WTO TPR Vietnam 2021 by Secretariat

RESTRICTED
WT/TPR/S/410
2 March 2021
(21-1767) Page: 1/185
Trade Policy Review Body
TRADE POLICY REVIEW
REPORT BY THE SECRETARIAT
VIET NAM
This report, prepared for the second Trade Policy Review of Viet Nam, has been drawn up by the
WTO Secretariat on its own responsibility. The Secretariat has, as required by the Agreement
establishing the Trade Policy Review Mechanism (Annex 3 of the Marrakesh Agreement Establishing
the World Trade Organization), sought clarification from Viet Nam on its trade policies and practices.
Any technical questions arising from this report may be addressed to Mr Masahiro Hayafuji (tel: 022
739 5873); Mr Xinyi Li (tel: 022 739 5579); and Mr Cristian Ugarte (tel: 022 739 6638).
Document WT/TPR/G/410 contains the policy statement submitted by Viet Nam.
Note: This report is subject to restricted circulation and press embargo until the end of the first
session of the meeting of the Trade Policy Review Body on Viet Nam. This report was drafted in
English.
WT/TPR/S/410 • Viet Nam
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CONTENTS
SUMMARY ........................................................................................................................ 8
1 ECONOMIC ENVIRONMENT ........................................................................................ 13
1.1 Main Features of the Economy .....................................................................................13
1.2 Recent Economic Developments ...................................................................................15
1.2.1 Overview/background ..............................................................................................15
1.2.2 Fiscal policy ............................................................................................................17
1.2.3 Monetary policy .......................................................................................................18
1.2.4 Exchange rates and balance of payments ...................................................................19
1.2.5 Impact of the COVID-19 pandemic.............................................................................20
1.3 Developments in Trade and Investment ........................................................................22
1.3.1 Trends and patterns in merchandise and services trade ................................................22
1.3.1.1 Merchandise trade.................................................................................................22
1.3.1.2 Participation in global value chains ..........................................................................25
1.3.1.3 Impact of COVID-19 pandemic on global value chains ...............................................27
1.3.1.4 Trade in services ...................................................................................................28
1.3.2 Trends and patterns in FDI .......................................................................................29
2 TRADE AND INVESTMENT REGIMES........................................................................... 32
2.1 General Framework ....................................................................................................32
2.1.1 Institutional framework ............................................................................................32
2.1.2 International agreements .........................................................................................33
2.1.3 Transparency and certainty .......................................................................................33
2.2 Trade Policy Formulation and Objectives........................................................................35
2.2.1 Trade policy objectives .............................................................................................35
2.2.2 Trade policy formulation and implementation ..............................................................35
2.3 Trade Agreements and Arrangements ...........................................................................36
2.3.1 WTO ......................................................................................................................36
2.3.2 Regional and preferential agreements ........................................................................36
2.3.2.1 ASEAN .................................................................................................................37
2.3.2.1.1 ASEAN Free Trade Area .......................................................................................37
2.3.2.1.2 ASEAN-Hong Kong, China Free Trade Agreement ...................................................38
2.3.2.1.3 ASEAN-India Agreement on Trade in Services ........................................................38
2.3.2.1.4 Other ASEAN RTAs .............................................................................................39
2.3.2.2 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).........39
2.3.2.3 European Union-Viet Nam Free Trade Agreement (EVFTA) .........................................40
2.3.2.4 Free Trade Agreement between Viet Nam and the Eurasian Economic Union (EAEU)
and its member States (VN-EAEU FTA) .................................................................................40
2.3.2.5 Free Trade Agreement between the Government of the Socialist Republic of Viet Nam
and the Government of the Republic of Korea (VKFTA) ...........................................................40
2.3.2.6 Free Trade Agreement between Viet Nam and Chile ..................................................41
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2.3.2.7 Trade Agreement between the Government of the Socialist Republic of Viet Nam
and the Government of the Republic of Cuba (Viet Nam-Cuba Trade Agreement) .......................41
2.3.2.8 Regional Comprehensive Economic Partnership (RCEP) ..............................................42
2.3.3 Other agreements and arrangements .........................................................................42
2.4 Investment Regime ....................................................................................................42
3 TRADE POLICIES AND PRACTICES BY MEASURE ........................................................ 48
3.1 Measures Directly Affecting Imports ..............................................................................48
3.1.1 Customs procedures, valuation, and requirements .......................................................48
3.1.1.1 Customs procedures ..............................................................................................48
3.1.1.2 Customs valuation ................................................................................................51
3.1.2 Rules of origin .........................................................................................................52
3.1.3 Tariffs ....................................................................................................................53
3.1.4 Other charges affecting imports .................................................................................59
3.1.5 Import prohibitions, restrictions, and licensing ............................................................63
3.1.6 Anti-dumping, countervailing, and safeguard measures ................................................66
3.1.7 Other measures affecting imports ..............................................................................69
3.2 Measures Directly Affecting Exports ..............................................................................69
3.2.1 Customs procedures and requirements .......................................................................69
3.2.2 Taxes, charges, and levies ........................................................................................70
3.2.3 Export prohibitions, restrictions, and licensing .............................................................73
3.2.4 Export support and promotion ...................................................................................73
3.2.5 Export finance, insurance, and guarantees ..................................................................76
3.3 Measures Affecting Production and Trade.......................................................................76
3.3.1 Incentives ...............................................................................................................76
3.3.2 Standards and other technical requirements ...............................................................78
3.3.3 Sanitary and phytosanitary requirements....................................................................84
3.3.4 Competition policy and price controls .........................................................................88
3.3.4.1 Competition policy ................................................................................................88
3.3.4.1.1 Legal and institutional frameworks .......................................................................88
3.3.4.1.2 Anti-competitive agreements ...............................................................................89
3.3.4.1.3 Abuse of a dominant market position ....................................................................89
3.3.4.1.4 Economic concentration ......................................................................................90
3.3.4.1.5 Penalties, leniency programme, and enforcement ...................................................90
3.3.4.1.6 International treaties and cooperation ..................................................................91
3.3.4.2 Price controls........................................................................................................91
3.3.5 State trading, state-owned enterprises, and privatization .............................................93
3.3.5.1 State trading ........................................................................................................93
3.3.5.2 State-owned enterprises and privatization................................................................93
3.3.6 Government procurement .........................................................................................97
3.3.6.1 Overview of legal and institutional framework ...........................................................97
3.3.6.2 Procurement methods, time periods, bid evaluation, and bid protests ..........................98
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3.3.6.3 Domestic preference and other preference policies .................................................. 100

3.3.6.4 Government procurement commitments under FTAs ............................................... 100
3.3.7 Intellectual property rights ...................................................................................... 102
3.3.7.1 Overview ........................................................................................................... 102
3.3.7.2 Legislative and institutional framework/developments ............................................. 103
3.3.7.3 Industrial property .............................................................................................. 104
3.3.7.3.1 Patents ........................................................................................................... 105
3.3.7.3.2 Industrial designs ............................................................................................. 105
3.3.7.3.3 Layout designs of integrated circuits ................................................................... 105
3.3.7.3.4 Trade secrets ................................................................................................... 106
3.3.7.3.5 Trademarks ..................................................................................................... 106
3.3.7.3.6 Geographical indications ................................................................................... 106
3.3.7.3.7 Protection of plant varieties ............................................................................... 106
3.3.7.4 Copyright and related rights ................................................................................. 107
3.3.7.5 Parallel imports................................................................................................... 107
3.3.7.6 Enforcement....................................................................................................... 107
3.3.7.6.1 International cooperation and integration ............................................................ 108
4 TRADE POLICIES BY SECTOR ................................................................................... 110
4.1 Agriculture, Forestry, and Fisheries ............................................................................. 110
4.1.1 Features ............................................................................................................... 110
4.1.2 Agriculture ............................................................................................................ 112
4.1.2.1 Legal, institutional, and policy framework .............................................................. 112
4.1.2.2 Border measures ................................................................................................ 113
4.1.2.3 Domestic support ................................................................................................ 114
4.1.3 Fisheries ............................................................................................................... 115
4.1.3.1 Features ............................................................................................................ 115
4.1.3.2 Trade ................................................................................................................ 116
4.1.3.3 Policies .............................................................................................................. 117
4.2 Mining and Energy .................................................................................................... 119
4.2.1 Mining .................................................................................................................. 119
4.2.2 Energy ................................................................................................................. 122
4.2.2.1 Electricity ........................................................................................................... 123
4.2.2.2 Hydrocarbons ..................................................................................................... 127
4.2.2.2.1 Upstream ........................................................................................................ 127
4.2.2.2.2 Downstream .................................................................................................... 129
4.2.2.2.3 Natural gas ..................................................................................................... 130
4.3 Manufacturing .......................................................................................................... 131
4.3.1 Textiles and garments ............................................................................................ 132
4.3.2 Motor vehicles ....................................................................................................... 133
4.3.3 Other manufacturing activities ................................................................................. 134
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4.4 Services .................................................................................................................. 135

4.4.1 Features ............................................................................................................... 135
4.4.2 Overall commitments under the General Agreement on Trade in Services ..................... 136
4.4.3 Regional and bilateral agreements on services........................................................... 136
4.4.4 Financial services ................................................................................................... 137
4.4.4.1 Banking ............................................................................................................. 137
4.4.4.2 Insurance .......................................................................................................... 141
4.4.4.3 Securities........................................................................................................... 143
4.4.5 Telecommunications ............................................................................................... 144
4.4.6 Transport.............................................................................................................. 147
4.4.6.1 Maritime transport .............................................................................................. 148
4.4.6.2 Air transport....................................................................................................... 150
4.4.6.3 Land transport .................................................................................................... 154
4.4.7 Distribution services ............................................................................................... 155
5 APPENDIX TABLES .................................................................................................. 157
CHARTS
Chart 1.1 Productivity and total factor productivity (TFP), 2013-19 ..........................................14
Chart 1.2 Expenditure component contributions to GDP growth, 2013-19..................................15
Chart 1.3 Tax revenue by source, 2013-19 ...........................................................................17
Chart 1.4 Product composition of merchandise trade by main HS sections, 2012 and 2019 .........23
Chart 1.5 Population by economic class, 2010-16...................................................................24
Chart 1.6 Direction of merchandise trade, 2012 and 2019 .......................................................25
Chart 1.7 Merchandise trade, by end-use, 2019 .....................................................................26
Chart 1.8 Share of electric/electronic trade, by end-use, 2019 .................................................26
Chart 1.9 Major trading partners of electronic products, by end-use, 2019 ................................27
Chart 1.10 Major trading partners for garment apparel, by end-use, 2019 ................................27
Chart 1.11 Major merchandise trade of manufacturing sectors, 2019-20 ...................................28
Chart 1.12 Foreign direct investment, 2000-19 ......................................................................29
Chart 1.13 FDI stock and productivity by sector, 2019 ............................................................30
Chart 3.1 Average applied MFN rates, by HS section, 2013 and 2020 .......................................55
Chart 3.2 Distribution of MFN tariff rates, 2013 and 2020 .......................................................57
Chart 3.3 Standards organizational structure in the Ministry of Science and Technology, 2020.....79
TABLES
Table 1.1 GDP, 2013-19 .....................................................................................................13

Table 1.2 Selected macroeconomic indicators, 2013-19 ..........................................................16
Table 1.3 Balance of payments, 2013-19 ..............................................................................20
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Table 1.4 Trade in services, 2013-19 ....................................................................................28

Table 1.5 Inward foreign investment stock by sector, 2019 .....................................................29
Table 2.1 RTAs of which Viet Nam is a party, June 2020 .........................................................37
Table 2.2 Caps on foreign participation in specific sectors and activities, 2020 ...........................43
Table 3.1 Tariff structure, 2013 and 2020 .............................................................................53
Table 3.2 Summary analysis of the preferential tariff, 2020 .....................................................56
Table 3.3 Tariff quotas, 2016-19 ..........................................................................................57
Table 3.4 Goods and services subject to the excise tax, 2019 ..................................................60
Table 3.5 Products subject to environmental protection tax, 2020 ............................................61
Table 3.6 Goods and services not subject to VAT, December 2020 ...........................................62
Table 3.7 Import prohibitions, 2020 .....................................................................................64
Table 3.8 Export charges and fees, 2020 ..............................................................................70
Table 3.9 Royalty payments on natural resources ..................................................................71
Table 3.10 The STAMEQ in international and regional standards organizations, 2020 ..................80
Table 3.11 Goods subject to mandatory inspection and quality control, 2020 .............................83
Table 3.12 Certificates required for importing food and agricultural products, 2020 ....................85
Table 3.13 Decrees on price management, 2020 ....................................................................91
Table 3.14 Selected large SOEs, 2019 ..................................................................................93
Table 3.15 Procurement methods and conditions for use, 2020 ................................................99
Table 3.16 Comparison of market access offers under the CPTPP and the EVFTA ...................... 101
Table 3.17 Trademarks, industrial designs, and patents and utility solutions, 2013-19 .............. 104
Table 3.18 Applications of layout design of integrated circuits and certificates granted, 2013-19 105
Table 3.19 IPR infringement cases, 2013-19 ....................................................................... 108
Table 3.20 International IPR treaties in force for Viet Nam, 2020 ........................................... 109
Table 4.1 Production of selected commodities, 2013-19 ........................................................ 110
Table 4.2 Exports and imports of agricultural products, 2013-19 ............................................ 111
BOXES
Box 1.1 Fiscal measures introduced to support the economy and counter the effects of the
COVID-19 pandemic ...........................................................................................................21
Box 2.1 The system of legal normative documents, 2020 ........................................................34
APPENDIX TABLES
Table A1.1 Merchandise exports by HS sections and major HS subgroups, 2012-19 ................. 157
Table A1.2 Merchandise imports by HS sections and major HS chapters, 2012-19 .................... 158
Table A1.3 Merchandise exports by destination, 2012-19 ...................................................... 159
Table A1.4 Merchandise imports by origin, 2012-19 ............................................................. 160
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Table A2.1 Selected notifications, 2013-20 .......................................................................... 161
Table A3.1 Legislation pertaining to Viet Nam's rules of origin, 2013-20.................................. 163
Table A3.2 Tariff summary, 2020 ....................................................................................... 167
Table A3.3 Tariff lines whose applied MFN tariff rates exceed bound rates, 2020 ...................... 169
Table A3.4 Goods subject to import restriction, 2020 ............................................................ 170
Table A3.5 Anti-dumping and safeguard measures initiated between 2013 and 2019 ................ 173
Table A3.6 Export taxes, 1 January 2020 ............................................................................ 175
Table A3.7 Goods subject to export prohibition, restriction, 2020 ........................................... 178
Table A3.8 Principal legislation on technical measuresa ......................................................... 180
Table A3.9 Basic SPS legislation ......................................................................................... 182
Table A3.10 Main laws, regulations, and guidelines for IPRs .................................................. 185
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SUMMARY
1. Over the past 30 years, Viet Nam sustained high GDP growth rates, which transformed the
country into a lower-middle-income emerging economy; the poverty rate declined sharply from
above 70% in the early 1990s to below 6% in 2019. The economy grew at an average rate of 6.6%
per annum between 2014 and 2018 and reached a 10-year high of 7.1% in 2018. In 2019, real GDP
grew by 7%, with GDP per capita reaching over USD 2,700. Preliminary data showed that GDP
growth in 2020 slowed down to 2.5%, reflecting the impact of the COVID-19 pandemic.
2. Viet Nam pursues export-oriented trade policies and recognizes international economic
integration as a key driver for its institutional improvement, economic growth, and development. In
the Strategy on Exports and Imports for 2011-20, Vision to 2030, Viet Nam set trade-related targets
such as a double-digit annual growth rate of exports, a slower growth rate of imports than of exports,
and a gradual reduction of the trade deficit, until reaching a surplus in the next decade.
3. The country's economic expansion in recent years was underpinned by robust domestic
demand and manufacturing exports. Since its last Review in 2013, Viet Nam further integrated into
the world economy, with its ratio of trade to GDP increasing from 165% in 2013 to 210% in 2019.
Reflecting strong economic fundamentals, the real effective exchange rate of the Vietnamese dong
appreciated by 4% on average each year. In August 2015, the floating band of exchange rates
increased to 3%, from 1% previously.
4. During the review period, merchandise trade grew at a double-digit rate annually, in real
terms. This reflected its active participation in global value chains (GVCs), emerging as a
manufacturing centre for apparel and consumer electronics, particularly smart phones. In 2019,
about 85% of imported electronic products were intermediate goods, slightly half of which were
supplied by the Republic of Korea and China; 44% of exports of electronic products were final
consumer goods, half of which were shipped to the United States, the United Arab Emirates, and
Austria. Viet Nam maintained a surplus in trade in goods and services, as well as in remittances.
5. Foreign direct investment (FDI) plays a key role in Viet Nam's economic transformation,
representing 20% of GDP and generating 5 million jobs in 2019. FDI is also the main driving force
of the country's productivity improvement. More than 17,000 foreign investment projects with total
registered capital of USD 143.1 billion were approved during the review period; processing and
manufacturing accounted for around 62% of the total foreign capital invested in the country.
6. Given its deep integration into the global economy, Viet Nam suffered from the COVID-19
pandemic due to weakened demand and reduced trade. However, preliminary evidence indicates
that Viet Nam's merchandise trade based on GVCs in 2020, particularly in the consumer electronics
and garment sectors, appeared not to be losing momentum, compared with those sectors'
performance in 2019, partly reflecting the Government's proactive measures.
7. Since January 2016, Viet Nam has implemented fiscal consolidation, strictly limiting the
issuance of government guarantees and stabilizing the state budget deficit; this policy enabled
Viet Nam to lower government and public debts in relation to GDP, creating some fiscal space to
deal with short- or long-term structural challenges, such as the ones that have arisen from the
COVID-19 pandemic, contingent liabilities of both state-owned enterprises (SOEs) and banking
sector, and climate change. Facing the COVID-19 pandemic, Viet Nam introduced a series of fiscal
measures and incentives to replace lost income and boost growth, including a fiscal support package
equivalent to 3.6% of GDP, fee cuts, tax payment deferrals and deductions, and financial incentives
for employers and employees. Consequently, the general government deficit and the public-debt-
to-GDP ratio in 2020 are expected to increase to around 5% and 57%, respectively.
8. Viet Nam considers that its WTO membership plays a central role in its international
integration strategy. Viet Nam submitted its instruments of acceptance for the WTO Agreement on
Trade Facilitation in December 2015, and for the amendment of the TRIPS Agreement in January
2017. It participates in the Information Technology Agreement (ITA), but not in the Agreement's
expansion (ITA 2). During the review period, Viet Nam submitted more than 350 notifications to
various WTO committees, and 5 complaints to the WTO dispute settlement body.
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9. As at January 2021, Viet Nam was a signatory to 15 regional trade agreements (RTAs), 6 of
which were signed during the review period, including the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic
Partnership.
10. Viet Nam's investment regime was substantially updated by revising both the Enterprise Law
and the Investment Law in July 2015. The legislation aims to attract FDI by equalizing business
conditions for SOEs, foreign-invested enterprises, and the domestic private sector. The number of
restricted activities was reduced, compared with that in the previous framework. The general cap of
49% for foreign acquisition of public companies operating in unconditional sectors was abolished in
2015; however, foreign participation in some sectors remains capped at levels between 30% and
51%. Moreover, the number of eligible fields for the implementation of public-private partnership
(PPP) projects was increased in 2018. On 1 January 2021, a revised Enterprise Law, a revised
Investment Law, and a new Law on Investment in the Form on Public-Private Partnership entered
into force. Viet Nam signed five bilateral investment agreements during the review period.
11. Viet Nam continued to reform its policies and measures on customs procedures based on its
Customs Development Strategy to 2020. In line with this Strategy, it adopted or revised relevant
legislation, including the Customs Law and the Law on Export Tax and Import Tax. Customs units at
all levels implement risk management. Customs uses an automatic customs clearance and national
single-window mechanism.
12. All tariffs are bound, and mostly in the 0%-40% range. The simple average applied MFN rate
for all goods was 11.9% in 2020, up from 10.4% in 2013, mainly due to the change from the HS12
to the HS17 nomenclature and the splitting of several tariff lines. Only second-hand motor vehicles
are subject to applied non-ad valorem rates. The highest tariffs include 135% for five tariff lines
concerning cigarettes. In 2020, the average bound rate was 14.7%. The simple average applied MFN
tariff was 18.1% for agricultural products (WTO definition) and 10.9% for non-agricultural products.
The difference between bound and applied MFN rates leaves some scope for flexibility in Viet Nam's
tariff policy. Tariff rate quotas regulate imports of eggs, sugar cane, tobacco, and salt.
13. Excise tax is levied on certain goods and services, including cigarettes, alcoholic beverages,
motor vehicles, motorcycles, and gasoline. No distinction is made between domestically produced
and imported goods. Excise tax is levied on the import-duty-inclusive price for imports on a c.i.f.
basis. The environmental protection tax continues to be applied on petroleum products, coal,
hydrogen-chlorofluorocarbon liquids, plastic bags, and various pesticides and herbicides; this list has
remained unchanged since Viet Nam's previous Review. Value-added tax, which is levied at a general
rate of 10%, constitutes almost one third of the Government's total tax revenue, while import and
export duties account for about one tenth.
14. Viet Nam prohibits the importation of, inter alia, certain chemicals, weapons, right-hand drive
vehicles, and certain used consumer goods; this list has not changed since 2013. Import restrictions
may also be applied to comply with international treaties and conventions to which Viet Nam is a
party. Goods subject to import restrictions administered by various ministries entail import licensing
requirements. The licensing requirement is also employed to administer importation of goods subject
to tariff quotas. Exports and imports can also be temporarily suspended in exceptional
circumstances, such as war, natural disasters, epidemics, or environmental incidents; products
causing serious effects on health and the environment; and balance of payment reasons.
15. The Law on Foreign Trade Management is the main legislation governing anti-dumping,
countervailing, and safeguard measures. Viet Nam notified laws and regulations pertaining to anti-
dumping, countervailing, and safeguard measures to the WTO in 2018 and 2020; it also responded
to detailed questions on its anti-dumping regime in 2019. Between 2013 and 2019, Viet Nam had
five anti-dumping measures in place and four cases under investigation; it also had four safeguard
measures in place. The main products covered by these measures include steel, aluminium, and
fertilizer.
16. Viet Nam levies export taxes on certain products, such as fish, minerals, coal, rubber, and raw
hides and skins. The export tax rates changed frequently during the review period. The country also
levies royalties (severance tax) on natural resources, such as basic metals and minerals, timber,
water, crude oil, and natural gas used in domestic production or exported. Viet Nam enforces a
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number of export prohibitions, restrictions, and licensing in accordance with the Law on Foreign
Trade Management and relevant regulations.
17. As at June 2019, Viet Nam had four export processing zones. Preferential export and import
taxes apply to companies, both domestic and foreign, located in the zones.
18. Viet Nam provides investment incentives, mainly through tax reductions, for projects in
geographical areas with difficult socio-economic conditions or in industrial zones. Specific supports,
such as access to credit, lower taxes and land rents, and exemption of import duties, are also
accorded to some selected activities and sectors, such as fishery products, small- and medium-sized
enterprises, supporting industries, or renewable energy. Investors participating in significant PPP
projects may benefit from additional incentives, such as guarantees on land use and foreign currency
availability. Following the onset of COVID-19 pandemic, Viet Nam introduced a series of measures
and incentives, alleviating the impact on enterprises; these measures included an extension of time
limits for tax payments, a reduction of corporate income taxes, and temporary discounts in electricity
bills.
19. The overall regulatory framework for standards and technical regulations remained largely
unchanged. According to the authorities, 60% of Vietnamese standards were harmonized with
international, regional, or foreign standards in 2020, up from 40% in 2013. Goods classified as
"capable of causing unsafety", whether imported or domestically produced, are subject to conformity
assessment as set forth in the relevant technical regulations. Requirements concerning conformity
assessment must be fulfilled before the product is circulated in the market. A new decree pertaining
to labelling requirements entered into force in April 2017. During the review period, Viet Nam
submitted 152 notifications, covering a large variety of products, to the WTO TBT Committee, and
four specific trade concerns (STCs), concerning alcoholic beverages, inspection on imported vehicles,
cybersecurity regulations, and electronic products, were raised in the Committee.
20. The Government implemented a national food safety strategy for 2011-20 with the aim of
controlling food safety over the entire food supply chain by 2020. Food-inspection laboratories and
facilities were operational in provinces by 2020, and according to the Strategy, all food production,
processing, and trading establishments are expected to meet food safety conditions by 2030. In line
with this objective, Viet Nam modernized its regime concerning sanitary and phytosanitary
requirements. The relevant legislation covers issues such as food safety for imported food,
quarantine requirements, fertilizer and pesticide management, and maximum residue levels of
pesticides on food. These regulatory changes were notified to the WTO through 84 notifications to
the SPS Committee. Since 2013, eight STCs have been raised at the SPS Committee, and two of
them have been reported as resolved or partially resolved in 2017.
21. Viet Nam modernized its institutional framework for competition. With the enactment of the
Law on Competition and its implementation decrees, the National Competition Commission (NCC)
was created as the enforcement authority. The creation of the NCC was expected to address some
issues of regulatory deficiencies that were identified with the previous regime. The NCC is responsible
for investigating and adjudicating anti-competitive acts, monitoring economic concentration, and
settling complaints about its decisions. Since July 2019, 20 claims have been filed with the NCC, of
which 11 were related to unfair trade practices, and 9 to anti-competitive agreements and abuse of
a dominant market position; the NCC has also completed 60 economic concentration reviews.
22. Viet Nam maintains price controls on certain goods and services. According to the authorities,
price controls are primarily achieved in an indirect manner. The Ministry of Finance at the national
level and the Department of Finance at the provincial level are the competent authorities for
implementing price management. The authorities note that price stabilization is currently applied
only to refined petroleum products. It is estimated that continuing price liberalization would add
about 2 percentage points to the Consumer Price Index.
23. Viet Nam notified to the WTO its state trading enterprises concerning cigarettes, cigars,
newspapers, journals, and periodicals. Viet Nam also submitted replies to questions posed in the
Working Party on State Trading Enterprises. As at 31 December 2018, SOEs employed 1.13 million
workers, accounting for 7.6% of the employees of the corporate sector. The number of 100% SOEs
fell from 1,309 at the end of 2011 to 487 at the end of 2019. Concerning the governance and
management of SOEs in Viet Nam, a number of laws and regulations were issued during the review
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period, including the 2014 Enterprise Law and the 2014 Law on Management and Use of State Capital
Invested in Production and Business Activities.
24. The government procurement regime was revised to expand the scope of application,
covering: (i) development investment projects and procurements of which at least 30% of the
project value is financed through the state budget; and (ii) investment projects by SOEs.
Government procurement may be conducted through domestic bidding or international bidding. In
the case of domestic bidding, only domestic tenderers are allowed to participate in a tender. In
general, foreign suppliers must have a partnership with domestic contractors or be sub-contractors
of domestic contractors when participating in an international bid, unless domestic contractors do
not have full capacity to participate in a bidding. Preference for 25% of domestic value is maintained
in the procurement system, regardless of whether it is a domestic or international bidding. Viet Nam
is not a signatory to the Agreement on Government Procurement (GPA). In two recently signed
RTAs, i.e. the CPTPP and the European Union-Viet Nam Free Trade Agreement, Viet Nam made its
first commitments to open its government procurement to foreign suppliers bidding directly from
abroad. The government procurement chapters of both Agreements are based, to a large extent, on
the legal text and market access schedule structure of the GPA.
25. With regard to intellectual property rights (IPRs), the Law on Intellectual Property was
amended in June 2019. The amendment aims to implement commitments under the CPTPP. On
1 July 2018, the Law on Technology Transfer was revised. The revised Law requires disclosure of
technology secrets under certain circumstances, such as on the ground of national security, national
defence, social welfare, and other interests of the State and society. Viet Nam has a regime of
international exhaustion; therefore, parallel imports are not considered to infringe on IPRs.
Counterfeiting and piracy remain the major IPR infringements. IPR enforcement is primarily
practised through the imposition of administrative penalties; civil and criminal remedies are rarely
or ineffectively used. To address the issue of IPR enforcement, Viet Nam established a National
Steering Committee against Smuggling, Counterfeiting and Trade Fraud in March 2014.
26. In 2019, agriculture, forestry, and fisheries contributed 15.5% to GDP (down from 20.0% in
2013) and 34.5% to employment (down from 46.7% in 2013). The main agricultural products
include rice, coffee, and rubber. In 2019, Viet Nam had a deficit in agricultural trade. Both imports
and exports of agricultural products increased between 2013 and 2018; in 2019, they both declined.
The main exports included coconuts, rice, and coffee; the main imports included cotton and maize.
The main agricultural policy development was the adoption of various laws, such as the Laws on
Irrigation, Animal Health, Animal Husbandry, and Crop Production, and relevant regulations.
27. Fisheries represented 2.3% of merchandise exports in 2019 (down from 3.8% in 2013). In
2018, the fishery catch amounted to 3,590 tonnes, an increase of 6% compared with 2017. Viet Nam
had a trade surplus in fisheries products. The fisheries policy is included in the Master Plan on
Fisheries Development through 2020, Vision to 2030, which sets objectives for turning fisheries into
a highly competitive, large community production sector. The Fisheries Development Policies provide
support measures to the sector, such as credits for new vessels, subsidized accident insurance, and
tax exemptions between 2015 and 2018.
28. The Government set targets for efficiency and conservation of energy until 2030 and promoted
the development of renewable energy; however, adverse climate conditions in the country increased
its reliance on coal, oil, and gas for energy production. Viet Nam became a net importer of coal in
2019; with the operation of a second oil refinery in 2018, Viet Nam reduced its exports of crude oil
as well as its imports of refined oil. The regulatory framework of the energy sector remained largely
unchanged, except for a revision in royalty rates in 2015. The Government promoted the
restructuring and equitization of subsidiaries of main SOEs in the sector, and the ownership role of
the State in large conglomerates was transferred to the recently established Commission for the
Management of State Capital in Enterprises. Viet Nam runs a Price Stabilization Fund for different
petroleum products.
29. Some segments of the electricity market shifted towards increased competition between
service providers; three state-owned generation corporations underwent equitization and two other
corporation are expected to complete similar procedures in coming years. The wholesale market for
electricity started operations in 2019, and a fully operational retail electricity market is planned for
2024. The State continues to hold a monopoly in transmission, management of the national
electricity system, and construction and operation of "large" electricity plants. The Government
- 12 -
regulates retail electricity prices that vary between consumer groups, time of consumption, and
voltage levels.
30. Viet Nam seeks to continue developing its manufacturing sector, and its national strategy
prioritizes some selected subsectors. During the review period, manufacturing exports more than
doubled and foreign-invested enterprises accounted for nearly 70% of total merchandise exports in
2019. Some subsectors witnessed a notable performance in recent years, while the overall impact
of policies in other subsectors is still to be seen. For example, domestic production and exports of
footwear and garments substantially increased during the review period, and Viet Nam aims to
attract foreign investment for the development of its pharmaceutical industry through regulatory
changes. Lower labour costs and a supply of relatively skilled workers are drivers behind the recent
increase of inward FDI in manufacturing. Investment incentives and tariff protection are other policy
tools used for the development of some industries.
31. Services are the main sector in the economy. In 2019, the share of services in GDP was
46.2%, up from 43.1% in 2013. Most services are oriented to serve the domestic market. Viet Nam
committed to some further liberalization of its services sector in recent bilateral and regional trade
agreements.
32. The banking sector is dominated by state-owned commercial banks; the State reduced its
participation in some of them. The review period was marked by consolidation among commercial
banks, in most of cases, to support weak banks. The State Bank of Viet Nam also intervened in
commercial banks through compulsory acquisitions. Compliance with Basel II requirements,
reduction of cross-ownership, and handling of non-performing loans were the main objectives
decided by the Government for the banking system; some progress in achieving these objectives
was observed. Other financial services (insurance and securities) are expected to continue to grow
rapidly, as their coverage and use expand among the population.
33. The telecommunications market is expected to expand in coming years, reflecting the
development of IT-related activities. Mobile communication is the main, as well as the fastest-
growing, segment and the commercialization of 5G started in December 2020. Three SOEs dominate
the market, while the State plans to reduce its participation in two of them through equitization. The
policy framework regulating the sector has remained largely unchanged since the last Review.
Interconnection rates are controlled by the Government, while operators are free to determine retail
tariffs for other services. Viet Nam operates a public fund for the development and provision of public
utility telecommunications services.
34. The overall integration of infrastructure projects in the transport sector remains a challenge
for resolving some multi-modal bottlenecks and for supporting the country's transformation. PPPs
are considered as a key source of funding for transport development in coming years. Foreign firms
dominate the overseas cargo shipping market, and no domestic support measure is applied by the
Government; only ships flying the national flag are entitled to inland sea transport. Maritime cargo
is concentrated around a few seaports, and some ports operate near or at their capacity. Since 2017,
private investment in ports is allowed. The authorities applied reductions in fees to promote the use
of new infrastructure. Viet Nam Airlines, the national flag carrier largely controlled by the State,
remains a key player for air transport and related services. The first airport developed under a PPP
project became operational in 2018; caps on foreign capital apply in air transport services.
Renovated and new airport infrastructure attracted foreign carriers to the international passenger
transport market. The liberalization through the ASEAN Open Skies policy in January 2015 and
granting reductions in service fees on new routes or for carriers entering the market are expected
to further increase competition in the air transport market. As for land transport, funding
mobilization and budget allocation are limited compared with the demand for road infrastructure.
The Government aims to densify road infrastructure, notably expressways, and to upgrade existing
routes through PPPs. The development of railway infrastructure is lagging, despite the update of its
legal framework in 2017. Foreign investment is not present in this segment.
35. The number of supermarkets, shopping centres, and convenience stores is on the rise, and
competition has pushed retailers to consolidate in the past five years. Economic needs tests for retail
outlets are under the responsibility of provincial authorities. Since 2015, wholly foreign-owned
companies have been allowed in almost all distribution services; however, trading rights and
distribution rights are separately granted. Viet Nam reduced the list of forbidden products by foreign-
invested distributors.
- 13 -
1 ECONOMIC ENVIRONMENT
1.1 Main Features of the Economy
1.1. The economy of Viet Nam is a "socialist-oriented market economy", as defined by Viet Nam's
constitution. It is characterized by economic dualism combining government planning with free-
market incentives.1 Extensive market reforms have been carried out since the dawn of the Doi Moi
era in 19862; however, the structural transformation is not yet complete, with an uneven playing
field between the State and the private sector.3
1.2. Viet Nam sustained high growth rates that transformed the country from one of the poorest to
a lower-middle-income emerging economy over the past 30 years. More than 45 million people were
lifted out of poverty (measured as USD 3.2/day in purchasing power parity); the poverty rate
declined sharply from above 70% in early 1990s to below 6% in 2019.4 GDP per capita reached over
USD 2,700 in 2019.
1.3. The services sector is the largest sector in terms of contribution to both GDP (46.2% in 2019)
and employment (35.4% of the labour force). Within services, "wholesale and retail trade; repair of
motor vehicles" is the largest subsector, accounting for 12.4% of GDP and 13.3% of employment in
2019. Financial services, though employing only 0.9% of the labour force, was the fastest-growing
subsector, with an annual growth rate around 8% since 2016, accounting for almost 6% of GDP in
2019. Manufacturing has been the fastest-growing sector, recording double-digit annual growth
rates since 2015; it accounted for about 18.3% of GDP and some 69% of the total value of
merchandise exports in 2019. Agriculture and related activities remain an important sector; despite
the decline in its share of GDP to 15.5% in 2019, it employed almost 35% of the workers (Table 1.1).
Table 1.1 GDP, 2013-19

