations.
Answer:
Viet Nam has provided import statistics to the Working Party before its 6th Meeting. The currently
applied MFN tariff nomenclature, or “current customs tariff”, has been provided to the WTO
Secretariat for reference together with these answers (see notice circulated in document
WT/ACC/VNM/28/Add.1).
Question 26
We note that the system under which variations are made to Viet Nam's applied tariff is a
disincentive to trade and investment, and has similar effects to non-tariff barriers.  We
understand that applied tariffs can be raised or lowered at any time within broad bands set by
Viet Nam's National Assembly without public notice , and that in practice this authority to alter
tariff rates is exercised by the Ministry of Finance.  We anticipate receiving Viet Nam's schedule
of current applied tariffs in July 2003, as promised during the Sixth Working Party meeting.We request Viet Nam to:
- Publish its tariff rates on a regular basis, pr ior to their applicatio n, in accordance with
Article X of the GATT;
- Set out in laws or regulations a definite procedure and process for determining changes
in tariff rates; andWT/ACC/VNM/29
Page 17
- Institute a process for public consultation and comment prior to amending tariff rates.
Answer:
We understand that frequent changes to the tariff rates may limit the stability of the tariff policy and
affect business plans of the business community. However, the import tariff regime of Viet Nam,
similar to policies in other areas, is still in formulation and development as the national economy ismaking its transition toward a market economy. As a result, it is difficult to fix the applied tariffs at
certain rates at this stage. Viet Nam guarantees that best efforts will be made to publish the rates prior
to application and to stabilize tariff rates.
Under the current rules, changes to the import tariff  rates within the tariff bands stipulated by the
National Assembly is within the authority of the Ministry of Finance. However, this decision is made
on the basis of consultations with the business community and the concerned ministries or agencies,
hence it is not a subjective decision.
The transparency in the enactment procedures of legal documents, the publication of legal documents,
the validity of legal documents, the provision of legal information as well as the publication of import
and export tariff rates have been ensured by the Law on Promulgation of Legal Documents (as
amended on 16 December 2002). Under this amended Law, legal documents are required to be
published in the Official Gazette and only become effective 15 days thereafter, or at a later date ifotherwise specified.
Viet Nam is making efforts to reform its import-export tariff system to make it more simplified and
transparent. The application of WTO relevant standards are considered as the objectives in this
process.
Question 27
We are concerned that Viet Nam does not provide full MFN treatment for all products.  Instead
of eliminating non-MFN treatment as Viet Nam prepares for WTO membership this practice is
increasing e.g. the recent changes affecting wines, sp irits and ceramic tiles.  When will Viet Nam
eliminate such discrimination?
Answer:
The removal of minimum customs valuation for wines, spirits and ceramic tiles imported from the EU
is an exception under the bilateral textile and clothing agreement between Viet Nam and the EU. This
preferential provision, together with some other provisions of such agreement, was offered in
exchange for preferential treatment that the EU applies to Vietnamese textile and clothing products
exported to the EU.
However, all issues pertaining to trade in textiles and clothing, including the above mentioned issues,
will be considered in the context of bilateral ma rket access negotiations with each interested Member
with a view to reaching mutually beneficial ag reement and in compliance with the WTO Agreement
on Textiles and Clothing.
Question 28
For many tariff lines Viet Nam is seeking the ability to convert ad valorem duties into specific
duties in the future (WT/ACC/SPEC/VNM/1/Rev.1).  We are concerned that this could meanthat the value of Viet Nam’s tariff concessions will be affected in the future, reducing both theWT/ACC/VNM/29
Page 18
security and transparency of Viet Nam’s tariffs.  If Viet Nam’s proposal is to be considered,
Viet Nam needs to provide:
(a) More information on the need for such conversions;
(b) An explanation of why GATT Article XXVIII processes are not adequate should tariff
concessions need to be mo dified in the future; and
(c) An explanation of the methodology that Viet Nam proposes to use to undertake such
conversions.
Answer:
The reason that Viet Nam may have to apply specific duties in the future arises from the fact that there
are many incidents of trade frauds, especially understating prices of high-value goods for invading
import duties. Specific duties may be necessary in the context that Vietnamese customs staffs have
limited assessment and valuation capacity.
(c) Tariff quotas, tariff exemptions
Question 29
We request Viet Nam to provide details of the tariff quota arrangements that it proposes for salt
of 2501 (i.e. volumes, tariff levels, administration arrangements).  Is it proposed that the tariff
quota will replace the quota and licensing arrang ements, and that the latter two arrangements
will be terminated?
Answer:
The application of tariff rate quotas is a consequential step in the process of eliminating non-tariff
measures previously applied on the same products, including licenses and import quotas.
Detailed information relating to tariff rate quotas applied to salt (HS 2501) has been submitted to the
WTO Secretariat together with this document.
Question 30
We strongly urge Viet Nam to move to a tariff-only regime and not to seek recourse to tariff
quotas.  We have strong concerns with the number of tariff quota commitments that Viet Nam
is proposing and request Viet Nam to reconsider and reduce its tariff quota proposals.  If anytariff quota commitments are to be negotiated, we request Viet Nam to provide to the
membership in each case:
(a) full details of tariff quota arrangements that are currently in force;
(b) the tariff rates that will apply to imports outside of the tariff quota, as well as the tariff
rates to apply to imports inside the tariff quota;
(c) details of tariff quota volumes that are proposed;
(d) details of the annual growth rate in tariff quota volumes proposed by Viet Nam;(e) supporting information on production, consumption and imports of each product for
which tariff quota commitments are proposed; and
(f) guarantees that tariff quota access will be made available to all WTO members on a
basis that involves no discrimi nation on the source of imports.WT/ACC/VNM/29
Page 19
Answer:
Detailed information relating to tariff rate quotas as requested has been submitted to the WTO
Secretariat together with this document. As compared to the last version of offer on tariff rate quotas,
the number of proposed categories at HS 6-digit level has been reduced from 47 to only 13. Viet Nam
hopes that Members of the Working Party take note of this effort.
Question 31
As noted above, we are concerned that Viet Nam is proposing to introduce tariff quotas for a
range of products.  We do not believe that these tariff quotas are necessary or justified.
However, administration of such tariff quotas need s to be conducted in a manner that is simple,
transparent, timely, predictable, uniform, non-di scriminatory, and non-trade restrictive.  Tariff
quotas need also to be administered in a way that  does not cause trade distortions, and in a way
that is not more administratively bur densome than absolutely necessary.
We request that Viet Nam provide details on its current and proposed methods for
administration of each tariff quota so that this aspect of the negotiations can be discussed
further.
Answer:
Viet Nam takes note of the comments relating to the application of tariff rate quotas. The application
of tariff rate quotas is a consequential step in the process of eliminating non-tariff measures
previously applied on the same products, including licenses and import quotas.
Detailed information related to tariff rate quotas applied to salt (HS 2501) has been submitted to the
WTO Secretariat.
Question 32
We are also concerned that Viet Nam recentl y announced that beginning 1 July 2003 it will
impose quotas on cotton (HS 5201-5203), tobacco (HS 2401) and salt (HS2501), and that from
2004 quotas will also be extended to certain dairy products (HS 0401, 0402), eggs (HS 0407) and
maize (HS 1005).  Can Viet Nam please advise whether these measures are tariff rate quotas
(TRQs) or import quotas?  Would Viet Nam please provide full details of all the "quotas"including quota volumes, tariff levels, an d administration and allocation methods?
Answer:
“Quota” referred to in the question is tariff rate quota applied in place of quantitative restrictions
previously applied to the same products which include license and import quotas. Detailed
information has been submitted to the WTO Secretariat together with this document.
Question 33
Viet Nam states (at para 89) that it does not currently use TRQs, but that it reserves that right
to use them. In their revised goods offer, TRQs (and other measures) are used in a number of
agricultural goods. This would be of course would be contrary to the “standstill” principle. Also
TRQs are an outmoded and trade distorting methodology. We ask that Viet Nam refrain from
using such measuresWT/ACC/VNM/29
Page 20
Answer:
Viet Nam proposed to apply tariff rate quotas in place of quantitative restrictions, especially import
prohibition, previously applied to a number of products. The purpose of this is to increase market
access for imported goods in the context of WTO accession.
As indicated in the revised offer on tariff rate quotas, Viet Nam has tried its best to limit the list of
goods proposed for application of tariff rate quotas. As compared to the last offer on tariff rate quotas,
the number of proposed categories at HS 6-digit level has been reduced from 47 to only 13. Viet Nam
will apply tariff rate quotas in compliance with WTO provisions.
(d) Other duties and charges
Question 34
We acknowledge Viet Nam's response to question 21 of VNM 23, in which Viet Nam states that
it needs to use ODCs as it rationalizes its ex port-import tariff structure and rates, and we will
be interested in discussing ODCs bilaterally, if necessary. At this point, we simply wish to state
that in the interests of transparency, Viet Nam should make its current tariff structure and
tariff rates known to the working party, with a vi ew to concluding the process of rationalizing
the structure and rates as soon as possible. If  ODCs are an interim measure, Viet Nam should
eliminate them in its final tariff schedule.
Answer:
Up to now, Viet Nam still maintains ODCs to a number of goods in order to replace non-tariff
measures previously applied to these goods. (The list of ODCs has been provided to Members of the
Working Party. Please refer to Table 1.a of the Factual Summary provided to the 6th Meeting of the
Working Party).
Viet Nam has tried its best to convert these ODCs into import tariff rates so that the management of
tariff collection at customs border becomes more simple and transparent. We wish to reach agreement
with interested Members when we discuss the binding levels of certain tariff lines that are currently
subject to ODCs in the context of bilateral negotiations.
Question 35
Viet Nam currently applies other duties and ch arges (ODCs) on a limited number of products
(paragraph 86). It is our expectation that, in th e interests of transparency and clarity in their
customs tariff, Viet Nam will bind other duties and charges at zero upon accession.
Further to this Viet Nam appears to have clai med the right to apply additional ODCs in the
future. This would be contrary to the standstill principle, under which new trade distorting
measures should not be introduced during the acces sion process. Furthermore, Article II of the
GATT precludes the introduction of any new duties and charges after accession. ConsequentlyODCs not currently applied MUST be bound at zero.
Answer:
Up to now, Viet Nam still maintains ODCs to a number of goods in order to replace non-tariff
measures previously applied to these goods. (The list of ODCs has been provided to Members of the
Working Party. Please refer to Table 1.a of the Factual Summary provided to the 6th Meeting of the
Working Party). Viet Nam has tried its best to conv ert these ODCs into import tariff rates so that theWT/ACC/VNM/29
Page 21
management of tariff collection at customs border becomes more simple and transparent. We wish to
reach agreement with interested Members when we discuss the binding levels of certain tariff lines
that are currently subject to ODCs in the context of bilateral negotiations.
Under Viet Nam’s commitments in the framework of  the extended structural adjustment program with
IMF and the Myazawa financial program to enhance transparency of trade policies, Viet Nam hasgradually eliminated non-tariff measures which are import - restrictive since 2000. In the transitional
period, these measures have been replaced by import duties and surcharges. Therefore, since 2000,
surcharges (a form of ODCs) have been applied for the purpose of tariffication of non-tariff measures,
not for the purpose of price stabilisation as in the case of Stabilisation Fund described in paragraph 84
of the Factual Summary. As indicated in Table 1. a of the Factual Summary, most of these ODCs
listed in this Table have been in effect since 2000, only some have been applied since 2002.
Question 36
Viet Nam is claiming a right to maintain other duties and charges (ODCs) on a number of tariff
lines.  Article II:1(b) of the GATT requires that such ODCs be bound at the level at which they
are currently actually applied.  If there are no  ODCs actually applied, ODCs must be bound at
zero.  We request Viet Nam to provide a comprehensive list of ODCs that are currently actually
applied to imports so that we can assess this aspect of Viet Nam’s tariff offer.
Viet Nam applies "differential price surcharges" on certain imported goods (para 84 and Table
1(a) of Factual Summary refer).  We note that there is no fixed list of goods to which these
surcharges apply and it appears they are levied  on certain goods where there are significant
fluctuations in the difference between domestic and world market prices.  Are the surcharges
variable levies?  We request Viet Nam to explain fully how the surcharge system operates.  Thegoods and rates listed in Table 1(a) are those that applied in 2000.  We request Viet Nam to
advise if the goods or rates have changed and, if so, how?  Other duties and charges will be
bound according to GATT Article II:(b) and cannot therefore be varied without due regard to
the bound rates.  We request Viet Nam to advise how these surcharges will be consistent with
Article II.
Answer:
a. Up to now, Viet Nam still maintains ODCs to a number of goods in order to replace non-tariff
measures previously applied to these goods. (The list of ODCs has been provided to Members
of the Working Party. Please refer to Table 1.a of the Factual Summary provided to the 6th
Meeting of the Working Party).
Viet Nam has tried its best to convert these ODCs into import tariff rates so that the
management of tariff collection at customs border becomes more simple and transparent. Wewish to reach agreement with interested Members when we discuss the binding levels of
certain tariff lines that are currently subject to ODCs in the context of bilateral negotiations.
b. Under Viet Nam’s commitments in the framework of the extended structural adjustment
program with IMF and Myazawa financial program to enhance transparency of trade policies,
Viet Nam has gradually eliminated non-tariff measures which are import- restrictive since2000. In the transitional period, these measures have been replaced by import duties and
surcharges. Therefore, since 2000, surcharges (a form of ODCs) have been applied for the
purpose of tariffication of non-tariff measures, not for the purpose of price stabilisation as in
the case of Stabilisation Fund described in paragraph 84 of the Factual Summary.WT/ACC/VNM/29
Page 22
As indicated in Table 1.a of the Factual Summary, most of these ODCs listed in this Table
have been in effect since 2000, only some have been applied since 2002.
Question 37
Would Viet Nam please provide information to explain the basis for other duties and charges of
a type covered by GATT Article II:1 imposed on cement clinkers, ceramics, paper and steel, aswell as the level at which these charges are currently imposed?
Answer:
Under Viet Nam’s commitments in the framework of  the extended structural adjustment program with
IMF and Myazawa financial program to enhance transparency of trade policies, Viet Nam has
gradually eliminated non-tariff measures which are import- restrictive since 2000. In the transitional
period, these measures have been replaced by import duties and surcharges. Therefore, since 2000,
surcharges (a form of ODCs) have been applied for the purpose of tariffication of non-tariff measures,not for the purpose of price stabilisation as in the case of Stabilisation Fund described in paragraph 84
of the Factual Summary.
As indicated in Table 1.a of the Factual Summary, most of these ODCs listed in this Table have been
in effect since 2000, only some have been applied since 2002.
(e) Quantitative import restrictions
Question 38
Viet Nam also appears to use a discretionary licensing system that limits the sectors and types of
activity allowed.  For example, foreign enterpri ses are unable to import freely certain goods for
domestic distribution and any importation being dependent upon the terms of their investment
license (para 70-74), which may be more onerous than on their domestic counterparts.
Answer:
Viet Nam confirms that foreign invested enterprises are entitled to export as Vietnamese enterprises.
Foreign invested enterprises are also allowed to import all types of goods consistent with their
investment licenses.
The importation of goods inconsistent with the investment licenses (i.e. importation for resale) is a
matter relating to distribution services. In Viet Nam’s view, it should, therefore, be discussed in the
context of bilateral negotiations on market access regarding distribution services.
Question 39
We thank Viet Nam for providing the information on import prohibitions, quotas and licensing
contained in WT/ACC/VNM/25/Rev.1.  Given th at Viet Nam is seeking transitional
arrangements to eliminate these measures, we request Viet Nam to provide additional
information justifying its claim for a transitional period.
Answer:
Viet Nam requested transitional periods for quantitative restrictions applied to a limited list of goods
mainly for the purpose of facilitating the domestic industries to restructure and adjust to competition.WT/ACC/VNM/29
Page 23
In addition, the transitional period also helps government agencies to adjust to new management
regime which comply with WTO provisions.
Question 40
Table 1 of Page 2, Viet Nam’s Non-Tariff Measures—October 2002, WT/ACC/VNM/25.  As
indicated in WT/ACC/VNM/25, motorcycles (including mopeds) and cycles fitted with anauxiliary motor, with or without side-cars,  and side-cars under HS 8711 are classified as
military equipment and subject to import prohibition.
We would appreciate knowing that on what grounds motorcycles can be considered as military
equipment? How does Viet Nam explain the legality of this import ban on motorcycles?
Answer:
Please refer to document WT/ACC/VNM/25/Rev.1. Viet Nam does not prohibit the importation of all
kinds of imported motorcycles, but prohibits the importation, registration and circulation within thecountry of those motorcycles with capacity over 175 cm
3. Motorcycles with capacity over 175 cm3 are
only allowed to be imported for the special purposes such as security, army forces, or sports.