2013 2014 2015 2016 2017 2018 2019
Current GDP (VND trillion) 3,584.3 3,937.9 4,192.9 4,502.7 5,006.0 5,542.3 6,037.3
Current GDP (USD billion) 171.2 186.2 193.2 205.3 223.8 245.2 261.9
GDP per capita (USD) 1,898.4 2,041.6 2,095.2 2,201.3 2,373.4 2,570.8 2,714.7
GDP by economic activity at current basic prices (%)
Agriculture, forestry, and fishing 20.0 19.7 18.9 18.1 17.0 16.3 15.5
Mining and quarrying 12.2 12.0 10.7 9.0 8.3 8.2 7.5
Manufacturing 14.8 14.7 15.2 15.9 17.0 17.8 18.3
Electricity, gas, and water supply 4.1 4.6 5.0 5.2 5.4 5.6 5.9
Construction 5.7 5.7 6.0 6.2 6.4 6.5 6.6
Services 43.1 43.4 44.2 45.5 45.8 45.7 46.2
Wholesale and retail trade; repair of
10.5 10.9 11.3 11.7 11.9 12.1 12.4
motor vehicles
Transportation and storage 3.2 3.2 3.0 3.0 3.0 3.0 3.1
Accommodation and food-service
4.2 4.2 4.1 4.2 4.3 4.2 4.2
activities
Information and communication 0.8 0.8 0.8 0.8 0.8 0.8 0.8
Financial, banking, and insurance
6.1 5.8 6.1 6.1 6.1 5.9 5.9
activities
Real estate activities 5.9 5.7 5.6 5.6 5.3 5.1 5.0
1
Dualism in Viet Nam consists of a large state sector and a private sector. The state sector easily
attracts investment, disproportionate to its productivity or its job creation, compared with the private sector. It
enjoys a wide range of administrative facilities, in addition to the protection provided for them. Dualism in
Viet Nam also features its economic development transforming from an agricultural economy to one dominated
by manufacturing and services sectors, as observed through the lack of connection between the foreign-
invested sector and the domestic economic sector. For details, see UNDP (2013), Viet Nam's Economy:
Success Story or Weird Dualism? Viewed at:
https://www.vn.undp.org/content/vietnam/en/home/library/poverty/viet-nam_s-economy--success-story-or-
weird-dualism-.html; also Baum (2020), Vietnam's Development Success Story and the Unfinished SDG
Agenda, IMF Working Paper WP/20/31, Viewed at:
https://www.imf.org/~/media/Files/Publications/WP/2020/English/wpiea2020031-print-pdf.ashx.
2
Doi Moi ("rejuvenation") is the process that dismantled the largely planned economy (beginning with
agricultural reforms), opened a closed economy to international markets and trade, and initiated pro-business
reforms. Agricultural collectives were abolished, and the land was distributed among small farmers with
20-year leases. At the same time, price controls on agricultural goods were removed, as farmers and industrial
producers were allowed to sell their goods at market price for a profit.
3
IMF (2019), Vietnam: 2019 Article IV Consultation–Press Release; Staff Report; and Statement by the
Executive Director for Vietnam, IMF Country Report No. 19/235.
4
World Bank, The World Bank in Vietnam. Viewed at:
https://www.worldbank.org/en/country/vietnam/overview.
- 14 -
2013 2014 2015 2016 2017 2018 2019

Professional, scientific, and technical
1.5 1.4 1.5 1.5 1.4 1.4 1.4
activities
Administrative and support service
0.4 0.4 0.4 0.4 0.4 0.4 0.4
activities
State management & national defence;
2.9 3.0 3.0 3.1 3.1 3.0 3.0
compulsory social security
Education and training 3.3 3.4 3.6 3.8 3.9 4.1 4.2
Human health and social work activities 1.8 1.9 1.9 2.4 2.9 3.0 3.1
Other services 2.6 2.7 2.7 2.8 2.8 2.7 2.7
Share of sector in total employment (%)
Agriculture, forestry, and fishing 46.7 46.3 43.6 41.6 40.0 37.6 34.5
Mining and quarrying 0.5 0.5 0.4 0.4 0.4 0.4 0.4
Manufacturing 13.9 14.1 15.9 17.0 17.8 18.4 20.7
Electricity, gas, and water supply 0.5 0.5 0.5 0.6 0.5 0.6 0.7
Construction 6.3 6.3 6.2 7.2 7.6 7.9 8.4
Services 32.0 32.4 33.4 33.3 33.8 35.1 35.4
Wholesale and retail trade; repair of
12.6 12.6 12.7 12.7 12.8 13.4 13.3
motor vehicles
Transportation and storage 2.9 2.9 3.1 3.0 3.2 3.2 3.6
Accommodation and food-service
4.2 4.4 4.6 4.6 4.6 5.0 5.0
activities
Information and communication 0.6 0.6 0.7 0.6 0.6 0.6 0.6
Financial, banking, and insurance
0.6 0.7 0.7 0.7 0.7 0.8 0.9
activities
Real estate activities 0.3 0.3 0.3 0.4 0.4 0.5 0.6
Professional, scientific, and technical
0.5 0.5 0.5 0.4 0.5 0.5 0.6
activities
Administrative and support service
0.5 0.5 0.6 0.5 0.6 0.6 0.7
activities
State management & national defence;
3.1 3.2 3.2 3.2 3.2 3.0 2.7
compulsory social security
Education and training 3.5 3.5 3.5 3.5 3.7 3.9 3.6
Human health and social work activities 0.9 0.9 1.0 1.1 1.0 1.1 1.1
Other service activities 2.3 2.3 2.6 2.5 2.5 2.6 2.8
Source: General Statistics Office of Viet Nam, and data provided by the authorities.
1.4. Viet Nam has a young population. In 2019, the population was 96.2 million, with a median age
of 31. Around 67% of the population is of working age (i.e. between 15 and 64), with a 77% labour
participation rate, and around 62% of the labour force is between 25 and 49. This stable age
structure (i.e. the ratio of pensioners and students to workers) facilitates fiscal policy formulation,
in terms of taxation and allocation of government spending, as it allays the concerns that are present
in economies with aging populations.
Chart 1.[VNM] Productivity and TFP growth rate, 2013-19
Chart 1.1 Productivity and total factor productivity (TFP), 2013-19
7% 60%
6% 50%
Contribution of TFP to GDP growth (right scale)
5%
40%
Productivity growth rate (left scale)
4%
30%
3% TFP growth rate (left scale)
20%
2%
1% 10%
0% 0%
2013 2014 2015 2016 2017 2018 2019
Note: Productivity is measured as GDP per worker.

Source: Information provided by the authorities.
1.5. Trade integration is central to Viet Nam's reform efforts (Section 2.2.1). During the review
period, Viet Nam integrated quickly into the world economy, with its ratio of trade to GDP increasing
from 165% in 2013 to 210% in 2019 (Table 1.2). Viet Nam recently updated its trade regime,
including modernizing its customs legislation and procedures (Sections 3.1 and 3.2). Trade
- 15 -
integration facilitated Viet Nam's participation in global value chains (GVCs), first as an exporter of
low-tech manufactured goods and later of more complex high-tech goods. Since acceding to the
WTO in 2007, Viet Nam has subscribed to 15 regional trade agreements (RTAs), 7 of which were
signed during the review period (Section 2.3.2). Against the background of Viet Nam's efforts
towards international integration, there were productivity gains, which were important contributors
to GDP expansion (Chart 1.1 and Table 1.2).
1.6. To keep up with total factor productivity (TFP) growth, and despite considerable effort in recent
years (see below), further investment is likely to be needed, as the economy is running close to
capacity. According to the IMF, the output gap in 2018 was 0.6%.5 Apart from increased investment,
further structural reforms, including tackling the dualism in Viet Nam's twin transition from a planned
to a market economy and from farms to factories and services, are much needed to raise the
potential growth path. Viet Nam is also expected to promote growth by exploiting rapid digital
innovation and reshaping its participation in supply chains.
1.2 Recent Economic Developments
1.2.1 Overview/background
1.7. During the review period, Viet Nam's economy demonstrated fundamental strength and
resilience; it grew at an average rate of 6.6% per annum between 2014 and 2018 and reached a
10-year high of 7.1% in 2018. Manufacturing surged and direct investment inflows remained strong.
In 2019, preliminary data indicated that real GDP grew by 7% (Table 1.2).
Chart 1.
Chart 1.2[VNM] Contributions
Expenditure to percentcontributions
component change in real GDP, 2013-19
to GDP growth, 2013-19
Percentage points
20
Total GDP growth
15
10
-5
-10
2013 2014 2015 2016 2017 2018 2019
Private final consumption expenditure Gross capital formation
Government final consumption expenditure Net exports of goods & services
1.8. The
Source: economic
General expansion
Statistics was
Office of Viet supported
Nam. by robust
Statistical summary domestic
book demand
and Statistical andofexport-oriented
Handbook Viet Nam
manufacturing
(various (Chart
issues). 1.2).
ViewedDomestic demand was fuelled by strong growth in final
at: https://www.gso.gov.vn/Default_en.aspx?tabid=515 [Juneconsumption
2020]. and
investment, both of which grew at faster paces than GDP (Table 1.2). Investment, in terms of gross
capital formation, has been growing between 8% and 10% each year since 2014, which contributed
50% of total growth in 2019. Of the 7% of GDP growth in 2019, 6.5 percentage points were
5
- 16 -
attributed to private consumption. Both strong capital formation and private consumption reflected
the massive infrastructure investment and the loose credit supply in the last decade.
1.9. Economic growth in recent years was also driven by strong performance of imports and exports,
reflecting Viet Nam's active participation in GVCs (Section 1.3.1.2). Although net exports mostly had
a negative contribution to GDP growth during the review period, the external current account balance
reversed its deterioration trend in 2018 and continued. (Section 1.2.4).
Table 1.2 Selected macroeconomic indicators, 2013-19

2013 2014 2015 2016 2017 2018 2019
National accounts
Current GDP (VND trillion) 3,584.3 3,937.9 4,192.9 4,502.7 5,006.0 5,542.3 6,037.3
(real growth rate) (5.4) (6.0) (6.7) (6.2) (6.8) (7.1) (7.0)
2,566.8 2,838.0 3,115.1 3,379.4 3,731.6 4,103.7 4,505.2
Consumption
(5.4) (6.2) (9.1) (7.3) (7.3) (7.2) (7.2)
2,346.2 2,591.3 2,849.5 3,086.3 3,405.8 3,745.1 4,115.2
Private consumption
(5.2) (6.1) (9.3) (7.3) (7.3) (7.3) (7.4)
220.6 246.7 265.5 293.1 325.8 358.6 390.1
Government consumption
(7.3) (7.0) (7.0) (7.5) (7.3) (6.3) (5.8)
956.1 1,056.6 1,160.4 1,196.7 1,330.7 1,470.6 1,620.7
Gross capital formation
(5.4) (8.9) (9.0) (9.7) (9.8) (8.2) (7.9)
847.5 938.5 1,033.8 1,066.2 1,190.5 1,321.9 1,463.0
Gross fixed capital formation
(5.3) (9.3) (9.4) (9.9) (10.2) (8.7) (8.3)
Exports of goods and services 2,997.4 3,402.5 3,764.3 4,215.6 5,085.7 5,865.5 6,447.6
(XGS) (17.4) (11.6) (12.6) (13.9) (16.7) (14.3) (6.7)
Imports of goods and services 2,920.0 3,273.5 3,731.2 4,100.3 4,945.5 5,679.5 6,255.0
(MGS) (17.3) (12.8) (18.1) (15.3) (17.5) (12.8) (8.3)
XGS/GDP (%) 83.6 86.4 89.8 93.6 101.6 105.8 106.8
MGS/GDP (%) 81.5 83.1 89.0 91.1 98.8 102.5 103.6
Unemployment rate (%) 2.2 2.1 2.3 2.3 2.2 2.2 2.2
Urban 3.6 3.4 3.4 3.2 3.2 3.1 3.1
Productivity
Labour productivity growth rate
3.8 4.9 6.5 5.3 6.0 5.9 6.3
(based on number of employment)
Contribution of TFP to GDP growth 30.3 39.7 53.3 40.7 45.6 45.2 47.0
TFP growth rate 1.64 2.4 3.6 2.5 3.1 3.2 3.24
Prices and interest rates
Inflation (CPI % change) 6.6 4.1 0.6 2.7 3.5 3.5 2.8
Lending rate (%) 10.4 8.7 7.1 7.0 7.1 7.4 7.7
Deposit rate (%) 7.1 5.8 4.7 5.0 4.8 4.7 5.0
Exchange rate
VND/USD (annual average) 20,933.4 21,148.0 21,697.6 21,935.0 22,370.1 22,602.1 23,050.2
Nominal effective exchange rate
88.3 93.9 97.6 97.7 91.2 93.1 ..
(end-period)
Real effective exchange rate (end-
116.2 124.7 129.8 134.4 126.2 131.0 ..
period)
Money and credit (% change, period average)
Broad money (M2) 21.4 19.7 14.9 17.9 14.3 12.7 13.6
Total domestic credit 13.9 15.5 20.1 17.2 12.6 10.6 9.3
Credit to private sector 12.7 13.8 18.8 18.8 17.4 12.8 12.8
Fiscal sector – Central Government (% of GDP)
Total revenue and grants 23.1 22.3 23.8 24.6 25.8 25.7 25.7
Total revenue 22.8 22.0 23.5 24.4 25.7 25.6 25.6
Current revenue 21.5 20.8 21.8 22.1 23.1 22.9 23.0
Taxes 19.1 18.2 18.0 17.9 18.3 18.5 18.8
Grants 0.3 0.3 0.3 0.2 0.2 0.1 0.1
Total expenditure and net lending 28.1 27.0 28.1 28.6 29.2 29.2 29.1
Total expenditure 28.8 26.4 28.2 26.8 27.1 29.2 29.1
Current expenditure 21.2 20.1 20.8 20.2 19.6 19.9 19.2
Net lending 7.6 6.3 7.4 6.6 7.4 7.4 7.3
Current balance -0.6 0.6 -0.1 1.8 2.2 0.0 0.0
Overall budgetary balance 0.3 0.7 1.0 1.9 3.5 3.0 3.8
Central Government debt 42.6 46.3 49.2 52.7 51.7 49.9 48.5
Public debt 54.5 58.0 61.0 63.7 61.4 58.3 55.0
Saving and investment (% of GDP)
Gross national saving 31.2 31.7 27.5 29.5 28.7 29.0 28.5
Gross domestic investment 26.7 26.8 27.7 26.6 26.6 26.5 26.3
External sector (% of GDP, unless otherwise indicated)
Current account balance 4.5 5.0 -1.1 0.3 -0.7 2.4 5.0
Net merchandise trade 5.1 6.5 3.8 5.4 4.8 6.7 8.2
Exports 77.1 80.7 83.8 86.0 96.1 99.4 100.9
Imports 72.0 74.2 80.0 80.6 91.3 92.6 92.7
Services balance -1.8 -1.9 -2.5 -2.1 -1.8 -1.5 -0.9
Exports 6.3 5.9 5.8 6.1 5.8 6.0 6.4
Imports 8.1 7.8 8.3 8.2 7.6 7.5 7.2
Capital account 0.0 0.0 0.0 0.0 0.0 0.0 0.0
- 17 -
2013 2014 2015 2016 2017 2018 2019

Financial account 0.5 1.5 -3.6 -1.1 -3.3 -1.0 1.5
Direct investment, net -4.1 -4.3 -5.5 -5.7 -6.1 -6.1 -6.0
Balance-of-payments 0.3 4.5 -3.1 4.1 5.6 2.5 8.9
Goods exports (% change in USD) 15.3 13.8 7.9 9.0 21.8 13.3 8.4
Goods imports (% change in USD) 16.5 12.0 12.0 7.0 23.4 11.2 6.8
Service exports (% change in USD) 11.3 2.4 2.6 11.1 4.6 13.2 12.5
Service imports (% change in USD) 25.1 4.9 10.4 4.6 2.0 8.0 2.8
Foreign exchange reserve (USD
25.9 34.2 28.3 36.5 49.1 55.5 78.3
billion)
in months of prospective goods
2.1 2.5 1.9 2.2 2.5 2.5 ..
and services imports
Total external debt (USD billion) 63.5 71.0 80.9 91.4 109.2 112.1 122.8
% of GDP 37.1 38.1 41.8 44.5 48.8 45.7 46.9
Debt service ratio (% of exports of
4.3 4.1 4.0 3.9 6.1 7.0 5.9
goods and services)
.. Not available.
Source: General Statistics Office of Viet Nam; Ministry of Finance; IMF; ADB; and data provided by the
authorities.
1.2.2 Fiscal policy
1.10. Viet Nam's growth performance was underpinned by significant infrastructure development.
Over the past decade, government capital spending averaged almost 8% of GDP annually. In
addition, state-owned enterprises (SOEs), including large infrastructure providers (e.g. Viet Nam
Electricity), invested an equivalent of about 5% of GDP annually. This high level of investment
resulted in a rapid expansion of infrastructure stocks and supported basic infrastructure access for
Viet Nam's fast-growing industrial and manufacturing base.
1.11. A strong economy and improved revenue administration had a positive effect on revenues.
Total government revenue almost doubled during the review period. Tax revenue was equivalent to
18.8% of GDP, and accounted for 70.4% of total government revenue in 2019. Trade-related taxes
are not a major contributor to the Government's income (Chart 1.3). The share of tax revenue
sourced directly from trade, such as import tariffs and export duties6, in total tax revenue decreased
during the review period, from 11% in 2013 to 9% in 2019. The authorities consider that the tax
revenue sourced from trade would decline further in coming years, as Viet Nam fully implements the
regional trade agreements to which it is a signatory, such as the ASEAN Trade in Goods Agreement
and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (Section 2.3.2).
Chart 1.3 Tax revenue by source, 2013-19

Chart 1.[VNM] Tax revenue, 2013-19
(VND trillion)
VND trillion
1,200 Natural resource tax
Environmental protection tax

1,000
Excise tax
Import tariff and export duties

800
VAT
Corporate income tax

600
Personal income tax
400
200
0
2013 2014 2015 2016 2017 2018 2019

Source: ----------.
No data are available on internal taxes (i.e. VAT, excise, and environmental protection tax) collected
6
at the border on imported goods.

- 18 -
1.12. Since January 2016, Viet Nam has implemented fiscal consolidation, strictly limiting the
issuance of government guarantees and stabilizing the state budget deficit. Public debt as a share
of GDP declined to 55.0% in 2019, down from 63.7% at its peak in 2016 (Table 1.2); it was still,
however, slightly higher than the 54.5% of GDP registered in 2013. Although social and
infrastructure spending needs, such as on health, pensions, and public investment, are still large,
the authorities plan to continue their fiscal consolidation7; they are confident in their ability to
increase revenue further, with measures to strengthen tax policy and administration, and to broaden
revenue bases.
1.13. The countercyclical fiscal policy implemented in recent years enabled Viet Nam to lower
government and public debts in relation to GDP, creating some fiscal space to deal with short- or
long-term structural challenges, such as the ones that have arisen from the COVID-19 pandemic,
SOEs' and banking sector contingent liabilities, and climate change. The authorities maintain a strong
revenue mobilization (26% of GDP at the state budget level in 2019, and 21% in 2020). It is
expected that Viet Nam will lower the statutory public and publicly guaranteed debt ceiling from
65% of GDP currently to 47.5% in 2025.
1.2.3 Monetary policy
1.14. The policy statement of the State Bank of Viet Nam (SBV, the central bank) indicates that it
manages monetary policy in a proactive and flexible manner in close association with fiscal policy to
control inflation, stabilize the macro-economy, support economic growth, and ensure the liquidity of
credit institutions.8 The SBV operates its monetary policy mainly through managing the credit growth
target.9
1.15. Before 2012, excessive credit growth and low loan quality, including lending to SOEs and a
property boom fed by credit, left Viet Nam with the twin legacies of a high bank credit-to-GDP ratio
and elevated non-performing loans (NPLs). During the review period, Viet Nam modestly tightened
its monetary and credit policies, and implemented prudential measures10 to contain real estate and
consumer lending. In recent years, the authorities gradually brought down the credit growth, from
a peak of 18.8% in 2015 to around 13% in 2019.11 At the same time, the authorities resolved large
quantities of NPLs (Section 4.4.4).12 Moreover, they constrained real estate lending by imposing
higher risk weights and limiting short-term funding for long-term projects. The SBV also sought to
limit consumer lending by introducing a cap on the share of cash loans and prohibiting lending to
high-risk borrowers. The authorities note that they plan to lower credit growth further, to close to
nominal GDP growth.
7
For example, infrastructure investment would be raised from private funding via public-private
partnership (PPP) agreements. Also, the Government considers that growing reliance on non-debt-creating
deficit financing, lengthening of debt maturities, and low interest rates should help contain debt service costs.
8
SBV, Monetary Policy Objectives. Viewed at:
https://www.sbv.gov.vn/webcenter/portal/en/home/sbv/mpolicy/mpobjectives?_afrLoop=5301275690739297
#%40%3F_afrLoop%3D5301275690739297%26centerWidth%3D80%2525%26leftWidth%3D20%2525%26rig
htWidth%3D0%2525%26showFooter%3Dfalse%26showHeader%3Dfalse%26_adf.ctrl-
state%3Dz62666p6j_54.
9
As assessed by the IMF, the interbank rates are too volatile to be an operational target of monetary
policy. The IMF suggested to the SBV to, first, stabilize the interbank market rate within a narrow band by
paying interest on reserves, and then, phase out credit growth targets and start using an interbank rate as a
main operational target for monetary policy. The authorities maintain a cautious, gradual approach to
modernizing their monetary framework; they also consider that the modernization will take between six and
eight years.
10
The SBV is still involved in the commercial banking segment through the control or ownership of some
commercial banks. The Basel II standard has been applied to the SBV since January 2020. According to the
authorities, the SBV intends to replace administrative allocation of credit with market-based mechanisms over
the medium term.
11
The authorities are of a view that Viet Nam prudently implemented its monetary and credit policies
during the review period, and deployed prudential measures to ensure sufficient credit to the economy while
improving credit quality.
12
The issue of high corporate debt (140% of GDP) and private external debt (25% of GDP) remain to be
addressed.
- 19 -
1.16. As part of the monetary policy, the SBV sets inflation13 at 4% as its domestic nominal
anchor14; however, its monetary policy is not based on inflation targeting. In addition, the SBV
announces daily the target exchange rate of the Vietnamese Dong (VND) vis-à-vis the US dollar
(USD) as an external nominal anchor. To keep the exchange rates within the predetermined band
around the target, the SBV intervenes in the market through its reserve accumulation/decumulation,
in addition to adjusting interest rates in the interbank market.
1.2.4 Exchange rates and balance of payments
1.17. According to the IMF, Viet Nam's exchange rate is de facto stabilized (or de jure managed
floating). The SBV manages the VND within a 3% band around the target value; this floating band
was widened from the previous 1% band in August 2015, while the central parity was devalued by
1%. In January 2016, the SBV announced the central VND/USD rate would be adjusted daily based
on: (i) the previous day's weighted average VND/USD exchange rate; (ii) a weighted average of
movements in VND exchange rates vis-à-vis seven other trading partners' currencies; and
(iii) domestic macroeconomic conditions.15 Viet Nam does not maintain any foreign exchange (FX)
restrictions on payments and transfers for current international transactions, except for those on the
grounds of security reasons.
1.18. Viet Nam's nominal FX rates experienced a depreciation trend during the review period
(Table 1.2), despite interventions by the SBV. Without the SBV's interventions, Viet Nam would have
experienced significantly greater FX volatility. As estimated by the IMF, Viet Nam's exchange rate
was undervalued by 8.4% in 2018 (in nominal terms).16 The SBV actively responds to depreciations
by intervening in the market through reserve decumulation. In the IMF's view, the effects of the
SBV's interventions on the real FX rate were small and short-lived, probably due to a high pass-
through in Viet Nam.17
1.19. In fact, despite the nominal depreciation, VND was on an appreciation trend in real terms.
The real effective exchange rate (REER) appreciated from low levels in 2005 by an average of 4%
each year until 2016.18 In 2017, the REER depreciated by 4.4%, as VND remained pegged to a
weakening USD. The trend reversed in 2018, and the REER appreciated by 3.5% through the year
(Table 1.2), reflecting depreciation of the Chinese renminbi (CNY).
1.20. To a large extent, the real effective appreciation of VND reflects Viet Nam's strong economic
fundamentals and the results of its export-oriented manufacturing sector, where many foreign-
invested firms actively participate in GVCs (Section 1.3.1.3). The appreciation of the REERs in
Viet Nam goes hand in hand with the productivity growth of the manufacturing sector.19 The
difference between the real and nominal FX rate is accounted for by the inflation deferential between
Viet Nam and its trading partners, which averaged at an annual rate of around 8% for the last two
decades.
1.21. After a short period (2015-17) of deterioration in the current account balance, including a
deficit in 2015 and 2017, the current account regained its surplus in 2018, and reached
USD 13 billion in 2019. During the review period, Viet Nam maintained a surplus in trade in goods
and services, as well as in remittances. The continuous increase in private external disbursements
13
The policy aim of inflation is set annually. The SBV proposes a new aim to the Government, which
then submits it to the National Assembly for approval.
14
According to the IMF, continuing administered price liberalization is expected to add about
2 percentage points to the Consumer Price Index (CPI).
15
Before 2016, the SBV did not announce the central rate; instead, it announced the average interbank
exchange rate on the interbank foreign currency market.
16
The authorities responded that the valuation of a currency is sensitive to the estimate methods; the
evaluation result may differ when choosing a different method.
17
18
The real FX rate against USD appreciated by more than 60% in the last two decades.
19
An IMF study shows the Balassa-Samuelson effect in the case of Viet Nam: a cointegration exists
between the real FX rate and the relative productivity growth for the tradable goods sector. The study also
shows more than half of real FX fluctuations can be explained by internal shocks, including a TFP shock to the
manufacturing sector, via the Balassa-Samuelson effect. The other half is mostly explained by the shock to the
real FX rate. In the case of the nominal FX rate, while the internal shock is still a main driver, its contribution is
much smaller than that of the real FX rate, and the FX intervention and monetary policy shock significantly
influence its fluctuations.
- 20 -
(i.e. dividends and withdrawals from foreign investment), which stood USD 15 billion in 2019, may
be an indication of Viet Nam's engagement in GVCs through increasing foreign investment
(Section 1.3.2). Foreign direct investment (FDI) and portfolio investment doubled during the review
period, reaching USD 15 billion and USD 3 billion, respectively (Table 1.3).
Table 1.3 Balance of payments, 2013-19

(USD million)
2013 2014 2015 2016 2017 2018 2019
Current account 7,745 9,359 -2,041 625 -1,649 5,899 13,101
Goods and services balance 5,604 8,596 2,609 6,784 6,816 12,860 19,143
Goods balance 8,713 12,126 7,374 11,042 10,846 16,540 21,494
Exports 132,032 150,217 162,017 176,581 215,119 243,697 264,189
Imports 123,319 138,091 154,643 165,539 204,273 227,157 242,695
Services balance -3,109 -3,530 -4,765 -4,258 -4,030 -3,680 -2,351
Credit 10,711 10,970 11,250 12,500 13,070 14,791 16,637
Debit 13,820 14,500 16,015 16,758 17,100 18,470 18,988
Primary income, net -7,336 -8,844 -12,151 -14,144 -16,993 -15,818 -15,283
Credit 281 323 399 650 745 1,615 2,237
Debit 7,617 9,167 12,550 14,794 17,738 17,433 17,520
Secondary income, net 9,477 9,607 7,501 7,985 8,528 8,857 9,241
Credit 10,027 10,307 8,586 9,125 10,031 10,869 11,609
Debit 550 700 1,085 1,140 1,503 2,012 2,368
Capital account 0 0 0 0 0 0 0
Balance on current and capital account 7,745 9,359 -2,041 625 -1,649 5,899 13,101
Financial account 837 -5,571 -967 -10,727 -20,028 -8,466 -19,374
Direct investment -6,944 -8,050 -10,700 -11,600 -13,620 -14,902 -15,635
Assets 1,956 1,150 1,100 1,000 480 598 485
Liabilities 8,900 9,200 11,800 12,600 14,100 15,500 16,120
Portfolio investment -1,466 -93 65 -228 -2,069 -3,021 -2,997
Assets -80 0 0 -180 0 0 -2
Liabilities 1,386 93 -65 48 2,069 3,021 2,995
Other investment 8,690 2,572 9,668 1,101 -4,339 9,457 -742
Assets 12,874 7,559 14,412 5,149 9,603 11,143 7,790
Deposit-taking corporations 2,913 20 4,630 -2,056 4,068 4,449 4,346
General government 30 -88 53 -81 47 339 -292
Other sectors 9,931 7,627 9,729 7,286 5,488 6,355 3,736
Liabilities 4,184 4,987 4,744 4,048 13,942 1,686 8,532
Deposit-taking corporations 610 -1,442 -666 1,461 3,084 -268 2,743
General government 3,453 4,239 3,116 2,663 1,976 1,440 586
Other sectors 121 2,190 2,294 -76 8,882 514 5,203
Reserve assets 557 8,375 -6,032 8,390 12,545 6,035 23,258
Net errors and omissions -6,908 -6,555 -4,958 -2,962 -5,834 -8,330 -9,217
Source: IMF, Balance of Payments and International Investment Statistics. Viewed at:
http://data.imf.org/regular.aspx?key=62805740.
1.22. During the review period, Viet Nam's international reserves grew three-fold in USD terms,
and they reached USD 78 billion in 2019 (30% of GDP), corresponding to 3.6 months of imports of
goods and services (Table 1.2).
1.2.5 Impact of the COVID-19 pandemic
1.23. Given its deep integration with the global economy, Viet Nam suffered from the COVID-19
pandemic due to weakened demand and reduced trade (Section 1.3.1). Since the onset of the
pandemic, domestic demand, evident by the purchasing managers' index, has dropped more than
25 percentage points. Yet, the impact of the outbreak was not as severe in Viet Nam as in other
countries due to proactive measures at the national and local levels.
1.24. In addition to adopting swift reactive measures to contain the spread of the virus and to
counter the negative effects of the pandemic, Viet Nam introduced a series of fiscal measures and
incentives to replace lost income and boost growth (Box 1.1). They include a fiscal support package
equivalent to 3.6% of GDP, fee cuts, tax payment deferrals and deductions, and financial incentives
for employers and employees. Consequently, due to the pandemic's impacts, the general
government deficit and the public-debt-to-GDP ratio in 2020 are expected to increase to around 5%
and 57%, respectively.
- 21 -
Box 1.1 Fiscal measures introduced to support the economy and counter the effects of
the COVID-19 pandemic
Fiscal measures
The Government introduced a fiscal support package (Decree No. 41/2020/ND-CP of 8 April 2020 on Extending
the Deadlines of Tax and Land Rental Fee Payments for Companies, Individuals, and Business Households
(Taxpayers) Affected by COVID-19). The main measures include:
• deferring the payment of VAT and corporate income tax obligations and land rental fees by five months
and deferring personal income tax payment to year-end 2020 (estimated amount of deferred
payments is VND 67 trillion);
• cutting by 30% the corporate income tax rate for small and micro firms;
• raising the personal income tax deduction;
• lowering land rental fees by 15%;
• deducting 30% of the environmental protection tax on jet-fuel from August to December 2020; and
• cutting or exempting various fees and charges.
Decree No. 41/2020/ND-CP applies to companies, individuals, and business households, particularly small and
medium-sized enterprises (SMEs), to alleviate the cash flow shortages caused by the economic effects of the
COVID-19 pandemic.
Beneficiaries are SMEs and eligible taxpayers that have production activities in: agriculture, forestry, and
aquaculture; food production and processing; key mechanical products; textiles and clothing; leather and
related products; wood and products of wood and cork; furniture; products of straw and plaiting materials;
paper and paper products; rubber and plastics products; non-metallic mineral products; basic metals;
machinery; treatment and coating of metals; electronic products, and computer and optical products;
automobiles and other motor vehicles; construction; and manufacturing of products belonging to the list of
prioritized supporting industries.
Taxpayers that have business activities in transportation and storage; accommodation and catering services;
education and training; health and social support services; real estate activities; labour services and
employment activities; travel agency, tour operator, and support services; art, entertainment, and creation;
libraries, archives, museum, and other cultural activities; sports and recreation; and cinema may also benefit,
as may credit institutions and branches of foreign banks that provide support to their customers in accordance
with the SBV during the COVID-19 pandemic.
The National Assembly passed several resolutions to address the impacts of the pandemic.
• Resolution No. 954/2020/UBTVQH14 of 2 June 2020 on Adjusting to Increase the Family Deduction of
Taxpayers and Dependents to Reduce Tax Obligations for Individuals. The forgone revenue from
personal income tax is estimated to be about VND 10.8 trillion per year.
• Resolution No. 107/2020/QH14 of 10 June 2020 on Continuing to Exempt Agricultural Land Use Tax
until the End of 2025. The forgone revenue from exempting the agricultural land use tax is estimated
to be about VND 7.5 trillion per year.
• Resolution No. 116/2020/QH14 of 19 June 2020, providing a 30% reduction of corporate income tax
payable by 2020 for enterprises, cooperatives, non-business units, and other organizations.
Other measures to promote growth include:

• tax exemptions for medical equipment;
• one-year exemption of business registration tax for newly established household businesses;
• exemption of business registration tax for SMEs during the first three years of operation;
• streamlined tax and custom audit and inspection at firms; and
• deferral for up to 12 months of firms' and workers' contributions to the pension fund and to the
survivorship fund without interest penalty.
Support measures
Resolution No. 42/NQ-CP of 9 April 2020 on Measures to Help People Meet the Difficulties Caused by the
COVID-19 Pandemic introduced a number of support measures, including a three-month (April to June 2020)
cash transfer package worth VND 36 trillion (about 0.5% of GDP) for affected workers and households.
Source: IMF, Policy Responses to COVID-19. Viewed at: https://www.imf.org/en/Topics/imf-and-

covid19/Policy-Responses-to-COVID-19. Vietnam Briefing, COVID-19: How to Implement Decree 41
on Deferring Tax Payments. Viewed at:
https://www.vietnam-briefing.com/news/covid-19-how-to-implement-decree-41-deferring-tax-
payments.html/#:~:text=On%20April%208%2C%20the%20government,)%20affected%20by%20C
OVID%2D19; Government of Viet Nam. Viewed at:
https://thuvienphapluat.vn/van-ban/lao-dong-tien-luong/Resolution-42-NQ-CP-2020-assistance-for-
people-affected-by-Covid-19-pandemic-439660.aspx; and information provided by the authorities.
- 22 -
1.25. On the monetary front, the SBV issued guidelines to commercial banks to reschedule loans,
reduce/exempt interest, and provide loan forbearance. According to the IMF, as at mid-September
2020, banks had registered a credit package totalling VND 300 trillion (about 3.8% of GDP) at lower
interest rates, and supported nearly 1.1 million customers with outstanding loans of about
VND 2,300 trillion, by rescheduling repayments, exempting or reducing interest on existing debts,
and extending new loans. The SBV asked credit institutions to channel credit to five priority economic
sectors and to accelerate consumer loans. The SBV also introduced measures to help credit
institutions reduce their cost of funding and to allow them to reduce interest rates and fees.
Furthermore, firms affected by COVID-19 are eligible for interest-free concessional loans from the
Vietnam Social Policy Bank (VSPB) for paying salaries to workers who temporarily stopped working.
The total loan value is planned at VND 16.2 trillion (around 0.2% of GDP). In addition, the SBV
committed to inject liquidity, including through refinancing windows, into the VSPB (up to
VND 16 trillion at 0% interest) and other credit institutions to implement the Government's
programmes.20
1.26. There are tentative signs of a domestic recovery, with retail sales and industrial production
rebounding from the low points seen during the lockdown, but sustained and robust growth will also
require an economic recovery among trading partners. As the macroeconomic and fiscal framework
remains resilient, Viet Nam reported GDP growth of 2.1% in the first nine months of 2020, and
growth is expected to be 2.5% in 2020, if domestic epidemics are successfully controlled.
1.3 Developments in Trade and Investment
1.3.1 Trends and patterns in merchandise and services trade
1.3.1.1 Merchandise trade
1.27. During the review period, Viet Nam's merchandise trade grew at a double-digit rate annually,
in real terms (Table 1.2); both merchandise imports and exports exceeded USD 200 billion in 2019,
more than double the 2012 figures. Among the world's top 50 merchandise traders, Viet Nam
recorded a significant advancement in world ranking, improving its position from 39th in 2009 to 23rd
in 2019.21
1.28. Machinery and electrical equipment (i.e. electrical machinery and electronic equipment)
continued their dominance in Vietnamese merchandise exports: their combined share significantly
increased from 25% in 2012 to 42% in 2019. In particular, the share of smartphones and accessories
in total exports increased by almost 100%. The share of merchandise exports of apparel products
(including footwear) remained stable, at 22% throughout the review period (Char 1.4). Mainly due
to low oil prices, the share of mineral product exports, in terms of value, decreased from 11% in
2012 to 2% in 2019; also reflecting low commodity prices, combined exports of agricultural and
aquatic products decreased from 15% in 2012 to about 8% in 2019 (Table A1.1).
1.29. Viet Nam's merchandise trade exhibits strong intra-industry trade (IIT) patterns. Electrical
machinery and electronic equipment continue to represent the largest share of Vietnamese
merchandise imports, accounting for 40% of the total in 2019. During the review period, about 10%
of imports were attributed to textiles and apparel, and footwear (Table A1.2). These two segments
actively participate in GVCs (Section 1.3.1.3), with significant foreign investment involvement
(Section 1.3.2).
20
IMF, Policy Responses to COVID-19. Viewed at: https://www.imf.org/en/Topics/imf-and-
covid19/Policy-Responses-to-COVID-19.
21
Member states of the European Union are counted individually. For details, see WTO (2020), World
Trade Statistic Review. Viewed at: https://www.wto.org/english/res_e/statis_e/wts2020_e/wts20_toc_e.htm.
- 23 -
Chart 1.4 Product composition of merchandise trade by main HS sections, 2012 and
Chart 1.[VNMPRD] Product composition of merchandise trade by main HS sections, 2012 and 2019
2019
2012 2019
Exports
Misc. manufactured Misc. manufactured

articles 4.0% Other Other
articles 4.5%
14.3% 14.2%
Live animals &
Machinery & other Live animals & products thereof
products thereof Machinery & other 2.5%
electrical equipment
4.5% electrical equipment
13.2%
20.4% Vegetable products,
Vegetable fruit & nuts 5.0%
products, Mineral products
Telephone sets fruit & nuts 2.1%
11.5% 10.4% Plastics & rubber
3.4%
Base metals Mineral products

3.7% 10.7% Textiles & textile
Telephone sets articles 14.9%
Footwear, 21.3%
headgear Plastics & rubber
6.8% 5.1%
Textiles & textile Footwear, headgear
Base metals 7.4%
articles 15.8%
4.3%
Total: USD 114.5 billion Total: USD 264.6 billion
Imports
Machinery & Transport equipment

Transport equipment Machinery & 2.9%
electrical equipment
2.8% electrical equipment
31.3% Precision instruments
Precision instruments 39.9% 3.6%
1.9%
Other
Other 11.4%
11.7%
Vegetable products, Vegetable prod.,

fruit & nuts fruit & nuts
Base metals
3.1% 3.4%
12.2%
Mineral products
Mineral products 6.8%
10.6%
Base metals Chemicals
Textiles & textile 9.9% 6.7%
articles 9.6% Chemicals
Plastics & rubber 9.1% Textiles & textile Plastics & rubber
7.6% articles 8.2% 7.3%
Source: WTO Secretariat calculations, based on UN Comtrade database.
1.30. The growth of IIT in agricultural products, clothing and apparel, and consumer electronics
Source: WTO calculations, based on UNSD comtrade database.
reflects the demand for trade-in-varieties caused by rapid urbanization in Viet Nam over the last
three decades. According to the World Bank, the share of high-spending households increased from
less than 50% in 2010 to 70% in 2016; notably, the share of middle-class and economically secure
consumers almost doubled within five years (Chart 1.5).22 The increasingly rich and urban
consumers demand more differentiated products through trade. For example, while final consumer
goods accounted for some 80% of exported apparel products in 2019, and just 5% for imports, in
the case of smartphones, these figures were 44% and 7%, respectively.
22
World Bank (2020), Vietnam Development Report 2019: Connecting Vietnam for Growth and Shared
Prosperity. Viewed at: http://documents1.worldbank.org/curated/en/590451578409008253/pdf/Vietnam-
Development-Report-2019-Connecting-Vietnam-for-Growth-and-Shared-Prosperity.pdf.
- 24 -
Chart 1.5 Population

Chart 1.[VNM] by economic
Population by economic class, 2010-16class, 2010-16
% of population
100
Middle class
90
Economically secure
80
Economically vulnerable
70
Moderately poor
60 Extremely poor
50
40
30
20
10
0
2010 2012 2014 2016
Source:
Source: World World BankVietnam
Bank (2020), (2020), Vietnam
Development Development
Report 2019: Connecting Report 2019:
Vietnam for Growth Connecting Vietnam for Growth and Shared
and Shared Prosperity.
Prosperity. Viewed at:
Viewed at: http://documents1.worldbank.org/curated/en/590451578409008253/pdf/Vietnam-Development-Report-2019-
Connecting-Vietnam-for-Growth-and-Shared-Prosperity.pdf.
http://documents1.worldbank.org/curated/en/590451578409008253/pdf/Vietnam-Development-
Report-2019-Connecting-Vietnam-for-Growth-and-Shared-Prosperity.pdf.
1.31. China and the United States remain Viet Nam's largest trade and investment partners
(Chart 1.6). In 2019, the largest share of merchandise imports, almost 30%, was sourced from
China (up from 26% in 2012), while 23% of merchandise exports were destined for the
United States, Viet Nam's largest market, 6 percentage points higher than in 2012.
1.32. Rising trade tensions in recent years also affected Viet Nam. However, as assessed by the
IMF, they had a small positive overall impact due to trade diversion effects. A potentially larger and
more durable impact could come from shifts in investment, which remain to be seen. In recent years,
international firms moved facilities to Viet Nam in response to rising costs in China and the desire to
diversify production locations (Section 1.3.2).
1.33. The direction of trade is a reflection of Viet Nam's participation in GVCs. In addition to China,
other Asian economies in the region supplied almost 50% of total merchandise imports in 2019.
Notably, imports from Japan, the Republic of Korea, and Chinese Taipei maintained a stable share
at about 30% during the review period, while the share of supplies from the Republic of Korea
steadily increased (Table A1.4). Regarding exports, the European Union (EU-28) remains the second
largest market for Vietnamese merchandise goods, accounting for 16% in 2019. Exports to China
gradually increased during the review period, also reaching around 16% in 2019 (Table A1.3).
- 25 -
Chart 1.[VNMREG]
Chart Direction
1.6 Direction of merchandise
of merchandise trade,
trade, 2012
2012 and2019
and 2019
2012 2019
Exports
EU-28
EU-28
17.7%
15.7%
Middle East
United States United States Middle East
2.8%
17.2% 23.2% 2.5%
Other Other
9.3% 9.5%
Other Asia
7.0% Thailand 2.5% Thailand 1.9%
ASEAN Other Asia ASEAN
15.2% 6.2% 9.4%
Hong Kong, Malaysia 3.9% Other ASEAN
China 3.2% 7.5%
Cambodia 2.6% Hong Kong,
Korea, Rep. of China 2.7%
4.9% Other ASEAN
6.3% Korea, Rep. of
7.5% China
Japan
China Japan 15.7%
11.4%
11.2% 7.7%
Imports
Other Asia Other Asia

5.0% Chinese Taipei 4.4%
Chinese Taipei United States United States
6.0%
7.5% 4.3% 5.7%
EU-28
EU-28
Korea, Rep. of Korea, Rep. of 5.9%
7.7%
13.7% 18.5%
Middle East 2.3%
Middle East 2.1%
Other Other
5.8% 7.0%
Japan
10.2%
ASEAN Thailand 4.6%
ASEAN Thailand 5.1%
Japan 12.7%
18.3% 7.7%
Malaysia 3.0% Malaysia 2.9%
Other ASEAN
Singapore
5.2%
5.9%
China Other ASEAN
25.5% China
4.3% 29.8%
1.3.1.2 Participation in global value chains

Source: WTO calculations, based on UNSD comtrade database.
1.34. Through its involvement in GVCs, Viet Nam has emerged as an important manufacturing
centre since its accession to the WTO in 2007, in particular, for textiles and apparel, and for
information and communication technology (ICT) equipment.23 According to the WTO-OECD Trade-
in-Value-Added (TiVA) database, domestic value-added as a share in Viet Nam's gross exports in
2016 was 58%, while the share for apparel exports was 55%, and 39% for ICT exports. 24
1.35. In 2019, Viet Nam imported USD 187.8 billion of intermediate goods (74% of gross imports),
and it exported USD 102.4 billion of intermediate goods (39% of gross exports), and
23
Hollweg, C. H.; Smith, T.; and Taglioni, D. (2017), Vietnam at a Crossroads: Engaging in the Next
Generation of Global Value Chains, Washington, DC: World Bank. Viewed at:
https://openknowledge.worldbank.org/handle/10986/26215.
24
The methodology for constructing the TiVA database is an input-output (I-O) table approach, which
assumes technology is static in between compilation of two I-O tables; therefore, it is reasonable to consider
that the share of domestic value-added does not change much compared with the 2016 figure.
- 26 -
USD 157.7 billion of final goods for consumers or for capital formation (60%) (Chart 1.7). 25 Among
imports of intermediates, more than 30% were for electric and electronic products (HS Chapter 85).
Chart 1.[VNM] Trade by Broad Economic Categories (BEC), 2019
Chart 1.7 Merchandise trade, by end-use, 2019
Exports Imports
Intermediate goods Intermediate goods

38.7% 74.1%
Capital goods Capital goods
16.1% 12.9%
Other n.e.c.
1.7% Other n.e.c.
1.4%
Consumer goods
11.6%
Consumer goods
43.4%

Source: WTO calculations, based on UNSD Comtrade dabase.
1.36. Viet Nam's participation in the manufacturing of ICT equipment, in particular of smartphones
and consumer electronics, gradually increased. About 85% of electric/electronic imports in 2019
were intermediates, and 9% were capital goods. In terms of exports, 47% were intermediates, and
about 53% were final goods for consumers or as capital inputs (Chart 1.8).
Chart 1.[VNM] Share of electric/electronic trade, by end-use, 2019
Chart 1.8 Share of electric/electronic trade, by end-use, 2019
Exports Imports
Consumer goods Intermediate goods

43.7% 84.2%
Consumer goods
6.7%
Capital goods
9.1%
Capital goods
9.2%
Intermediate goods
47.3%
1.37.
Source: China is the mainbased
WTO calculations, supplier of capital
on UNSD goods
Comtrade (10%) for the electronics sector in Viet Nam, while
database
32% of intermediate imports were sourced from the Republic of Korea, 26% from China, 8% from
Japan, and 7% from the United States. Viet Nam exported electronic intermediates for further
processing elsewhere: 17% were destined for China, 7% for the Republic of Korea, and 6% for the
25
The nomenclature of Broad Economic Categories, Revision 5 (BEC5) is used to categorize all the
merchandise trade by their end use.
- 27 -
United States. Final goods for consumers or industries were shipped to the United States, the United
Arab Emirates, Austria, the Republic of Korea, and China (Chart 1.9).
Chart
Chart1.9 Major
1.[VNM] trading
Main partners
trading partners of electronic
of electronic products,
products (HS by, by
Chapter 85) end-use, 2019
end-use, 2019
% of total
80
Intermediate goods Final goods
Korea, Rep. of
70
China
Japan
60
United States
Thailand
50 Hong Kong, China
United Arab Emirates
40 Austria
Malaysia
30
20
10
0
Imports Exports Exports Imports

Source: WTO calculations, based on UNSD Comtrade database.
1.38. Regarding manufacturing of apparel, 53% of intermediate imports for the garment sector
were sourced from China, 13% from the Republic of Korea, and 10% from the United States. Once
processed, Vietnamese garment exports were shipped to the United States (37%), the European
Union members including Germany and Belgium (15%), Japan (9%), and the Republic of Korea
(7%) (Chart 1.10).
Chart
Chart 1.10 Major
1.[VNM] trading
Main trading partners
partners for garment
for apparels, by end-use,apparel,
2019 by end-use, 2019
% of total
Intermediate goods Consumer goods
90
80
China
70 Korea, Rep. of
United States
60 Japan
Germany
50 Belgium
40
30
20
10
0
Imports Exports Exports Imports

Source: WTO calculations, based on UNSD Comtrade database.
1.3.1.3 Impact of COVID-19 pandemic on global value chains
1.39. While total external trade shrank by 60% at the onset of the pandemic, Viet Nam's
merchandise trade based on GVCs, in particular, in the consumer electronics manufactured and the
garment apparel manufactured sectors appears not to be losing momentum, compared with the
- 28 -
sectors' performance in 2019 (Chart 1.11). With regard to other top categories of merchandise trade,
imports of motor vehicles and their parts and components, as well as of oil, witnessed a significant
drop, compared with 2019.
Chart 1.[VNM] Selected merchandise trade by HS Chapters, 2019 and 2020
Chart 1.11 Major merchandise trade of manufacturing sectors, 2019-20
Consumer electronics Garment apparel
USD billion USD billion
100 20
90 18
80 16
70 14
60 12
2019
50 2020 10
40 8
30 6
20 4
10 2
0 0
Export Export Export Import Import Import Export Export Export Import Import
HS 84 HS 85 HS 90 HS 84 HS 85 HS 90 HS 61 HS 62 HS 64 HS 52 HS 60
HS 52 Cotton
HS 84 Machinery and mechanical appliances
HS 60 Knitted or crocheted fabrics
HS 85 Electrical machinery and equipment
HS 61 Clothing, knitted or crocheted
HS 90 Optical, measuring, precision, medical, etc. equipment
HS 62 Clothing, not knitted or crocheted
HS 64 Footwear
Source: WTO Secretariat calculations, based on UNSD Comtrade database.

Note: The trade data for 2020 cover from January to September only. It is not full-year data.
Source: WTO Secretariat calculations, based on UN Comtrade database; and data provided by the
authorities.
1.40. In 2019, trade based on GVCs in the consumer electronics and the garment apparel sectors
accounted for around 65% of total exports, and 51% of total imports. Although only nine-month
data for 2020 are available, trade of consumer electronics maintained its trend, except for exports
of precision equipment (HS Chapter 90). As for the garment sectors, exports of final goods recorded
a slight decrease, compared with their performance in 2019.
1.3.1.4 Trade in services
1.41. Regarding trade in services, Viet Nam is a net importer (Table 1.4).
Table 1.4 Trade in services, 2013-19

(USD million)
2013 2014 2015 2016 2017 2018 2019
Total credit 10,710 12,231 12,580 13,961 14,878 18,060 19,920
% of total credit
Transport service 20.8 19.0 19.3 17.5 18.9 24.2 20.0
Postal and telecommunication
1.3 1.2 1.3 1.2 1.0 0.8 0.7
service
Travel service 67.7 60.6 58.4 60.9 59.8 55.8 59.4
Finance service 1.7 1.4 0.9 0.8 0.8 1.2 1.1
Insurance service 0.6 0.5 0.4 0.4 0.4 0.3 0.3
Government service 1.2 1.1 1.1 1.1 1.1 0.9 0.9
Other service 6.7 16.2 18.5 18.1 18.2 16.7 15.6
Total debit 13,538 15,519 16,703 17,800 18.684 20,348 21,111
% of total debit
Transport service 54.2 49.9 48.2 45.3 39.6 36.8 37.9
Postal and telecommunication
0.6 0.5 0.8 0.7 0.7 0.7 0.9
service
Travel service 15.1 17.1 21.5 25.3 27.0 29.0 29.1
Finance service 1.3 1.2 1.3 0.8 1.2 0.9 0.9
Insurance service 6.7 6.6 6.1 4.5 3.6 2.9 2.9
Government service 1.4 1.3 1.2 1.1 1.1 1.0 1.0
Other service 20.6 23.5 20.9 22.3 26.9 28.6 27.2
Balance -2,828 -3,288 -4,123 -3,839 -3,806 -2,288 -1,191
Source: WTO Secretariat calculations, based on data provided by the authorities.