Question 41
In relation to the import prohibition on imported tobacco and cigarettes (Table I of
WT/ACC/VNM/25/Rev.1 refers), does Viet Nam impose a similar prohibition on domesticproduct, or is this a case where national treatment does not apply?  If a similar prohibition is
imposed on domestic production and sale, we request Viet Nam to provide details of this
prohibition.
Answer:
The import prohibition applied to tobacco and cigarettes is part of the overall campaign against
tobacco consumption and product ion. Viet Nam only takes advant age of the existing tobacco
production units, but has no intention to develop the domestic cigarette industry. Development of new
production units is discouraged.
Recently, Viet Nam has signed the Framework Convention on Tobacco Control which was adopted
by the World Health Organization on 21 May 2003. This convention was achieved in an effort to limitthe number of death tolls arising from tobacco related diseases. In this connection, Viet Nam will
build up concrete action plans to control and gradually eliminate domestic production and
consumption of tobacco in accordance with WHO programs.
Question 42
Table 2 of Page 4, WT/ACC/VNM/25 indicates that various commodities are subject to either
quota or licence requirements, but others are subject to both quota and licence requirements.
Furthermore, according to the explanation provide d in the Notes, the timetables for the phasing
out of the quota or licence requirements are not exactly the same. Please explain how the system
described in the Table is administered. How are the quota or licence requirements on the one
hand and the phase out requirements on the other hand related to each other?WT/ACC/VNM/29
Page 24
Answer:
Please refer to the Schedule on Non-tariff Measures that has been submitted to the WTO for more
information.
Question 43
Is the list in Table II of WT/ACC/VNM/25/Rev.1 a complete list of all products subject to
import quotas and import licensing?
Answer:
Table II of document No. WT/ACC/VNM/25/Rev.1 ha s included all non-agricultural products that are
subject to quantitative restrictions. Regarding agricultural products, Viet Nam proposes to apply a
small number of tariff rate quotas in place of normal import quota.
Question 44
Does Viet Nam impose import quotas or import licensing on any agricultural products?  We
recall that such measures have been imposed on  beef (of 0201), dairy products (of 0401-0404),
citrus (of 0805), vegetable oils (of 1507-1516), sugar (of 1701), fruit juices (of 2009), wine (of
2204), and preparations of a kind used in animal  feeding (of 2309).  Have these measures been
eliminated.
Answer:
Viet Nam does apply some quantitative restrictions on  agricultural products. These restrictions will be
completely eliminated upon Viet Nam’s accession, except for a limited number of products which
Viet Nam has proposed to apply tariff rate quotas. Please also refer to the Offer on Tariff Rate Quotas
for more information.
Question 45
In relation to Products Subject to Line-Management (List 1 of Appendix 7 of
WT/ACC/VNM/3/Add.1), we note that these measures act as a barrier to trade and, in many
cases, there is no justification under the WTO for such measures.  We request Viet Nam to
advise whether the products listed in List 1 are still subject to import licensing.  Have there been
any changes to the list since it was submitted to the Working Party in 1998?
Answer:
All line-management measures which are import restrictive have been removed. Remaining line-
management measures are applied to a small number of products, such as pharmaceutical products,
plant seeds, fishery breeds.
These measures are not trade distortive and are only applied for the purpose of inspecting and
supervising product quality and safety. The development and application of these measures are based
on WTO provisions, especially those under Article XX and XXI of GATT 1994.
Question 46
With reference to Appendix 7 of WT/ACC/VNM/3/Add.1, we request Viet Nam to provide
concrete evidence that the import licensing me asures imposed by line ministries do not haveWT/ACC/VNM/29
Page 25
trade-restricting effects.  If the measures have import-restricting effects, we request Viet Nam to
provide details of the import restraints that a re imposed for each product.  Are such measures
applied without discrimination to all import so urces in accordance wi th the MFN requirements
of the WTO?  Does Viet Nam propose to modify these measures to eliminate trade-restricting
effects?  We request Viet Nam to supply details of the action it intends to take and the timetablefor this.
Answer:
Viet Nam does not apply any line-management measures which create barriers to trade or
discriminate among different sources of imports in a manner inconsistent with WTO provisions.
Question 47
We note that, for a number of products (in chapters 27, 36, 87 and 93), Viet Nam proposes in
WT/ACC/VNM/25/Rev.1 that import licensing will not be eliminated.  We request Viet Nam toprovide information showing that, in these cases, import licensing will be applied in conformity
with the WTO Agreement on Import Licensing Procedures?  In particular, we request
Viet Nam to provide information showing that import licensing will not be applied in a manner
that restricts imports.
Answer:
Please refer to the updated Action Plan for implementing of WTO Agreement on Import Licensing
Procedures that has been submitted to the WTO Secretariat for circulation to the Members of the
Working Party.
Question 48
We note that, for a number of products, Viet Nam proposes in WT/ACC/VNM/25/Rev.1 that
import licensing will be eliminated within periods of 3-6 years.  We request Viet Nam to advise
whether such import licensing has a trade-restri ctive effect (contrary to Article XI of the
GATT), or whether it is applied consistently with the WTO Agreement on Import Licensing
Procedures?
Answer:
Please refer to the revised Schedule on Non-tariff Measures that has been submitted to the WTO
Secretariat for more information.
Viet Nam requested transitional periods for quantitative restrictions applied to a limited list of goods
mainly for the purpose of facilitating the domestic industries to restructure and adjust to competition.
In addition, the transitional periods also help the government agencies to adjust to new management
regime which comply with WTO provisions.
Licenses are maintained to manage the application of transitional quantitative restrictions. Regarding
the application of these licenses, please refer to the updated Action Plan for implementing of WTO
Agreement on Import Licensing Procedures that has been submitted to the WTO Secretariat for
circulation to the Members of the Working Party.WT/ACC/VNM/29
Page 26
Question 49
We request Viet Nam to provide justifications for its proposed retention of quotas for 3-6 years
on a range of products listed in Table II of WT/ACC/VNM/25/Rev.1, given that Article XI of the
GATT 1994 precludes the application of such quantitative restrictions.
Answer:
Viet Nam does understand the comments that such quantitative restrictions do not comply with WTO
provisions and hence has submitted a phasing-out schedule. This schedule, with some limited
transitional periods, is to allow the domestic industries and the government agencies to have a short
period to adjust to new changes and to comply with WTO provisions. Licenses, if maintained, will be
applied consistently with WTO provisions and with the updated Action Plan for implementing of
WTO Agreement on Import Licensing Procedures that has been submitted to the WTO Secretariat for
circulation to the Members of the Working Party.
Question 50
Where quotas are imposed (as listed in WT/ACC/VNM/25/Rev.1), can Viet Nam provide details
of the quotas, including volumes of imports permitted, and conditions that must be met?  If any
of the licensing arrangements have trade restrictive effects, can Viet Nam provide the details of
how licensing is applied in such cases?
Answer:
Viet Nam does not provide for fixed volumes of quotas for the whole year. Quotas are administered
flexibly on the basis of the gaps between total demand and supply quantity of the goods in question.
The volumes of quotas are decided by the Ministry of Trade, in consultation with the Ministry of
Planning and Investment and line ministries in charge of the goods. Import licenses are issued in aconsistent manner with WTO provisions and with the updated Action Plan for implementing of WTO
Agreement on Import Licensing Procedures that has been submitted to the WTO Secretariat for
circulation to the Members of the Working Party.
Question 51
For products where quotas and licensing are proposed by Viet Nam in WT/ACC/VNM/25/Rev.1
for elimination within periods of 3-6 years, we  request Viet Nam to advise whether progressive
liberalisation is envisaged in each year of the relevant period.  We request Viet Nam to provide
details of arrangements envisaged to progressively phase out the measures.
Answer:
Please refer to the Schedule on Non-tariff Measures that has been submitted to the WTO Secretariat
for more information. This Schedule contains maximum periods within which Viet Nam will
eliminate quantitative restrictions applied on each particular product. Viet Nam does not exclude thepossibility to speed up the elimination schedule.
Question 52
Many products are subject to line management.  We request Viet Nam to provide a full
description of any trade-restricting measures th at it proposes to retain after accession for
products falling within the following HS headings, together with a detailed WTO justificationfor this retention.WT/ACC/VNM/29
Page 27
2301 2302 2306 2309
2936 3002 3004 3701
4411 4901 4902 4911
5103 7101 7102 7103
7106 7108 8443 8524
8525 8526 8527 8901
8906 9018
Answer:
Viet Nam only maintains quantitative restrictions on those products listed in the documentWT/ACC/VNM/25/Rev.1 and its subsequently revised version. These restrictions are mainly for the
purpose of facilitating the domestic industries to restructure and adjust to competition. In addition, the
transitional period also helps government agencies to adjust to a new management regime which
complies with WTO provisions.
For other products, Viet Nam commits to a pply only WTO-consistent measures upon accession.
Question 53
Could Viet Nam provide up-to-date and comprehensive information on all current quantitative
restrictions and non-tariff measures imposed on imports, together with a WTO justification or
plans for their removal?  Viet Nam has previous ly indicated that the phase-out period for NTMs
and QRs would be rather long, while in some cases it had not determined the timeframe for
their elimination (eg. the import restriction on cars - WT/ACC/VNM/9, Reply 103).  Viet Nam
has indicated that an elimination schedule of QRs will be provided in the context of marketaccess negotiations; has such a schedule been submitted to the Working Party?
Answer:
Viet Nam only maintains quantitative restrictions on those products listed in the document
WT/ACC/VNM/25/Rev.1 and its subsequently revised version. Viet Nam commits not to apply any
WTO-inconsistent measures upon accession, except for those indicated in the above-mentioneddocuments.
Please refer to the revised Schedule on Non-tariff Measures that has been submitted to the WTO
Secretariat for more information.
(f) Import licensing procedures
Question 54We thank Viet Nam for its Action Plan on Import Licensing Procedures (WT/ACC/VNM/22).
We are concerned that Viet Nam is not proposing to implement key provisions of the WTO
Agreement on Import Licensing Procedures unt il early 2006, which would appear to preclude
accession at an earlier date.
In addition, the proposed timetables for meetin g some basic obligations are rather long and
need to be reconsidered.  For example, 1 January 2006 is proposed as the deadline for the basic
obligation in Article 1.4(a) that rules and all information concerning procedures for the
submission of applications are to be published, whenever practicable, 21 days prior to the
effective date of the requirement but in all events  no later than the effective date.  The same isWT/ACC/VNM/29
Page 28
proposed in respect of basic obligations on no n-automatic licensing set out in Article 3.3 and
Article 3.5(b), (c), (d) and (f).  We note that conformity with such obligations from the date of
accession is important especially considering Viet Nam still has many goods subject to import
licensing.  Is Viet Nam able to agree to a fast er implementation of these important requirements
of the Agreement?
Answer:
Viet Nam has provided the updated Action Plan for implementing of WTO Agreement on Import
Licensing Procedures to the WTO Secretariat. Viet  Nam commits to comply fully with provisions of
the Agreement on Import Licensing Procedures upon accession.
Question 55
Approval for import.  Under the current system, foreign invest ed companies have to obtain
approval for import from the relevant Vietnamese authority.  In order to obtain approval,companies are obliged to submit a detailed pr oduction and sales program, which has been a
burden on foreign-invested companies.  This system has, in fact, largely impeded trade, and
should be improved immediately.
Answer:
Foreign invested enterprises are allowed to import a ll types of goods consistent with their investment
licenses. The issuance of import licenses is automatic when imported goods are consistent with the
investment licences. For the convenience of foreign investors, the issuance of import licenses has
been authorized to provincial and municipal people’s committees.
Question 56
Liberalization for the import of used equipment and machinery.  When foreign companies
import used equipment or machinery as its fi xed asset, the Vietnamese Government requests
them to submit a certification issued by a thir d organization in the exporting country that the
quality remaining of such equipment or machin ery is more than 80 per cent.   As we are
concerned about the ambiguous definitions a nd the inconsistent interpretation by the
Government when implementing such a requireme nt, it hopes that Viet Nam will abolish such
requirements.  Such abolishment will enable foreign companies, especially small and medium
enterprises, to easily purchase used equipm ent or machinery and thus to reduce costs in
comparison to buying a new one.  In this mann er, such companies will be able to invest the
money saved in other key areas.
Answer:
Requirements on the remaining quality of imported equipment, machinery and materials  are stipulated
in Article 72, Decree 24/2000/ND-CP guiding the implementation of the Amended Law on ForeignInvestment as follows:
- Equipment, machinery and materials imported into Viet Nam for the purpose of implementing
an investment project must meet the quality, standards and technical design requirements, be
consistent with the requirements of production, environmental protection, and labour safety as
specified in the feasibility study, and conform to the applicable provisions on importingequipment and machinery.WT/ACC/VNM/29
Page 29
- With the exception of used machinery and equipment included in the list of prohibited
imports, enterprises with foreign owned capital and parties to business co-operation contracts
shall be entitled to decide on, and shall be responsible for the economic and technical
efficiency of, the import of used equipmen t and machinery and shall comply with the
technical and environmental provisions of the Ministry of Science and Technology.
According to Decision No. 06/2003/QD-BKHCN dated 3 April 2003 of the Ministry of Science and
Technology, the requirement that the remaining quality of imported used equipment should be over 80
per cent is no longer effective. Imported used equipment are only subject to general requirements on
labour safety, environment protection and quality of products and service as generally applicable by
the existing laws.
Question 57
Viet Nam has undertaken to submit a detailed Action Plan on Implementation of the Agreement
on Import Licensing Procedures (Reply 31, WT/ACC/VNM/16).  We seek advice on when this
plan will be forwarded for consideration of the Working Party.
Answer:
Viet Nam has provided the Action Plan for implementing of WTO Agreement on Import Licensing
Procedures at the 6th Meeting of the Working Party (document no. WT/ACC/VNM/22). Before the 7th
Meeting, Viet Nam has provided the updated version of the Action Plan to the WTO Secretariat.
(h) Customs valuation
Question 58
In the Customs Valuation portion of the Factua l Summary on Viet Nam, (beginning para. 112),
Viet Nam states that it provided information on the implementation of the Customs ValuationAgreement in WT/ACC/VNM/3/Add.1, Annex 4 (12 March 1998). However, that document is
basically Viet Nam's response to the Valuation Questionnaire, and predates Viet Nam's most
recent Law on Customs (June 2001). We request that Viet Nam revised the document again,
reference to the portions in their new la w that implement the Valuation Agreement.
With thanks to Viet Nam for agreeing in its response to question 33 of WT/ACC/VNM/23 to
provide a copy of the Law on Customs to the Wo rking Party. We request that Viet Nam provide
an official translation.
In para. 116 of the factual summary, Viet Nam states that an importer could appeal to a higher
administrative body or bring a case before the Administrative Court. However, if the importer
opts to make a claim to the General Department of Customs, an appeal to the Administrative
Court would not be accepted, even though the importer could still appeal to the Minister of
Finance. This provision is inconsistent with Article 11(2) of the Valuation Agreement whichprovides that the legislation of each Party shall provide for the right of appeal without penalty
to a judicial authority. This means that even  if the importer does appeal to the General
Department of Customs in Viet Nam, the opportunity to subsequently appeal to a judicial
authority should not be foreclosed.
Answer:
1. The Law on Customs was approved by the National Assembly of Viet Nam in 2001. In
June 2002, The Government issued Decree N o. 60/ND-CP on customs valuation of importedWT/ACC/VNM/29
Page 30
products to implement the Agreement on Implementation of Article VII of GATT 1994. As
stipulated by this Decree, the customs values are contracted price. This regulation has been
applied on imported products from ASEAN since July 2002. However, due to limited
capacity and technical difficulty, this regulation has been only applied on a step-by-step basis.
For additional information relating to customs valuation, Viet Nam provides herewith the
unofficial English translation of Decree No. 60/2002/ND-CP.
2. Regarding a copy of the Law on Customs: Viet Nam has submitted the unofficial English
translation of the Law on Customs to the Members of the Working Party.
3. Pursuant to Vietnamese laws, an importer, at his discretion, has the right to appeal to a higher
administrative body of the decision-making agency, or to bring a case before the
Administrative Court.
- If the importer opts to make a claim to the higher customs bodies, the importer can
also appeal to the Minister of Finance. Ac cording to the existing regulations, in case
the decision by the Minister of Finance violates the laws and causes damages to the
complainant’s interests (the decision is not final), the importer may claim to the
Prime Minister. Otherwise, the decision by the Minister of Finance regarding
complaint on import/export duties is final.
- In case the complainant opts to bring a case before the Administrative Court, the
Administrative Court will handle the case in accordance with the general prosecution
procedures.
However, in case the complainant takes both of the above options (i.e. to appeal to a higher
administrative body and to bring a case before the Administrative Court), in order to handlethe administrative case in a timely manner, it is clearly stipulated that: if there is only one
complainant, such case will be handled by the Administrative Court; if there are more than
one complainant who are unable to agree on their options, such case will be handled by the
administrative body at a higher level, even when it has been brought to the Administrative
Court.