- 29 -
1.42. Travel services are the biggest FX earners, contributing more than two thirds of Vietnamese
services exports during each year of the review period. Vietnamese nationals also increasingly spent
on travel services abroad; 29% of services imports were attributed to travel services in 2018,
compared with 15% in 2013.
1.43. Transport services are the largest item of services imports; on average, they accounted for
45% of Vietnamese services imports during the review period. Transport services, especially freight
transport, facilitate Viet Nam's participation in GVCs.26 In a World Bank report, Viet Nam recorded a
significant increase (i.e. 76% in a five-year period) in transport of high-value goods such as mobile
phones, electronic components, and high fashion exports.27
1.3.2 Trends and patterns in FDI
1.44. Since its accession to the WTO in 2007, Viet Nam has received large FDI inflows (Chart 1.12).
During the review period, the inflow of FDI grew at an average annual rate of 13%, and the stock
of inward FDI increased from USD 81.8 billion in 2013 to USD 161.1 million in 2019. FDI plays a key
role in Viet Nam's economic transformation, representing a large share of output (20% of GDP) and
employing 5 million people in 2019; about half of gross exports were attributed to foreign
investment.
Chart 1. [VNM] Foreign direct investment, USD million
Chart 1.12 Foreign direct investment, 2000-19
180,000 18,000
Left-hand scale: FDI inward stock
160,000 16,000
140,000 Right-hand scale: FDI inflow 14,000
120,000 12,000
100,000 10,000
80,000 8,000
60,000 6,000
40,000 4,000
20,000 2,000
0 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
Source: UNCTAD,
Source: UNCTAD,World Investment
World Report
Investment 2020 2020.
Report online information.
Viewed at: https://unctad.org/webflyer/world-investment-
report-2020.
1.45. Most of the inward FDI was destined for the manufacturing sector, accounting for some 60%
of total foreign capital stock. Foreign investment in the real estate and electricity sectors also
accounted for large shares (12% and 9%, respectively), though far fewer projects were financed
with foreign capital (Table 1.5).
Table 1.5 Inward foreign investment stock by sector, 2019

(USD million)
Sector No. of projects Total capital
Processing and manufacturing sector (MAN) 6,943 89,321.96
Real estate business 462 17,624.35
Production and supply of electricity, gas, hot water, steam and air-
61 15,439.99
conditioning (ELE)
Wholesale and retail trade, repair of motor vehicles and motorcycles
3,691 4,304.05
(TRADE)
No detailed data are available for the transport services imports, broken down by end-use.
26
World Bank (2020), Vietnam Development Report 2019: Connecting Vietnam for Growth and Shared
27
Prosperity. Viewed at: http://documents1.worldbank.org/curated/en/590451578409008253/pdf/Vietnam-

Development-Report-2019-Connecting-Vietnam-for-Growth-and-Shared-Prosperity.pdf.
- 30 -
Sector No. of projects Total capital

Construction (CON) 830 2,546.03
Water supply, sewerage, waste management and remediation
53 2,372.13
activities (WAT)
Professional, scientific and technical activities (PRO) 2,030 2,198.01
Transportation and storage (TRAN) 489 1,824.55
Accommodation and catering services (HOS) 530 1,704.02
Mining and quarrying (MIN) 12 1,359.22
Information and communication (COM) 1,363 1,120.15
Health care and social relief (HEA) 70 955.73
Agriculture, forestry and fishing (AGR) 121 794.54
Administrative activity and supporting service (ADM) 306 571.47
Education and training (EDU) 370 388.05
Art, entertainment and recreation (ART) 39 276.04
Other service activities (OTH) 65 237.44
Financial, banking and insurance activities (FIN) 28 68.11
Activities of households as employers 5 4.37
Total 17,468 143,110.19
1.46. FDI in Viet Nam's manufacturing sector is dominated by electronics multinationals and apparel
producers engaged in processing and final assembly. This FDI manufacturing sector generates a
large trade surplus (15% of GDP in 2018).28 The investment in these segments is positively
correlated to productivity; that is, higher productivity leads to more foreign investment, while foreign
investment pushes up productivity through the technology diffusion effect (Chart 1.13). A study
shows that Viet Nam's deep engagement in GVCs, through the FDI manufacturing sector, improves
the capacity of local firms that are suppliers to those foreign-owned firms.29
Chart 1.13 FDI stock and productivity by sector, 2019
6.00
5.00 MAN
IMM ELE
4.00
CON WAT
TRADE
log FDI stock
TRAN PRO
MIN
3.00 COM HEA
AGR HOS
ADM
EDU
OTH ART
2.00
FIN
1.00
0.00
0.00 0.50 1.00 1.50 2.00 2.50 3.00 3.50
log productivity
1.47. Compared with the manufacturing sector, the productivities of other sectors are low (20% of
those in the FDI sectors)30, and the exports of the sectors are dominated by agricultural commodities
and oil. Investment in these other sectors fell, partly reflecting cutbacks in SOE capital formation in
28
29
Amendolagine, Presbitero, Rabellotti, Sanfilippo, and Seric (2017), FDI, Global Value Chains, and
Local Sourcing in Developing Countries, IMF Working Paper WP/17/284.
30
Slow SOE reform progress, barriers faced by SMEs to reach economies of scale, and credit
misallocation and weaknesses in financial intermediation impede the development of a productive and vibrant
economy outside the FDI sector. IMF (2019), Vietnam: 2019 Article IV Consultation–Press Release; Staff
Report; and Statement by the Executive Director for Vietnam, IMF Country Report No. 19/235.
- 31 -
heavy industries, barriers to the development of private manufacturing firms and SMEs, and
declining public investment. National savings (29% of GDP in 2019) remains consistently higher
than domestic investment (26% of GDP in 2019) (Table 1.2), indicating a shallow financial sector
and a lack of investment opportunities.
1.48. FDI was mainly from neighbouring economies, including China, Japan, the Republic of Korea,
Singapore, and Chinese Taipei.
- 32 -
2 TRADE AND INVESTMENT REGIMES
2.1 General Framework
2.1.1 Institutional framework
2.1. Viet Nam adopted a new constitution in November 2013. According to the authorities, the 2013
Constitution reflects the changes in the international and domestic environment since the adoption
of the 1992 Constitution. It recognizes for the first time the role played by the private sector, and
affirms the protection of lawful assets from nationalization.1 The new Constitution also has additional
provisions to control state agencies in their exercise of legislative, executive, and judicial powers.2
2.2. As stipulated in the Constitution, the National Assembly is the highest representative body of
the people of Viet Nam, and the highest body of state power. The term of the National Assembly is
five years. The President (Head of State), the Prime Minister (Head of the Government), the Chief
Justice of the Supreme People's Court, and the Prosecutor General of the Supreme People's Procuracy
are elected from the members of the National Assembly. Their terms of office are the same as that
of the National Assembly.
2.3. Legislative power is vested in the unicameral National Assembly. Between sessions of the
National Assembly, the Standing Committee of the National Assembly functions as the legislature. 3
The National Assembly enacts, amends, and annuls laws, while the Standing Committee enacts
ordinances4 (Section 2.1.3). Both the National Assembly and the Standing Committee make decisions
on the basis of a simple majority.5
2.4. The Government is the executive branch, and it consists of 22 ministries and 8 ministerial-level
agencies.6 The State Bank of Viet Nam (SBV, the central bank) is one of the 22 ministerial agencies;
it is not independent from the executive branch. In general, the Government promulgates decrees
stipulating specific measures to implement laws and resolutions of the National Assembly, including
ordinances and resolutions of the Standing Committee.7 The Law on Handling Administrative
Violations (Law No. 15/2012/QH13), issued on 20 June 2012, provides remedies against the
misconduct of the executive branch.
2.5. Judicial power is exercised by the People's Courts8, which include the Supreme People's Court
at the top and other courts at lower levels. The People's Procuracies exercise prosecutorial power
and supervise judicial activities. The Procuracies include the Supreme People's Procuracy and other
lower-level procuracies.
2.6. Subnational administration is divided into three levels: (i) provincial, under the central
Government; (ii) district (both rural and urban); and (iii) commune. Local governments at each level
are organized into People's Councils and People's Committees, which mirror the structure of the
central Government. The People's Councils are the local bodies of state power (i.e. local legislature);
the People's Committees are the executive at the local level, reporting to their corresponding People's
Council and the line agencies at higher levels. Both are responsible for implementing national laws
within their respective jurisdictions9, and deciding local issues as provided by law.
1
2013 Constitution, Article 53.
2
3
The Standing Committee is headed by the Speaker (i.e. Chairperson) of the National Assembly.
Members of the Cabinet may not be members of the Standing Committee.
4
5
6
Government Portal, Ministries. Viewed at:
http://www.chinhphu.vn/portal/page/portal/English/ministries.
7
2015 Law on Promulgation of Legal Documents, Article 19.
8
The National Assembly may also set up special tribunals in certain circumstances.
9
2015 Law on Promulgation of Legal Documents, Articles 27 and 28.
- 33 -
2.1.2 International agreements
2.7. The Government is responsible for negotiating treaties and international agreements as
mandated by the President.10 Not all concluded and signed treaties and agreements must be ratified
by the National Assembly.11 Both Article 70 of the Constitution and the 2016 Law on Treaties12
stipulate when treaties need ratification by the National Assembly, including treaties for Vietnamese
membership in an international or regional organization. The authorities note that the National
Assembly ratified Viet Nam's WTO accession protocol, the Comprehensive and Progressive
Agreement for Trans-Pacific Partnership (CPTPP), and the Free Trade Agreement between Viet Nam
and the European Union.13
2.8. On entry into force, an international treaty may be applied in Viet Nam through changes in
domestic legislation (i.e. legal normative documents) (Section 2.1.3) or through direct application.14
All WTO agreements, where applicable, were directly applied in Viet Nam.15 When changes in
domestic legislation are deemed necessary for a treaty's application, the relevant authorities develop
an implementation plan, and propose changes in legislation for the legislature's consideration.
2.9. In the event of a discrepancy between the provisions of international treaties and domestic
legislation, those of the treaties prevail.16
2.1.3 Transparency and certainty
2.10. On 1 July 2015, the Law on Promulgation of Legal Documents (Law No. 80/2015/QH13),
issued on 22 June 2015, entered into force; it repealed and replaced both the 2008 Law on
Promulgation of Legal Documents and the 2004 Law on Promulgation of Legal Documents of the
People's Council and People's Committee. The authorities consider that the new Law streamlined the
system of legal normative documents, and ensured consistency among them, regardless of whether
they are promulgated at the central or local level.17
2.11. Under the Constitution, there are 10 forms of legislation (i.e. legal normative documents)
(Box 2.1). The National Assembly adopts laws and resolutions. Resolutions of the National Assembly
are usually employed to implement new policies on a pilot basis, and to meet urgent socio-economic
development requirements.18 Ordinances and resolutions of the Standing Committee are not required
to be transposed into/replaced with a new law within a certain time-frame. The Standing Committee
may pass a resolution to abolish, suspend, or extend the application of all or parts of existing
ordinances and resolutions.19 In the event of conflicts in provisions from various legal normative
documents, the one promulgated by a higher legal hierarchy, or the one of a later date if promulgated
10
11
As per the 2013 Constitution, the signing of or withdrawal from treaties in the name of the
Government, is required to be approved only by the Government; ratification of such treaties by the National
Assembly is not required. Article 28 of the 2016 Law on Treaties lists the categories of treaties that must be
concluded and signed in the name of the state.
12
The Law on Treaties entered into force on 1 July 2016, repealing and replacing the Law on the
Conclusion, Accession and Implementation of Treaties. According to the authorities, compared with the
replaced Law, the Law on Treaties provides additional regulations on plans for treaty implementation. The Law
includes provisions that facilitate the process of proposing negotiation of treaties, as well as those on the
negotiation and signing of treaties with expedited procedures.
13
Not all trade-related treaties/agreements are subject to ratification by the National Assembly. Only
trade-related treaties/agreements falling into the categories listed in Article 29 of the 2016 Law on Treaties
must be ratified by the National Assembly.
14
The National Assembly, the President, or the Government, when deciding whether to be bound by a
treaty, shall also decide on the direct application of all or part of that treaty if the provisions are sufficiently
clear and specific for implementation. See 2016 Law on Treaties, Article 6.
15
National Assembly Resolution No. 71/2006/NQ-QH11, 29 November 2005.
16
2016 Law on Treaties, Article 6.
17
Previously, provisions pertaining to the promulgation of legal documents were set forth in two laws:
(i) the 2008 Law on Promulgation of Legal Documents, and (ii) the 2004 Law on Promulgation of Legal
Documents of the People's Council and People's Committee. According to the authorities, provisions in these
two laws were inconsistent, and even contradictory, despite both referring to the same issue.
18
19
- 34 -
by the same level of hierarchy, prevails.20 The extent to which new legislation abrogates or
supplements existing legislation is not always evident.21
Box 2.1 The system of legal normative documents, 2020
Legislation is divided into 10 forms of legal normative documents. All have binding effects and may be invoked
in the People's Courts. The legal hierarchy is listed in descending order. Legislation at the subnational level
may be applied only within the boundaries of the corresponding jurisdiction.
National level:
1. laws and resolutions of the National Assembly;
2. ordinances and resolutions of the Standing Committee of the National Assembly; joint resolutions
between the Standing Committee of the National Assembly and the Presidium of the Central
Committee of the Vietnam Fatherland Front;
3. orders and decisions of the President;
4. decrees of the Government; joint resolutions between the Government and the Presidium of the
Central Committee of the Vietnam Fatherland Front;
5. decisions of the Prime Minister;
6. resolutions of the Judicial Council of the Supreme People's Court; and
7. circulars of the Chief Justice of the Supreme People's Court; circulars of the Prosecutor General of
the Supreme People's Procuracy; circulars of ministers and heads of ministerial-level agencies; joint
circulars between the Chief Justice of the Supreme People's Court and the Prosecutor General of the
Supreme People's Procuracy; joint circulars between ministers, heads of ministerial-level agencies,
the Chief Justice of the Supreme People's Court, and the Prosecutor General of the Supreme People's
Procuracy; and decisions of the State Auditor General.
Subnational level:
8. resolutions of People's Councils;
9. decisions of People's Committees; and
10. legal normative documents of local administrations in special administrative-economic units.
Note: Compared with the replaced laws, the 2015 Law on Promulgation of Legal Documents abolished five
forms of legal normative documents, such as: (i) joint resolutions of the Standing Committee (or the
Government) and a central agency of a socio-political organization (except for joint resolutions
between the Standing Committee (or the Government) and the Presidium of the Central Committee
of the Vietnam Fatherland Front); (ii) joint circulars of ministers and the heads of ministerial-level
agencies; (iii) directive notices of provincial People's Committees; (iv) directive notices of district
People's Committees; and (v) directive notices of commune People's Committees. The 2015 Law
introduced a new form of legal normative document: one of local administrations in special
administrative-economic units.
Source: Information provided by the authorities; and the 2015 Law on Promulgation of Legal Documents.
2.12. Laws or ordinances must be promulgated within 15 days of their passage, unless the President
does not assent to the ordinance passed by the Standing Committee.22 A transition period between
the dates of promulgation and entry into force of a legal document must be provided: no shorter
than 45 days for national legislation, and no shorter than 7 to 10 days for legislation at subnational
levels. All legal normative documents promulgated by the Government are available in Vietnamese
on the Government Portal.23
2.13. Though not recognized as legal normative documents, "official letters", notices, or guidelines
are relied on by many ministries to set policy and clarify implementation issues. According to the
authorities, the 2015 Law on Promulgation of Legal Documents prohibits the promulgation of
administrative procedures in circulars, joint circulars, and documents of local governments except
as otherwise provided in the Law. The authorities also note that an Advisory Council for Reforming
Administrative Procedures was established to improve the quality of handling administrative
procedures at ministries, agencies, and localities.24
2.14. According to the authorities, the 2015 Law on Promulgation of Legal Documents provides a
coordination mechanism for policy formulation and legislative process, which helps stakeholders such
20
21
WTO, Trade Policy Review of Viet Nam, WT/TPR/S/287/Rev.1, 4 November 2013.
22
In this case, the President must send a written request to the Standing Committee for reconsideration
of the ordinance within 10 days of its passage.
23
Government Portal, Legal Normative Documents. Viewed at: http://vbpl.vn/TW/Pages/vbpqen.aspx.
24
Directive No. 30/CT-TTg, 30 October 2018.
- 35 -
as government agencies, private associations, and individuals to provide input into the drafting of
legal documents. As per the Law, holding public consultations is mandatory for both policy
formulation and the drafting of legal normative documents. The competent authorities responsible
for drafting the legislation must provide the public with a comment period of no fewer than 30 days;
the drafting authorities must publish the proposed bill, written responses to all comments received,
and the revised text of the proposed legislation on their websites.25
2.15. In addition, according to the authorities, the Government holds regular dialogues on economic
policies with representatives of businesses, academia, industry associations, and international
organizations. The Prime Minister and cabinet members participate in such dialogues; ministries (and
ministerial-level agencies) formulate specific strategies and measures to address concerns raised in
the dialogues.
2.2 Trade Policy Formulation and Objectives
2.2.1 Trade policy objectives
2.16. Viet Nam recognizes international economic integration as one of the important drivers for its
institutional improvement, economic growth, and development. In January 2016, the Government
approved an Overall Strategy for International Integration through 2020, Vision to 2030. The
Strategy states that the objectives of international integration are, inter alia, to take "full advantage
of favourable global condition to soon turn Viet Nam into a modern-oriented industrialized country",
and to improve "people's living standards".26
2.17. Specific to trade, Viet Nam seeks "to diversify export-import markets" and "to actively take
part in the global production network and the value chains".27 The Strategy on Exports and Imports
for 2011-20, Vision to 2030 sets out three specific targets:
• the average annual growth rate of exports should be at the double-digit level;
• the growth rate of imports should be lower than that of exports; and
• a gradual reduction of the trade deficit, so as to guarantee a trade balance by 2020, and
reach a trade surplus in 2021-30.
2.18. The authorities state that all three targets were achieved. Furthermore, the Ministry of
Industry and Trade (MOIT) adopted the Master Plan for Trade Development on 24 June 2011, with
a focus on accelerating trade by integrating Viet Nam into foreign markets. In order to better
implement the Plan, the Prime Minister issued a directive on 4 September 2018, instructing
government agencies to make a positive contribution upon joining international and regional
multilateral organizations and forums, such as the Association of Southeast Asian Nations (ASEAN)
and the WTO. The goal is to increase Viet Nam's profile in the international arena, make full use of
technical assistance provided by partners to improve the capacity for macroeconomic management,
create a stable and transparent business environment to attract foreign investment, and provide
business opportunities for domestic and foreign enterprises.28
2.2.2 Trade policy formulation and implementation
2.19. Trade and trade-related policies are formulated at the central level, and are implemented
uniformly nationwide. The MOIT remains the focal point of the Government for trade and trade-
25
When the legislation takes the form of laws and ordinances, the proposal must be published in the
Official Gazette and on its website. The Law does not have provisions for a new comment/consultation period
when the revised text is different from the originally proposed text.
26
See Part III, Objectives and Guiding Viewpoints, Overall Strategy for International Integration through
2020, Vision to 2030. Viewed at:
http://www.chinhphu.vn/portal/page/portal/English/strategies/strategiesdetails?categoryId=30&articleId=1005
6863.
27
See Section 1, Viewpoints of the strategy, Strategy on Exports and Imports for 2011-20, Vision to
2030. Viewed at:
http://chinhphu.vn/portal/page/portal/English/strategies/strategiesdetails?categoryId=30&articleId=10051303.
28
Directive No. 26/CT-TTg, 4 September 2018.
- 36 -
related matters. Its responsibilities include: (i) formulating trade strategies, plans, and programmes;
(ii) preparing and drafting legislation on trade and trade-related issues; (iii) supervising trade policy
implementation; and (iv) promoting trade. In trade negotiations, the MOIT plays a leading role in
coordinating with other competent authorities that have trade-related portfolios, such as the
Ministries of Finance, Agriculture and Rural Development, Health, and Science and Technology. 29 The
Multilateral Trade Policy Department under the MOIT is the focal point for WTO-related matters.
2.20. In 2016, the National Committee for International Economic Cooperation was transformed
into the Inter-ministerial Steering Committee on International Economic Integration (ESC). 30 The
ESC is the intersectoral coordination mechanism for policy formulation and economic cooperation,
and is chaired by the Deputy Prime Minister. It holds regular and extraordinary meetings, whose
participants include senior officials from all ministries and selected agencies. It also produces
periodical reports. The Secretariat of the ESC is housed in the MOIT.31
2.21. Viet Nam did not establish an industrial adjustment programme to address the impact of trade
on the domestic economy.
2.3 Trade Agreements and Arrangements
2.3.1 WTO
2.22. Viet Nam has been a WTO Member since January 2007. All WTO agreements to which
Viet Nam is a signatory are directly applied, where applicable (Section 2.1.2), and may be invoked
in Vietnamese courts.32 Viet Nam considers that its WTO membership plays a central role in its
international integration strategy and contributes to global common rules and standards.33
2.23. Viet Nam submitted its instrument of acceptance of the Agreement on Trade Facilitation (TFA)
in December 2015, and ratified the amendment of the TRIPS Agreement in January 2017. It
participates in the Information Technology Agreement (ITA), but not in the Agreement's expansion
(ITA 2), nor is it a contracting party to the WTO plurilateral Agreements on Government Procurement
(GPA) and on Trade in Civil Aircraft.
2.24. Viet Nam submitted more than 350 notifications during the review period, covering, inter alia,
anti-dumping legislation, agriculture measures, import licensing requirements, standards and
technical regulations, trade facilitation, and safeguard measures (Table A2.1).
2.25. With respect to dispute settlement, Viet Nam was involved in 5 cases as a complainant, none
as a respondent, and 33 as a third party.
2.3.2 Regional and preferential agreements
2.26. Viet Nam considers that participation in regional trade agreements (RTAs) is a way to advance
its international integration.34 As at June 2020, Viet Nam was a party to 15 RTAs (Table 2.1).
29
See Commercial Law, Article 8; and Foreign Trade Administration Law, Article 3.
30
Prime Minister's Decision No. 04/QD-BCDLNKT, 9 January 2015.
31
The Minister of Industry and Trade is the Vice Chairman of the Committee and, as Head of the
Government's delegation for international economic/trade negotiations, was assigned as Secretary-General of
the ESC. See Inter-agency Steering Committee for International Economic Integration, Mandates (in
Vietnamese). Viewed at: http://hoinhapkinhte.gov.vn/Gi%E1%BB%9Bi-thi%E1%BB%87u/Ch%E1%BB%A9c-
n%C4%83ng-nhi%E1%BB%87m-v%E1%BB%A5/ID/1032/Gioi-thieu-ve-Ban-Chi-ao-lien-nganh-hoi-nhap-
quoc-te-ve-kinh-te.
32
In the cases where such provisions are clear and detailed enough for implementation.
33
Government Portal, Overall Strategy for International Integration through 2020, Vision to 2030.
Viewed at:
6863.
34
Government Portal, Overall Strategy for International Integration through 2020, Vision to 2030.
Viewed at:
6863.
- 37 -
2.27. During the review period, Viet Nam, as an individual signatory, signed six RTAs, and concluded
the negotiations of a free trade agreement. Also, as a member of the ASEAN, Viet Nam signed new
RTAs with third parties including India and Hong Kong, China. RTA negotiations with the European
Free Trade Association and with Israel are ongoing.
Table 2.1 RTAs of which Viet Nam is a party, June 2020

Agreements Coverage Effective date CRTA consideration
ASEAN Free Trade Area G and S 01/01/1993 Y,
BISD26S/321 (L/4735)
ASEAN-China G and S 21/09/2005 (G) Y,
26/06/2008 (S) WT/REG279/1
ASEAN-Japan G 01/12/2008 Y,
WT/REG277/1
Viet Nam-Japan G and S 01/10/2009 Y,
WT/REG275/1/Rev.1
ASEAN-Republic of Korea G and S 01/01/2010 (G) Y,
14/10/2010 (S) WT/REG287/1;
WT/REG287/3
ASEAN-Australia-New Zealand G and S 01/01/2010 Y,
WT/REG284/1/Rev.1
ASEAN-India G and S 19/08/2010 (G) Y,
01/07/2015 (S) WT/COMTD/RTA/8/1;
WT/REG372/1
Viet Nam-Chile G 01/01/2014 Y, WT/REG365/1
Viet Nam-Republic of Korea G and S 20/12/2015 Y, WT/REG371/1
Viet Nam-Eurasian Economic Union (EAEU) G and S 05/10/2016 Y, WT/REG385/1
Comprehensive and Progressive Agreement for G and S 14/01/2019 N
Trans-Pacific Partnership (CPTPP)
ASEAN-Hong Kong, China G and S 11/06/2019 N
Viet Nam-European Union G and S 01/08/2019 N
Viet Nam-Cuba Trade Agreement G 01/04/2020 N
Regional Comprehensive Economic Partnership G and S Not yet applied N
(RCEP)
Note: G Goods.
S Services.
Y Has been considered in the WTO Committee on Regional Trade Agreements (CRTA).
N Has not been considered in the WTO CRTA.
Source: WTO Secretariat.
2.28. Prior to its WTO accession, Viet Nam concluded bilateral trade agreements with some
40 partners. These bilateral trade agreements continue to be effective (e.g. the bilateral trade
agreement with the United States), unless the agreement is replaced with a new agreement (e.g.
the agreement with Cuba), according to the authorities.
2.3.2.1 ASEAN
2.3.2.1.1 ASEAN Free Trade Area
2.29. Viet Nam has been a member of the ASEAN since July 1995; it considers ASEAN as the
cornerstone of its international integration. Viet Nam chaired the ASEAN in 2020.
2.30. The ASEAN developed the framework of the ASEAN Free Trade Area, covering trade in both
goods and services under specific agreements. Under the ASEAN Trade in Goods Agreement (ATIGA),
as at 1 January 2018, nearly 100% of goods originating from ASEAN members entered Viet Nam
tariff-free.35 The ATIGA Information Technology Agreement was concluded in 2019 and became
effective on 1 January 2020. The ATIGA also contains provisions pertaining to non-tariff barrier
elimination and trade facilitation.
2.31. Under the ASEAN Framework Agreement on Services (AFAS), 12 main service sectors
comprising 128 subsectors were opened to operators of ASEAN members. The ASEAN Trade in
Services Agreement (ATISA), under negotiation since 2013, was signed on 17 October 2020. The
35
For goods originating from ASEAN members, 194 tariff lines remain non-zero-rated.
- 38 -
ATISA consolidates the achievements under the AFAS, provides for a transition to an eventual
negative-list approach in scheduling liberalization commitments, and will eventually supersede the
AFAS.36 Services professionals now may work across ASEAN members under the ASEAN Agreement
on Movement of Natural Persons, the ASEAN Mutual Recognition Arrangement on Services, and the
ASEAN Qualifications Reference Framework.
2.32. The ASEAN Comprehensive Investment Agreement (ACIA) entered into force in 2012. It
covers investment liberalization, protection, promotion, and facilitation, with the aim of creating an
open investment environment in the ASEAN region. Under the ACIA, ASEAN-based investors enjoy
non-discriminatory treatment, with a single negative list of reservations, and provisions on further
progressive liberalization. The Fourth Protocol to Amend the ACIA was signed 15 July 2020. The
Protocol incorporates TRIMs-plus37 provisions prohibiting performance requirements in the ACIA.
2.3.2.1.2 ASEAN-Hong Kong, China Free Trade Agreement
2.33. The RTA between ASEAN members and Hong Kong, China was signed in November 2017, and
entered into force on 11 June 2019 in Viet Nam.38
2.34. Under this agreement, Viet Nam is expected to eliminate import duties for 75% of total tariff
lines for goods originated from Hong Kong, China by 2029, and further eliminate an additional 10%
of lines by 2033. In terms of services trade, Viet Nam offers service providers in Hong Kong, China
with commitments to open certain markets such as professional services (e.g. legal services),
business services (e.g. advertising services), and telecommunications.39 According to the authorities,
the Agreement takes a progressive liberalization approach; it also provides a regular review
mechanism for future negotiations of market access improvements.
2.35. With regard to investment, Viet Nam, together with other ASEAN members, pledged to protect
businesses based in Hong Kong, China that invest in ASEAN countries on the principle of fair
treatment. In addition, there is a stand-alone Investment Agreement between ASEAN and Hong
Kong, China; this agreement contains provisions about the treatment of investments in the services
sectors.
2.3.2.1.3 ASEAN-India Agreement on Trade in Services
2.36. This agreement was signed by India and the ASEAN members in November 2014, and entered
into force on 1 July 2015.40
2.37. Viet Nam's sector-specific commitments in this agreement are identical to its GATS schedule.
On horizontal commitments, Viet Nam maintains, as in its GATS schedule, certain restrictions under
Mode 3, including unbound for the establishment of a branch unless otherwise indicated in each
specific sector or subsector. Horizontal commitments under Mode 4 cover intra-corporate
transferees, service salespeople, persons responsible for setting up a commercial presence,
contractual service suppliers, and other personnel. While the entry of contractual service suppliers
was allowed under the GATS, specifically only for computer and related services and engineering
services, under the Agreement, the entry of architectural service suppliers is also liberalized.
36
ASEAN Secretariat, "ASEAN Signs Trade in Services Agreement", 23 October 2020. Viewed at:
https://asean.org/asean-signs-trade-services-agreement-2/.
37
This refers to commitments beyond the WTO TRIMs Agreement.
38
The dates that the ASEAN-Hong Kong, China, free trade agreement entered into force are different
among ASEAN members.
39
Detailed specific commitments may be consulted in Annex 8-1 to the ASEAN-Hong Kong, China, free
trade agreement. Viewed at:
https://www.tid.gov.hk/english/ita/fta/hkasean/files/AHKFTA_Chapter_8_Annex_8-1_SOC_Viet_Nam.pdf.
40
This agreement was negotiated under the Framework Agreement on Comprehensive Economic
Cooperation between the Republic of India and the ASEAN and the Protocol to Amend the Framework
Agreement, signed in 2009. It should also be viewed in connection with the Agreement on Trade in Goods that
entered into force on 1 July 2003; the ASEAN-India Agreement on dispute settlement mechanism was signed in
2009.
- 39 -
2.3.2.1.4 Other ASEAN RTAs
2.38. Viet Nam, through its membership in ASEAN, maintains RTAs with Australia-New Zealand,
China, India, Japan, and the Republic of Korea.41
2.3.2.2 Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
2.39. Viet Nam signed the CPTPP on 8 March 2018.42 It was ratified by the National Assembly on
12 November 2018, and entered into force on 14 January 2019.43
2.40. Viet Nam adopted a phased approach to reducing tariffs for goods originating from CPTPP
contracting parties over a period of 10 years. Upon entry into force, about 66% of total Vietnamese
tariff lines were zero-rated, which covered products such as, inter alia, animal feed, dairy products,
grains, rice, cotton, leather and leather products, textiles and materials for textiles, footwear, rubber
and rubber products, furniture, wood and wood products, plastics, pharmaceuticals, pesticides,
chemicals, fertilizers, perfume, cosmetics, machinery and equipment, and electronic accessories.
Approximately 86.5% of total lines are to be zero-rated within three years of the agreement's entry
into force. For the remainder, tariff reductions will be implemented over a period of between 5 and
10 years.
2.41. For products deemed highly sensitive, tariff rate quotas may be applied, or tariff reductions
may be implemented over a period longer than 10 years. Specifically, Viet Nam adopts tariff rate
quotas for unmanufactured tobacco and used vehicles. As a result of the CPTPP, Viet Nam committed
to remove in-quota duties for sugar, eggs, and salt 5 or 10 years (depending on the good) after the
implementation of the Agreement.
2.42. Viet Nam will also abolish export duties on the majority of goods within 5 to 15 years of the
Agreement's entry into force.44 However, it reserves the right to maintain export duties on a number
of crucial commodity groups, such as coal, oil, and certain types of ores and minerals.45
2.43. Regarding rules of origin, the CPTPP cumulative rule allows diagonal cumulation, i.e. a CPTPP
contracting party can treat the raw materials of one or more CPTPP contracting parties as its own,
when those materials are used to produce a good of CPTPP origin.
2.44. In terms of trade in services and investment, Viet Nam lists all of its reservations that are
inconsistent with the service and investment chapters46; those reservations mostly concern the
national treatment obligation.
2.45. Viet Nam made its commitments regarding government procurement under the CPTPP
(Section 3.3.6).
41
For details, see WTO document WT/TPR/S/287/Rev.1, 4 November 2013, Table A2.1.
42
Contracting parties of the CPTPP include Australia, Brunei Darussalam, Canada, Chile, Japan,
Malaysia, Mexico, New Zealand, Peru, Singapore, and Viet Nam.
43
Six other countries also ratified the CPTPP: Australia, Canada, Japan, Mexico, New Zealand, and
Singapore.
44
Items are listed as Categories A to J in Annex 2-C to the CPTPP Agreement. Viewed at:
http://cptpp.moit.gov.vn/data/e0593b3b-82bf-4956-9721-
88e51bd099e6/userfiles/files/2_%20National%20Treatment%20and%20Market%20Access%20for%20Goods.p
df.
45
Items are listed as Category K in Annex 2-C to the CPTPP Agreement. Viewed at:
88e51bd099e6/userfiles/files/2_%20National%20Treatment%20and%20Market%20Access%20for%20Goods.p
df.
46
Reservations of existing measures are listed in Annex I to the CPTPP Agreement. Viewed at:
88e51bd099e6/userfiles/files/Annex%20I_%20Viet%20Nam.pdf. Reservations of permanent measures are
listed in Annex II. Viewed at: http://cptpp.moit.gov.vn/data/e0593b3b-82bf-4956-9721-
88e51bd099e6/userfiles/files/Annex%20II_%20Viet%20Nam.pdf.
- 40 -
2.3.2.3 European Union-Viet Nam Free Trade Agreement (EVFTA)
2.46. The free trade agreement between Viet Nam and the European Union was signed on 30 June
2019, and was ratified by the National Assembly on 8 June 2020. The Agreement entered into force
on 1 August 2020.
2.47. Under the Agreement, Viet Nam is expected to eliminate 98.3% of its total tariff lines for
goods originating from the European Union over a period of 10 years; on the application day of the
Agreement, 48.5% of total tariff lines were zero-rated. For the remaining 1.7% of lines, tariffs may
be reduced over a period longer than 10 years, or tariff rate quotas, in line with Vietnamese WTO
commitments or under the category of Completely Knocked Down, may be applied.
2.48. Under the Agreement, while Viet Nam does not impose export duties on most goods, it
reserved the right to impose export duties on 57 lines, most of which are commodities, such as crude
oil or coal, that are already subject to export duties.47
2.49. In general, market access and national treatment commitments under the EVFTA are similar
to those under the GTAS; however, the authorities note that under the EVFTA, European Union
service providers enjoy preferential conditions in some sectors, such as freight transportation,
storage and warehouse services, cargo-handling services, telecommunications, and distribution.
2.50. With regard to government procurement, the provisions are similar to those of the GPA.
Viet Nam listed ministries and central agencies, authorities of Hanoi and Ho Chi Minh City, some
state-owned enterprises (SOEs), and a number of state-funded entities in the procuring entities
schedule (Section 3.3.6). Viet Nam is expected to complete the opening for the scheduled entities in
15 years.
2.51. The provisions of intellectual property also cover geographical indications.
2.3.2.4 Free Trade Agreement between Viet Nam and the Eurasian Economic Union
(EAEU) and its member States (VN-EAEU FTA)
2.52. The VN-EAEU FTA was signed in May 2015, and entered into force in October 2016.
2.53. Viet Nam committed to eliminating tariffs on 84.5% of tariff lines within 10 years, of which up
to 60% of tariff lines were eliminated immediately after the Agreement came into effect. About
12.8% of tariff lines are not committed for preferential rates.
2.54. In terms of services trade, Viet Nam maintains restrictions on establishment in industries that
are prohibited from opening or may open only conditionally (Section 2.4). On sector-specific
commitments, most are similar to Viet Nam's schedule under the GATS, with some improvement in
certain subsectors, such as research and development services, and rental/leasing services without
operators.48
2.55. Other commitments under the Agreement, such as on intellectual property and competition,
are mainly cooperative. According to the authorities, they do not exceed Viet Nam's commitments
in the WTO and in other FTAs that Viet Nam has signed.
2.3.2.5 Free Trade Agreement between the Government of the Socialist Republic of
Viet Nam and the Government of the Republic of Korea (VKFTA)
2.56. The VKFTA was signed in May 2015, and entered into force on 20 December 2015.
2.57. In terms of trade in goods, Viet Nam is expected to eliminate tariffs for 89.2% of tariff lines
over a period of 10 years. The tariff elimination is similar to the schedule in the ASEAN-Republic of
Korea FTA (AKFTA). However, an additional 265 lines are to be eliminated for goods originating from
the Republic of Korea under the VKFTA, covering products of, inter alia, textile and footwear
47
Except coking coal and coals used throughout the production of coking coal, which is almost
unavailable in Viet Nam.
48
WTO document WT/REG385/1, 21 June 2019, Table 4.2.
- 41 -
materials; auto engines, components, and parts; electrical appliances and equipment; electronic
products and components; and plastic materials.
2.58. For trade in services, Viet Nam offered more services markets to Korean service providers
than the AKFTA. These new markets include urban planning services and urban landscape
architecture, and leasing machines and other equipment without operators.49 The VKFTA contains a
list of reserved measures/fields.
2.59. According to the authorities, the Investor-State Dispute Settlement (ISDS) Mechanism
provided for in the VKFTA has a wider scope of application, with more specific process and procedure
rules than in the AKFTA.50 Also, the process and the procedure of the ISDS in the VKFTA are clearer
and more specific than those in the AKFTA.51
2.3.2.6 Free Trade Agreement between Viet Nam and Chile
2.60. Viet Nam signed a free trade agreement with Chile in November 2011, which entered into
force on 1 January 2014.
2.61. The FTA covers trade in goods only. Viet Nam is to gradually reduce tariffs for goods
originating from Chile over a period of 15 years. Upon entry into force, tariffs for about 35% of total
lines were eliminated; most tariffs are to be eliminated in 2024, following 10 years of
implementation.52 After the transition period, 10.8% of tariff lines will remain dutiable in 2029; these
lines include meat and prepared foods, sugar, alcoholic beverages, tobacco-related products, cars,
motorcycles, and tyres.
2.3.2.7 Trade Agreement between the Government of the Socialist Republic of Viet Nam
and the Government of the Republic of Cuba (Viet Nam-Cuba Trade Agreement)
2.62. The Viet Nam-Cuba Trade Agreement replaces the 1996 agreement between these two
countries on trade and other forms of economic cooperation. The Agreement was signed on
9 November 2018, and entered into force on 1 April 2020.
2.63. Under the Agreement, Viet Nam is expected to eliminate tariffs for almost all goods originating
from Cuba (475 lines in total) over a period of four years. Four hundred thirty-one lines of goods are
zero-rated upon the Agreement's entry into force. Over a period of four years, tariffs rates for
cigarettes and cigars will be reduced to 70%; for alcohol and alcoholic beverages, 20%; and for
sugar and unprocessed tobacco within the WTO-quota limits, 15% (in-quota rates).
2.64. The Agreement also covers, inter alia, customs management and trade facilitation, trade
remedies, standards, technical regulations and conformity assessment procedures, food hygiene and
safety measures, quarantine of plants and animals, and economic and trade cooperation.
49
Other sector-specific commitments are similar to Viet Nam's schedule under the GATS. WTO
document WT/REG/371/1, 13 April 2017, Table 4.4.
50
Under the AKFTA, ISDS only applies to the alleged breach of seven obligations, namely, national
treatment; most-favoured-nation treatment; general treatment of investment; senior management and boards
of directors; transfers, expropriation, and compensation; and compensation for losses. However, the ISDS
mechanism under the VKFTA is applied to the performance requirements obligation, in addition to the seven
obligation breaches provided under the AKFTA.
51
The VKFTA provides a number of disciplines on arbitral procedure that are not available under the
AKFTA, including the number, remuneration, and qualifications of arbitrators; the process to consolidate cases;
the conduct of the arbitration; the interpretation of the joint committee on the Agreement's provisions; and the
address for delivery of notices and other documents. The VKFTA also requires more detailed information than
the AKFTA regarding contents of the notice of intent to submit a claim to arbitration, conditions to submit a
claim to arbitration, and consent to arbitration.
52
WTO document WT/REG365/1, 21 June 2016, Table 3.4.
- 42 -
2.3.2.8 Regional Comprehensive Economic Partnership (RCEP)
2.65. The RCEP is an agreement among 15 parties, including 10 ASEAN members 53 and 5 other
countries54 in the region. Viet Nam concluded negotiations of the RCEP in November 2019, and
signed the agreement on 15 November 2020.55
2.66. The RCEP covers a wide variety of areas, including, inter alia, trade in goods, trade in services
and investment, and intellectual property.56
2.3.3 Other agreements and arrangements
2.67. Viet Nam does not operate a Generalized System of Preferences, nor it provides duty-free and
quota-free market access for products originating from least developed countries.
2.4 Investment Regime
2.68. Viet Nam's investment regime has been substantially revised since its previous Review in
2013. The current Enterprise Law (Law No. 68/2014/QH13) and Investment Law (Law
No. 67/2014/QH13) were both adopted in November 2014, and entered into force on 1 July 2015.
The legal forms for enterprises prescribed by the Enterprise Law continue to be limited liability
companies, shareholding companies, partnerships, or sole proprietorships. 57 Through the update of
the legal framework, Viet Nam intends to equalize the treatment accorded to Vietnamese and foreign
investors and to attract foreign direct investment (FDI).
2.69. A foreign investor is defined by the Investment Law as any organization established in
accordance with foreign laws and conducting business investment activities in Viet Nam. Article 9 of
the Law stipulates the protection of foreign investors from nationalization or confiscation through
administrative measures, and establishes a list of exceptional reasons58 for expropriation by the
State subject to compensation. According to the Enterprise Law, SOEs, foreign-invested enterprises,
and the Vietnamese private sector operate under equal business conditions.
2.70. Article 6 of the Investment Law classifies restricted investment activities for national and
foreign investors in banned59 and conditional businesses. For reasons of national defence and
security, social order and security, social ethics, or public health, investment in conditional
businesses must satisfy certain conditions. Compared with the 2005 Investment Law, the number of
conditional businesses was reduced from 386 to 243.60 Business investment conditions applying to
domestic and foreign investors are regulated through laws, ordinances, decrees, and international
agreements to which Viet Nam is a signatory. The Government regulates these conditions mainly by
employing decrees; ministries and agencies (ministerial agencies, People's Councils, People's
Committees, and other entities) do not issue regulations on these matters.
2.71. Decree No. 118/2015/ND-CP (guidelines for some articles of the Law on Investment), issued
on 12 November 2015, provides further details on conditions that might apply to investment, such
53
The ASEAN members include Brunei Darussalam, Cambodia, Indonesia, Lao People's Democratic
Republic, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Viet Nam.
54
The other five countries include Australia, China, Japan, the Republic of Korea, and New Zealand.
55
The RCEP, when in effect, shall cover a market of approximately 2.2 billion consumers, with a GDP at
around USD 26.2 trillion (accounting for 30% of global GDP and population, respectively). In the third RCEP
Summit in November 2019, 15 countries expressed agreement on the legal text, which basically completed the
negotiations.
56
ASEAN Secretariat, "Summary of the Regional Comprehensive Economic Partnership Agreement".
Viewed at: https://asean.org/summary-regional-comprehensive-economic-partnership-agreement/.
57
Any enterprise resolving social and environmental problems or serving the public interest can now be
considered a social enterprise. Social enterprises are also requested to reinvest at least 51% of their annual
profits to address social and environmental objectives.
58
Exceptional reasons include national defence and security, national interests, states of emergency,
and prevention of, or recovery after, natural disasters.
59
Trade in specific narcotic substances, chemicals and minerals, and wild fauna and flora species are
listed as banned activities in Appendices 1, 2, and 3 of the 2014 Investment Law. Furthermore, prostitution,
trafficking in humans or their organs, human cloning, and trade in firecrackers are forbidden activities following
the amendment of Law No. 03/2016/QH14.
60
Law No. 03/2016/QH14.
- 43 -
as licences, certificates of eligibility, practice certificates, certificates of professional liability

insurance, and other non-written certification; separate regulations prescribe specific business
conditions that apply to related activities among the 243 conditional sectors. Investment projects
that have a significant environmental impact, use forest or rice cultivation lands (more than 500
hectares), or relocate people (20,000 in mountainous areas or 50,000 elsewhere) require approval
by the National Assembly. For projects with a lower relocation impact (10,000 in mountainous areas
or 20,000 elsewhere), the Prime Minister oversees the approval procedure.
2.72. Furthermore, approval by the Prime Minister is required for investment projects in the building
and commercial operation of airports and air transport, national seaports, and golf courses;
petroleum prospecting, exploitation, and processing; betting and casino businesses; cigarette
production; and development of industrial parks, export-processing zones, and investment projects
valued at VND 5 trillion (approximately USD 214 million) or more.
2.73. The approval of a People's Committee, i.e. the executive arm of the Government at the
provincial level, is required for projects involving land allocation or leasing out by the State without
auction, tender, or transfer; changes in land-use purposes; or the use of restricted technologies.
2.74. Regarding approval, Articles 33 to 35 of the Investment Law provide guidance on the criteria
to be used by the approving authorities (People's Committee, Prime Minister, or National Assembly);
they include the necessity of the project, conformity with socio-economic development strategy and
master plans, objectives, scope, site, duration and schedule for implementation, land use, relocation
and resettlement, environmental protection issues, capital investment, socio-economic effects,
special policies, investment incentives, support, and conditions. The assessment of these criteria by
the relevant approving authority varies according to the nature of each investment project.
2.75. Besides investment conditions in the 243 sectors mentioned above, additional conditions for
foreign investors might apply in some sectors. Although the general cap of 49% for foreign
acquisition of public companies61 operating in unconditional sectors was abolished in 2015, foreign
participation in some sectors remains capped at levels varying between 30% and 51% (Table 2.2).62
Wholly foreign-owned enterprises in architectural services can provide services only to foreign-
invested enterprises in Viet Nam. Projects with foreign participation in sea transport,
telecommunications services with network infrastructure, afforestation, publishing, journalism, and
the establishment of wholly foreign-owned science and technology companies may require the
approval of the Prime Minister.
Table 2.2 Caps on foreign participation in specific sectors and activities, 2020
Sector Cap on share
capital
Services incidental to agriculture 51%
Joint stock commercial banksa 30%
Basic telecommunications services with infrastructure 49%
Value-added telecommunications services with infrastructure 50%
Telecommunications services without infrastructure 65%
Virtual private network (VPN) telecommunications services without infrastructure 70%
Rail and road transport 49%
a Note that banks with 100% foreign capital are allowed in Viet Nam.
2.76. Business activities in Viet Nam are subject to a two-tier registration procedure, which differs
according to the participation of foreign investors and specific conditions applied to the activity. A
simplified registration procedure applies to business activities with foreign equity participation of less
than 51% and for which no specific conditions apply. In that case, companies must only obtain an
enterprise registration, and no further formalities are necessary. The enterprise registration
61
In addition to publicly listed companies, Decree No. 60/2015/ND-CP allows for the majority
participation of foreign investors in companies with more than 100 shareholders and with charter capital of VND
10 billion (approximately USD 430,000) or more.
62
Foreign participation in other sectors such as distribution services, passenger and freight transport
(excluding cabotage) to the supply of international maritime transport services, insurance, securities,
maintenance and repair of aircraft (air transport), and legal services was completely liberalized in line with
WTO commitments.
- 44 -
certificate (ERC) should be issued in three working days. Circular No. 47/2019/TT-BTC, issued by
the Ministry of Finance (MOF), halved the fees for enterprise registration on 20 September 2019.
The current fee for issuing or reissuing an ERC or changing information on it is VND 50,000
(USD 2.14). Online applications for enterprise registration are exempt from fees. Once the ERC is
granted, companies are requested to announce their registration on the National Business
Registration Portal63, whose publication fee is VND 100,000 (USD 4.28).64 Changes in foreign
ownership, legal forms, location, business name, legal representatives, and business activities
require an amendment to the enterprise registration.
2.77. Foreign-invested firms with majority foreign participation must obtain an investment
registration at the provincial Department of Planning and Investment where the business is located
or at the Management Board of the special-purpose zone65 in which they operate.66 The investment
registration should be granted within 15 working days; no statistics are collected on the effective or
observed days needed for this registration. Applications for enterprise and investment registrations
can be done simultaneously, although the procedures remain separate, and the relevant investment
registration authority is expected to cooperate with the enterprise registration authority. 67
Registration requirements for mergers and acquisitions were clarified in the current law and, unless
foreign capital participation is equal to or greater than 51%, only an amendment of enterprise
registration is needed. Article 40 of the Investment Law stipulates that changes or adjustments in
business activities require the re-assessment and re-issuance of the investment registration. The
investment registration is issued at no cost.
2.78. For activities subject to the approval of the National Assembly, the Prime Minister, or the local
People's Committee, approval must be obtained before application for investment and/or enterprise
registrations. In that case, investment registration is not mandatory for projects with foreign equity
participation of less than 51% or domestic projects, unless requested by specific business conditions
for foreign investors. Investment registration following approval should be issued in five working
days following the appraisal. For projects subject to the approval of a People's Committee, the
investor should be notified of the result of the procedure within 35 days.68 The Investment Law does
not prescribe delays for appraisal procedures by other authorities.
2.79. Between 2013 and 2019, the Vietnamese authorities approved 17,468 foreign investment
projects with total registered capital of USD 143.1 billion. The processing and manufacturing sector
attracted the largest number of projects (6,943), representing 62% (USD 89.3 billion) of the total
foreign capital invested in the country during this period.69 The preferred form of foreign investment
is whole ownership, and major cities and surrounding provinces are the main destinations for foreign
investment.
2.80. The OECD Investment Policy Review of Viet Nam 2018 points out that statutory delays for
registration and approval procedures were rarely met in the past, although national authorities noted
that this was mostly related to the investment approval process. The authorities indicate that the
implementation of online licensing should improve these procedures, although some localities might
continue to face challenges in implementing the highest level of digitalization outlined in this
initiative. The National Investment Information System for Private Sector, which is to be launched
in 2021, is expected to provide enhanced information and services on investment procedures to
foreign investors. According to the World Bank Doing Business 2020 Report, the major obstacle to
63
Available in Vietnamese and English. National Business Registration Portal, Business Registration.
Viewed at: www.dangkykinhdoanh.gov.vn.
64
Circular No. 47/2019/TT-BTC.
65
Also known as special economic zones.
66
Investment registration for oil and gas projects is granted by the MOIT, while the MOF also approves
insurance projects.
67
Although this setting cannot be considered as a one-stop shop for registration, the Government
formalized an improved mechanism for the registration requirements for foreign investors through Circular
No. 02/2017/TT-BKHDT.
68
Law No. 67/2014/QH13 on Investment, Article 33, Clause 1.
69
Other attractive sectors for FDI are wholesale and retail trade; professional, scientific, and technical
activities; real estate; production and supply of electricity; construction; water supply; transport and storage;
accommodation and catering; and information and communication.
- 45 -
opening a business in Viet Nam is the delay in obtaining pre-printed VAT invoices at the municipal
level.70
2.81. Decree No. 11/2016/ND-CP, as amended by Decree No. 140/2018/ND-CP, details the
provisions and procedures for contracting foreign workers. The hiring of foreign workers is subject
to the approval of the Chairman of the local People's Committee, based on employers' needs that
cannot be covered by Vietnamese workers. Workers in 11 service sectors71 can transfer within their
companies and work in Viet Nam.
2.82. Private ownership of land is not permitted in Viet Nam. However, the Land Law of 29
November 2013 allows land to be leased through annual payment or one-off rental payment for the
entire period of the lease to foreign-invested firms to implement projects in agriculture, forestry,
aquaculture or salt making, non-agricultural production and business land, construction of public
facilities for business purposes, and housing projects for lease. In the case of housing investment
projects for sale or sale combined with leasing, the State might allocate land to foreign-invested
firms. Moreover, the Law authorizes assets associated with the land and the value of land-use rights
to be mortgaged. The allocation of land-use rights is the competence of the provincial People's
Committees. Although the duration of a land-lease agreement should not exceed 50 years, special
cases with slow capital recovery in areas with difficult or exceptionally difficult socio-economic
conditions might be granted a land lease of up to 70 years. Leases may be extended upon expiry of
the initial term.
2.83. To stimulate private investment, the current legal framework allows for the granting of
investment incentives (Chapter 3 of the Investment Law), including reductions in enterprise income
taxes, exemptions from import duties on supplies and components for investment projects, and
exemptions or reductions of land rentals or use levies. Selected activities 72 are eligible for investment
incentives, as well as projects located in industrial zones and economic zones (Section 3.2.4). Also,
supporting industries might benefit from preferences in investment credits, land and water surface
rents, and VAT rates.
2.84. In February 2020, Viet Nam notified to the WTO other support programmes that have been
implemented since the previous Review.73 Current support programmes aim at supporting
enterprises that hire workers with disabilities or a high proportion of women. Supported companies
in these two programmes can be entitled to a reduction of corporate tax income, concessional loans,
priority in land lease applications and a reduction in associated fees. A support programme for fishery
products was active between 2015 and 2018, and its extension is currently under evaluation. A two-
year mechanism promoting the development of solar power projects ended in June 2019, while a
similar mechanism for wind-power projects runs until November 2021. The additional benefit for
energy-producing projects consists of a selling price above the retail price for electricity.
2.85. Decree No. 63/2018/ND-CP establishes the investment framework for public-private
partnerships (PPPs). The number of fields where PPPs can be implemented in Viet Nam considerably
increased compared with those under Decision No. 71/2010/QD-TTg, which previously regulated
PPPs. Transport, power generation and transmission lines, public lighting, water supply and waste
collection systems, social housing and office space for state agencies, health, education and training,
commercial infrastructure and infrastructure in SEZs, agricultural and rural development, and other
70
According to the World Bank's Doing Business 2020 Report, Viet Nam substantially improved on ease
of doing business, and the country now ranks 70th among 190 economies, up from 99th in 2013. The country
shows an average performance among East Asian countries, where Malaysia (13 th), Thailand (21st), and China
(31st) are top performers. Its best relative scores are on "dealing with construction permits" and "getting
credit" (25th on both sub-indicators), and the most significant improvement is on "getting electricity" (27th,
compared to 155th in 2013). However, the country falls behind on "resolving insolvency" (122nd), "starting a
business" (115th), "paying taxes" (109th), and "trading across borders" (104th).
71
These sectors are business, communication, construction, distribution, education, environment,
finance, healthcare, tourism, cultural entertainment, and transport.
72
Activities eligible for investment incentives include high-tech activities; production of clean and
renewable energy; manufacture of electronic products and automobiles and their supporting activities;
supporting industries to the textile industry; information technology products; cultivation and processing of
agricultural, forestry, and fishery products; forest planting and protection; waste management; infrastructure
development, operation, and management; education; and drug, medicine, and biotechnology production.
73
WTO documents G/SCM/N/284/VNM, G/SCM/N/315/VNM, and G/SCM/N/343/VNM, 26 February 2020.
- 46 -
fields decided by the Prime Minister are now available for the establishment of such investment
partnerships.
2.86. For projects whose total investment capital is valued up to VND 1.5 trillion (approximately
USD 64 million), the private investor must contribute at least 20% of the equity. For projects of
higher value, the private investor must contribute at least an additional 10% of the investment
capital beyond VND 1.5 trillion. The relevant authorities consider the financial plan, the balancing
capacity of capital sources, and other resources to determine the value of the State's participation
in a PPP project. The competent authority to approve the feasibility study of a PPP is the Prime
Minister for projects of national importance and for those related to security, defence, and religion.
Ministers, heads of ministerial-level agencies and government agencies, and presidents of provincial
People's Committees approve feasibility studies for projects with lower total investment capital,
according to the Law on Public Investment.74 Decree No. 63/2018/ND-CP removes the requirement
to obtain an investment registration for PPP projects.
2.87. Investment abroad by Vietnamese-based enterprises is governed by the Investment Law and
Decree No. 83/2015/ND-CP of 25 September 2015 regulating outward investment. The regulation
and management of outward investment allow authorities and government agencies to balance
financial resources between Vietnamese enterprises investing abroad and high demand for domestic
investment while ensuring that outward investment is in line with other national regulations and
commitments. Periodically, the SBV stipulates the provisions of foreign currency loans available for
outward investments, according to its monetary and foreign currency management policies. Projects
with outward investment capital above VND 20 billion (approximately USD 864,000) and those
requiring special policies are subject to the approval of the National Assembly based on a report by
an Appraisal Council established by the Prime Minister. Outward investment projects in banking,
insurance, securities, journalism, broadcasting, telecommunication, and real estate above VND 400
billion (approximately USD 17.2 million) and projects in other sectors exceeding VND 800 billion
(approximately USD 34.5 million) are subject to the approval of the Prime Minister. The Ministry of
Planning and Investment manages the procedure for appraisals of large investment projects, and is
responsible for the issuance of certificates of outward investment registration for all outward
investment projects.75 As per the Investment Law, outward investment is restricted in the sectors
where private investment is forbidden; quarterly and annual reports prepared by Vietnamese
investors are the means used to monitor the implementation of outward investment.
2.88. At the end of 2019, the Ministry of Planning and Investment had granted investment
certificates for 1,321 projects overseas, with a total capital of USD 20.6 billion. Vietnamese
investment is active in 18 sectors across 78 countries and territories on 5 continents. Main sectors
for outward investment are exploration and mining, mostly for oil and gas, accounting for 38.4% of
total registered investment; other important sectors for Vietnamese investment are activities in
agriculture, forestry, and fisheries (15.3%), and telecommunications and information technology
(12.8%). Main destinations for Vietnamese investment include neighbouring Lao People's Democratic
Republic (23.8%) and Cambodia (13.3%); other regional partners such as Myanmar (6.5%) and
Malaysia (4.1%); and overseas partners such as the Russian Federation (13.7%), the Bolivarian
Republic of Venezuela (8.8%), Algeria (6.1%), Peru (6%), and the United States (3.4%).
2.89. By end-2019, Viet Nam signed 67 bilateral investment agreements; 5 of them were signed
during the review period. The recently ratified EVFTA is coupled with a single European Union-
Viet Nam Investment Protection Agreement (EVIPA), which is expected to replace 21 bilateral
investment agreements and is currently pending ratification by European Union countries. This
agreement is aimed at implementing a permanent system for dispute resolution, as well as
consultation and mediation mechanisms.
2.90. Foreign investment is also covered by provisions in recent FTAs signed by Viet Nam and
entered into force, such as the ASEAN-Hong Kong, China, FTA; the CPTPP; the VN-EAEU FTA; and
the VKFTA (Section 2.3.2).
2.91. On 17 June 2020, a revised Enterprise Law (Law No. 59/2020/QH14) and a revised
Investment Law (No. 61/2020/QH14) were issued; both of them entered into force on 1 January
74
Law No. 39/2019/QH14 on Public Investment.
75
Outward investment projects below these thresholds do not require approval from the authorities but
should still request their outward investment registration.
- 47 -
2021. Some changes applied by the 2020 Investment Law include the definition of foreign-invested
companies as those where a foreign investor holds 50% or more of the charter capital (instead of
51% until now), the classification of debt collection services as a banned business activity, the
lowering of conditional business sectors to 227 (instead of 243), and the increase in the number of
activities which might benefit from investment incentives. The 2020 Enterprise Law increases the
protection of minority shareholders and enhances the recognition of online business registrations.
2.92. Law No. 64/2020/QH14 on Investment in the Form on Public-Private Partnership, issued on
18 June 2020, entered into force on 1 January 2021; it identifies five key areas for PPPs:
(i) transport; (ii) electric grids and non-hydro power generation; (iii) water supply and waste
collection systems; (iv) health, education, and training; and (v) information technology
infrastructure. It prescribes a minimum value for projects of at least VND 200 billion
(USD 8.5 million), and private investors must contribute at least 15% of the total investment capital.
Article 82 of the Law establishes a mechanism for sharing exceptionally high or low revenues for
projects under a PPP.76
76
The State is entitled to half of revenues above 125% of the expected revenue in the financial plan of
the PPP project. In case of a significantly low revenue for a PPP project, the State will share 50% of the loss
revenue up to 75% of the expected revenue in the financial plan. Further details of this revenue sharing
mechanism are to be announced by the Government.
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3 TRADE POLICIES AND PRACTICES BY MEASURE
3.1 Measures Directly Affecting Imports
3.1.1 Customs procedures, valuation, and requirements
3.1.1.1 Customs procedures
3.1. During the review period, Viet Nam continued to reform its policies and measures on customs
procedures based on its Customs Development Strategy to 2020 (Prime Minister's Decision
No. 448/QD-TTg), issued on 25 March 2011. In accordance with the Strategy, a revised Customs
Law (Law No. 54/2014/QH13), which aims to domesticate international treaties to which Viet Nam
is a party, was adopted on 23 June 2014, and entered into force on 1 January 2015. The Law is
supplemented by regulations including: (i) Decree No. 08/2015/ND-CP (providing specific provisions
and guidance on the enforcement of the Customs Law on customs procedures, examination,
supervision, and control procedures), issued on 21 January 2015; (ii) Decree No. 59/2018/ND-CP
(on amendments to some articles of Decree No. 08/2015/ND-CP), issued on 20 April 2018; and (iii)
Ministry of Finance (MOF) Circular No. 38/2015/TT-BTC (on customs procedures, customs
supervision and inspection, export tax, import tax, and tax administration applied to exported and
imported goods), issued on 25 March 2015, which was amended and supplemented by MOF Circular
No. 39/2018/TT-BTC (on prescribing inspection and verification of exported goods), issued on 20
April 2018. The authorities state that the legal documents were formulated through, inter alia, public
consultations with relevant agencies, businesses, and people via written documents, website posts,
and business associations.
3.2. The Customs Law stipulates, inter alia, customs management; goods permitted to be imported,
exported, or transited; and the organization and operation of customs services. The authorities state
that, compared with the previous law, the revised Law created a legal basis for the application of
risk management in all processes of customs inspection and supervision, adopted post-inspection
principles, expanded the application of information technology and modern equipment into
professional activities, and adopted the National Single Window and the Association of Southeast
Asian Nations (ASEAN) Single Window. They state that the Law and other relevant documents
modernized customs management by, inter alia, using technological applications such as electronic
customs clearance at all customs departments and branches, and allowing customs declarations to
be made 24 hours a day and 7 days a week.1
3.3. Through the reform, the authorities aim to: (i) simplify the customs dossier; (ii) provide
transparent regulations on maximum time for post-customs clearance inspection and physical
inspection of goods; (iii) conduct surveys and evaluation of management performance regularly;
(iv) clarify the rights and obligations of customs declarants, organizations, and individuals
concerned, as well as customs officers, the customs authority, and relevant agencies; (v) create a
mechanism to encourage legal compliance of customs declarants; and (vi) minimize direct contact
between customs officers and customs declarants during the clearance process. They also consider
that the reform will lead to customs officers' increased awareness about the new customs
management method.
3.4. The authorities consider that the uniform application of HS codes at the time of importation is
ensured by using a List of Exports and Imports based on the HS Nomenclature of the World Customs
Organization and the ASEAN Harmonized Tariff Nomenclature (AHTN), and a system of legislative
documents on customs including the Customs Law.
3.5. On 6 April 2016, the Law on Export Tax and Import Tax (Law No. 107/2016/QH13) was
adopted. The Law, which entered into force on 1 September 2016, aimed, inter alia, to: (i) meet the
implementation requirements on international commitments and treaties on import and export
duties; (ii) amend the tax table and tax rates to suit the requirements of free trade agreements
Viet Nam is a party to; (iii) encourage and protect domestic business activities and production; and
(iv) contribute to the implementation of administrative reforms. The Law specifies each type of tax,
1
Customs declarants must submit customs dossiers to customs offices as prescribed in Clause 2,
Article 16, of MOF Circular No. 38/2015/TT-BTC, and Clause 5, Article 1, of MOF Circular No. 39/2018/TT-BTC.
The registration and channelling of declarations comply with Article 19 of MOF Circular No. 38/2015/TT-BTC
and Clause 8, Article 1, of MOF Circular No. 39/2018/TT-BTC.
- 49 -
including ad valorem taxes, mixed taxes, and taxes on imported goods subject to tariff quotas.2 In
accordance with the implementation of commitments to reduce export tax in the framework of a
number of FTAs, the Law also stipulates that, for goods exported to a country, group of countries or
territories that have preferential export tax agreements in their trade relations with Viet Nam, these
agreements will be applied.
3.6. The authorities consider that the Law makes comprehensive reforms in terms of management
methods and export and import tax policies regarding stability, openness, transparency, and
favourable conditions for businesses, particularly in regard to tax calculation method and various
types of taxes.
3.7. Under the Law, imported goods originating from a country, a group of countries, or territories
that exercise most-favoured nation (MFN) treatment in trade relations with Viet Nam or goods from
non-tariff zones (e.g. export processing zones described in Section 3.2.4) imported into the domestic
market that satisfy the rule of origin from a country, group of countries, or territories that exercise
MFN treatment in trade relations with Viet Nam are accorded "preferential tax rates" (i.e. applied
MFN rates). Imported goods originating from a country, a group of countries, or territories that have
a preferential trade agreement with Viet Nam or goods from non-tariff zones imported into the
domestic market that satisfy the rules of origin from a country, a group of countries, or territories
that have a preferential trade agreement with Viet Nam are accorded "special preferential tax rates".
If neither preferential tax rates nor special preferential tax rates are applicable, an ordinary tax rate,
which is 150% of the preferential tax rate of each tariff line, will be applied. There are a number of
tax exemptions.
3.8. Legislation continues to distinguish between import trading rights and the right to distribute
imported goods within Viet Nam. Full import trading rights have been granted to foreigners since
1 January 2009. A foreign-invested company needs to have a certificate of investment registration
as prescribed under the Law on Investment (Law No. 67/2014/QH13, issued on 26 November 2014,
and entered into force on 1 July 2015) to engage in imports or exports (Section 2.4).3 Under Decree
No. 09/2018/ND-CP (providing guidance on the Law on Commerce and the Law on Foreign Trade
Management), issued on 15 January 2018, wholesale distribution of imported goods within Viet Nam
is allowed without a business licence, which is required for a foreign-invested enterprise to engage
in retail distribution. Articles 3 and 23 of the Decree specify general criteria of an economic needs
test for projects establishing FDI retail outlets. Foreign-invested enterprises are allowed to distribute
lubricants (including petroleum-based lubricants) domestically if the enterprises meet the conditions
specified in the Decree.4 Under Decree No. 116/2017/ND-CP (on Business Requirements for
Manufacturing, Assembly and Imports of Automobiles, Automobile Warranty and Maintenance
Services, issued on 17 October 2017), importers of automobiles must hold a written certificate or
document indicating that they are authorized to represent foreign automobile producers so they can
recall any defective automobiles exported to Viet Nam, if necessary.5
3.9. Customs clearance documentation and procedures are implemented based on a circular of the
MOF.6 According to the authorities, Viet Nam's customs procedures follow the revised Kyoto
Convention and the process of timely domestication of international treaties of which Viet Nam is a
member. Under Article 29 of the Customs Law, a customs declaration must in principle be made
electronically, but it may be made on paper as regulations prescribe. Electronic customs declaration
and online tax payment can be made 24 hours a day, 7 days a week. For customs clearance,
importers must submit and produce to customs offices documents as prescribed in Clause 2,
Article 16, of MOF Circular No. 38/2015/TT-BTC, amended and supplemented in Clause 5, Article 1,
of MOF Circular No. 39/2018/TT-BTC; the documents include a declaration of imported goods,
commercial invoices, and the bill of lading. The registration and channelling of declarations must
2
Article 10 of the Law on Export Tax and Import Tax (No. 45/2005/QH11) provides that "(i) Tax rates
on exported goods are specified for each item in the Export Tariff; and (ii) Tax rates on imported goods include
the preferential tax rate, the special preferential tax rate and the ordinary tax rate".
3
For a domestic company to engage in imports or exports, a business registration certificate or an
enterprise registration certificate is required.
4
Conditions include that a foreign-invested business entity performs one of following activities in
Viet Nam: manufacturing lubricants; or manufacturing or distributing machinery, equipment, or goods using
particular lubricants.
5
WTO document G/TBT/N/VNM/116, 7 March 2018.
6
These include MOF Circular No. 38/2015/TT-BTC, as amended and supplemented by MOF Circular
No. 39/2018/TT-BTC.
- 50 -
comply with Article 19 of MOF Circular No. 38/2015/TT-BTC, amended and supplemented in Clause
8, Article 1, of MOF Circular No. 39/2018/TT-BTC.
3.10. Customs units at all levels in Viet Nam implement risk management. Under the 2014 Customs
Law, risk management in customs operations includes: (i) collecting and processing customs
information; (ii) building criteria and organizing the assessment of the customs declarants' legal
compliance, and classifying the level of risks; and (iii) organizing the implementation of appropriate
customs management measures. Customs plans to carry out the classification of import and export
goods based on the results of classification of the compliance level, the level of risk of the customs
declarant, and the result of the classification of risk level in export and import activities, exit, entry,
transit. Customs plans to apply a communication system that automatically integrates and processes
data. Currently, the actual inspection flow rate nationwide is about 5%. The MOF issued Circular No.
81/2019/TT-BTC (regulating risk management in customs operations, and publishing criteria for
classification of compliance and risk level of customs declarants, as well as the results of such
classification) on 18 November 2019. The authorities state that risk management basically follows
the World Customs Organization's (WCO) recommendations on risk management.
3.11. Customs brokers require a business registration certificate or an enterprise registration