As a first step, Viet Nam’s laws have recognized the right to make the final appeal to the
Court as required by the WTO provisions. In order to comply with the WTO Agreement on
Customs Valuation, with respect to allowing importer to appeal to the Administrative Court
even when the case has been appealed to the Ministry of Finance, Viet Nam will consider
applying WTO provisions as indicated in the legislation program.
Question 59
Viet Nam has indicated that ad valorem duties may be converted into specific duties in the
future.  Uncertainty in tariff rates reduces the transparency of Viet Nam’s foreign trade regime
and is trade-inhibiting.  We strongly urge Viet Nam to undertake a commitment not to convert
ad valorem duties to specific duties in the future.
Answer:
The reason that Viet Nam may have to apply specific du ties in the future arises from the fact that there
are many incidents of trade frauds, especially understating prices of high-value goods for invading
import duties. Specific duties may be necessary in the context that Vietnamese customs staffs have
limited assessment and valuation capacity.WT/ACC/VNM/29
Page 31
Viet Nam will try its best, however, to limit the list of goods which may be subject to specific duties,
and at the same time, ensure that the possible appl ication of specific duties to a number of items will
not impact the transparency and stability of the customs tariffs. Viet Nam will continue to update
information related to the transformation into specific duties of these items.
Question 60
We are concerned with the proposed maintenanc e by Viet Nam of minimum customs values for
certain products after accession (final point of WT/ACC/VNM/20).  In paragraph 115 of the
Factual Summary Viet Nam notes that it is in the process of phasing out minimum import
prices. We request Viet Nam to advise for which products minimum customs values are used,
the justification for their continued use and when they will be eliminated.  We note that this
practice results in higher tariffs on imports from some countries and is not consistent with the
MFN, transparency and consistency requirements of the Agreement on Customs Valuation.
Answer:
As indicated in the Factual Summary, the list of products subject to minimum customs values is being
reduced. At present, this list contains only the following products:
- Beverages;
- Tyres, inner tubes, and plastic front stripes for automobiles, motorcycles and bicycles;
- Facing and paving ceramic tiles, sanitary wares;
- White and tinted flat glass, mirrors;
- Vacuum flasks, glass inners for vacuum flasks;
- Combustion piston engines, electric motors and generators;
- Electric fans;
- Tobacco leaves;
- Automobiles and spare parts;
- Motorcycles and spare parts.
(as stipulated in Decision 164/2000/QD-BT C dated 10 October 2000, Decision 136/2001/QD-
BTC dated 18 December 2001 and Decision 164/2002/QD-BTC dated 27 December 2002)
The maintenance of minimum customs values for certain products arises from the current
shortcomings in management skills and technical infrastructures of the customs authority and the
supporting supervising mechanism of other agencies such as corporate accounting, auditing and
payment system. These deficiencies lead to wide-spreading trade frauds at customs border.  In the list
of minimum customs values, a small number of products are subject to different minimum prices
based on their brand names.  This type of difference in minimum price is the result of calculating
prices on the basis of cost components and reasonable commissions on the domestic market, whichare actually different.
As indicated in the Action Plan for Implementing the Agreement on Customs Valuation, Viet Nam is
making preparatory steps to apply the provisions of  this Agreement and to eventually eliminate the
minimum customs values. In the implementation of the Action Plan, there have been activities where
plans could not be met. With the current capacity, Viet Nam needs a transitional period to complete itslegal system, upgrade the technical facilities and develop the necessary human resources. These action
are required in order to control the fraudulent trading practices and to fully comply with the
requirements of the Agreement on Customs Valuation.WT/ACC/VNM/29
Page 32
Viet Nam will try its best to inform the Working Party of the deadline for complete elimination of
minimum customs values after reviewing the capacities of the agencies involved in the
implementation of the notified Action Plan.
Question 61
Paragraph 119 of the Factual Summary notes that most minimum customs values will be
eliminated in 2004, and all minimum custom va lues eliminated when the Customs Valuation
Agreement is fully implemented.  We would appreciate a more precise timeframe for the
elimination of minimum custom values.
Answer:
As indicated in the Factual Summary, the list of products subject to minimum customs values is being
reduced. At present, this list contains only the following products:
- Beverages;
- Tyres, inner tubes, and plastic front stripes for automobiles, motorcycles and bicycles;
- Facing and paving ceramic tiles, sanitary wares;
- White and tinted flat glass, mirrors;
- Vacuum flasks, glass inners for vacuum flasks;
- Combustion piston engines, electric motors and generators;
- Electric fans;
- Tobacco leaves;
- Automobiles and spare parts;
- Motorcycles and spare parts.
(as stipulated in Decision 164/2000/QD-BT C dated 10 October 2000, Decision 136/2001/QD-
BTC dated 18 December 2001 and Decision 164/2002/QD-BTC dated 27 December 2002)
The maintenance of minimum customs values for certain products arises from the current
shortcomings in management skills and technical infrastructures of the customs authority and the
supporting supervising mechanism of other agencies such as corporate accounting, auditing and
payment system. These deficiencies lead to wide-spreading trade frauds at customs border.  In the listof minimum customs values, a small number of products are subject to different minimum prices
based on their brand names.  This type of difference in minimum price is the result of calculating
prices on the basis of cost components and reasonable commissions on the domestic market, which
are actually different.
As indicated in the Action Plan for Implementing the Agreement on Customs Valuation, Viet Nam is
making preparatory steps to apply the provisions of  this Agreement and to eventually eliminate the
minimum customs values. In the implementation of the Action Plan, there have been activities whereplans could not be met. With the current capacity, Viet Nam needs a transitional period to complete its
legal system, upgrade the technical facilities and develop the necessary human resources. These action
are required in order to control the fraudulent trading practices and to fully comply with the
requirements of the Agreement on Customs Valuation.
Viet Nam will try its best to inform the Working Party of the deadline for complete elimination of
minimum customs values after reviewing the capacities of the agencies involved in the
implementation of the notified Action Plan.WT/ACC/VNM/29
Page 33
Question 62
Viet Nam still uses minimum import prices in customs valuation which result in higher tariffs
on imports from some countries, which raised issues of non-MFN treatment of imports,
Transparency and consistency with the Custom s Valuation Agreement (paragraph 112 of the
Factual Summary).  This is an issue we wish to see Viet Nam address by bringing its customsvaluation regime into conformity with the CVA.
Answer:
As indicated in the Factual Summary, the list of products subject to minimum customs values is being
reduced. At present, this list contains only the following products:
- Beverages;
- Tyres, inner tubes, and plastic front stripes for automobiles, motorcycles and bicycles;
- Facing and paving ceramic tiles, sanitary wares;
- White and tinted flat glass, mirrors;
- Vacuum flasks, glass inners for vacuum flasks;
- Combustion piston engines, electric motors and generators;
- Electric fans;
- Tobacco leaves;
- Automobiles and spare parts;
- Motorcycles and spare parts.
(as stipulated in Decision 164/2000/QD-BT C dated 10 October 2000, Decision 136/2001/QD-
BTC dated 18 December 2001 and Decision 164/2002/QD-BTC dated 27 December 2002)
The maintenance of minimum customs values for certain products arises from the current
shortcomings in management skills and technical infrastructures of the customs authority and the
supporting supervising mechanism of other agencies such as corporate accounting, auditing and
payment system. These deficiencies lead to wide-spreading trade frauds at customs border.  In the list
of minimum customs values, a small number of products are subject to different minimum prices
based on their brand names.  This type of difference in minimum price is the result of calculatingprices on the basis of cost components and reasonable commissions on the domestic market, which
are actually different.
As indicated in the Action Plan for Implementing the Agreement on Customs Valuation, Viet Nam is
making preparatory steps to apply the provisions of  this Agreement and to eventually eliminate the
minimum customs values. In the implementation of the Action Plan, there have been activities where
plans could not be met. With the current capacity, Viet Nam needs a transitional period to complete its
legal system, upgrade the technical facilities and develop the necessary human resources. These actionare required in order to control the fraudulent trading practices and to fully comply with the
requirements of the Agreement on Customs Valuation.
Viet Nam will try its best to inform the Working Party of the deadline for complete elimination of
minimum customs values after reviewing the capacities of the agencies involved in the
implementation of the notified Action Plan.
Question 63
Viet Nam has indicated that ad valorem duties may be converted into specific duties in the
future.  Uncertainty in tariff rates reduces the transparency of Viet Nam’s foreign trade regimeWT/ACC/VNM/29
Page 34
and is trade-inhibiting.  We strongly urge Viet Nam to undertake a commitment not to convert
ad valorem duties to specific duties in the future.
Answer:
The reason that Viet Nam may have to apply specific duties in the future arises from the fact that there
are many incidents of trade frauds, especially understating prices of high-value goods for invadingimport duties. Specific duties may be necessary in the context that Vietnamese customs staffs have
limited assessment and valuation capacity.
(i) Other customs formalities
Question 64
Recently, smuggled goods, i.e. those having fa iled the required customs procedures, have been
rampant in the Vietnamese market, thus p reventing goods imported through the normal
channel of required customs procedures from being able to compete fairly.  Furthermore, it hasbeen pointed out that this situation is one of the factors creating continued high tariffs on
products, the type of which is also subject to smuggling.  We sincerely hope that Viet Nam will
make further efforts to improve this situation.
Answer:
Like many other countries in the region, Viet Nam is faced with smuggling and fraudulent trading
practices. Realising that it is important to stop this situation, Viet Nam has been exerting its best
efforts against smuggling and fraudulent trading practices and will continue these efforts in order to
ensure fair trade and reinforce legal compliance.
The legal framework for combating against smuggling and fraudulent trading practices is contained in
the Law on Customs. In addition, the Government has instructed the concerning ministries andagencies to take certain actions, such as launching anti-smuggling campaigns by the sea, continuously
improving anti-smuggling measures, setting up the Steering Committee to cope with smuggling and
fraudulent trading practices. Viet Nam’s Customs Authority has received international assistance,
especially from the World Customs Organi sation and the Customs Authority of Japan.
Question 65
We note that illegally-copied goods are also ra mpant on the Vietnamese market since Viet Nam
has not yet sufficiently developed its laws on the protection of intellectual property rights.
Viet Nam should thus continue to develop th e relevant laws, and should also improve the
enforcement capability of border measures.
Answer:
Viet Nam takes note of the above comments. For more detailed information, please refer to the Action
Plan Implementing the TRIPs Agreement.
Question 66
We also note that Viet Nam’s customs procedures are complicated and not predictable.
Furthermore, it is said that there are some cases where procedures are different depending on
the customs’ official.  Viet Nam should not only establish prompt and simplified customs
procedures but should also enhance their transparency.WT/ACC/VNM/29
Page 35
Answer:
The Law on Customs and its guiding legal documents clearly stipulate such issues as customs
procedures (some of which are in conformity with international customs practices as regulated in the
revised Kyoto Convention), customs inspection and supervision. Implementation is further guided by
a number of Decisions by the Minister of Finance. All of these regulations are widely published in theOfficial Gazette and in the mass media. They are also posted for public notice at the customs
declaration points and uniformly implemented all over the country.
As a result, customs procedures are publicly known and transparent. There is no reason for a customs
official to change the stipulated procedures or misuse the publicized provisions. In addition,
regulations on business ethics, internal inspection mechanism, and “hot-line” communication system
set up in customs agencies also help reduce bribery practices among customs officials.
The General Department of Customs has organized training courses to improve understanding on the
above regulations for 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 for other
agencies and the business community.
(j) Pre-shipment Inspection
Question 67Paragraph 122 and 123 of Page 25, Viet Nam Factual Summary.  With regard to Paragraph
122-123, Viet Nam intended to conform to the Agre ement on Pre-shipment Inspection only after
accession to the WTO.  We would like Viet Nam to provide information if there is any draft
laws or regulations regarding PSI in process and if the Working Party has the opportunity to
review during the accession period.
Answer:
Currently, Viet Nam does not apply any provisions and has no draft regulations with respect to pre-
shipment inspection. Viet Nam commits that any possible provisions or regulations related to pre-
shipment inspection will comply with WTO requirements upon accession .
(k) Application of internal taxes on imports
Question 68
In question 40 of document WT/ACC/VNM/23 we requested a list of all indirect taxes (sales,
VAT and excise taxes) applied to goods, indicating the HS category and the rates applied to
imports and to domestic products. There appears to be a typographical error in Viet Nam's
reply. Has Viet Nam made this list available?
Answer:
We would like to apologize for the printing error in the response to question 40 of document
WT/ACC/VNM/23. The lists of indirect taxes (value added tax and excise tax) together with an
indication of HS category and the applied rates are available through documents
WT/ACC/VNM/28/Add.2 and WT/ACC/SPEC/VNM/1/Rev.2.WT/ACC/VNM/29
Page 36
(m,n,o) Anti-dumping, countervailing duty and safeguard regimes
Question 69
Viet Nam has indicated that it intends to make use of Special Agricultural Safeguards (SSG).
SSGs for agricultural products are a transitional  measure ascribed to some WTO members as a
result of Uruguay round commitments.  These measures are not available to acceding countries.
Answer:
Agriculture is an important sector for the socio-ec onomic life of the country. About 70 per cent of the
population is dependent on agriculture production. Th erefore, the reservation of the right to apply
special safeguards (SSG) is necessary. Many WTO Members, including newly acceded Members
have been allowed to such right.
Question 70
Paragraph 124 - 125 of Page 25-26, Viet Nam Factual Summary.  As indicated in the Viet Nam
Factual Summary, the Law on Import and Export Duties passed by the National Assembly of
Viet Nam on 20 May 1998 allows the imposition  of additional duty on goods originating in
countries that applied "discriminatory treatm ent against Vietnamese goods with respect to
tariff rates and/or any other measures". What  is the definition of the "discriminatory
treatment"? My delegation is of the view that it is best for WTO Members to follow theprocedures of Dispute Settlement to address any issues relate to “discriminatory treatment”.
In addition, Viet Nam’s new Ordinance on Safeguard Measures went into effect on
1 September 2002, and the Government will pass new Ordinances on Anti-dumping and
Countervailing Measures by the end of 2003. Could Viet Nam commit that the above legislation
complies with the WTO Agreement on Safeguards , Agreement on Implementation of Article VI
of the General Agreement on Tariffs and Trade 1994, and the Agreement on Subsidies and
Countervailing Measures?
Answer:
“Discriminatory treatment” in this  context can be understood as the application of tariff or non-tariff
barriers on goods imported from Viet Nam on less favourable conditions as compared to thosemeasures applied on goods imported from other countrie s. This provision is to ensure that Viet Nam is
not disadvantaged in international trade when it is not yet a WTO Member
Viet Nam commits that new legal documents in the areas indicated in the question will be in full
conformity with WTO provisions upon accession.
2. Export Regulation
(f) Export financing, subsidy and promotion policies
Question 71The Vietnamese Ministry of Finance issued a Decision on 29 June 2001 to provide export
bonuses, based on the amount of export revenue generated, for a range of products including
rice, coffee, canned vegetables, canned fruit and pork.  It appears this scheme has not been
notified to the Working Party and Viet Nam should provide details of the mechanism.  We also
remind Viet Nam that in WTO accession negotiations there is a clear expectation by WTOWT/ACC/VNM/29
Page 37
Members that potential new members will not introduce new restrictive or trade-distorting
measures during the period of the negotiations.
Answer:
Please refer to Program No. VIII (on export reward and export subsidies) of the Notification on
Subsidies for the period 2001-2002 which has already been submitted to the Working Party before its7
th Meeting.
Question 72
We understand that Viet Nam considers that because it is a developing country with per capita
GNP below US$1,000 it would be able to maintain export subsidies (in other words, in
accordance with Article 27.2(A) and Annex VII of the Subsidies and Countervailing Measures
Agreement (SCM).  This provision in the SCM is specific to developing countries referred to in
Annex VII of the SCM.   It is not a self-nominated or expanding list of countries.  While we areprepared to consider some flexibility on ho w Viet Nam phases out its prohibited export
subsidies, Viet Nam has no right to recourse under these provisions to continue to provide
prohibited subsidies following its accession.
Further, we do not consider that the provisions of Article 27.4 of the SCM Agreement available
to developing countries, or the fast-track procedures under Article 27.4 for developing countrieswith a small share of world export trade agreed  at the Doha Ministerial meeting, are available
to Viet Nam.  Given that Viet Nam will be acceding to the WTO after the completion of the
implementation period for phasing out export su bsidies for developing countries, we consider
that Viet Nam must phase out its export subsidy schemes upon accession.
Answer:
Viet Nam would like to thank for the flexible posi tion regarding Viet Nam’s subsidies programs. Viet
Nam is prepared to discuss these programs in details with Members of the Working Party.