certificate demonstrating that the operation is in good standing. Employees in charge of customs
brokerage must be Vietnamese citizens.
3.12. Customs uses an automatic customs clearance and national single-window mechanism
comprising: (i) an automatic clearance system (Viet Nam Automated Cargo Clearance System
(VNACCS)); and (ii) a business information database system (Viet Nam Customs Information
System (VCIS)). The VNACCS focuses on three stages: before, during, and after customs clearance;
it has new functions and procedures, such as tax-free list registration procedures, and procedures
for general application of both commercial and non-commercial goods. Through the VNACCS and
the single window, Customs sends information related to the licensing application of the specialized
agencies, and the licensing procedures will be conducted through the system; the VNACCS also
connects with information systems of related parties such as those providing warehouse, port,
service, forwarding, transportation, and banking services. The VNACCS system may also process
information before arrival/declaration. With a view to ensuring fast clearance of goods, consignments
with questionable prices will be moved to the post-customs clearance stage for identification.
3.13. On 13 June 2019, the National Assembly approved the Law on Tax Administration (Law
No. 38/2019/QH14), which entered into force on 1 July 2020. The Law replaces the Law on Tax
Administration No. 78/2006/QH11, which was amended and supplemented by a number of articles
under the Law on Tax Administration No. 21/2012/QH13 (Law No. 71/2014/QH13) and Law
No. 106/2016/QH13.
3.14. Customs has the function and authority of implementing measures to control imports (and
exports) related to patents, including inspection and supervision to detect goods with signs of
infringement and suspending customs procedures for export and import goods suspected of
infringing on protected patents.
3.15. On 15 December 2015, Viet Nam deposited at the WTO its instrument of acceptance of the
Protocol of Amendment to insert the WTO Trade Facilitation Agreement (TFA) into Annex 1A of the
WTO Agreement. The authorities indicate that Viet Nam is committed to implementing the TFA and
has taken many steps in this regard. It notified its Category A, B, and C commitments to the WTO
on 16 November 2018. Final implementation of all category commitments is scheduled for 2025.
3.16. Since 2016, the Government has put in place a number of directions and guidelines with a
view to facilitating international trade. These include Resolutions 19/NQ-CP in 2015, 2016, 2017,
and 2018; Resolution 01/NQ-CP in 2019; and Resolutions 02/NQ-CP in 2019 and 2020, which set
specific goals and assigned relevant ministries, branches, and agencies to implement solutions to
achieve those goals. The Prime Minister issued directions to reduce the clearance time for goods,
and to reform specialized inspection to facilitate import and export businesses, such as Decision No.
1254/QD-TTg in 2018 and Decision No. 1258/QD-TTg in 2020. Viet Nam established a National
Steering Committee for the ASEAN Single Window, National Single Window, and Trade Facilitation
- 51 -
in accordance with Prime Minister's Decision No. 1899/QD-TTg, issued on 4 October 2016.7 Since
mid-2017, Viet Nam has used the Viet Nam Automated System for Seaport Customs Management
(VASSCM) system, which is integrated into the National Single Window and the VNACCS/VCIS with
a view to, inter alia, simplifying and harmonizing customs procedures with those of warehouses,
yards, seaports, airports, and other related parties through IT systems developed by Customs.
3.17. Viet Nam issued advance rulings on commodity code classification, valuation, and origin of
imported goods8, amending and supplementing a number of articles of MOF Circular
No. 39/2015/TT-BTC, issued on 25 March 2015, prescribing the customs value of exported goods.
3.18. Viet Nam introduced various measures in response to the COVID-19 pandemic in the area of
customs procedures and valuation. Customs enhanced the application of IT to customs clearance
and goods clearance in order to minimize direct contact between customs officers involved in goods
import and export procedures. By August 2020, all core customs procedures were completely
automated through the VNACCS/VCIS system, processing more than 99.6% of declarations. The
authorities state that Customs directed the implementation of fast clearance of goods, especially aid
goods, to fight the pandemic, and worked to reduce the number of cases in which samples are
required for customs clearance; it also reduced the rate of yellow and red channels. Regarding goods
in transit or trans-shipment, customs procedures were simplified, for example, by not requiring
supporting documents in some cases. Customs also simplified the renewal process for priority
enterprises, submission of declarations, and inspections.
3.19. According to the World Bank, in 2019, Viet Nam was ranked 104th (up from 108th in 2015) of
190 economies in the ease of trading across borders.9
3.1.1.2 Customs valuation
3.20. Article 86 of the Customs Law constitutes the basic legal provisions for customs; it stipulates
the transaction value as the principal method of customs valuation, and provides for alternative
valuation methods, which are stipulated in MOF Circular No. 39/2015/TT-BTC (on Customs Value of
Imported Goods and Exported Goods), issued on 25 March 2015, and MOF Circular No. 60/2019/TT-
BTC (amending a number of articles of MOF Circular No. 39/2015/TT-BTC), issued on
30 August 2019.
3.21. Pursuant to the provisions of MOF Circular No. 60/2019/TT-BTC, issued on 30 August 2019
(amending and supplementing a number of articles of MOF Circular No. 39/2015/TT-BTC (regulating
the customs value of exported goods), issued on 25 March 2015), the Director of the General
Department of Customs shall promulgate the regulation on exploitation, construction, management,
operation, and use of the customs value database and customs value treatment. The database may
be used only internally within Customs.
3.22. According to the authorities, customs valuation in Viet Nam complies with the standards set
in the WTO Customs Valuation Agreement.
3.23. Decree No. 127/2013/ND-CP (on penalties for administrative violations), issued on
15 October 2013, stipulates sanctions (e.g. fines) related to, inter alia, violations of regulations on
customs declaration and the enforcement of administrative decisions in the customs domain. It was
amended and supplemented by Decree No. 45/2016/ND-CP, issued on 26 May 2016. Under the
Decrees, sanctions include: (i) a fine up to VND 40,000,000 in the case of violating the regulations
on customs declaration (Article 7); (ii) a fine of up to 20% of the underpaid tax amount or the
7
The Committee is an interdisciplinary coordination organization assisting the Prime Minister in
directing, coordinating, guiding, inspecting, and organizing the implementation of the ASEAN Single Window
and the National Single Window. As at 15 December 2020, 207 administrative procedures of 13 ministries and
agencies officially implemented the National Single Window, with more than 3.5 million records of more than
43,460 enterprises. The ASEAN Single Window was officially implemented on 1 January 2018.
8
Decree No. 59/2018/ND-CP, issued on 20 April 2018, MOF Circular No. 39/2018/TT-BTC, issued on
20 April 2018, and MOF Circular No. 60/2019/TT-BTC, issued on 30 August 2019. Since then, Viet Nam has
officially connected the ASEAN Single Window to exchange origin certification information with nine ASEAN
countries. The number of C/O received by Viet Nam from other ASEAN countries totalled 247,858 and the
number of C/O sent by Viet Nam to other ASEAN countries totalled 313,859.
9
World Bank, Ease of Doing Business Rankings. Viewed at:
https://www.doingbusiness.org/en/rankings.
- 52 -
exempted, reduced, refunded, or non-collected tax amount higher than the tax law provisions in the
case of violating the regulations on tax declaration (Article 8); and (iii) other penalties for tax
evasion or tax fraud (Article 13).
3.24. A disputed valuation decision may be appealed by an importer pursuant to Article 1 of the
2011 Law on Complaints and Degree 08/2015/ND-CP, issued on 21 January 2015, or the importer
can initiate an administrative lawsuit in accordance with Article 30 of the 2014 Law on Administrative
Procedures. The matter may be taken to a higher administrative body or a case may be brought
before the Administrative Court.
3.25. Viet Nam has not filed any notifications regarding customs valuations to the WTO.
3.26. Viet Nam has no regulations on requirements concerning pre-shipment requirements.
3.1.2 Rules of origin
3.27. Viet Nam applies both non-preferential and preferential rules of origin.
3.28. Since its previous Review, Viet Nam has issued various legal documents concerning rules of
origin including: Decree No. 31/2018/ND-CP (detailing a number of articles of the Law on Foreign
Trade Management in terms of origin of goods), issued on 8 March 2018; and Ministry of Industry
and Trade (MOIT) Circular No. 05/2018/TT-BCT (on origin of goods) (Table A3.1).10
3.29. Decree No. 31/2018/ND-CP stipulates, for example: the introduction of self-certification of
origin; application and issuance of certificates of origin or other relevant documents; the procedure
for issuing certificates of origin or other relevant documents in combination with applicant
classification; strengthening post-inspection and combating fraudulent origin of goods; and how to
handle violations of the rules of origin. Under the Decree, preferential rules of origin are applied in
accordance with MOIT guidelines on rules of origin and international treaties or agreements to which
Viet Nam is a party. MOIT Circular No. 05/2018/TT-BCT stipulates non-preferential product origin
criteria in the case of goods not wholly obtained or produced in Viet Nam.
3.30. Viet Nam implements ASEAN preferential rules of origin. Importers are required to submit
certificates of origin either satisfying the wholly obtained criterion or proving a minimum 40%
cumulative origin of goods from ASEAN members for goods imported under the ASEAN Trade in
Goods Agreement. ASEAN free trade agreements with other partners such as Australia-New Zealand,
Chile, China, the Eurasian Economic Union, India, and the Republic of Korea are also based on the
wholly obtained criterion or substantial transformation involving a change in tariff heading, and
allowing for regional cumulative origin.11 Specific rules may apply particularly to minimal operations
and processes; accessories, spare parts, and tools; identical and interchangeable materials; the
treatment of packaging materials and containers; and indirect materials.12
3.31. The MOIT is the competent authority for issuing certificates of origin. It also authorizes the
management boards of industrial zones (including export processing zones) to issue certificates of
origin, and the Chamber of Commerce and Industry of Viet Nam to issue preferential certificates of
origin under the GSP of foreign countries that grant non-preferential certificates of origin for
Viet Nam.
10
Other relevant documents include MOF Circular No. 205/2010/TT-BTC, issued on 15 December 2010,
which guides Decree No. 40/2007/ND-CP, issued on 16 March 2007, which defines customs value
determination for imports and exports.
11
The ASEAN agreements with Australia-New Zealand, China, and the Republic of Korea stipulate a
general minimum regional value content of 40%; with India, the minimum is 35%. Some agreements also
have product-specific rules, e.g. the FTA with the Republic of Korea contains product-specific rules for 447
tariff lines at the HS 6-digit level. Notably for processed shrimps and crabs, the regional value content must be
not less than 35% of the f.o.b. value of the goods.
12
Viet Nam notified the preferential rules of origin applicable in the ASEAN FTAs with Australia-
New Zealand and India to the WTO Committee on Rules of Origin (WTO document G/RO/N/68,
23 February 2011).
- 53 -
3.32. During the review period, Viet Nam made no new notifications to the WTO.13
3.1.3 Tariffs
3.33. Viet Nam's tariffs are established by the Standing Committee of the National Assembly in the
form of statutory rates at the 4-digit HS level, which constitute duty bands within which the
Government fixes the applied duty rates. Within these bands, the customs tariff is generally issued
annually in the form of an MOF circular. All of Viet Nam's tariffs are bound. Since 1 September 2016,
export and import taxes have been issued in accordance with Articles 10 and 11 of the Law on Export
Tax and Import Tax (Law No. 107/2016/QH13).
3.34. According to the authorities, Viet Nam fully implemented its tariff concessions in 2019; its
final bound rates average 14.7% for all goods. Most tariff lines were initially bound in the 0%-40%
range, with peaks in the initial bound rates for "sensitive" items such as sugar (100%), wines and
spirits (65%), tobacco (80%-150%), and motor vehicles (100%). Viet Nam is a party to the
plurilateral Information Technology Agreement, with zero duty on such goods applied.
3.35. Viet Nam bound all of its tariff lines at ad valorem rates, with the exception of 15 tariff lines
applied to second-hand motor vehicles (HS 8703), which are bound at the lower of a compound rate
(150% + USD 15,000) or 200% ad valorem. It reserved the right to apply specific or compound
import duties on certain "sensitive" goods to address customs fraud. So far, this has not proven
necessary. Currently, only second-hand motor vehicles are subject to applied non-ad valorem rates.
The non-ad valorem rate for imported used cars is specified in Appendix III to Decree No.
57/2020/ND-CP, issued on 25 May 2020.
3.36. Viet Nam's tariff applied in 2020 follows the AHTN, based on the HS17 nomenclature. 14 The
Customs Tariff contains 10,813 tariff lines at the HS 8-digit level. The simple average applied MFN
rate for all goods is 11.9%, compared with 10.4% in 2013 (Table 3.1 and Chart 3.1); 18.1% for
agricultural goods; and 10.9% for non-agricultural products (WTO definition). The main reason for
the increase in the overall tariff average is due to the change from the HS12 to the HS17
nomenclature and the splitting of several tariff lines, mainly in the "transport equipment section (HS
Section 17)". The highest tariffs include: 135% for five tariff lines concerning cigarettes (HS 2402.20
and 2402.90); 100% for two tariff lines concerning certain tobacco products such as cigars, cheroots,
and cigarillos (HS 2402.10); and worn clothing and other worn articles (HS 6309.00) (Table A3.2
and Chart 3.2).
Table 3.1 Tariff structure, 2013 and 2020

(%, unless otherwise indicated)
MFN applied
Final bounda
2013 2020
Bound tariff lines (% of all tariff lines) 100.0 100.0 100.0
Simple average rate 10.4 11.9 14.7
(12.0)
Agricultural products (HS 01-24) 17.4 17.8 20.4
(18.6)
Industrial products (HS 25-97) 9.0 10.7 13.6
WTO agricultural products 17.4 18.1 20.0
(19.1)
WTO non-agricultural products 9.3 10.9 13.9
(11.0)
Duty-free tariff lines (% of all tariff lines) 32.9 29.2 12.7
Simple average rate of dutiable lines only 15.6 16.9 16.9
(17.1)
Tariff quotas (% of all tariff lines) .. 0.3 0.3
13
Viet Nam's notifications to date are found in WTO documents G/RO/N/68, 22 February 2011, and
G/RO/N/79, 1 June 2012.
14
Viet Nam's Customs Tariff establishes three categories of import duty rates: (i) the "preferential rate",
i.e. the MFN rate of duty generally applicable to WTO Members; (ii) "special preferential rates" applicable
according to Viet Nam's preferential trade regimes; and (iii) the "ordinary" rate of customs duty. The ordinary
duty, which is 1.5 times the MFN rate, is applied on trade with non-WTO Members (unless MFN treatment was
agreed bilaterally).
- 54 -
MFN applied
Final bounda
2013 2020
Non-ad valorem tariffs (% of all tariff lines) 0.0 0.0 0.2
Domestic tariff "peaks" (% of all tariff lines)b 4.1 4.8 4.4
(5.0)
International tariff "peaks" (% of all tariff lines)c 25.6 28.4 34.8
Overall standard deviation of tariff rates 12.5 14.5 16.7
(14.9)
Coefficient of variation of tariff rates 1.2 1.2 1.1
Nuisance applied rates (% of all tariff lines)d 0.6 1.0 0.9
Total number of tariff lines 9,566 10,813 8,025
Ad valorem rates 6,337 7,429 6,994
Duty free 3,142 3,154 1,016
Alternate rates 0 0 15
Othere 87 230 0
.. Not available.
a Final bound rates are taken from the CTS database. The final bound schedule is based on HS12
nomenclature at the 8-digit level.
b Domestic tariff peaks are defined as those exceeding three times the overall average applied rate.
c International tariff peaks are defined as those exceeding 15%.
d Nuisance rates are those greater than zero, but less than or equal to 2%.
e Other duties include those based on special instruction as provided under Chapter 98; all tariff lines
concerned are under Chapter 87 (motor vehicles).
Note: 2013 tariff rates are based on HS12, and 2020 on HS17. Calculations for averages are based on
national tariff line level (8-digit). Tariff calculations for 2013 are based on in-quota rates, as no
out-of-quota rates were available; tariff calculations based on in-quota rates are shown for 2020 for
comparison. In 2020, figures in brackets refer to data including out-of-quota rates and excluding
in-quota rates.
3.37. In response to the outbreak of the COVID-19 pandemic, Viet Nam temporarily eliminated
applied MFN tariffs on medical and certain personal protective equipment (HS Chapters 38-39, 56,
60, 62-63, 72-73, and 76) on 7 February 2020.15 On that date, the Prime Minister's Official Letter
No. 197/TTg-KTTH was issued, approving the exemption of import tax for medical masks, antiseptic
hand sanitizer, raw materials for export, water-based antiseptic, and materials and other necessary
equipment for the prevention and control of acute respiratory infections caused by COVID-19.
Following the Official Letter, the Minister of Finance issued Decision No. 155/QD-BTC on
7 February 2020, which covered the same items. Other relevant documents include Decision No.
436/QD-BTC of the Minister of Finance, issued on 27 March 2020, on the addition of goods exempted
from import tariff in the list of goods exempted from import duty, against the epidemic of acute
respiratory infections caused by COVID-19, and Decision No. 2138/QD-BTC of the Minister of
Finance, issued on 18 December 2020, on the issuance of the list of accessories imported for the
manufacture of oxygen respirators that are exempt from import tax for COVID-19 epidemic
prevention and control. According to the authorities, Viet Nam did not impose any provisional import
duties during the review period.
15
Tariffs were eliminated on HS 3808.94.20; 3808.94.90; 3916.10.20; 3916.20.20; 3916.90.42;
3916.90.92; 3926.90.99; 5603; 5604.10.00; 5606.00.00; 6002.40.00; 6002.90.00; 6210.10.90; 6307.90.40;
6307.90.90; 7217.90.90; 7326.90.99; 7604.10.10; 7604.29.10; and 7616.99.90.
- 55 -
Chart 3.1 Average

Chart 3.[VNM] applied
Average MFN by
applied MFN, rates, by HS2013
HS section, section, 2013 and 2020
and 2020
35%
MFN 2013 MFN 2020
30%
25%
20%
15%
MFN average 2020: 11.9%
10% MFN average 2013: 10.4%
5%
0%
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21
01 Live animals & products 07 Plastic & rubber 13 Articles of stones 19 Arms & ammunition
02 Vegetable products 08 Hides & skins 14 Precious stones, etc. 20 Miscellaneous manufacturing
03 Fats & oils 09 Wood & articles 15 Base metals & products 21 Works of art, etc.
04 Prepared food, beverages 10 Pulp, paper, etc. 16 Machinery
05 Mineral products 11 Textiles & articles 17 Transport equipment
06 Chemicals & products 12 Footwear, headgear 18 Precision instruments
Note: The 2013 tariff is based on HS12 nomenclature; the 2020 tariff is based on HS17. Excluding 87 and
Note: The 230
2013tariff
tariff lines
is based on HS12
under nomenclature;
HS section the 2020 tariff
17, respectively, is based
in 2013 andon HS17.Calculations
2020. Excluding 87 and 230out-of-
exclude tariff lines
under HS section
quota rates and 17, respectively, in 2013
include in-quota and 2020.
rates. Calculations
The bars exclude
in red under HS out-of quota
Sections 1, rates and
4, and 5 include in-quota
show 2020
rates. The bars in red under HS Sections 1, 4, and 5 show 2020 averages including out-of quota
averages including out-of-quota rates and excluding in-quota rates. In this scenario the overall rates and
excluding in-quota rates. In this scenario the overall average is 12.0%.
average is 12.0%.
Source: WTO
Source: WTOSecretariat calculations,
Secretariat basedbased
calculations, on data
onprovided by the authorities.
data provided by the authorities.
3.38. The difference between bound and applied MFN rates leaves some scope for flexibility in
Viet Nam's tariff policy.16 The gap between the simple average applied MFN rate and the average
bound rate is 2.8 percentage points in 2020.17 Nineteen tariff lines had higher applied rates (entirely
or partially) than their corresponding bound rates (Table A3.3).18 The authorities state that Viet Nam
has implemented tariff reductions each year based on the AHTN conversion table since joining the
WTO, and if taking into account the amendments of the AHTN, eight of the nine lines indicated above
were within the corresponding bound rates, and the applied MNF rate on one line (HS 4804.39.90)
exceeded the corresponding bound rate.19
3.39. Viet Nam accords tariff preferences under regional and bilateral preferential trade agreements
to its ASEAN partners, Australia and New Zealand, Chile, China, the Eurasian Economic Union, India,
Japan, and the Republic of Korea (Table 3.2).
16
The difference between the bound and applied MFN rate was 5 percentage points or more, for some
2,600 tariff lines in 2020 (comparison is difficult as applied MFN and bound schedules are not in the same
nomenclature).
17
Comparison is difficult as applied MFN and bound schedules are not in the same nomenclature.
18
There could be more, as many lines are not possible to compare between applied MFN and bound.
19
According to the authorities, when Viet Nam joined the WTO, its tariff commitments were based on
the 2002 ASEAN Harmonized Tariff Nomenclature (AHTN 2002). To date, the AHTN 2002 has been amended
three times (in 2007, 2012, and 2017). The amendments changed some product codes and group/subgroup
classifications due to the merging/splitting of tariff lines.
- 56 -
Table 3.2 Summary analysis of the preferential tariff, 2020

Total WTO agriculture WTO non-
agriculture
Average Range Coveragea Duty- Average Duty- Average Duty-
(%) (%) (%) free (%) free (%) free
ratesb ratesb ratesb
(%) (%) (%)
MFN 12.0 0-135 29.2 19.1 11.8 11.0 31.7
ASEAN Trade in Goods 0.5 0-135 67.6 96.3 2.3 93.4 0.2 96.8
Agreement (ATIGA)
ASEAN-Australia- 2.7 0-135 63.5 87.5 4.5 89.7 2.4 87.2
New Zealand FTA
(AANZFTA)
ASEAN-China FTA 2.6 0-100 64.9 86.2 2.3 93.7 2.6 85.2
(ACFTA)
ASEAN-Hong Kong, 10.3 0-135 43.5 30.1 16.0 12.5 9.4 32.6
China FTA (AHKFTA)
ASEAN-India FTA 6.4 0-135 47.6 63.3 6.3 71.9 6.4 62.0
(AIFTA)
ASEAN-Japan 5.1 0-135 59.2 61.5 7.5 42.0 4.7 64.3
Comprehensive
Economic Partnership
(AJCEP)
ASEAN-Korea FTA 4.5 0-135 55.6 82.8 4.4 92.0 4.5 81.5
(AKFTA)
Viet Nam-Chile FTA 6.8 0-135 47.4 34.3 12.1 16.6 6.1 36.9
(VCFTA)
Viet Nam-Japan 4.5 0-135 60.5 74.3 7.7 50.0 4.1 77.8
Economic Partnership
Agreement (VJEPA)
Viet Nam-Korea FTA 4.1 0-135 59.4 83.8 4.4 91.6 4.0 82.7
(VKFTA)
Viet Nam-Eurasian 4.0 0-135 61.6 78.5 7.3 68.7 3.5 79.9
Economic Union FTA
(VEAEUFTA)
Comprehensive 4.6 0-109.6 65.5 63.9 9.2 35.3 3.9 68.0
Progressive
Agreement for Trans-
Pacific Partnership
(CPTPP)
a Percentage of total lines. Only rates that are lower than the corresponding MFN rate are taken into
account.
b Duty-free lines as a percentage of total tariff lines.
Note: Calculations for preferential rates are based on the 2020 MFN tariff schedule; the lower preferential
rate replaces with the corresponding applied MFN rate at the national 8-digit level. In case the
preferential rate is higher than the corresponding MFN applied rate, the latter is used for the
calculations. Calculations exclude in-quota tariff rates and include out-of-quota rates.
- 57 -
Chart 3.2 Distribution

Chart 3.[VNM] Distributionof
of MFN tariff
MFN tariff rates,
rates, 20132013 and 2020
and 2020
Number of tariff lines
3,500
32.9 29.2 MFN 2013

Total number of lines: 9,558
3,000
MFN 2020
Total number of lines: 10,813
2,500
2,000 17.9
17.8
1,500 11.6 13.2

(11.5)
10.9 11.6 12.2
11.2
1,000
5.7 5.4
3.8
500 3.7 (3.7) 3.5 2.4
3.1
(2.7)
1.0
0
Duty free >0%-5% >5%-10% >10%-15% >15%-20% >20%-25% >25%-30% >30%-60% >60%
Note: The 2013 tariff is based on HS12 nomenclature; the 2020 tariff is based on HS17. Figures above the
Note: The 2013 tariff is based on HS12 nomenclature; the 2020 tariff is based on HS17. Figures above the bars refer to the percentage
bars refer to the percentage of total lines. Totals do not add up to 100%. No rates were available for
of total lines. Totals do no add up to 100%. No rates were available for 87 and 230 tariff lines in 2014 and 2020, respectively.
87include
Figures and 230 tariff
in-quota andlines in 2014
exclude and 2020,
out of quota respectively.
rates. Figures Figures
in brackets include
for 2020, in-quota
include out-of and
quota andexclude out-of-
quota
exclude rates.
in-quota ratesFigures in brackets for 2020, include out-of-quota and exclude in-quota rates.
Source: WTO
Source: WTO Secretariat
Secretariat calculations,
calculations, based
based on data on data
provided provided
by the by the authorities.
authorities.
3.40. Viet Nam has tariff quotas for imports of eggs, sugar cane, tobacco, and salt, as prescribed
in Appendix IV to Decree No. 57/2020/ND-CP and Article 11 of MOIT Circular No. 12/2018/TT-BCT
(on detailing a number of articles of the Law on Foreign Trade Management), issued on
15 June 2018. According to the country's Goods Schedule, quota volumes must increase by 5%
annually for goods subject to tariff quotas (Table 3.3).
Table 3.3 Tariff quotas, 2016-19

Out-
In-
of-
quota Import
Product/HS TQ in TQ in TRQ in TRQ in quota Administration
tariff volume
code 2016 2017 2018 2019 tariff method
rate 2019
rate
(%)
(%)
Eggs 48,620 50,051 52,553 55,181 40 80 0 Past performance
04072100 dozen dozen dozen dozen
04072910
04072990
04079010
04079020
04079090
Sugar cane 85,000 89,500 94,000 98,700 26,000 Allocated to end
tonnes tonnes tonnes tonnes tonnes users based on
past
performance;
portion of TQ
allocated to new
importers
17011200 25 80
17011300 25 80
17011400 25 80
17019100 40 100
17019910 40 85
17019990 40 85
- 58 -
Out-
In-
of-
quota Import
Product/HS TQ in TQ in TRQ in TRQ in quota Administration
tariff volume
code 2016 2017 2018 2019 tariff method
rate 2019
rate
(%)
(%)
Tobacco 48,620 51,051 53,604 56,284 37,147 Past
tonnes tonnes tonnes tonnes tonnes performance;
quotas allocated
to end users who
have cigarette-
producing
permits
24011010 30 80
24011020 30 90
24011040 30 80
24011050 30 80
24011090 30 90
24012010 30 80
24012020 30 90
24012030 30 90
24012040 30 80
24012050 30 80
24012090 30 90
24013010 15 80
24013090 30 90
Salt 102,000 102,000 110,000 110,000 60,000 Past performance
tonnes tonnes tonnes tonnes tonnes
25010010 30 60
25010020 30 60
25010050 15 50
25010091 15 50
25010092 15 50
25010099 15 50
Source: WTO document G/AG/N/VNM/12, 12 May 2020; MOIT Circular No. 12/2018/TT-BCT, 15 June 2018;
and information provided by the authorities.
3.41. Tariff quotas for eggs, refined and raw sugar, and salt are decided by the Ministry of
Agriculture and Rural Development (MARD). Tariff quotas for unmanufactured tobacco are decided
by the MOIT, which announces annual import tariff quotas and decides on methods for managing
imports of each commodity. Tariff rates for goods subject to tariff quotas are specified in Appendix
IV to Decree No. 57/2020/ND-CP specifying the list of goods and the rates of out-of-quota import
taxes with respect to the goods subject to the tariff quotas, including eggs, sugar, tobacco, and salt.
3.42. Quotas for salt are allocated to traders that wish to use it for manufacture, as confirmed by a
competent regulatory authority. Quotas for poultry eggs are allocated to traders that wish to import
them. Quotas for refined and raw sugar are allocated based on annual MOIT guidelines in
consultation with the MARD and the MOF. Quotas for unmanufactured tobacco are allocated to
traders that have been issued a licence by the MOIT to manufacture cigarettes using imported
unmanufactured tobacco. Auctioning is not used to allocate the quotas. Allocated quotas are not
transferrable. According to the authorities no imports of eggs is due to a lack of demand.
3.43. Viet Nam also has tariff quotas for preferential imports of rice, paddy, and unmanufactured
tobacco from Cambodia and Lao People's Democratic Republic in accordance with bilateral
memoranda concluded in 2005 (Lao People's Democratic Republic) and 2007 (Cambodia). In-quota
volumes are subject to 0% import duty. The tariff quotas, which are announced by the MOIT, may
be stipulated for one or two years at a time. Currently, for Cambodia, quota volume is 300,000
tonnes of rice equivalent20 and 3,000 tonnes of unmanufactured tobacco each year for 2019 and
2020, and for Lao People's Democratic Republic, quota volume is 70,000 tonnes of rice equivalent
and 3,000 tonnes of unmanufactured tobacco each year for 2018 and 2019.
3.44. Viet Nam exempts various goods from customs duties. Exemptions have been granted
pursuant to the Law on Export Tax and Import Tax and Articles 10 and 12 of Decree
No. 134/2016/ND-CP (guidelines for the Law on Export Tax and Import Tax) since their issuance on
20
Two kg of paddy is considered equivalent to 1 kg of rice.
- 59 -
1 September 2016.21 Under Article 16 of the Law, import duty exemptions are extended, inter alia,
to: raw materials, supplies and components imported for export production; goods temporarily
imported for re-export; certain goods and fixed assets imported for projects entitled to investment
incentives; certain goods imported to serve petroleum activities; and imported goods related to
information and technology, the environment, and education. Tariff exemption also extends to
certain goods, which are bought, sold, or exchanged across the border by border residents within
allowable quotas.22 Appendix V to Decree No. 134/2016/ND-CP on duty-free quotas for goods traded
and exchanged by border residents stipulates that goods purchased by Vietnamese residents with a
permanent household registration in the border areas, and who hold a residence permit from the
police station of the border province, are exempt from tax, with a customs value not exceeding VND
2 million per person per daily transaction and no more than four daily transactions per month. Other
charges affecting imports. Under Article 18 of the Law, tax reductions apply to imports (and exports)
that are damaged or lost under customs supervision and the damage or loss is verified by a
competent organization.23 Under Article 19, import duties are refunded if, inter alia: (i) a duty payer
that has paid an import duty has to re-export the imported goods; (ii) a duty payer has paid a duty
for goods imported for production or business activities but later uses these goods for export
production and exports such products; or (iii) a duty payer has paid a duty for certain machinery,
equipment, tools, or vehicles belonging to an organization or individual that is licensed to conduct
temporary import for re-export. The refundable amount of import duty is determined based on the
residual value of the re-exported goods calculated based on the period of their use in Viet Nam. The
Government will not refund an amount that is lower than the prescribed minimum.
3.1.4 Other charges affecting imports
3.45. Imports are subject to customs fees in accordance with the Law on Fees and Charges (Law
No. 97/2015/QH13, issued on 25 November 2015, and entered into force on 1 January 2017). On
14 November 2016, the MOF issued Circular No. 274/2016/TT-BTC stipulating the rates, collection,
payment, management, and use of customs fees and fees for transit goods and vehicles.
Accordingly, the customs fee to register a declaration is VND 20,000; the customs fee for inspection,
supervision, or temporary suspension of customs procedures for export or import goods subject to
intellectual property protection is VND 200,000.
3.46. Customs fees have been exempted for humanitarian goods and non-refundable aid; gifts for
state agencies, political organizations, socio-political organizations, social organizations,
socio-professional organizations, people's armed forces units and individuals (exempt from tax
within the norm, according to the relevant law); gifts for humanitarian or charity purposes; personal
belongings of foreign organizations and individuals according to diplomatic immunity regulations;
carry-on luggage; and postal letters and parcels.24 Article 3 of MOF Circular No. 274/2016/TT-BTC
introduces additional customs fee exemptions in such cases as: (i) imported and exported goods
sent via express mail with a value of VND 1 million or less or with a tax amount (prescribed taxes)
payable of under VND 100,000; (ii) imported and exported goods with a customs value of under
VND 500,000 or a total payable tax amount (prescribed taxes) of under VND 50,000 for each export
or import; and (iii) goods traded or exchanged by border residents within the prescribed norms.
3.47. Article 5 of MOIT Circular No. 274/2016/TT-BCT stipulates regulations concerning the
declaration and payment of charges (they were not regulated under MOF Circular No. 172/2010/TT-
BTC of 2 November 2010). According to the Article, for example, goods temporarily imported for re-
export or temporarily exported for re-import are charged fees when carrying out import or export
21
Before 1 September 2016, Article 12 of Decree No. 87/2010/ND-CP (detailing the implementation of a
number of articles of the Law on Export and Import Tax), issued on 13 August 2010, was the basis of tariff
exemptions.
22
Border trade activities are regulated by: the Law on Foreign Trade Administration; Decree
No. 14/2018/ND-CP (providing detailed guidelines on border trade activities), issued on 23 January 2018;
MOIT Circular No. 01/2018/TT-BCT (detailing goods traded or exchanged by traders through sub-border gates
and border crossings), issued on 27 February 2018; and MOIT Circular No. 02/2018/TT-BCT (providing detailed
guidelines on the list of goods traded or exchanged by border residents), issued on 27 February 2018. They are
also regulated under the Border Trade Agreement between the Government of the Socialist Republic of
Viet Nam and the Government of the People's Republic of China concluded on 12 December 2016, as well as
border trade agreements with Cambodia and Lao People's Democratic Republic.
23
Before 1 September 2016, Article 14 of Decree No. 87/2010/ND-CP was the basis for tariff reductions.
24
This exemption is stipulated in Article 3 of MOF Circular No. 274/2016/TT-BTC; it was previously
stipulated in MOF Circular No. 172/2010/TT-BTC, issued on 2 November 2010.
- 60 -
procedures; goods deposited in bonded warehouses are charged for customs clearance during the
warehousing procedures. For goods in transit, a declaration fee is collected during entry procedures
at the import border gate.
3.48. In its Goods Schedule, Viet Nam bound other duties and charges (pursuant to Article II:1(b)
of the GATT 1994) at zero, and it does not apply taxes and fees other than tariffs on imported goods.
3.49. Viet Nam levies excise taxes on certain goods and services pursuant to the Law on Excise Tax
No. 27/2008/QH12, which entered into force on 1 January 2009 and was amended twice – in 2014
(Law No. 70/2014/QH13) and in 2016 (Law No. 106/2016/QH13) (Table 3.4). No distinction is made
between domestically produced and imported goods; excise tax is levied on the import-duty-
inclusive price for imports on a c.i.f. basis. The taxable price of goods or services is the selling price
or service provision price excluding environmental protection tax and value-added tax (VAT).
Table 3.4 Goods and services subject to the excise tax, 2019
No. Description of good or service Tax rate (%)
I. Goods
1. Cigarettes, cigars and other products derived from tobacco plants 75
2. Alcohol
(a) Alcohol from 20° 65
(b) Alcohol less than 20° 35
3 Beer 65
4. Motor vehicles
(a) Motor vehicles for the transport of not more than nine people, except for
those specified in Point 4dd, 4e, and 4g of this Schedule
Of a cylinder capacity of 1,500 cm3 or less 35
Of a cylinder capacity exceeding 1,500 cm3 but not exceeding 2,000 cm3 40
Of a cylinder capacity exceeding 6,000 cm3 150
(b) Motor vehicles of 10 to 15 seats (except those indicated in Points 4dd, 4e, 15
and 4g)
(c) Motor vehicles of 16 to 23 seats (except those indicated in Points 4dd, 4e, 10
and 4g)
(d) Motor vehicles served for both purposes of carrying passengers and goods
(except those indicated in Points 4dd, 4e, and 4g)
Of a cylinder capacity not exceeding 2,500 cm3 15
Of a cylinder capacity exceeding 3,000 cm3 25
(dd) Motor vehicles running on both gasoline and electricity or bio-energy, the Equal to 70% of amount
proportion of gasoline consumption does not exceed 70% of total energy used of tax applied for the
same type of vehicles
indicated in Points 4a,
4b, 4c, and 4d
(e) Motor vehicles running on bio-energy Equal to 50% of amount
of tax applied for the
same type of vehicles
indicated in Points 4a,
4b, 4c, and 4d
(g) Motor vehicles running on electricity
Automobiles of less than nine seats 15
Automobiles of 10 to 15 seats 10
Automobiles of 16 to 23 seats 5
Automobiles served for both purposes of carrying passengers and good 10
(h) Motorhomes regardless of cylinder capacity 75
5. Motorcycles of 2 or 3 wheels with cylinder capacity of over 125 cm3 20
6. Airplanes 30
7. Cruise boats 30
8. Gasoline 10
E5 Gasoline 8
E10 Gasoline 7
9. Air-conditioners with the capacity of 90,000 BTU or less 15
From 01/04/2009 10
10. Playing cards 40
11. Votive paper 70
- 61 -
No. Description of good or service Tax rate (%)

II. Services
1. Operating discotheques, massage lounges, karaoke parlours 30
1. Operating discotheques
From 01/04/2009 40
2. Operating massage lounges and karaoke parlours 30
From 01/04/2009
3. Casino business, electronic casino game business 35
4. Recreation services with gambling 25
From 01/04/2009 30
5. Golf: selling memberships and tickets for playing golf 10
Golf business
From 01/04/2009 20
6. Lottery 15
3.50. Refund and deduction of the excise tax are stipulated in Article 8 of the Law on Excise Tax.
They concern, inter alia: goods temporarily imported for re-export; raw materials imported for
production and processing of exports; goods subject to tax refund decisions by competent agencies;
and goods subject to excise tax refund under treaties to which Viet Nam is a contracting party.
Article 9 of the Law defines the reduction of the excise tax. It concerns taxpayers that produce excise
taxable goods and face difficulties caused by natural disasters or unexpected accidents.25
3.51. Under the Law on Environmental Protection Tax (Law No. 57/2010/QH12), which entered into
force on 1 January 2012, the environmental protection tax has been applied on petroleum products,
coal, hydrogen-chlorofluorocarbon (HCFC) liquids (ozone-depleting substances), plastic bags, and
various pesticides and herbicides. This list is unchanged since Viet Nam's previous Review. The tax
rates are specific and set individually by product; the current rates are specified in Resolution
No. 579/2018/UBTVQH14, issued on 26 September 2018 (Table 3.5). The Law authorizes the
Standing Committee of the National Assembly to extend the product coverage. Goods exported
directly are not subject to this tax.
Table 3.5 Products subject to environmental protection tax, 2020

Calculation Tax frame Tax rate
Item Product description
unit (VND) (VND)
I Gasoline, oil, grease
1 Gasoline, except ethanol litre 1,000-4,000 4,000
2 Aircraft fuel litre 1,000-3,000 3,000
3 Diesel oil litre 500-2,000 2,000
4 Petroleum litre 300-2,000 1,000
5 Fuel oil (Mazut oil) litre 300-2,000 2,000
6 Lubricants litre 300-2,000 2,000
7 Grease kg 300-2,000 2,000
II Coal
1 Brown coal tonne 10,000-30,000 15,000
2 Anthracite coal (anthracite) tonne 20,000-50,000 30,000
3 Fat coal tonne 10,000-30,000 15,000
4 Other coal tonne 10,000-30,000 15,000
III Hydrogen-chlorofluorocarbon (HCFC) kg 1,000-5,000 5,000
liquid
IV Taxable-plastic bag kg 30,000-50,000 50,000
V Herbicide that is restricted kg 500-2,000 500
VI Pesticide that is restricted kg 1,000-3,000 1,000
VII Forest product preservative that is restricted kg 1,000-3,000 1,000
VIII Warehouse disinfectant that is restricted kg 1,000-3,000 1,000
3.52. VAT is levied on goods and services in accordance with the Law on Value-Added Tax
No. 13/2008/QH12, as amended in 2013, 2014, and 2016. The VAT rate is zero, 5%, or 10%, with
10% being the standard rate.26 The reduced (5%) rate is applicable to goods and services that are
25
The tax reduction level is determined based on the extent of damage caused by natural disasters or
unexpected accidents, not exceeding 30% of the payable tax amount in the year the damage occurs or the
balance between the value of damaged assets and the received compensation.
26
Transactions subject to 0% or 5% VAT are enumerated in Article 8 of the Law.
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inputs of agricultural production, as well as goods and services including clean water, ores for
fertilizer production, pesticides and growth stimulants, preliminary processing and preservation of
agricultural products, preliminarily processed rubber latex, fresh food, sugar and sugar by-products,
animal feed, fresh food, agricultural machinery, medical equipment, teaching aids, children's toys,
and scientific and technological services, unchanged since 2013.
3.53. Exported goods and services and international transportation services are zero rated. During
the review period, VAT exemption was extended to: (i) insurance for persons in accordance with the
Insurance Business Law; (ii) insurance for fishermen to encourage seafaring; (iii) loan services to
taxpayers (excluding credit institutions, debt trading services, and foreign currency trading
services); (iv) goods and services provided by business households and individuals that earn annual
revenue of less than VND 100 million; and (v) certain fertilizers (Table 3.6). Enterprises and
cooperatives that buy farming, breeding, or aquaculture products that have not been processed into
other products or have only been preliminary processed and then sell them to other enterprises or
cooperatives do not need to declare and pay VAT but may deduct input VAT. Input for investment
projects and exported goods and services equal to or above VND 300 million is eligible for VAT
refund.
Table 3.6 Goods and services not subject to VAT, December 2020
No. Product description
1. Products of cultivation, husbandry, and aquaculture products, which have not yet been processed into
other products or have been only preliminarily processed, sold by self-producing or fishing
organizations and individuals.
2. Livestock breeds, plant varieties, including breeding eggs, breeders, seedlings, seeds, semen,
embryos, and genetic materials.
3. Irrigation and drainage, ploughing and harrowing land, dredging interior field canals and ditches for
agricultural production, service of harvesting agricultural products, fertilizer, machinery and
equipment used exclusively for agricultural production, offshore fishing boats, fodder for cattle,
poultry and other domestic animals.
4. Salt products made from seawater, natural rock salt, refined salt, iodized salt with the main ingredient
being sodium chloride (NaCl).
5. State-owned houses sold by the State to current tenants.
6. Transfer of land-use rights.
7. Life insurance, health insurance, student insurance, other insurance services related to people; animal
insurance, crop insurance, other agricultural insurance services; insurance for ships, boats, equipment
and other necessary tools in direct service of fishing; reinsurance.
8. The following financial, banking and securities services:
Credit extension services, including: lending; discount and rediscount of negotiable instruments and
other valuable papers; guarantee; financial leasing; credit card issuance; domestic factoring;
international factoring; other forms of credit provision as prescribed by law;
Securities trading, including: securities brokerage; securities dealing; underwriting securities;

securities investment consulting; securities depository; securities investment fund management;
securities investment portfolio management; market organization services of a stock exchange or a
securities trading centre; other securities business activities in accordance with the law on securities;
Capital transfer, including: transfer of part or all of the invested capital, including the sale of
enterprises to other enterprises for production, trading or transfer of securities; other forms of capital
transfer as prescribed by law;
Debt sale;
Foreign currency trading;
Derivative financial services, including: interest rate swaps; forward contracts; futures contract;
options to buy and sell foreign currencies; other derivative financial services as provided for by law;
and
Selling collateral of debts of organizations in which 100% of the charter capital is owned by the State,
established by the Government to handle the bad debts of Vietnamese credit institutions.
9. Medical services, veterinary services, including medical examination and treatment services, and
disease prevention for humans and animals; care services for the elderly and people with disabilities.
10. Public postal and telecommunications services and universal Internet services under the Government's
programmes.
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No. Product description