Question 73
We thank Viet Nam for the information provided on the use of export subsidies for rice, pork,
coffee, fruits and vegetables, export bonus upon performance and export promotion.  We wouldlike to note however that our position is that all export subsidies will have to be eliminated on
accession to the WTO.  A zero binding however will not affect Viet Nam's ability to use the
provisions of Article 9.4 of the Agreement on Agriculture.  We would be interested in learning
more about the Export Bonus upon Performance and Export Promotion schemes with the view
that these may be able to continue with appropriate notification under other provisions of the
Agreement on Agriculture.
Answer:
Viet Nam takes note of the Member's proposal. Detailed information related to the above programs
has been provided to the Working Party before its 7th Meeting.
Question 74
We are concerned that Viet Nam appears to be using a number of incentives that export
performance linked (e.g. tax concessions/exemptions dependent upon percentage exported,WT/ACC/VNM/29
Page 38
paragraphs 138, 147-148, 155) and may be contingent on local content use.  The criteria for
granting such incentives/exemptions are unclear and possibly open to abuse.
Answer:
The granting of corporate income tax preference to enterprises achieving a certain export ratio is an
incentive aimed at encouraging foreign investment s. As a low-income country, Viet Nam needs to
attract foreign investments. As a result, Viet Nam hopes that WTO Members, on the basis of the
Annex VII of the Agreement of Subsidies and Countervailing Measures, give Viet Nam certain
flexibility to maintain this measure to achieve its development objectives. Viet Nam commits to
remove this type of subsidy when the average income per capita reaches US$1,000 per annum.
Requirement on localization ratio is a separate pr ovision which is not related to the preferential
corporate income tax rates. The criteria for granting such subsidies are described in the Notification
on Subsidies for the period 2001- 2002.
Question 75
Viet Nam’s Foreign Investment Regulation no. 24/2000/ND-CP stipulates that foreign-invested
enterprises producing a rate of exports higher than 30 per cent or that use a large quantity of
local raw materials and resources may enjoy a longer tax exemption period and VAT reduction
incentives. This regulation encourages exports and the purchase of Viet Nam’s local materials,
but it may violate the TRIMs Agreement and nation al treatment principle, and result in export
subsidies and import substitute subsidies. We therefore ask Viet Nam to eliminate this
regulation.
Answer:
The granting of corporate income tax preference to enterprises achieving a certain export ratio is an
incentive aimed at encouraging foreign investment s. As a low-income country, Viet Nam needs to
attract foreign investments. As a result, Viet Nam hopes that WTO Members, on the basis of Annex
VII of the Agreement of Subsidies and Countervailing Measures, give Viet Nam some flexibility to
maintain this measure to achieve its development objectives. Viet Nam commits to remove this type
of subsidy when the average income per capita reaches US$1,000.
With regard to the schedule for eliminating TRIMs measures, please refer to the Action Plan for
Implementing TRIMs Agreement.
With regard to information related to tax reduction and exemption programs, please refer to the
Notification on Subsidies for the period 2001- 2002 which has been submitted to the Working Party
before its 7th Meeting.
Question 76
With regard to Paragraph 137 of the Factual Summary, according to an announcement
(65/2001/QD-BTC) of Viet Nam’s Ministry of Finance, the Government of Viet Nam currently
has an export subsidy fund in order to assist, encourage and promote exports. This measure
seems to amount to a form of export subsidy whic h is referred as a prohibited subsidy in Article
3 of the Agreement on Subsidies and Countervailing Measures.  We would therefore like to ask
Viet Nam to address the issue.WT/ACC/VNM/29
Page 39
Answer:
Decision No. 65/2001/QD-BTC stipulates the granting of supports depending on export revenue for a
number of agricultural products (rice, coffee, pork, canned fruit…) in 2001. This program has been
indicated in the Notification of Domestic Supports and Export Subsidies in Agriculture (in the format
of WT/ACC/4) Therefore, we w ould be willing to discuss the program in the context of our
WT/ACC/4 Notification discussions.
Viet Nam is a developing country having small-scale agricultural production. Supports and subsidies
provided by the Government to help farmers in thei r trade is of great importance, in particular during
the 1999-2001 period which witnessed intense fluctuations of agricultural commodity prices. Against
the current market conditions as such, Viet Nam needs to maintain certain level of export subsidies for
agricultural products in order to stabilize the production and economic development in the agriculture
sector.
As the amount of these export subsidies is negligible, they may not cause significant distorting effects
to international trade. However, Viet Nam commits that upon accession the level of agricultural
export subsidies will be bound at the current level and subsequently scaled down in accordance with
WTO provisions which are effective at the time of Viet Nam’s accession.
3. Internal policies affecting foreign trade in goods
(a) Industrial policy, including subsidy policies
Question 77
In its response to question 45 of WT/ACC/VNM/23, Viet Nam indicates that it plans to eliminate
import duty incentives based on local content requirements by the end of 2006. A transition for
implementing the provisions of the SCM agreement is not automatically available to accedingcountries, and we will wish to discuss the fe asibility of eliminating these subsidies upon
accession.
Answer:
Viet Nam commits to comply with the TRIMs Agreement and not to re-introduce the phased-out
TRIMs upon accession. The Action Plan for the implementation of this Agreement has been revised
as follows:
- In 2000-2003: to eliminate import duty preferences contingent on localization ratio with
respect to enterprises producing and assembling motorcycles specified in the Inter-Ministry
Circular No 176/1998 /TTLT-BTC-BCN-TCHQ.
- Upon accession: (i) to eliminate localization requirements and import duty preferences
contingent upon localisation ratio with respect to enterprises producing automobile parts,
electronic and mechanical products specified  in the Inter-Ministry Circular No
176/1998/TTLT-BTC-BCN-TCHQ; (ii) to amend the list of sectors in which licensing of
investment is conditional (which is attached to Decree No. 24/2000/ND-CP) to eliminate
the criteria requiring investments to develop raw material sources with respect to vegetable
oil, sugar cane, and wood; (iii) to eliminate in practice the localization requirement in the
investment licences applicable to projects producing or assembling automobiles andmotorcycles.WT/ACC/VNM/29
Page 40
Question 78
In questions 50, 55, 59, 73 and 79 of WT/ACC/VNM/23, Viet Nam indicates that it cannot
evaluate the amount budgeted for several subsidy programs because they are not covered by the
State budget. Can Viet Nam provide an accounting or an estimate of the revenue foregone
under these incentive programs?
Answer:
The amounts foregone by the Government under the incentive programs are mainly in the forms of
tax reduction or exemption. Due to the limitation of the statistic system, data from the  tax returns
submitted by enterprises are not collected. Viet Nam lacks technical and human resource to calculate
or estimate the exact amount of these tax incentives from these tax returns.
Question 79
We are pleased to learn from Viet Nam's respon se to question 65 of VNM 23 that Viet Nam no
longer provides import-substitution projects with incentives. Viet Nam should commit not to
reintroduce such incentives in the future.
Answer:
Question No. 65 in document WT/ACC/VNM/23 is relating to foreign investment regime. Viet Nam
commits to comply with the TRIMs Agreement upon accession.
Question 80
We acknowledge Viet Nam's response to question 78 of WT/ACC/VNM/23 concerning Viet
Nam's access to flexibilities under Article 27 of the SCM agreement (Special and Differential
Treatment) .Viet Nam maintains in its responses to WT/ACC/VNM/23 ", questions 65, 66, 67,
68, 74, 75, 76, etc., that it is entitled to mainta in export-contingent incentives.  We wish to
reiterate that Viet Nam is not one of the deve loping countries automatically covered by the
flexibilities in Article 27. Any access to these flexibilities must be negotiated with members of
the Working Party.  We would have difficulty accepting subsidies that Viet Nam has already
eliminated in practice, such as incen tives for import- substitution projects.
Answer:
Viet Nam takes note of the above comments. As export-contingent incentives are mainly aimed at
encouraging investment and economic development, Viet Nam hopes that Members of the Working
Party will show flexibility in considering this issue.
(b) Technical regulations and standards, including measures taken at the border with
respect to imports
Question 81
Paragraph 160 of Page 32, Viet Nam Factual Summary.  As indicated in the Factual Summary,
Viet Nam has embarked on a program to harm onize national standards with international
standards.   We would like to know the current st atus of this program, especially in the area of
conformity assessment procedure for electrical and electronic products.WT/ACC/VNM/29
Page 41
Answer:
Viet Nam is implementing international standard harmonization programs in the framework of
ASEAN, APEC, ASEM. Electrical and electronic products account for an important part in these
programs.
Besides the above programs, in the annual plan for Vietnamese standard development, Viet Nam also
reviews and develops standards for, among others, electrical and electronic products. These standards
are mainly developed on the basis of relevant international standards.
The conformity assessment procedures applicable to electrical and electronic products are
implemented through the safety certification scheme promulgated by the Ministry of Science and
Technology. The scheme is based on the System 4 of third party certification (including Type Testing
and Post-Market Surveillance at factory and on the marketplace).
Question 82
We thank Viet Nam for its action plan for implementation of the WTO TBT Agreement
(WT/ACC/VNM/24).  We register our concern that Viet Nam is not proposing to implement key
TBT Agreement provisions until late 2005/early 2006, which would appear to preclude early
accession.
We welcome the commitment in the TBT Action Plan (point 1) that all newly promulgated
technical regulations; standards and conformi ty assessment procedures will be in full
compliance with the TBT Agreement from accessio n.  However, longer time-frames are being
proposed for some basic obligations.  For example, the establishment of a TBT Enquiry Point
and a national TBT notification body are proposed for the 4th quarter of 2005.  We would
expect that these would be operating upon ac cession.  We request Viet Nam to provide
information on its legislative and administrative arrangements for setting and enforcing
standards (including mandatory standards), as well as arrangements for conformity assessment,
and the steps/proposed changes that will be undertaken to achieve full conformity by the stated
deadline.
We welcome Viet Nam's programme to harmonise national standards with international
standards.  We request Viet Nam to advise within what time-frame it expects to complete the
review of existing standards.
Answer:
Viet Nam commits to undertake obligations under the TBT Agreement upon accession. With regard to
TBT Notification Authority and TBT Enquiry Point, Viet Nam would like to inform as follows:
- Viet Nam has recently established the National TBT Notification Authority and TBT Enquiry
Point. At present, however, only organizational structure is established. Other aspects such as
staff training, working instructions and procedures development and provision of equipment
and facilities are still under way. At the same time, Viet Nam is also developing a network of
TBT contact-points consisting of concerned ministries, agencies and local authorities to
support the effective operation of the National TBT Notification Authority and TBT Enquiry
Point and the implementation of the TBT Agreement.
- Besides Viet Nam’s own efforts, Viet Nam needs technical assistance from WTO Members to
operate the National TBT Notification Authority and TBT Enquiry Point smoothly in order to
implement all notification and enquiry obligations under the TBT Agreement upon accession
(presumably in 2005).WT/ACC/VNM/29
Page 42
Regarding the request for providing information related to the development and application of
standards and conformity assessment, Viet Nam has reviewed and amended its related regulations in
conformity with WTO/TBT Agreement. The important  points of amendment, as shown in recently
issued legal documents, are as follows:
- National Standards are developed on the basis of Technical Committee method. The draft
standards are widely disseminated for public comments before adoption (website
http://www.vsc.org.vn);
- The adopted National Standards are all voluntary;
- Compulsory National Standards account for only 4 per cent (more than 200 standards) out of
5600 existing standards;
- Conformity assessment procedures are developed on the basis of relevant ISO/IEC guidelines;
- Recently, Viet Nam has carried out scheme of supplier’s declaration of conformity to
standards and technical regulations in order to enhance supplier’s responsibility and decrease
the level of intervention by administrative procedures. At present, the scheme is the most
popular in the application of conformity assessment.
Question 83
Viet Nam’s justification for the import proh ibition of certain goods (in paragraph 103 and
paragraphs 101-103 of WT/ACC/VNM/23) needs clarification.  The importation of second hand
clothing and internal combustion engines belo w 30CV are prohibited on the grounds of safety
and traffic security respectively.  It is not clear that total prohibition is the least trade restrictive
method available to satisfy those concerns.  Furth ermore, it is not clear what methods have been
employed to assess these goods.  Our expectation is that the methods used will conform to the
requirements of the TBT Agreement.  We would welcome further clarification from Viet Nam
on these matters.
Answer:
The import prohibition applied to used goods (clothing and internal combustion engines with capacity
below 30 CV) is necessary to protect human health, safety and the environment. In Viet Nam’s view,the assessment method for the purpose of import prohibition is not inconsistent with provisions of the
TBT Agreement.
(c) Sanitary and phytosanitary measures, including measures taken with respect to imports
Question 84
Although Viet Nam has submitted an action pl an, which is welcomed, there is (at paragraph
171) some ambiguity as to whether Viet Nam will be basing its SPS measures on international
standards, or whether they will be developed or formed in conformance of those standards.
Grateful if Viet Nam could clarify its intentions in respect of this point.
Answer:
Paragraph 171 of the Factual Summary already confirms that standards applied by Viet Nam are in
conformity with international standards, if they exist, and with the SPS Agreement.
Question 85
Paragraph 168 of Page 34, Viet Nam Factual Summary.  Concerning the implementation of SPS
measures, only four (4) Regulations/Ordinances are listed in Paragraph 168 of Page 34 ofWT/ACC/VNM/29
Page 43
Viet Nam Factual Summary. We would like to ask the following questions with regard to the
SPS standards or technical regulations referred to in WT/ACC/VNM/2 and the Viet Nam
Factual Summary:
1. Explain how WTO members can obtain access to texts or other information on SPS
measures relating to trade.
2. How does Viet Nam enact, amend, or repeal SPS standards and technical regulations?
3. How does Viet Nam recognize the equivalence of a foreign SPS standard or technical
regulation or conformity assessment procedure? How many standards, regulations or
conformity assessment procedures have been thus recognized?
4. Some of Viet Nam’s import requirements for animals or animal products demand
protection levels higher than those provid ed by the OIE International Animal Health
Code. We request that the competent authorities of Viet Nam provide sufficientscientific data to justify those requireme nts and are in compliance with the SPS
Agreement.
5. Does Viet Nam have in place a legal provision which obligates the government and/or
standardization bodies to conduct periodic reviews on its enforcement regulations to
ensure that they are based on the relevant international standards, recommendations
and guidelines where they exist and that their SPS measures are flexible and not overly
burdensome?
6. Does Viet Nam accept a policy of regionalisation and have regulations that clearly
permit the import of animals or animal products from designated regions unaffected by
animal diseases in countries where those diseases occur? Will Viet Nam accept suchcountry’s SPS regulatory framework as a reference for recognition of regionalisation in
the animal health sector?
Answer:
1. According to the amended Law on Promulgation of Legal Documents, legal documents shall
be published in the Official Gazette and become effective at least 15 days thereafter.
A number of legal documents related to SPS issues can be found from the following websites:
http://www.mard.gov.vn
http://www.ppd.gov.vn
Upon accession, Viet Nam will notify WTO Members of all SPS regulations and measures in
a manner consistent with the SPS Agreement via the National Enquiry Point and the National
SPS Notification Body which will be established under the Ministry of Agriculture and Rural
Development.
2. Viet Nam has been a member of some international SPS organizations such as Codex, OIE
etc.  It is in the process of formulating and adapting its national standards in accordance with
the standards set out by these international organizations.
3. At present, Viet Nam is a member of OIE. As a result, it recognises the equivalence of foreign
SPS standards, technical regulations, and conformity assessment procedures which are allWT/ACC/VNM/29
Page 44
based on OIE’s standards. Viet Nam has recognized 3 international standards in the sanitary
area and signed bilateral sanitary agreements with a number of countries.
4. Viet Nam’s import requirements for animals and animal products are based on the OIE
International Animal Health Code. Any unsuitable import requirements (if they exist) will be
revised to meet OIE standards.
5. Viet Nam is in the process of revising and assessing its legal system, including SPS
regulations, in order to ensure the consistency with WTO provisions.
6. Viet Nam accepts a policy of regionalisation and has regulations that clearly permit the
import of animals and animal products from designated regions unaffected by animal diseases
in countries where those diseases occur. Viet Nam will accept such country’s SPS regulatory
frameworks as a reference for recognition of regionalisation in the animal health sector.
Question 86
We thank Viet Nam for its action plans for implementation of the WTO SPS Agreement
(WT/ACC/VNM/11/Rev.1 and Rev.2).  We register our concern that Viet Nam is not proposing
to implement key SPS Agreement provisions until late 2005/early 2006, which would appear to
preclude early accession.
Viet Nam's replies in WT/ACC/VNM/23 on SPS measures and its SPS Action Plans
(WT/ACC/VNM/11/Rev.1 and Rev.2) acknowledge the deficiencies in its ability to meet
obligations under the SPS Agreement.  This is a very important area and Viet Nam needs to
accelerate its efforts.  We request Viet Nam provide details of legislative and other
developments to address these problems.  The revised action plan (WT/ACC/VNM/11/Rev.2)
lists a few actions Viet Nam has set for 2003-2004.  We request Viet Nam to advise which actionslisted for 2002-2003 in WT/ACC/VNM/11/Rev.1 were completed.
Answer:
The draft of the revised Veterinary Ordinance was completed on 7 July 2003 and has been submitted
to the Government (foreseen to be endorsed and promulgated in Quarter IV/2003). The draft of The
Government’s Decree guiding the implementation of the Ordinance on Animal Disease Control,Animal Quarantine and Inspection and Veterinary Hygiene Inspection, Veterinary Drug Management
will be completed in Quarter III/2003 and submitted for endorsement and promulgation in Quarter
I/2004.
In the sanitary area, Viet Nam has also issued a number of legal documents to further improve its
legal system:
- Government Decree promulgating Regulations on Plant Protection, Regulations on Plant
Quarantine and Regulations on Pesticides Management;
- Decision by the Minister of Agriculture and Rural Development on the State’s administration
over the fumigation and disinsectation of items that are subject to quarantine.
- Decision by the Minister of Agriculture and Rural Development on the State’s administration
over the importation of plant varieties and beneficial organisms.
- Circular of the Minister of Agriculture and Rural Development guiding the implementation of
domestic plant quarantine activities;
Viet Nam has also completed a phytosanitary certification management system.WT/ACC/VNM/29
Page 45
Question 87
The signing of veterinary cooperation agreements and bilateral cooperation agreements on
phytosanitary measures with certain co untries are listed actions for 2003-2004 in
WT/ACC/VNM/11/Rev.2.  We note that these are not multilateral issues and request Viet Nam
to delete them from the action plan.  If they are to be retained in the ac tion plan, the list should
be comprehensive (currently it is not).
Answer:
Viet Nam agrees to remove the veterinary bilateral co-operation agreements from the Action Plan
Implementing the SPS Agreement.
(d) Trade-related investment measures
Question 88
We appreciate Viet Nam's commitment not to replace "local content requirements" with "local
manufacturing requirements."
With respect to Viet Nam's request to maintain  local content requirements until the end of 2006,
we note that the transition period for such requirements for developing countries under the
TRIMs agreement expired at the end of 2000.
We appreciate that Viet Nam has eliminated foreign exchange balancing requirements for
domestic and invested firms, and has no intention to reinstate them.
Answer:
Viet Nam commits to comply with the TRIMs Ag reement and not to re-introduce the phased-out
TRIMs upon accession. The Action Plan for the implementation of this Agreement has been revised
as follows:
- In 2000-2003: to eliminate import duty preferences contingent on localization ratio with
respect to enterprises producing and assembling motorcycles specified in the Inter-Ministry
Circular No 176/1998/TTLT-BTC-BCN-TCHQ.
- Upon accession: (i) to eliminate localization requirements and import duty preferences
contingent upon localisation ratio with respect to enterprises producing automobile parts,electronic and mechanical products specified in the Inter-Ministry Circular
No. 176/1998/TTLT-BTC-BCN-TCHQ; (ii) to amend the list of sectors in which licensing of
investment is conditional (which is attached to Decree No. 24/2000/ND-CP) to eliminate the
criteria requiring investments to develop raw material sources with respect to vegetable oil,
sugar cane, and wood; (iii) to eliminate in practice the localization requirement in the
investment licences applicable to projects producing or assembling automobiles and
motorcycles.
Regarding the elimination of foreign exchange balancing requirements, Viet Nam commits not to
reinstate them for domestic and foreign invested firms.WT/ACC/VNM/29
Page 46
Question 89
We note that whereas some original WTO memb ers received narrow extensions to comply with
the TRIMS agreement, no WTO applicant has b een given an extension to phase out TRIMS
since 1995. We request Viet Nam to advise when it  will modify its TRIMS action plan in order
to fully comply with the TRIMS Agreement upon accession.
Answer:
Viet Nam commits to comply with TRIMs Agreement upon accession and has revised the Action Plan
for the implementation of this Agreement as follows:
In 2003-2004: to eliminate import duty preference contingent on localization ratio with respect to
enterprises producing and assembling motorcycles specified in the Inter-Ministry Circular
No, 176/1998/TTLT-BTC-BCN-TCHQ.
Upon accession: (i) to eliminate localization requir ement and import duty preferences contingent upon
ratio with respect to enterprises producing electronic and mechanical products specified in the Inter-
Ministry Circular No 176/1998/TTLT-BTC-BCN-TCHQ;  (ii) to amend the list of sectors in which
liciensing of investment is conditional (attached to Decree No. 24/2000/ND-CP) to eliminate criteria
requiring investment attached to the development of  raw material sources with respect to vegetable
oil, sugar cane, and wood; (iii) to eliminate in practice the requirement that the localization programshould be covered in the investment licences of projects to produce or assemble automobiles and
motorcycles.
Question 90
With regard to Paragraph 178-180 of the Factual Summary, the Government of Viet Nam
requires that 80 per cent of certain listed products  of foreign-invested enterprises must maintain
the export sales ratio of 80 per cent. We understand that there have been some cases in which
foreign-invested enterprises have been asked to maintain the same export sales ratio for
products not on that list (such as pork). Please specify for us what the export ratio is and what is
the basis for carrying out such a regulation . Furthermore, since the current measure is
inconsistent with the WTO TRIMs Agreement, we urge the Government of Viet Nam toeliminate this restriction.
Answer:
As we understand, the export ratio requirement is not covered by the TRIMs Agreement. However, in
order to show goodwill in the negotiations, Viet  Nam commits not to apply this requirement upon
accession.
Question 91
Although we note Viet Nam’s position regarding trade-related investment measures, as
mentioned in the relevant documents, we do reque st Viet Nam to fully comply with the TRIMs
Agreement upon its accession to the WTO,  without invoking a transition period.
Answer:
Viet Nam commits to comply with the TRIMs Ag reement and not to re-introduce the phased-out
TRIMs upon accession. The Action Plan for the implementation of this Agreement has been revisedas follows:WT/ACC/VNM/29
Page 47
- In 2000-2003: to eliminate import duty preferences contingent on localization ratio with
respect to enterprises producing and assembling motorcycles specified in the Inter-Ministry
Circular No 176/1998/TTLT-BTC-BCN-TCHQ.
- Upon accession: (i) to eliminate localization requirements and import duty preferences
contingent upon localisation ratio with respect to enterprises producing automobile parts,electronic and mechanical products specified in the Inter-Ministry Circular No
176/1998/TTLT-BTC-BCN-TCHQ; (ii) to amend the list of sectors in which licensing of
investment is conditional (which is attached  to Decree No. 24/2000/ND-CP) to eliminate the
criteria requiring investments to develop raw material sources with respect to vegetable oil,
sugar cane, and wood; (iii) to eliminate in practice the localization requirement in the
investment licences applicable to projects producing or assembling automobiles and
motorcycles.
Question 92
We note that whereas some original WTO memb ers received narrow extensions to comply with
the TRIMs Agreement, no WTO applicant has b een given an extension to phase out TRIMs
since 1995.  We request Viet Nam to advise when it  will modify its TRIMs action plan in order
to fully comply with the TRIMs Agreement upon accession.
Answer:
Viet Nam commits to comply with the TRIMs Ag reement and not to re-introduce the phased-out
TRIMs upon accession. The Action Plan for the implementation of this Agreement has been revised
as follows:
- In 2000-2003: to eliminate import duty preferences contingent on localization ratio with
respect to enterprises producing and assembling motorcycles specified in the Inter-Ministry
Circular No 176/1998/TTLT-BTC-BCN-TCHQ.
- Upon accession: (i) to eliminate localization requirements and import duty preferences
contingent upon localisation ratio with respect to enterprises producing automobile parts,
electronic and mechanical products specified in the Inter-Ministry Circular No176/1998/TTLT-BTC-BCN-TCHQ; (ii) to amend the list of sectors in which licensing of
investment is conditional (which is attached to Decree No. 24/2000/ND-CP) to eliminate the
criteria requiring investments to develop raw material sources with respect to vegetable oil,
sugar cane, and wood; (iii) to eliminate in practice the localization requirement in the
investment licences applicable to projects producing or assembling automobiles and
motorcycles.
Question 93
With reference to paragraph 179 of the Factual Summary, we request Viet Nam to confirm that
the 80 per cent export requirement has indeed been abolished in practice, for those ten sectors
which were removed from the List of products subject to export requirement in Decision No 718
of the Minister of Planning and Investment in December 2001.
We request Viet Nam to provide a list of the remaining 14 products which are still subject to the
80 per cent export requirement, as well as a plan and timetable for termination of this
requirement for the remaining 14 sectors.WT/ACC/VNM/29
Page 48
Answer:
As we understand, the export ratio requirement is not covered by the TRIMs Agreement. However, in
order to show goodwill in the negotiations, Viet  Nam commits not to apply this requirement upon
accession.
(f) Free zones
Question 94
Paragraph 187 of Page 40, Viet Nam Factual Summary.  The Factual Summary indicates that
enterprises located in export processing zones a re allowed to sell their products in the domestic
market upon approval by the Ministry of Trade, and domestic companies buying such products
are required to pay import duties. Please clarify the criteria for approval by Ministry of Trade,
and whether there are restrictions on the local sa le percentage. What is the basis for calculating
duties levied on products for local sales?
As mentioned at the end of paragraph 188, enterprises in export processing zones are subject to
10 per cent profit tax. Please clarify if this applies to all enterprises in export processing zone
(or only on those that export a certain percen tage of their products). Also, what is the
relationship between taxes on profits and export performance?
Answer:
Enterprises located in export processing zones are allowed to sell their products in the domestic
market. Their products are subject to the same procedures and the same import duties as applied to
normal imported products.
According to Article 46, Decree 24/2000/ND-CP guiding the implementation of the Law on Foreign
Investment, the 10 per cent income tax are applicable to enterprises located in export processing zoneswhich meet the following objective criteria:
a) engaging in infrastructures development of export processing zones; or
b) meeting at least two of the following conditions:
- being included in the list of projects in which investment is specially encouraged;
- investing in regions with especially harsh socio-economic conditions;
- being a service enterprise in the export processing zones;
- assigning assets to the State of Viet Nam without any compensation after expiry of
operation.
4. Policies affecting foreign trade in agricultural products
(a) Imports
Question 95
We note that Viet Nam is seeking right of recourse to the Uruguay Round Special Agricultural
Safeguard (SSG) on a number of products (including beef, sugar, and fruit juice).  Under
Article 5 of the Agriculture Agreement, SSGs were only available to Members that undertook
conversion of import restrictions to tariffs in the Uruguay Round negotiations.  Viet Nam has noWT/ACC/VNM/29
Page 49
automatic right to such SSGs.  We request Viet  Nam to reconsider its approach on items where
it is proposing SSGs.
Answer:
Agriculture is an important sector for the socio-ec onomic life of the country. About 70 per cent of the
population is dependent on agriculture production. Th erefore, the reservation of the right to apply
special safeguards (SSG) is necessary. Many WTO Members, including newly acceded Members,
have been accorded such right.
 (e) Internal policies
Question 96
We request Viet Nam to confirm that it will bind its agricultural export subsidies at zero and
that, after accession, Viet Nam will not maintain or revert to agricultural export subsidies.
Answer:
Viet Nam commits that export subsidies shall be bound at the currently applied level and shall be
subject to reduction according to relevant WTO rules upon Viet Nam’s accession.
Question 97
Regarding the foreign financing received for cultivating 40,000 hectares of arabica coffee in the
north of Viet Nam, we should like to know whether this is in the form of reimbursable loans ordonations.
Answer:
Coffee development program in the North of Viet Nam has the total investment capital of VND 700
billions, in which FRF 212 millions (equivalent to VND 400 billions) were borrowed from the French
Development Agency (AFD). This loan was in the form of loan, not grants.
Question 98
Concerning export subsidies and domestic support for the coffee sector, Viet Nam refers to the
information given in document WT/ACC/SPEC/VNM/3 of 5 November last, which we welcome
as a demonstration of the transparency with whic h Viet Nam is moving ahead with the accession
process.
Answer:
Viet Nam takes note of this comment.
Question 99
As regards export subsidies, we are surprised that Viet Nam reports strong growth in the
volume of coffee benefiting from subsidies betw een 1999 and 2001, which would appear to cover
all coffee exports.  We would like to know the reas ons for this increase.  We should also like to
know the state of coffee which is referred to as green, roasted, ground, etc. and receive data onthe total volume of coffee produced, as well as the total volume of coffee exported in the same
state for the same years.WT/ACC/VNM/29
Page 50
Together with the members of the Cairns Gro up, we have for many years been seeking to
ensure that this type of practice in agriculture be banned at the WTO.  We hope that, before
acceding to the WTO, Viet Nam will phase out al l export subsidies for coffee, in any form, as
well as those for any other agricultural products.
Answer:
In the years 2000, 2001 and 2002, the world coffee price decreased by 60 per cent (the lowest price
level over the past 40 years). In response to the Coffee Temporary Storage Plan of the International
Coffee Organization, in 2000 and 2001, Viet Nam boug ht 150,000 tonnes (equivalent to 20 per cent of
Viet Nam’s coffee output) for temporary stockholding. The plan, however, failed due to several
reasons (major coffee producing countries all had excessive coffee output, some countries did not
implement the plan …), resulting in lower price. In  such circumstance, Viet Nam had to export this
stored amount and compensate for the incurring losses.
This amount is not all our coffee outputs of Viet Nam. To contribute to improving the world coffee
market situation, Viet Nam has gradually decreased coffee growing area and outputs, improved
quality and promotes domestic consumption in order to respond to the proposed plans of International
Coffee Organization. The below table shows that export volume in the year 2003 have decreased
considerably in comparison with the year 2001.
Viet Nam export more than 90 per cent of its coffee outputs which are mainly in the form of green
coffee. Roasted and ground coffee are mainly for domestic consumption.
Coffee outputs and export volume of Viet Nam over the past years
Year Output (’000 tons) Export (’1000 tons)
- 2000 802 734
- 2001 844 931
- 2002 730 720
-2003 estimated 680 660
(Source: Statistical Yearbook 2001 and 2002.  Year 2003: estimated by Ministry of Agriculture and Rural Development)
Viet Nam commits that export subsidies shall be bound at the currently applied level and shall be
subject to reduction according to relevant WTO rules upon Viet Nam’s accession.
Question 100
With regard to domestic support, tables DS4 and DS9 incite us to ask Viet Nam for clarification
regarding the non-product-specific AMS, because this refers specifically to rice and coffee, so
we wonder whether this support should not be classified in another category.
Answer:
Support was only provided to rice and coffee. However, Viet Nam could not separate the support
amount between rice and coffee. Therefore, the program was put in Table DS:9.WT/ACC/VNM/29
Page 51
- Core Labour Standards
Question 101
Paragraph 220 of Page 46, Viet Nam Factual Summary.  As indicated in the Factual Summary,
Viet Nam has ratified many conventions in the framework of the ILO. The Labour Code of
Viet Nam and other related legal documents have been established with reference to theconventions and recommendations of the ILO.
According to ILO’s documentation, there are al together 8 conventions related to the current
Core Labour Standards. These are conventions No. 29, 87, 98, 100, 105, 111, 138 and 182.
According to the materials Viet Nam provided, however, the aforementioned conventions have
not been ratified by Viet Nam. We would like to know whether Viet Nam has stipulated
regulations prohibiting forced labour, child labo ur, discrimination on employment, etc., and
how it enforces such regulations.
Answer:
Viet Nam has ratified many conventions in the framework of the ILO. The Labour Code of Viet Nam
and other related legal documents have been established with reference to the conventions and
recommendations of the ILO. The Vietnamese Government have also been seeking technical
assistance and advisory service from the ILO in or der to ensure the conformity of the laws of Viet
Nam with the recognised international standard s. Any Member of the Working Party who are
interested in this subject may be in contact with the ILO for further details.
5. Policies affecting foreign trade in other sectors
(a) Textiles Regime
Question 102Per para. 218 of the factual summary, we take note of Viet Nam's statement that it is premature
to discuss the base volume according to articles 2 and 3 of the Agreement on Textiles and
Clothing. We wish to note that the language of para. 218 is standards language which has been
used in other accessions, and is meant to ad dress the terms applied to new applicants for
accession, which is not covered in the agreement.
Answer:
We take note of the above comment. We understand that the term "in force on the day before the entry
into force of the WTO Agreement" contained in Article 2:1 of the Agreement on Textiles and
Clothing should be understood as “on the day before Viet Nam’s accession”, and that the increase in
growth rates provided for in Article 2:13 and 2:14 of the Agreement on Textiles and Clothing should
be applied to these base levels, as appropriate, from the date of accession of Viet Nam to the WTO.
Question 103
The Prime Minister's Decision No. 28/TTg, da ted 13 January 1997 prohibits the circulation of
second-hand consumer goods, including second-hand clothing, based on environment, human
health and SPS protections. We are not aware of any specific cases involving spread of disease
caused by used clothing. Since the TBT agree ment requires Members adopting measures to
achieve environmental, public health or other le gitimate goals to ensure that such measures doWT/ACC/VNM/29
Page 52
not create unnecessary obstacles to trade, we would urge that Viet Nam apply less restrictive
measures to used clothing imports.
Answer:
Viet Nam takes note of the above comments. In the context that there are no other effective tools to
regulate the importation of second-hand clothing and internal combustion engines with capacitybelow 30 CV, import prohibition applied on these goods is necessary to protect human health and the
environment.
Question 104
As indicated in the factual summary section on  trading rights (para. 70), the current system
does not give foreign-invested firms the same ri ghts to import, import for resale, or export as
domestic firms. As a result, imported goods do not benefit from the national treatment
requirements of GATT Article III. This system could also be seen as a non-tariff barrier toimports prohibited by GATT Article XI. At the last Working Party meeting, although Viet Nam
acknowledged that the current regime violated nati onal treatment it reiterated that it was in the
process of "transition" and that it would need to maintain the differences. We reiterate that this
is an issue Viet Nam needs to begin to address now so that the discrimination can be eliminated
prior to or by the time it accedes to the WTO.
Answer:
Viet Nam confirms that foreign invested enterprises are entitled to export as Vietnamese enterprises.
Foreign invested enterprises are also allowed to import all types of goods consistent with their
investment licenses.
The importation of goods inconsistent with the investment licenses (i.e. importation for resale) is a
matter relating to distribution services. In Viet Nam’s view, it should, therefore, be discussed in the
context of bilateral negotiations on market access regarding distribution services.
Question 105
All of the components of The WTO Agreement on Import Licensing Procedures are supposed to
be implemented prior to a country acceding to the WTO. According to Viet Nam's action planfor implementing the WTO Agreement on Import Licensing, however, Viet Nam intends to use
staging through 2006 to implement the Agreemen t. We request that Viet Nam reexamine and
fully describe its legislative plan for implementing the Agreement before acceding to the WTO.
What are the fees associated with getting an import licence?
Answer:
Viet Nam has provided the updated Action Plan implementing the WTO Agreement on Import
Licensing Procedures. Viet Nam commits to comply fully with this Agreement upon accession.
The fees associated with getting an import li cense are small, commensurate with the normal
administrative costs, and therefore, do not pose any difficulty for the applicants.WT/ACC/VNM/29
Page 53
Question 106
Viet Nam bans the import of select used goods.  Viet Nam should use internal mechanisms that
address environmental, health and safety concerns instead an absolute ban on imports.
Answer:
In Viet Nam’s view, the import prohibition applied to used goods (clothing and internal combustion
engines with capacity below 30 CV) is necessary to protect human health, safety and the environment.
V. TRADE-RELATED INTELLECTUAL PROPERTY REGIME
1. General
Question 107
(a) Viet Nam has implemented many IP laws.  However, it needs to demonstrate that we can
have confidence that thes e will provide adequate enforcement mechanisms and
sanctions to ensure that the IP of it s trading partners will be protected.
(b) TRIPS Agreement Article 39.3 (Protection of Undisclosed Information – Test Data):
Viet Nam Government Decree 54/2000 Article 18.4 does not address how the Vietnamese
Government itself will protect pharmaceutical and agricultural chemical test data
provided to it for marketing approval purposes.   We expect other delegations will take
the lead on this point but would be intere sted in how the TRIPS requirement for the
Member, itself, to protect such information will be met.
(c) WT/ACC/VNM/16, Question 99.  We feel that the provision for differential fees for
nationals and non-nationals is contrary to th at provided for in Article 2 of the Paris
Convention and Article 3 of TRIPS;
(d) WT/ACC/VNM/21 Page 3.  If the reference here is to an additional fee on top of the
application fee to enjoy a priority right, then  this is contrary to the Paris provisions;
(e) WT/ACC/VNM/21 Page 5.  Regarding the reference to co-ownership of trademarks, we
consider that Viet Nam may be misinterpreting Article 5(C) of the Paris Convention.
We believe that Article relates to the concurrent use by separate entities under domestic
law.  This allows in certain circumstances for different owners to own identicaltrademarks (we provide for this).  Viet Nam appears to be saying that they will not allow
a trademark registration to have more than one owner.  For us, as with many other
countries, a trademark may have joint owners whether they be a number of individuals,
firms, a combination of both, etc.  The provisions outlined by Viet Nam appear to be
unduly restrictive and could provide a limitation on the rights of our trademark owners
to seek protection in Viet Nam.  It should  be noted that collective trademark rights are
not the same as joint ownership rights;
(f) WT/ACC/VNM/21 Pages 30, 34 and 36.  We note that as yet that provisions for
integrated circuits have not been drafted, nor legislation for seizure of infringing goods
or notification of the right holder and importers.  We look forward to developments in
these areas.
Answer:
(a) One of the aims of the Vietnamese intellectual property system is to establish an enforcement
mechanism together with adequate remedies fo r protecting intellectual property rights. The
intellectual property enforcement system of Viet Nam consists of administrative, civil and
criminal procedures and remedies. With the available remedies and active improvement of
enforcement bodies, we believe that intellectual property rights will be adequately protected.WT/ACC/VNM/29
Page 54
(b) The competent authorities are obliged to ensure the secrecy of the test data submitted under
secret keeping rules of administrative authorities, as applications for a patent, utility solution
and industrial design are kept secret by the patent office.
(c) Viet Nam will consider this request in order to amend Circular No. 23/TC-TCT.
(d) In the Paris Convention, there are no provision on the prohibition of collecting fees in respect
of a claim for priority right but the  prohibition of collecting fees takes effect only in respect
of the late filing of documents for claiming priority right (three months from the date of filing
application). The reason  for collecting the fees is that the examiner has to do a lot of work so
as to compare the application filed with the Office the priority one to find out whether or not
the two subject matters under the two applications are identical. The similar provision is also
provided for in other countries’ laws (e.g. Republic of Korea, the Philippines etc.).
(e) The function of a trademark is to distinguish the goods or services of different business
establishments. The co-ownership of a trademark would cause consumers’ confusion when
purchasing goods or services. Therefore, the law of Viet Nam does not allow the co-
ownership of a trademark. The co-ownership is not obliged by the TRIPS Agreement and
Paris Convention. However, Viet Nam would further consider this matter.
(f) Government of Viet Nam has enacted the Decree on the protection of industrial property
rights in respect of layout-designs of semi-integrated circuit. The Decree provides the acts to
be deemed as infringement of industrial property rights in respects of layout-designs of semi-
integrated circuit. English version of this Decree is accompanied hereby.
Question 108
We are of the view that an acceding country should implement the obli gations set out in the
TRIPS Agreement upon its accession to WTO with out recourse to a transition period, which is
applicable to the accession of Viet Nam.  In this connection, we wish to have confirmation that
Viet Nam is committed to implementing such obligations once acceded to the WTO.
Answer:
Although being a developing country and facing numerous challenges, Viet Nam is doing its best
efforts to prepare necessary conditions for the implementation of the obligations set forth in the
TRIPS Agreement. Viet Nam confirms that it will ensure full implementation of this Agreement when
it becomes a WTO Member.
Question 109
We note Viet Nam’s response to Question 127 of document WT/ACC/VNM/23, which shows
Viet Nam’s intention to implement the TRIPS Agreement.  We hope that Viet Nam will
continue to make efforts to appropriately establis h its laws and regulations in this area, and will
provide information on the recent developments in a timely manner.  In particular, Viet Nam
should establish its Intellectual Property Ri ghts regime, in consistency with the TRIPS
Agreement.  This regime should cover not only the field of substantive standards regarding
copyrights and neighbouring rights, patents, trademarks, industrial designs and commercial
secrets, etc., but also that of enforcement, such as civil procedures that allow plaintiffs to bringforward an action regarding infringement, enforcement by the police and boarder measures by
the customs authorities.  At the same time, we consider it important to know how Viet Nam will
actually apply its IPR regimes, in view of gran ting rights and realizing remedy in a proper and
prompt manner.  We sincerely hope that Viet Nam will make further efforts in this respect.WT/ACC/VNM/29
Page 55
Answer:
Viet Nam is in agreement with the Member’s points  of view and in fact, it has been acting in that
direction.
Question 110
We welcome Viet Nam’s response stated in paragraph (b) of this question, but shall continue
surveillance of the situation to make sure Viet Nam does not introduce discriminatory measures
in the future implementation of the Vietnamese system with regard to the Technology Transfer
Agreement relating to patents and know-how, etc.
Answer:
Viet Nam shall not provide for any discrimination treatment in respect of technology transfer of
industrial property subject-matters, including inventions and know-how.
Question 111
According to Viet Nam’s response, there is no limitation on the duration of transferring
partnership and trade secrets.  Considering that the TRIPS Agreement stipulates that a patent
term shall be at least 20 years from the filing date (Article 33), Viet Nam should make it possible
to set a term for the Technology Transfer Agree ment when reflecting these provisions therein.
Answer:
According to the prevailing laws and regulations, there is no time limit for technology transfer of IP
rights to inventions, and trade secrets. The time period for the transfer is subject to the agreement
between parties, provided that the subject-matter is still under protection.
Question 112
We are concerned about how royalties in Viet Nam are paid and about the maximum threshold
of payment accorded for royalties.  Such action may be a cause of hindrance to the field of
technology transfer, thereby undermining the intent of Article 28.2 of the TRIPS Agreement,
depending on the substantive provisions invoked or on their implementation.
Answer:
Viet Nam is considering the annulment of limitation of the ceiling royalties for IP subject-matters.
(a) Intellectual Property Policy
Question 113
Factual Summary paragraphs 221-222.  These paragraphs refer to Circulars, Joint Circulars,
Decrees, Ordinances and Decisions. How is each of these promulgated? What are the legislative,
judicial or administrative processes that lead  to each of these legal instruments? Are they
binding authority on the courts?
How can rights holders keep track of the status of the law if successive Decrees, Circulars, Joint
Circulars, Ordinances and Decisions refer to the Civil Code and prior decrees and circulars ifWT/ACC/VNM/29
Page 56
no single annotated Civil Code or version contains the most up-to-date amended laws? Is a
consolidated text incorporating governin g laws, decrees, etc., contemplated?
Does Viet Nam plan to enact an Intellectual Pr operty Code that is separate and apart from the
Civil Code? We should note our concern with crea ting parallel and conflicting sets of laws that
could result from enacting both a separate IP Code and IP laws within the Civil Code. On theother hand, a consolidated, single set of IP laws, whether in the Civil Code or an IP Code, is
needed to ensure transparency.
We repeat our request to Viet Nam to provide copies of all relevant legal instruments governing
the protection of intellectual prop erty rights in Viet Nam, including:
- Government Decree No. 63/CP of 24 October 1996;
- Circular No. 3055/TT-SHCN of 31 December 1996;
- Government Decree No. 76/CP of 29 November 1996;
- Circular No. 23-TC/TCT of 9 May 1997;
- Government Decree No. 12/1999/ND-CP of 6 March 1999;
- Circular No. 825/2000/TT-BKHCNMT of 10 May 2000;
- Government Decree No. 54/2000/ND-CP of 3 October 2000;
- Government Decree No. 06/2001/ND-CP of 1 January 2001;
- Government Decree No. 13/2001/ND-CP of 21 April 2001;
- Government Decree No. 31i2001/ND-CP of 26 June 2001;
- Joint Circular No. 01/2001/TANDTC-VKSNDTC-BVHTT;
- Government Decree No. 101/2001/ND-CP of 31 December 2001;
- Ordinance on Libraries No. 31/2000/PL-UBTVQH10 of 28 December 2000 ;
- Government Decree No. 48/CP of 17 July 1995;
- Decision No. 2455/QD-DA of 9 August 1997;
- Government Decree No. 26/2000/CP;
- Government Decree No. 55/ND-CP of 23 August 2001;
- Government Decree No. 06/2001/ND-CP of 1 February 2001;
- Circular on implementation of Decree 63/CP, as amended by Decree
No. 06/2001/ND-CP;
- Circular concerning the reversal of the burden  of proof in civil proceedings, from the
Supreme People's Court, the Supreme People's Procuracy and the Ministry of Science,
Technology and Environment;
- Decree No. 07/ND-CP of 1996 on the management of Plant Varieties;
- Circular No. 119/2001/TT-BNN of the Ministry  of Agriculture and Rural Development.
Answer:
The above-mentioned legal documents are promulgated in the following order:
- Codes and Laws are drafted by the authorities of the National Assembly, members of the
National Assembly, Government, ministries/agencies, etc. and submitted to the National
Assembly for promulgation.
- Ordinances are drafted by the offices of the National Assembly, members of the National
Assembly, Government, and ministries/agencies and submitted to the Standing Committee of
the National Assembly for promulgation.
- Decrees are documents guiding the implementation of Laws, Ordinances, and are drafted by
Government agencies and submitted to the Government for promulgation (Decrees could alsoprovide regulations on new subject-matters that need legal regulations where Laws and
Ordinances cannot be enacted).WT/ACC/VNM/29
Page 57
- Circular, Joint Circulars, Decisions are draf ted and promulgated by ministries/agencies of
ministerial level for the purpose of guiding the implementation of Governmental Decrees.
In principle, the Courts will judge cases based on all of the said legal instruments except regulations
on administrative procedures are subject to the implementation by the administrative agencies only.
Recently, in Viet Nam, most of legal documents on amendment and supplement are issued
independently (separated from the amended legal documents). Usually, the incorporation of the
amendments, revisions into the main texts of the revised legal documents is done by drafting agencies
or the relevant management office in the respective field.
A plan of issuing an Intellectual Property Code (or independent Laws on each intellectual property
subject-matter) that is separate from the Civil Code is now being studied and considered instead of
issuing various documents guiding the implementation of the Civil Code. Viet Nam is aware of the
problems that may result from the promulgation of this Code (or these Laws) and will pay attention tothese problems in the process of drafting and issuing legal provisions on intellectual property in order
to comply with requirements on unity and transparency of the legal system.
Viet Nam has supplied the unofficial English translation of the legal documents on intellectual
property through document WT/ACC/VNM/28, with th e exception of the following 4 documents for
which English versions are not available:
- Joint Circular No. 01/2001/TANDTC-VKSNDTC-BVHTT;
- Ordinance on Libraries No. 31/200 0/PL-UBTVQH10 of 28 December 2000;
- Decision No. 2455/QD- DA of 9 August 1997;
- Circular concerning the reversal of the burden of proof in civil proceedings, from the
Supreme People's Court, the Supreme People's Investigation Agency and the Ministry ofScience, Technology and Environment.
Viet Nam, however, is prepared to provide these Vi etnamese language version of these documents for
reference to the interested Members.
(c) Membership of international intellectual property conventions and of regional or
bilateral agreements
Question 114
Paragraph 225: When does Viet Nam intend to ratify and implement the WIPO Copyright
Treaty and the WIPO Performances and Phonograms Treaty?
Answer:
Viet Nam does not have plans for ratifying and joining the WIPO Copyright Treaty and the WIPO
Performance and Phonograms Treaty (WPPT). Participation in international treaties which are not
provided for in the TRIPS Agreement, as we understand is not an obligation under the WTO.
Question 115
What are Viet Nam's plans regarding accession to  the International Union for the Protection of
New Varieties of Plants (UPOV)?WT/ACC/VNM/29
Page 58
Answer:
Viet Nam expects to join UPOV in 2003.
Question 116
In the last bilateral meeting between our delegations which took place on 21 May 2003, the
Vietnamese Delegation stated th at it planned on joining the Berne Convention as well as the
International Convention for the Protection of Ne w Varieties of Plants (UPOV).  In order for us
to assess if an extension of the accession deadline to those Conventions is necessary, we would be
interested to know when these adhesions are likely to occur.
Answer:
Viet Nam is expected to join the UPOV Convention and Berne Convention in 2003.
Question 117
Paragraph 225.  Concerning the Rome Convention, it is mentioned in Job No. 3030.3 that the
questions whether Viet Nam considered joining this Convention had not been taken yet.  We
would like to mention that Viet Nam agreed to jo in the Rome Convention in the context of the
bilateral Agreement between us.  Therefore, we strongly encourages Viet Nam to ratify the
Rome Convention and hereby fulfil its obligations.
Answer:
Viet Nam is also expected to join the Rome C onvention in 2003. However, this commitment is under
the bilateral Agreement between Viet Nam and Switzerland, not under the WTO framework.
(d) Application of national and m.f.n. treatment to foreign nationals
Question 118
Para 228: Please confirm whether the "Intellectual Property Agent" requirement holds for
copyright protection as well as trademark, design, and patent rights.
Answer:
The existing laws of Viet Nam do not require foreign natural or legal persons to carry out the
procedures for establishing and enforcing copyrights through intellectual property agents.
According to Article 15.3.b) of Decree No. 63/C P and Article 12.3 of Decree No.  42/2003/ND-CP,
only foreign natural persons not resident in Viet Nam or foreign legal entities who have no legal
representative or a real and effective industrial or commercial establishment in Viet Nam that must
carry out the filing of application for a Protection Title and related procedures through an authorized
patent attorney. This condition is required to ensure that all communications between State agencies
of Viet Nam and that foreign natural persons, legal entities are conducted properly. This requirement
does comply with international practice and the exceptions on national treatment set forth in the
TRIPS Agreement.WT/ACC/VNM/29
Page 59
2. Substantive standards of protection, incl uding procedures for the acquisition and
maintenance of intellectual property rights
Question 119
With regard to Paragraph 273 related to micro-organism, we would like to ask Viet Nam
provide the latest drafting development on the provisions relating to application form,examination guidelines and micro-organism deposi t procedures for the purpose of examination
of the patent applications for microorganisms.  We would also like to note that exclusion of
micro-organisms from patent protection seems to violate Article 27 of the TRIPS Agreement.
Answer:
According to the Vietnamese existing laws, micro-organism is not excluded from subject-matters
which are protectable as inventions (i.e. it does not fall within the list of subject-matters which are not
excluded from protection as inventions as provid ed in Article 4 paragraph 4 of the Governmental
Decree No. 63/CP on detailed regulations concerning industrial property amended and supplemented
by the Governmental De cree No. 06/2001/ND-CP).
The drafting of regulations concerning patent applications for micro-organism, procedures for
depositing micro-organisms for the purpose of patent examination has been completed (the draft
Circular substituting Circular No. 3055/TT-SHCN). This draft Circular is to be submitted to the
Ministry of Science and Technology for promulgation in 2003.
Question 120
With regard to Paragraph 231, the Government of Viet Nam intends to collect a service fee
from foreign applicants in order to establish, maintain and protect industrial IPR.  Please
explain in detail how this fee is used and clarify how it complies with national treatmentrequirements as provided in the TRIPS Agreement
Answer:
The industrial property fees and charges concerning the establishment and maintenance of industrial
property rights shall be collected from applicants by the Government (through intellectual property
offices) and paid into the State Budget. Activities of the intellectual property agencies are fundedfrom the State Budget.
If the discrimination of fees and charges between Vietnamese and foreigners does not fall under the
exceptions provided for in Article 2(i) of the Paris Convention, it shall be annulled by a Circular on
amendment of Circular 23/TC-TCT.
(a) Copyright and related rights
Question 121
Paras 233-246: Does Viet Nam intend to provide protection for temporary copies under its
revised copyright and related rights laws?
Does Viet Nam intend to provide protection for pre-program signals from broadcast
organizations under its revised copyright and related rights laws?WT/ACC/VNM/29
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Does Viet Nam intend to provide protection for encrypted signals from broadcast organizations
under its revised copyright and related rights laws?
Answer:
Viet Nam will consider the protection for temporary copies and pre-program signals in the process of
improvement of the legal system on copyright and related rights.
Viet Nam has planned to provide protection for encrypted signals from broadcast organizations under
appropriate legal documents.
(b) Trademarks, including service marks
Question 122
Para 249: Does the prohibition against registration of trademarks containing "names or
emblems of international organizations" refer to extension of protection requested by
International Intergovernmental Organizations per Article 6ter of the Paris Convention? If not,
under what criteria are marks determined to be "names or emblems of international
organizations?"
Answer:
Yes. The regulation on the prohibition of registration against trademarks containing “names and
emblems of international organisations” refers to the protection required by the InternationalIntergovernmental Organisations according to Article 6
ter of the Paris Convention.
Question 123
Trademarks composed of color combinations s eem to be excluded from trademark protections.
Furthermore, the scope of protection on goods ex tends only to identical, not similar, goods.
These items seem not to comply with TRIPS Article 15.2 and 16.1 respectively.
Answer:
A sign, which is a combination of colours, could be understood as a sign expressed in several colours,
and it could be protected by the Vietnamese law on trademarks (Article 785 Civil Code).
The existing laws and regulations on trademarks of Viet Nam are consistent with the requirements of
Articles 15.2 and 16.1 of the TRIPS Agreement. According to Article 1 point 24 of DecreeNo. 06/2001/ND-CP of 1 February 2001 amending and supplementing Decree No. 63/CP of
24 October 1996 on detailed regulations concerning industrial property, the following acts shall also
be considered as infringements of the rights of the trademark owners: “Using signs identical with a
trademark being protected by a Certificate for trademark registration or by an international
registration for goods and services similar to or relating to goods and services in the list registered of
the mark or/and using signs similar to the trademark for goods and services of the same kind, similar
to or relating to goods and services in the list regi stered together with the mark, if such use would lead
to confusion of the origin of goods”.
Question 124
Paragraph 255.  Concerning the right of appeal provided for in 62.5 of the TRIPS Agreement, it
is mentioned in Job No. 3030.3 that the Ordinan ce on the Judgement of Administrative Cases isWT/ACC/VNM/29
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going to be amended in the course of this year  in order to comply with the obligation of 62.5 of
the TRIPS Agreement.  We would be interested to know whether a decision about the date of
adoption and entry into force has been taken and would like to receive and English translation
of the amendment draft.
Answer:
The Ordinance on the handling of administrative cases is being amended. However, the compliance
by the prevailing law and regulations with Article 62.5 of the TRIPS Agreement is being considered.
The reason is that all administrative decisions concerning the establishment, or maintenance, etc. of
industrial property rights are issued by the Director General of the National Office of Intellectual
Property These decisions could be appealed to the Administrative Court. Therefore, the right holders
have the rights to appeal against these decisions to the Courts. If they do not want to use this
opportunity, they have another option to appeal to the head of the direct supervising organ of theDirector General of the National Office of Intellectual Property. The decision of the Minister for
Science and Technology is the final judgement on the accuracy of the administrative decision
concerning the establishment, maintenance, etc. of the Protection Title issued by the Director General
of the National Office of Intellectual Property.
(c) Geographical indications, including appellations of origin
Question 125
Para 257: With respect to Article 10 of D ecree No. 54/2000ND-CP, which provides for the
criteria of protection of geographical indications, a geographic indication must be in the form of
"a word, a sign, a symbol or an image featuring a country or a territory, or a locality of a
country." The representative of Viet Nam indicated that according to such criteria, "ageographical indication could be but should not necessarily be a name and geographical
indication corresponding to a territory, but should not be a locality in an administrati ve map. "
(WT/ACC/VNM/23, Answer to Question 151.) What is meant by "should not be a locality in an
administrative map?" Are regions within a coun try or a territory protectable? Are regions that
cross international borders protectable?
Para 258: The subset of geographical indications known as "appellations of origin" are defined
in Article 7 of Decree No. 06/2001/ND-CP as being "the geographical name of the country or
locality in which goods are manufactured." To be protected, appellations of origin must be
registered. Would an appellation of  origin consisting of a "region" within a country or locality
be registrable?
Para 259: How does Viet Nam provide the legal means for interested parties to prevent the
misuse of geographical indications, as required by Article 23.1 of the TRIPS Agreement?
Para 260: Article 6.1(f) of Decree 63/CP prohibits the registration of a trademark identical to or
confusingly similar to trade names or protected geographical indications, including appellations
of origin. Viet Nam has three protected appellations of origin. Geographical indications do not
need to be registered in order to be protecte d, according to Article 5 of Decree 54/2000/ND-CP.
Therefore, how does the National Office of Industrial Property of Viet Nam examine trademarkapplications to determine if they contain protected geographical indications other than the three
registered appellations of origin? Moreover, it is unclear how Viet Nam provides for the
exclusive rights of trademark owners with respect to potentially infringing geographical
indications (TRIPs Article 16.1 and 24.5). Please explain.WT/ACC/VNM/29
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Answer:
Paragraph 257: The territory relating to the geographical indication which “should not necessarily be
a locality in an administrative map” means the geographical region may not be an administrative unit
indicated in the national administrative map (country, province, district, village). It could be a part of
an administrative unit or belong to some administrative units. Therefore, geographical indication of aregion or locality in the country, including cross-border territory, shall also be protected if it complies
with all requirements stipulated by laws.
Paragraph 258: The appellation of origin of a locality or region in a territory or country shall also be
protected; therefore, it can be registered if it complies with all requirements stipulated by law.
Paragraph 259: According to paragraph 3 Article 19 of Decree No. 54/2000/ND-CP, the following
activities will be considered as infringing industrial property rights to geographical indications and
will be handled by laws (by civil, administrative or criminal procedures): “Using geographicalindications in respect of wines or spirits not originating from in the place indicated by geographical
indication in question, even where the true origin of the goods is indicated or are used in translation or
accompanied by expression such as “kind”, “type”, “imitation”, or the like”. Paragraph 1 Article 47 of
Decree No. 63/CP, as amended and supplemented by Decree No. 06/2001/ND-CP, provided that the
owner of the Certificate of the right to use an appellation of origin shall have the right “to request thecompetent State authority to compel other persons to stop infringing acts and pay compensation for
damage caused by the illegal use of such appellation of origin or signs confusingly similar thereto,
even where the true origin of the goods is indicated or are used in translation or accompanied by
expression such as “kind”, “type”, “imitation”, or the like”. These provisions are consistent with the
requirements of Article 23.1 of the TRIPS Agreement.
Paragraph 260: At present, there is no list of geographical indications that are protected in Viet Nam.
In practise, during the examination of trademark application, the possibility of the trademark being
identical with or similar to protected geographical indications shall be handled as follows:
- According to Article 6.2.f) of Decree 63/CP, if  a trademark in the filed application is a
geographical name, the applicant must submit a document authorising him/her to use thegeographical name as trademark. The document is to be issued by the administrative authority
of the territory bearing the geographical name. Before issuing the authorisation, the
administrative authority must consider carefully and shall issue the authorisation only if such
an authorisation does not prejudice interests of others, particularly does not conflict with the
right to use the geographical name as a geographical indication.
- In the event that the registering office (Na tional Office of Intellectual Property) grants
Protection Title for a trademark without know ing that the filed trademark is indeed a
geographical name and no authorisation for using the geographical name as trademark is
submitted, the validity of the Protection Title can be cancelled by the appeal procedures.
- According to Article 785 of Civil Code and Article 6.1.f of Decree No. 63/CP (amended and
supplemented by Decree No. 06/2001/ND-CP), a trademark shall be protected only if it is not
identical with, or confusingly similar to, geographical indications (including appellations oforigin) being protected in Viet Nam. The time to  be taken into consideration of the protection
of geographical indications is the priority date of the trademark application, or the date of
requesting recognition of well-known trademark. Pursuant to the said provision, a trademark,
which is identical with or similar to a geographical indication, has been filed or granted prior
to the date the geographical indication obtaine d protection in Viet Nam, the rights derived
from the trademark shall not be affected by the protection of the geographicalWT/ACC/VNM/29
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indication/appellation of origin. Thus, the prevailing law and regulations of Viet Nam are
consistent with the provisions under Article 24.5 of the TRIPS Agreement.
(e) Patents
Question 126
Para 269: Viet Nam stated it has found no need to accommodate with paragraphs (f) , (k) and
(I) of Article 31 of the TRIPs Agreement, and offered no explanation with regard to paragraphs
(k) and (I) .Please explain why Viet Nam believes that it need not comply with (k) and (I) of
Article 31. Viet Nam's explanation with regard to paragraph (f) of Article 31 is not persuasive.
Products produced under a compulsory license may not be subject to "free circulation" in
foreign markets, and 31(f) requires that compul sory licenses be granted predominantly for the
supply of the domestic market, a condition that is required under TRIPS.
Para 272: Viet Nam states that in the case a rightful appellant has appealed to the Ministry of
Science, Technology and the Environment, "it would be understood that he would not take
advantage of the opportunity for judicial review. " Please explain how this complies with TRIPs
Article 32, which requires an opportunity for judicial review of any decision to revoke or forfeit
a patent.
Answer:
The compulsory license for an invention shall be granted only under the circumstances prescribed in
Article 802 of the Civil Code, which are as follows:
1. The owners fail to use such invention or the use of the invention does not meet the needs of
economic and social development of the country without justifiable reasons;
2. The proposed user has made efforts to obtain authorization from the owner on a reasonable
price, but failed to reach an agreement with the owner on the right to use the invention;
3. The use of such invention is necessary for meeting the needs of national defense, national
security, health or other urgent needs of the society.
Thus, according the said provision, the compulsory lic ense is granted only if it meets the needs of the
internal market, complies with the requirement of paragraph (f) Article 31 of the TRIPS Agreement.However, Viet Nam will consider stipulating in mo re details this matter in some legal documents.
Paragraph (k), Article 31 of the TRIPS Agreement provides for the conditions that allow Members not
to be obliged to comply with the provisions set forth in paragraphs (b) and (f) of this Article in respect
of controlling anti-competitive practices. The prevailing laws and regulations of Viet Nam do not
provide for exceptions as in paragraphs (b) and (f). Therefore, there is no provision corresponding to
paragraph (k). However, Viet Nam will consider the promulgation of such provisions when the
Competition Law is enacted.
Viet Nam will consider promulgating an additional  provision on conditions for granting compulsory
licenses for dependant patent.
All administrative decisions concerning the termination or cancellation of patents are issued by the
Director General of the National Office of Intellectual Property. These decisions are subject to
litigation before the Administrative Court. Thus, the patent owner has the right to file a lawsuit to the
court. The patent owner has another option to appeal to the head of the supervising organ of theWT/ACC/VNM/29
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Director General of the National Office of Intellectual Property. The decision of the Minister for
Science and Technology is final on the administrative decision of the Director General of the National
Office of Intellectual Property concerning the patent termination or cancellation.
Question 127
Paragraph 273.  Concerning the draft Circular addressing the issue of procedures of patent
application in the case of micro organisms we would be interested to know the content of the
draft provision and the planned date of entry in force of the Circular.
Answer:
The drafting of regulations concerning patent applications for micro-organism, procedures of deposit
of micro-organisms for the purposes of patent examination has been completed (in the draft revised
Circular No. 3055/TT-SHCN). This draft document shall be submitted to the Leadership of the
Ministry of Science and Technology for approval and promulgation by the end of 2003. The maincontents expressed in the draft Circular are as follows:
“6.11 Requirements of invention/utility solution application for biotechnology:
a) In addition to the general requirements of the description of invention/utility solution
prescribed in point 6.7, the description of an invention/utility solution application on genetic
sequence or a part of genetic sequence must include the list of genetic sequence presented inaccordance to the standards of WIPO ST.25 item 2(ii) (Standard on presentation of the list of
nucleotide and amino acid sequences in patent applications).
b) The National Office of Industrial Property may request the applicant to file the electronic
information carriers that indicate nucleotide and amino acid sequences as in the description
(e.g. floppy disk, CD-ROM, etc.), which co uld be read easily by common electronic
equipments.
c) With respect to inventions/utility solutions on or relating to biological material, of which the
nature can not to be described or cannot be fully described to the extent that a person with
average skill in the art would be able to carry out such a technical solution, that
inventions/utility solutions shall be only considered as fully disclosed when:
Sample of this biological material has been deposited to the competent depositary authorities as
prescribed in point 6.12 not later than the filing date;
The description has provided all necessary information the applicant may have concerning the
characteristics of the biological material; and
The request has indicated name of the depositary authority of the biological material, and the
identification number given by the depositary authority to the deposited biological material. All
documents certifying this information must be filed with the National Office of Industrial Propertywithin 16 months from the priority date, or not later than the date of filing the request for early
publication (if any).
If the applicant is not the depositor of the biological material, the request must indicate the name and
address of the depositor, and the document certifying lawful use of the biological material must filed
with the National Office of Industrial Property within  16 months from the priority date, or not later
than the date of filing the request for early publication (if any).WT/ACC/VNM/29
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6.12 The deposit of biological material
a) The deposit of sample of biological material is for the purpose of substantive examination of
invention/utility solution application concerning this material.
b) The sample of biological material must be filed with the competent biological material
depositary authority before the filing date of invention/utility solution application concerningthis material.
c) The biological material depositary authority (designated by the Ministry of Science and
Technology) shall have the responsibility for receiving and storing biological materials
deposited by the applicant of the invention/utility solution in accordance with the Regulations
on the storing of biological material deposit to be issued by the Ministry of Science and
Technology.
Question 128
Question 165 of WT/ACC/VNM/23.  Concerning the Circular addressing the issue of reversal of
burden of proof, we would be interested to know when it will be promulgated.
Answer:
Regulations on the reversal of burden of proof will be set forth in the Joint Circular of the Supreme
People’s Court, the Supreme People’s Prosecution Institute and the Ministry of Science andTechnology (expected to be submitted for promulgation by the end of 2003), or the Civil Procedures
Code (expected to be submitted for promulgation in 2004).
Question 129
Question 162 of WT/ACC/VNM/23.  In your answer to Question 162 you mention that
implementing Article 31 (f) of the TRIPS Agreement in your national law would be ineffective.Is therefore our understanding correct that, independently of the first sale doctrine, products
manufactured under a compulsory licence in Viet Nam are destined to supply the Vietnamese
market predominantly?
Answer:
Yes.
(g) Layout designs of integrated circuits
Question 130
Paragraph 277: In Document WT/ACC/VNM/23 of 6 March 2003, Question 167, Viet Nam
asked for further clarification as to the definition of the term "discretes." The TRIPs definition
of an "integrated circuit" requires "at least one active element. A "discrete" is a device that has
only one active element. Discrete transistors, fo r example, have a gate, source, and drain, with
the gate being an active element. There are al so bonding pads as other non-active elements.
Taken together, the layout design that includ es these passive elements and the one active
element meets the TRIPS definition. What protections are being offered to "discretes" under
new or proposed regulations?WT/ACC/VNM/29
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Answer:
According to the Governmental Decree No. 42/2003/ND-CP of 2 May 2003 on Protection of
industrial property rights in respect of Layout Designs of Semiconductor Integrated Circuits, discrete
layout design is protected as other layout designs.
(h) Requirements on undisclosed information, including trade secrets and test data
Question 131
Paragraph 280: Has the document guiding the implementation of Decree No. 54/2000/ND-CP
referred to in this paragraph been issued? What  regulatory authority is responsible for the
protection of test data? How does that authority protect the data? For how long does this
authority provide the necessary protection?
Answer:
Due to some objective reasons, the legal document on guidance of the implementation of Decree No.
54/2000/ND-CP has not yet been issu ed. Agencies which have the responsibility to keep secret the
test data are the authority that receives data for the purpose of granting authorization for circulation of
pharmaceuticals and agricultural chemical products (the Office of Pharmaceutical Administration
under the Ministry of Public Health, and the Office of Plant Protection under the Ministry of
Agriculture and Rural Development). These agencies shall keep secrets the related data in accordancewith regulations on secret data protection by State agencies. The secret data shall be kept within the
term of protection, as long as the data still satisfies the criteria of protection of the undisclosed
information.
Question 132
In WT/ACC/VNM/23 page No. 70, responding to Question 170, you mention that the
prohibition for the regulatory state authority to re ly on test data submitted by a first applicant
in a marketing approval procedure in order to approve a product of another applicant will be
elaborated in a guiding document.  We would be interested to be kept updated on the enactment
process of this guiding document.  If already available, we would also welcome to receive a draft
of the guiding principles.
Answer:
The draft document (Circular guiding the implementation of Decree No. 54/2000/ND-CP) is being
finalised before sending to Ministries/agencies concerned for comments. The document will be
submitted when available.
4. Enforcement
Question 133
We note that illegal - copied goods are also rampant on the Vietnamese market since Viet Nam
has not yet sufficiently developed the relevant laws, and should also improve the enforcement
capability of border measures.
Answer:WT/ACC/VNM/29
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Viet Nam is implementing the plan on improving the intellectual property legal system, including
regulations on IPR enforcement (comprising regulations on border measures, and on enhancement of
the capacity of the IPR border enforcement agencies).
Question 134
Considering the various laws, decrees and regula tions covering the enforcement of intellectual
property rights, as well as the great amount of distinct authorities in charge of applying them,
are there plans to simplify the system and harmonise this area in order to allow an efficient and
transparent enforcement system?
Answer:
Viet Nam has been implementing the plan on the improvement of the legal system on IPR
enforcement as well as the enhancement of capaci ties of law enforcement agencies (See the Action
Plan for the implementation of the TRIPS Agreement of Viet Nam).
Question 135
Please describe any new initiatives that are planned to facilitate the combat against
counterfeiting and piracy in Viet Nam?  Is there a particular action plan in place?
Answer:
Viet Nam has been implementing the plan on the improvement of the legal system on IPR
enforcement as well as the enhancement of capaci ties of law enforcement agencies (See the Action
Plan for the implementation of the TRIPS Agreement of Viet Nam).
(c) Any administrative procedures and remedies
Question 136
Para 291: Are there any plans to create a me chanism for inter- agency coordination on
intellectual property enforcement among the agencies that have IPR enforcement
responsibilities?
Para 292: What is the anticipated date for issu ance of the joint circulars on procedures for
judgment and protection of confidential information?
Para 293: What is the anticipated date for issuance  of the joint circular on additional remedies?
Para 295: Are there any current plans to increase the maximum administrative award of
damages above the current limit of VND 1million in order to have a more deterrent effect on
infringers, especially in the cases of repeat offenders or violations of injunctions?
Para 296: Are there any current plans to create and/or designate specialized staff or units
within any of the various law enforcement agencies with res ponsibilities for intellectual
property enforcement that would be the primary contacts on intellectual property enforcement
matters?WT/ACC/VNM/29
Page 68
Answer:
Paragraph 291: With the view to enhancing the ef ficiency IPR enforcement agencies, especially to
make them be proactive and to improving the efficiency of their interaction, Viet Nam has a plan to
radically reform the enforcement system, where the training for enforcement officials will be
strengthened. The enforcement system will be  simplified towards ensuring administrative
enforcement of IPRs by Market Monitoring Organizations, Economic Police, and the Customs. This
plan shall be introduced in the Decree on amendment of Decree No. 12/1999/ND-CP on the handling
of administrative violations in the field of industrial property (expected to be promulgated by the end
of 2004).
Paragraph 292: The procedures of judgment in camera and measures protection for undisclosed
information will be included in the Joint Circular of the Supreme People’s Court, the Supreme
People’s Prosecution Institute and the Ministry of Science and Technology (expected to be submittedfor promulgation in 2003), or the Civil Procedures Code (expected to be submitted for promulgation
in 2004).
Paragraph 293: Additional administrative remedies supplementing provisions of Decree
No. 12/1999/ND-CP on the handling of administrative  violations in the field of industrial property
will be provided for in more detail in a Decree on amendment of Decree No. 12/1999/ND-CP(expected to be submitted for promulgation in 2004).
Paragraph 295: The Ordinance on the handling of administrative violations of 2001 (replacing of the
Ordinance on the handling of administrative violations of 1995) provides for the annulment of
measures to compel the compensation for damage under administrative procedures. Thus, at present,
the compensation for damage is only conducted under the civil procedures.
Paragraph 296: IPR enforcement agencies are administrative agencies responsible for law
enforcement in general, but not agency specialized in IP.
(d) Any special border measures
Question 137
Para 298: What is the anticipated date for i ssuance of the joint circular covering goods
imported for non-commercial purposes, goods exempted under diplomatic procedures, gifts,
souvenirs, and personal luggage in connection with border enforcement of industrial property
rights?
Para 298: Please expand on the answer provided in Document WT/ACC/VNM/23 of
6 March 2003, Question 184. What is meant by th e phrases "economic purpose in all forms,"
"normal and popular form with regards to works," and "beyond permitted purpose"?  Please
clarify the statement that "autho r should only natural person”.
Answer:
The Joint Circular on border enforcement of industrial property rights including IP-related imported
goods for non-commercial purpose, goods under diplomatic exemption, gifts, souvenirs, and personal
luggage, will be submitted for promulgation by the end of 2003.
Viet Nam has issued Decree No 88/2002/ND-CP of 7 November 2000 of the Government on
Management of Goods Imported and Exported fo r non-commercial Purposes; Circular 36/2002/TT-WT/ACC/VNM/29
Page 69
BVHTT was issued on 24 December 2002 by the Ministry of Culture and Information Guiding the
Implementation of the Decree mentioned above.
Following is the complement to answer to Question 184, document WT/ACC/VNM/23:
- "economic purpose in all forms" means collecting money or  getting benefit under any form;
- "normal and popular form with regards to works" means a form of exploitation of works
recognized in customary trade practices;
- "beyond permitted purpose" means beyond usages that is allowed by laws and regulations as
exceptions;
- An author is a person personally creating the whole or part of a literary, artistic or scientific
work (Article 745 of the Civil Code) . An author must be a natural person. A legal entity may
be an owner of the copyright under the laws but not the author.
5. Laws, decrees, regulations and other legal acts relating to the above
Question 138
We would like to thank Viet Nam for the qualitati ve excellent information received.  In order to
pursue this productive work we would like to be kept updated on the promulgation process of
the different draft Circulars and guideline documents mentioned in WT/ACC/VNM/23.
Answer:
The following Circulars are in the process of drafting and expected to be submitted in 2003 for
promulgation:
- Circular guiding the implementation of De cree No. 54/2000/ND-CP on the protection of
industrial property rights to business secrets, geographical indications, trade names and on
protection against unfair competiti on in respect of industrial property;
- Circular guiding the implementation of Decree No. 42/2003/ ND-CP on protection of
industrial property rights in respect of layout designs of semiconductor integrated circuits;
- Circular on border enforcement of industrial property rights; and
- Circular on guiding the judgment of cases related to industrial property rights.
Drafts of these Circulars are in the process of consultation for improvement. Viet Nam will keep
Members of Working Party updated on the new developments of the drafting process.
Question 139
Paragraph 303 (Legislative Action plan): Please provide target dates (including the necessary
substeps in the legislative and/or administrative process) for each of the steps outlined in the
revised action plan in Documents WT/ACC/VNM/21 and update as appropriate.
Answer:
The Legislation Program and the Action Plan to implement TRIPs Agreement (updating document
WT/ACC/VNM/21) has been sent to the Working Party.
Question 140
Per Viet Nam's reply to question 41 in WT/ACC/VNM/23, we request that Viet Nam provide
the Working Party with a copy of its Ordinance on  Safeguard Action. What is the status of VietWT/ACC/VNM/29
Page 70
Nam's efforts to draft Ordinances on Antidumping and Countervailing Duty? We encourage
Viet Nam to provide these ordinances to the Working Party, even in draft.
Answer:
The unofficial translation of the Ordinance on Safeguard Measures applied on Trade in Goods with
other countries is available through document WT/ACC/VNM/28.
At present, the Ordinance on Anti-dumping Measur es and the Ordinance of Countervailing Measures
are in the drafting process. It is expected that the Ordinance on Anti-dumping be submitted to the
Government in late 2003, and the Ordinance of Countervailing Measures be submitted to the
Government in 2004. The 4th version of the draft Ordinance on Anti-dumping Measures has been
posted on the Website of the Ministry of Trade for public opinion. However, Viet Nam is not in a
position to provide the translation of these Ordinanc es to the Working Party as the drafts of these
Ordinances are still under extensive revisions and changes.
VI. TRADE-RELATED SERVICES REGIME
1. General
Question 141
We are concerned that not all service providers are treated equally in the Vietnamese market.
It is important that as Viet Nam moves towards its goal of WTO membership that it also moves
towards full MFN application of its policies rath er than leaving it until the date of accession.
Can Viet Nam comment on this and confirm that it will not introduce new discriminatory
arrangements in the services sector?
Answer:
Viet Nam will apply its policies on MFN basis acco rding to its service commitment when it becomes
a WTO Member.
Question 142
Section VII, Paragraph 3 of Page 69, WT/ACC/VNM/2.  According to WT/ACC/VNM/2,
Viet Nam has ratified 12 conventions of the ILO—nos. 5, 6, 27, 45, 80, 81, 116, 120, 123, 124,
and 155.
However, according to materials provided by Viet Nam, it has not signed conventions
concerning minimum wage, whereas the ILO has several relevant conventions such as nos. 26,
99, 131 and 135.  We would like to know that whet her Viet Nam has stipulated any rules and
regulations concerning minimum wage, and how Viet Nam carries out labour minimum wage
protections.
Answer:
The Government of Viet Nam has presented its request on technical assistance and consultancy
services to the ILO so as to ensure that Viet Nam’s labour regulations conform with internationally
recognized standards. Interested Members may be  in direct contact with the ILO for further
information.WT/ACC/VNM/29
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(f) Provisions relating to international tran sfers and payments for current transactions of
services
Question 143
Viet Nam also appears to use a discretionary licensing system that limits the sectors and types of
activity allowed.  For example, foreign enterpri ses are unable to import freely certain goods for
domestic distribution and any importation being dependent upon the terms of their investment
licence (paragraphs 70-74), which may be more onerous than on their domestic counterparts.
Answer:
Viet Nam confirms that foreign invested enterprises are entitled to export as Vietnamese enterprises.
Foreign invested enterprises are also allowed to import all types of goods consistent with their
investment licenses.
The importation of goods inconsistent with the investment licenses (i.e., importation for resale) is a
matter relating to distribution services. In Viet Nam’s view, it should, therefore, be discussed in the
context of bilateral negotiations on market access regarding distribution services.
2. Policies Affecting Trade in Services
Question 144
As indicated in the Factual Summary (paragraph 309, page 64) and the Memorandum on the
foreign trade regime (WT/ACC/VNM/2, page 12 Credit policy), We would like to have the
following comments/questions.
1. The current licence of a foreign bank branch is only valid for 20 years. To reduce
operational uncertainty, this restriction should be removed.
2. Under current regulations, the contribution of the foreign party in a joint-venture bank
acting as a commercial bank can not exceed 50 percent of the bank’s registered capital;
a foreign legal entity or foreign individual is not allowed to own more than 10 percent of
the registered capital of a Vietnamese joint-stock commercial bank or joint-stock
commercial financial company, and the aggregate share of foreign shareholders can not
exceed 30 percent of the registered capital. The above regulations are too restrictive.
3. It is stated in the Memorandum on the Fo reign Trade Regime that Viet Nam intends to
adjust its credit structure to give more weight to funding the non-state sector, especially
to farmer households, and raising the portion of mid-term and long-term financing.
However, the Vietnamese Government imposes mid-term and long-term credit limits on
foreign bank branches, which contradicts what is  set out in its credit policy. To facilitate
the participation of more banks in mid-term and long-term borrowing, please explain
the purpose of the restriction.
Answer:
Viet Nam takes note of the above comments. Viet Nam is prepared to discussed them in more details
in the context of services bilateral negotiations.WT/ACC/VNM/29
Page 72
Question 145
Paragraph 310 of Page 64, Viet Nam Factual Summary.  The Factual Summary indicates that
the establishment of foreign insurance companie s in the Vietnamese market is subject to an
economic need test. Please elaborate on the me aning of “economic need test” and its actual
criteria or the regulations that apply.
Answer:
Viet Nam takes note of the above comments. Viet Nam is prepared to discussed them in more details
in the context of services bilateral negotiations.
Question 146
Services (WT/ACC/SPEC/VNM/2/Rev.1).  There are a number of limitations as to the form, e.g.
Joint venture, Business Co-operation Contract which foreign parties may be involved,
percentage limits on capital contribution/ownership, as well as limitations on what sectors areavailable.  In professional services, licensing is required and appears to be decided on an open
ended discretionary basis, with the exception of  set exclusions e.g. auditing and accounting
firms, even with licensing are prohibited from providing services to Vietnamese companies.
Certification is also required in some areas, su ch as engineering and architectural services. The
criteria for certification may be of a higher threshold than in the case of domestic engineers etc.The requirement to hire Vietnamese only in certain positions e.g. tourist guides is also of
concern.  We would welcome comments from Viet Nam on the rationale for these restrictions
and would encourage it to take a more liberal perspective.
Answer:
Viet Nam takes note of the above comments. Viet Nam is prepared to discussed them in more details
in the context of services bilateral negotiations.
VII. INSTITUTIONAL BASE FOR TRADE AND ECONOMIC RELATIONS WITH
THIRD COUNTRIES
Question 147
US-Viet Nam Trade Agreement.  Some Members showed their interest in the US-Viet Nam
Trade Agreement, as described in the paragraphs 318 and 319 of the factual summary, and
Viet Nam made clear in its response that it  would abide by the MFN provisions specified in
Article I of the GATT 1994.  In this regard, as Article 6 in the Chapter I of the US-Viet Nam
Trade Agreement stipulates the provisions regar ding “Emergency Action on Imports”, please
explain in detail how this article will be applied in relation to the other WTO Members after
Viet Nam’s accession to the WTO.  Please also make a similar explanation with regard to the
other Articles in this bilateral trade agreement.
Answer:
Viet Nam reconfirms that it will comply with the MFN principle in Article I of GATT 1994. With
respect to “Emergency Action on Imports”, Viet Nam does not accord any preferential treatment to
the US within the meaning of Article I of GA TT 1994. The Ordinance on Safeguards was formulated
on WTO norms and standards, and took effect since 1 September 2002. An unofficial translation ofthis Ordinance is available through document WT/ACC/VNM/28.
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