11. Maintenance of zoos, flower gardens, parks, street greenery, public lighting; funeral service.
12. Maintenance, repair, and construction with capital contributions from the people, humanitarian aid for
cultural and artistic works, public works, and infrastructure and housing a for social policy objective.
13. Teaching and vocational training according to the provisions of law.
14. Broadcasting radio and television with state budget funds.
15. Publishing, importing, distributing newspapers, magazines, specialized newsletters, political books,
textbooks, textbooks, legal text books, scientific-technical books, books printed in ethnic languages,
minority groups and propaganda posters, pictures, even in the form of audio or video tapes or discs;
money, money printing.
16. Transporting public passengers by bus, tram.
17. Machinery, equipment, spare parts and materials that cannot be produced at home and need to be
imported for direct use in scientific research and technological development activities; machinery,
equipment, spare parts, special-use means of transport and materials that cannot be produced at
home and need to be imported for prospecting, exploration and development of oil and gas fields;
airplanes, drilling rigs and ships that cannot be domestically produced and need to be imported to
create fixed assets of an enterprise or leased from a foreign party for use in production, trading, for
lease or sublease.
18. Specialized weapons and weapons in service of national defence and security.
19. Imported goods in case of humanitarian aid or non-refundable aid; gifts to state agencies, political
organizations, socio-political organizations, socio-political organizations - professional, social
organizations, socio-professional organizations, people's armed forces units; presents and gifts for
individuals in Viet Nam according to the levels prescribed by the Government; belongings of foreign
organizations and individuals according to diplomatic immunity standards; carry-on goods in duty-free
baggage allowance.
Goods and services sold to foreign organizations and individuals, international organizations for
humanitarian aid or non-refundable aid to Viet Nam.
20. Goods transhipped or transited through Vietnamese territory; goods temporarily imported for re-
export; goods temporarily exported for re-import; raw materials imported for the production or
processing of goods for export under a production or export processing contract signed with a foreign
party; goods and services traded between foreign countries and non-tariff zones and between non-
tariff zones.
21. Technology transfer in accordance with the Law on Technology Transfer; assignment of intellectual
property rights according to the provisions of the Intellectual Property Law; software.
22. Gold imported in the form of bars or bars which has not yet been processed into fine-art articles,
jewellery or other products.
23. Exported products are natural resources and minerals that have not yet been processed into other
products; Export products are goods processed from natural resources or minerals with a total value
of natural resources and minerals plus energy costs accounting for 51% or more of the product cost.
24. Artificial products used to replace sick people's body parts; crutches, wheelchairs and other
specialized tools for the disabled.
25. Goods and services of business households and individuals with annual turnover of VND 100 million or
less.
3.54. Decree No. 100/2016/ND-CP, issued and entered into force on 1 July 2016, stipulates
investment projects eligible for VAT refund for new businesses established by certain investment
including projects in progress on oil and gas field exploration and development.
3.55. VAT is applied on the duty-paid value of imports and is due at the same time as the payment
of import duties; this practice is unchanged since the previous Review. For domestic producers, VAT
is collected monthly and settled at the end of the calendar year.27
3.1.5 Import prohibitions, restrictions, and licensing
3.56. Viet Nam applies import prohibitions, restrictions, and licensing in accordance with: the Law
on Foreign Trade Management (Law No. 05/2017/QH14, issued on 12 June 2017, and entered into
force on 1 January 2018); and other documents including Decree No. 69/2018/ND-CP (detailing a
27
Enterprises and individuals established permanently in Viet Nam that produce or trade goods or
services subject to VAT must register as VAT taxpayers, and file monthly tax returns.
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number of articles of the Law on Foreign Trade Management), issued on 15 May 2018 (replacing
Decree No. 187/2013/ND-CP).
3.57. Other relevant legislation includes: (i) the 2007 Law on Chemicals (as amended in 2018);
(ii) Decree No. 113/2017/ND-CP (specifying and providing guidelines for implementation of a
number of articles of the Law on Chemicals), issued on 9 October 2017; (iii) the 2000 Law on Drug
Prevention and Combat (as amended in 2008); (iv) MOIT Circular No. 12/2018/TT-BCT; (v) Circular
No. 11/2018/TT-BTTTT of the Ministry of Information and Communications (on detailing list of used
information technology products prohibited from import with their HS codes), issued on 15 October
2018; (vi) Circular No. 173/2018/TT-BQP of the Ministry of National Defence (on promulgating the
list of specific prohibited exports and imports subject to the administration of the Ministry of National
Defence), issued on 31 December 2018; (vii) Decree No. 25/2012/ND-CP (detailing the
implementation of a number of articles of the ordinance on management and use of weapons,
explosives, and supporting tools), issued on 5 April 201228; and (viii) Decree No. 66/2017/ND-CP
(on prescribing the conditions for doing business in camouflaged sound recording, video recording,
and positioning devices and software), issued on 19 May 2017.29
3.58. Goods subject to import prohibition include certain chemicals, weapons, right-hand drive
vehicles, and certain used consumer goods (Table 3.7), unchanged since 2013.30
Table 3.7 Import prohibitions, 2020

Description
Chemicals in Annex III of the Rotterdam Convention.
Used supplies and vehicles, including:
(a) Engines, frames, inner tubes, tires, spare parts and motors of cars, trailers, semi-trailers, four-wheeled
drives;
(b) Chassis of cars and tractors, fitted with engines (including new chassis fitted with used engines and used
chassis fitted with new engines);
(c) Assorted cars that have been transformed in structure compared with their original designs;
(d) Cars, trailers, semi-trailers (other than dedicated trailers and semi-trailers), used passenger four-
wheeled motor vehicles over five years from the manufacture year to the import year; and
(e) Ambulances.
(a) Right-hand drive means of transport (including those in knocked-down forms and those with converted
drive before being imported in Viet Nam), excluding special-use right-hand drive vehicles operating within a
restricted location and not joining traffic, including: crane trucks; canal diggers, street sweepers, street
washers; garbage trucks; road builders; passenger cars in airports and lifting trucks in warehouses and
ports; concrete-pumping vehicles; vehicles moving only within golf courses or parks;
(b) Assorted automobiles, four-wheeled drives, and their spare parts that have their frame or engine
numbers erased, modified, or tampered with;
(c) Trailers and semi-trailers that have their frame erased, modified, or tampered; and
(d) Assorted motorcycles, special-use motorbikes, and motorbikes that have their frame or engine numbers
erased, modified or tampered with.
Weapons, ammunitions, explosives (excluding industrial explosives), military technical equipment.
Assorted cultural products banned from dissemination and circulation or decided to be suspended from
dissemination and circulation, or subject to revocation, confiscation, and destruction.
(a) Assorted publications banned from dissemination and circulation;
(b) Postage stamps banned from trading, exchange, display, and dissemination in accordance with the Law
on Post; and
(c) Radio equipment and radio-wave appliances that do not comply with radio frequency master plans and
relevant technical regulations in accordance with the Law on Radio Frequencies.
28
Article 4 of the Decree prohibits producing, manufacturing, purchasing, selling, transporting,
exporting, importing, stockpiling, and using parts, component assemblies for illegal assembly or the
manufacture of weapons or supporting tools.
29
Article 5 of the Decree stipulates that prohibited acts include illegally manufacturing, assembling,
transporting, storing, trading, exporting, importing, leasing, and repairing camouflage devices and software
used for sound and video recording and positioning.
30
Viet Nam is a signatory to, inter alia, the following international treaties and conventions with
implications for trade: the Convention on World Cultural Heritage and Natural Resources Conservation; the
Convention on Wetland of International Importance, especially of Waterfowls Habitat (Ramsar); the Convention
on International Trade in Endangered Species of Wild Flora and Fauna (CITES); the Montreal Protocol on
Substances that Deplete the Ozone Layer; the Framework Convention on Climate Change; the Convention on
Biological Diversity (CBD); the Convention on Marine Law; the Basel Convention on controlling the transit and
disposal of dangerous waste; the United Nations Convention to Combat Desertification (CCD); the Cartagena
Protocol on Biosafety; the Vienna Convention on the Ozone Layer Protection; the Stockholm Convention on
Persistent Organic Pollutants; and the Rotterdam Convention on Prior Informed Consent.
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Description
Used consumer goods, medical equipment, and vehicles including the following commodity groups:
(a) Textiles and garments, footwear, clothes;
(b) Electronic appliances;
(c) Refrigerating appliances;
(d) Home electric appliances;
(e) Medical equipment;
(f) Interior decoration goods;
(g) Home appliances made of pottery, ceramic, glass, metal, plastic, rubber, and other materials;
(h) Bicycles; and
(i) Motorcycles and mopeds.
(a) Schedule-1 toxic chemicals defined in the Convention on the Prohibition of the Development, Production,
Stockpiling and Use of Chemical Weapons and on their Destruction and Annex to Decree No. 38/2014/ND-
CP, dated 6 May 2014, on the management of chemicals under control in the Convention on the Prohibition
of the Development, Production, Stockpiling and Use of Chemical Weapons and on their Destruction; and
(b) Chemicals under the list of banned chemicals prescribed in Appendix III to Decree No. 113/2017/ND-CP
dated 9 October 2017 on guidelines for certain articles of the Law on Chemicals.
Wastes and scraps, refrigerating equipment using CFC.
Pesticides banned from use in Viet Nam.
Assorted fireworks (excluding signal fires used for navigational safety under the guidance of the Ministry of
Transport), sky lanterns, assorted devices causing interference to vehicle speedometers.
Products and materials containing asbestos of the amphibole group (brown and green asbestos).
Used information technology products.
a) Samples of precious, rare and endangered animals and plants under Appendix I to the CITES derived
from natural resources being exported for commercial purpose; and
b) Samples and processed products of species: white rhinoceros (Ceratotherium simum), black rhinoceros
(Diceros bicornis), African elephants (Loxodonta africana).
Source: Decree No. 69/2018/ND-CP, Law No. 14/2017/QH14, Decree No. 79/2018/ND-CP, and information
provided by the authorities.
3.59. Goods subject to import restrictions, which entail various import licensing requirements, are
shown in Table A3.4. The licensing requirement is also employed to administer importation of goods
subject to tariff quotas.
3.60. Articles 11 to 14 of the Law on Foreign Trade Management stipulate circumstances when
temporary suspension from export or import can be taken. The suspension of import or export may
be imposed if products are subject to the urgent control measure for the foreign trade management
prescribed in Chapter V (Articles 100-102) of the Law (e.g. products affected by war, natural
disaster, epidemics, or environmental incidents; products producing serious effects on health and
the environment; and balance of payment reasons). In accordance with the Law and MOIT Circular
No. 22/2019/TT-BCT, issued on 12 November 2019, international trade and temporary import of
plywood into Viet Nam for re-export to the United States is suspended between 27 December 2019
and 31 December 2024.31 In addition, under MOIT Circular No. 27/2019/TT-BCT, issued on
15 November 2019, some scraps are subject to temporary suspension from temporary import, re-
export, and border-gate transfer between 1 January 2020 and 31 December 2024.32
3.61. The automatic import licensing requirement applied to steel products was eliminated under
MOIT Circular No. 17/2014/TT-BCT, issued on 16 June 2014. Currently, Viet Nam does not apply an
automatic import licensing requirement.
3.62. MOIT Decision No. 1380/QD-BCT, issued on 25 March 2011, indicating goods not encouraged
or discouraged for imports is still in force.
3.63. Quotas apply to imports of HCFCs under MOIT Circular No. 51/2018/TT-BCT, issued on
19 December 2018, which amended some provisions of Joint Circular No. 47/2011/TTLT-BCT-BTNMT
of the MOIT and the Ministry of Natural Resources and Environment, issued on 30 December 2011.
The amendment concerned changes regarding HCFC imports.
31
Products concerned include HS codes 4412.10.00, 4412.31.00, 4412.33.00, 4412.34.00, 4412.39.00,
4412.94.00, 4412.99, 4412.99.10, 4412.99.20, 4412.99.30, and 4412.99.90.
32
Products concerned include HS 4-digit codes (fully or partially): 2520, 2618, 2619, 2620, 3818, 3919,
3920, 3921, 3923, 4707, 5003, 5103, 5104, 5202, 5505, 6310, 7001, 7204, 7404, 7503, 7602, 7902, 8002,
8101, 8102, 8104, 8108, 8109, 8110, 8111, and 8112. Only used goods are applicable for HS codes 3919,
3920, 3921, and 3923.
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3.64. Viet Nam did not introduce measures relating to import prohibitions, restrictions, and licensing
in response to the COVID-19 pandemic.
3.1.6 Anti-dumping, countervailing, and safeguard measures
3.65. Chapter III of the Law on Export Tax and Import Tax stipulates conditions for, the principles
of, and the period of imposing anti-dumping, countervailing (anti-subsidy), and safeguard measures.
The Law on Foreign Trade Management is the main legislation governing anti-dumping,
countervailing, and safeguard measures in Viet Nam. The Law replaced the ordinances on
Investigation of the Application of Trade Remedies. The authorities state that the Law was introduced
to assess the need for improving the legal basis for anti-dumping, countervailing, and safeguard
measures since it was more than 10 years after the implementation of the ordinances of the Standing
Committee of the National Assembly and Decrees by the Government.33
3.66. To supplement the Law, Decree No. 10/2018/ND-CP (guiding the Law on Foreign Trade
Management on trade remedies) was issued on 15 January 2018, and MOIT Circular
No. 06/2018/TT-BCT (detailing a number of provisions on trade remedies) was issued on 20 April
2018. Subsequently, MOIT Circular No. 37/2019/TT-BCT (prescribing in detail a number of provisions
on trade remedies) was issued on 29 November 2019, and entered into force on 15 January 2020
to replace MOIT Circular No. 06/2018/TT-BCT with a view to improving regulations related to the
process of handling exemptions for application of anti-dumping, countervailing, and safeguard
measures. In addition to these ordinances and decrees, the MOF issued a circular to guide the
collection, remittance, and refund of anti-dumping and anti-subsidy taxes, and the provision of
securities for the payment of such taxes.34 The authorities state that the legal provisions under the
Law on Foreign Trade Management comply with the provisions of the WTO Agreement regarding
anti-dumping, countervailing, and safeguard measures.
3.67. According to the authorities, the current legislation concerning anti-dumping, countervailing,
and safeguard measures contains some regulations not yet included in the system of international
commitments, such as: (i) eliminating some regulations that are not suitable to the reality of
investigation (e.g. there is no deadline for issuing a preliminary report; and there are no specific
issues related to consultations, such as the time limit for speaking); (ii) investigating the application
of "avoid evasion measures"; (iii) exempting certain imports from the application of anti-dumping,
countervailing, and safeguard measures (a waiver mechanism) in order to ensure that the measures
apply strictly to imported goods that are similar or directly compete with domestically produced
goods35; (iv) specifying procedures for reviewing and applying anti-dumping, countervailing, and
safeguard measures, including on-demand, product range, mid-term, and final reviews; (v)
specifying forms used during the investigation, such as an application for registration of a party
concerned with a trade remedies case, import declaration, an application for exemption from trade
33
Relevant decrees and ordinances (which expired in January 2018) include: Decree
No. 04/2006/ND-CP (on establishment, functions, duties, powers, organizational structure of council for
handling cases of combat against dumping, combat against subsidy, and self-protection), issued on 9 January
2006; Decree No. 89/2005/ND-CP (on detailing the implementation of a number of articles of the ordinance on
anti-subsidy for imports into Viet Nam), issued on 11 July 2005; Decree No. 90/2005/ND-CP (on detailing the
implementation of a number of articles of the ordinance on anti-dumping of imports), issued on 11 July 2005;
Ordinance No. 22/2004/PL-UBTVQH11 (on anti-subsidy for imports), issued on 20 August 2004; Ordinance
No. 20/2004/PL-UBTVQH11 (on anti-dumping of imports), issued on 29 April 2004; Decree No. 150/2003/ND-
CP (on detailing the implementation of the ordinance on safeguards in the import of foreign goods), issued on
8 December 2003; and Ordinance No. 42/2002/PL-UBTVQH10 (on safeguards in the import of foreign goods),
issued on 25 May 2002.
34
MOF Circular No. 106/2005/TT-BTC, issued on 5 December 2005, guiding the collection, remittance,
and refund of anti-dumping tax, anti-subsidy tax, and securities for payment of anti-dumping tax or anti-
subsidy tax.
35
Exemptions from the application of these measures include when: (i) the products cannot be
produced domestically; (ii) the products possess characteristics that are different from and cannot be
substituted by domestically produced products; (iii) the products are special products of like or directly
competitive products produced by the domestic industry; (iv) there is no sale of like or directly competitive
products produced by the domestic industry in the ordinary course of trade in the domestic market; (v) there
are not enough like or directly competitive products produced domestically to meet the needs of the domestic
market; and (vi) the imports within the total quantities of imports requested for exemption are intended for
research and development (R&D) purposes, as well as other non-commercial purposes.
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remedies, and report on exempted import goods; (vi) dealing with trade remedies applied to
exports; and (vii) including provisions on special safeguard measures in the context of FTAs.
3.68. The MOIT is the authority responsible for deciding to investigate trade remedy measures.
Since August 2017, the agency in charge of making appraisals and proposals to the Minister of
Industry and Trade regarding investigations into trade remedy measures has been the Trade Remedy
Authority of Viet Nam under the MOIT.36
3.69. Clause 5, Article 70, of the Law on Foreign Trade Management and Article 8 of MOIT Circular
No. 37/2019/TT-BCT define the disclosure of information in the process of initiating, investigating,
and promulgating decisions on application of trade remedy measures. Accordingly, information on
initiation and the final decision is published on the websites of the Trade Remedy Authority of
Viet Nam and the MOIT. Information concerning the investigation may be disclosed to the public,
depending on the nature of the information.
3.70. Article 81.1 of the Law on Foreign Trade Management stipulates that the application of a
provisional anti-dumping measure shall be decided by the Minister of Industry and Trade, based on
the preliminary determination of the investigating authority. According to Article 70 of the Law, the
final measure could be applied after 12 to 18 months from the date of issuance of an initiation
decision. The Law does not specify the length of time between the decision on provisional measure
and final measure. Article 81 of the Law stipulates that the duration of provisional anti-dumping
duties is 120 to 180 days from the effective date of the decision on the imposition of provisional
anti-dumping duties. The authorities state that, in order to avoid the gap between the provisional
and final measures, the investigating authority plans the investigation process to ensure that the
final measure will be applied before the expiration of the provisional measure.
3.71. Under Article 71 of the Law, an investigation is terminated when: (i) an organization or
individual that submits a dossier of request for application of trade remedies voluntarily withdraws
such dossier; (ii) the investigating authority's preliminary determination states that no injury is
caused, there is no threat of injury to a domestic industry, or there is no delay of the establishment
of the domestic industry; or (iii) the investigating authority reaches an agreement with the
competent authority of the country having the products claimed to be subsidized upon import into
Viet Nam's territory on removal of the subsidy. An investigation is also terminated when the
investigating authority's final determination states one of the following: the imported products under
investigation are neither dumped nor subsidized or such products are not excessively imported; no
injury is caused to a domestic industry as prescribed in Clause 2, Article 69, of the Law; or there is
no causal relationship between the import of products that are claimed to be dumped or subsidized
or excessively imported and the extent of injury or threat of injury to a domestic industry or the
delay of the establishment of domestic industry.
3.72. Article 81.3(d) of the Law stipulates that the time limit for imposition of an anti-dumping
measure is five years from the effective date of the decision on imposition of such measure. If the
result of a sunset review shows the need for the continued application of the anti-dumping measure,
the investigating authority can extend the time limit of the measure.
3.73. Countervailing and safeguard measures may be applied pursuant to: the Law on Foreign Trade
Management; Decree No. 10/2018/ND-CP; and MOIT Circular No. 37/2019/TT-BCT, issued on
29 November 2019, and entered into force on 15 January 2020. The Law establishes that
countervailing measures may take the form of countervailing duties or acceptance of undertakings
by the exporting enterprises or their governments or other countervailing measures (Article 83); it
also establishes the definition of subsidies in Article 84. No countervailing investigation was made
during the review period.
3.74. Section 4, Chapter IV, of the Law on Foreign Trade Management stipulates safeguard
measures including, inter alia, the imposition of safeguard duties, import quotas, and tariff quotas;
and the issuance of import licences. Under the Law, a safeguard measure can be imposed on imports
if the following conditions are satisfied: (i) there is an absolute or relative increase in imports
compared with the domestic production of like products; (ii) there is a serious injury or threat of
36
Between January 2013 and August 2017, the Viet Nam Competition Authority under the MOIT was the
agency in charge of making appraisals and proposals to the Minister of Industry and Trade for the issuance of
decisions to initiate investigations on trade remedy measures.
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serious injury to the domestic industry; and (iii) the increased imports prescribed in Point A of this
Section is the major cause of the serious injury or threat of serious injury to the domestic industry.
Developing countries will be exempted from the safeguard measures if: (i) the imports originating
in that country account for not more than 3% of total imports of like products; and (ii) the total
imports of products originating in that country and satisfying the aforementioned conditions account
for not more than 9% of the total production of imports of like products.
3.75. A safeguard investigation will be conducted if a domestic producer of like or directly

competitive products37 submits an application for the imposition of safeguard measures. The
application must prove that the excessive import of products causes the serious injury or threat of
serious injury to the domestic industry. The MOIT is responsible for deciding to conduct an
investigation if there is clear evidence that the excessive imports of products cause the serious injury
or threat of serious injury to the domestic industry.
3.76. The content of a safeguard investigation includes the determination of: the products that are
imported excessively and the rate of the increase in imports; the serious injury or threat of serious
injury to the domestic industry; and the causal link between the excessive import of relevant
products and the injury to the domestic industry.
3.77. The imposition of interim safeguard measures is decided by the Minister of Industry and
Trade, according to the preliminary determination provided by the investigating authority whether
the delay in imposing safeguard measures causes a serious injury or threat of serious injury to the
domestic industry that is difficult to be repaired. The maximum duration of a safeguard measure is
200 days from the day on which the decision of the imposition of the safeguard measure comes into
force.
3.78. Conditions concerning the imposition of final (official) measures are that: (i) after the
investigation finishes, the investigating authority shall publish the final determinations of contents
related to the investigation stipulated in Article 94 of the Law, and the final determination (and its
main reasons) shall be notified to interested parties of the case; (ii) according to the final
determination, the Minister of Industry and Trade shall decide whether the final safeguard measure
is imposed; (iii) the maximum duration of the safeguard measure (including the duration of any
provisional safeguard measure) is 4 years, unless the duration is extended in accordance with
Article 96 of the Law; (iv) the total duration of the safeguard measure (including the duration of the
provisional measure, the final measure, and its extension) must not exceed 10 years.
3.79. With a view to effectively implementing the contents of "special safeguard measures" under
the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the MOIT
issued Circular No. 19/2019/TT-BCT (providing for application of the special safeguard measures for
implementing the CPTPP) on 30 September 2019. The special safeguard measures include
transitional safeguard measures and emergency measures for textiles.
3.80. During the review period, Viet Nam notified laws and regulations pertaining to anti-dumping,
countervailing, and safeguard measures to the WTO in 2018 and 2020, and responded to detailed
questions on its anti-dumping regime in 2019.38 Between 2013 and 2019, Viet Nam had five anti-
dumping measures in place and four cases under investigation; it also had four safeguard measures
37
"Directly competitive products" are products that can be substituted for products subject to the
safeguard measures by the buyer due to their advantages in prices and purposes for use.
38
WTO documents G/ADP/N/1/VNM/2/Corr.1, 5 November 2018, G/ADP/N/1/VNM/2, 30 October 2018,
and G/ADP/N/1/VNM/3, 28 May 2020. Replies to questions posed by the European Union and the United States
on Viet Nam's anti-dumping legislation have been circulated in WTO documents G/ADP/Q1/VNM/3,
2 April 2019, G/ADP/Q1/VNM/4, 30 April 2019, G/ADP/Q1/VNM/5, 2 May 2019, G/ADP/Q1/VNM/6,
20 June 2019, G/ADP/Q1/VNM/7, 7 November 2019, and G/ADP/Q1/VNM/8, 7 November 2019. Semi-annual
reports of Viet Nam's anti-dumping actions for the period 2013-19 are found in WTO documents
G/ADP/N/335/VNM, 31 March 2020, G/ADP/N/328/VNM, 21 October 2019, G/ADP/N/322/VNM, 16 April 2019,
G/ADP/N/314/VNM, 9 August 2018, G/ADP/N/300/VNM, 6 September 2017, G/ADP/N/294/VNM, 3 April 2017,
G/ADP/N/286/VNM, 29 August 2016, G/ADP/N/280/VNM, 8 April 2016, G/ADP/N/272/VNM, 19 October 2015,
G/ADP/N/265/VNM, 27 April 2014, G/ADP/N/259/VNM, 15 October 2014, G/ADP/N/252/VNM, 23 October
2014, and G/ADP/N/244/VNM, 23 October 2014.
- 69 -
in place. The main products covered by these measures include steel, aluminium, and fertilizer.
(Table A3.5).39
3.81. Appeals concerning a decision on an anti-dumping, countervailing, or safeguard measure can

be conducted under the 2011 Law on Complaints. Complainants can send their complaint to the
relevant Minister or initiate an administrative lawsuit in court, in accordance with the Law on
Administrative Procedures.
3.82. Viet Nam did not introduce any anti-dumping, countervailing, or safeguard measures in
response to the COVID-19 pandemic.
3.1.7 Other measures affecting imports
3.83. From the date of its accession to the WTO, Viet Nam agreed to fully comply with the TRIMs
Agreement. Investment incentives contingent upon export performance were curtailed for new
investments, and are to be phased out over a five-year period from the date of accession for existing
beneficiaries. Incentives for exemption from and reduction of land use payment, land use tax, and
corporate income tax were terminated on 25 October 2006; incentives for exemption from import
duties in respect of the equipment and machinery imported to form fixed assets were eliminated on
1 January 2006.40 As a guarantee for business operations, Article 10 of the 2014 Investment Law
provides provisions that the State cannot compel investors to comply with. These provisions include:
(i) prioritizing the purchase and use of domestic goods and services; (ii) reaching a certain rate of
exported goods or services; (iii) limiting goods and services exported or domestically produced or
provided; (iv) importing goods in a quantity or value corresponding to the quantity or value of
exports goods41; (v) applying localization rates for domestically produced goods; (vi) requiring
domestic research and development (R&D) activities; (vii) supplying goods or services at specific
places in the country; and (viii) locating head offices at specific places. The authorities state that
currently there are no trade-related investment measures (TRIMs) in place, and Viet Nam has not
notified any new TRIMs to the WTO.42
3.84. The authorities state that Viet Nam does not use countertrade.
3.2 Measures Directly Affecting Exports
3.2.1 Customs procedures and requirements
3.85. As in the case of imported goods, customs procedures for exported goods are based on legal
documents: Customs Law 2014; Decree No. 08/2015/ND-CP, issued on 21 January 2015, as
amended and supplemented by Decree No. 59/2018/ND-CP, issued on 20 April 2018; and MOF
Circular No. 38/2015/TT-BTC, issued on 25 March 2015, as amended and supplemented by MOF
Circular No. 39/2018/TT-BTC, issued on 20 April 2018.
3.86. Exporters must submit to customs offices dossiers of customs documents as prescribed in
Clause 1, Article 16, of MOF Circular No. 38/2015/TT-BTC, as amended and supplemented in Clause
5, Article 1, of MOF Circular No. 39/2018/TT-BTC. The registration and channelling of declarations
39
Notifications concerning Viet Nam's safeguard measures include G/SG/N/8/VNM/3/Suppl.3/Corr.1,
2 April 2020, G/SG/N/8/VNM/3/Suppl.3, 1 April 2020, G/SG/N/8/VNM/3/Suppl.2, 20 March 2020,
G/SG/N/8/VNM/6/Suppl.2/Corr.1, 17 March 2020, G/SG/N/8/VNM/6/Suppl.2, 12 March 2020,
G/SG/N/8/VNM/6/Suppl.1, 10 March 2020, G/SG/N/6/VNM/5/Suppl.1, 4 February 2020,
G/SG/N/6/VNM/6/Suppl.1, 4 February 2020, G/SG/N/11/VNM/8/Suppl.1, 20 January 2020, G/SG/N/11/VNM/8,
16 December 2019, G/SG/N/11/VNM/7/Suppl.1, 17 July 2019, G/SG/N/8/VNM/3/Suppl.1, 2 July 2019,
G/SG/N/13/VNM/3, 4 December 2018, G/SG/N/13/VNM/2, 4 December 2018, G/SG/N/8/VNM/6,
13 March 2018, G/SG/N/7/VNM/3/Rev.1, 23 October 2017, G/SG/N/7/VNM/4, 11 August 2017,
G/SG/N/8/VNM/4, 2 June 2017, G/SG/N/6/VNM/6, 18 May 2017, G/SG/N/8/VNM/3, 2 August 2016,
G/SG/N/6/VNM/5, 19 July 2016, G/SG/N/7/VNM/3, 24 March 2016, G/SG/N/7/VNM/2, 11 March 2016,
G/SG/N/6/VNM/4, 4 January 2016, G/SG/N/13/VNM/1, 2 October 2015, G/SG/N/6/VNM/3/Corr.1,
1 October 2015, G/SG/N/6/VNM/3, 7 September 2015, G/SG/N/8/VNM/2, 12 September 2013,
G/SG/N/7/VNM/1, 15 May 2013, and G/SG/N/6/VNM/2, 11 January 2013.
40
WTO document G/SCM/N/155/VNM, 13 March 2013.
41
Before its accession to the WTO, Viet Nam used this practice of "self-balance" in its needs for foreign
exchange.
42
WTO document G/TRIMS/N/2/Rev.28, 27 September 2018.
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must comply with Article 19 of Circular No. 38/2015/TT-BTC, as amended and supplemented in
Clause 8, Article 1, of Circular No. 39/2018/TT-BTC.
3.87. As with imports, to be a registered exporter, domestic investors need a valid business
registration certificate, whereas a foreign investor must hold a valid investment certificate. The Law
on Foreign Trade Management and Decree No. 09/2018/ND-CP stipulate rights to export by
foreign-invested enterprises in Viet Nam; the Law also stipulates the rights of foreign traders without
a physical presence in Viet Nam, as prescribed in Decree No. 90/2007/ND-CP, issued on
31 May 2007. Foreign-invested enterprises may export their products as any other goods unless
they: (i) are listed as banned or suspended from exportation; or (ii) have not been granted the right
to be exported. The Law allows foreign traders without presence in Viet Nam, other relevant
organizations and individuals of countries and territories that are WTO Members, and countries and
territories with signed bilateral agreements with Viet Nam to export in accordance with regulations
and international treaties to which Viet Nam is a signatory. The right to export does not extend to
the establishment of a network in Viet Nam to purchase goods for export.
3.88. In 2019, customs valuation rules for exports were amended through MOF Circular
No. 60/2019/TT-BTC (issued on 30 August 2019).43 According to the authorities, the Circular
stipulates more detailed rules and methods of customs valuation for exported goods compared with
the previous regime, particularly in regard to: the principles of customs valuation of exported goods;
the method of determining the selling price of goods; the use of the selling price on the customs
value database; and determination of the customs value of exported goods in special cases.
3.89. As in the case of imports, in response to the COVID-19 pandemic, the authorities focused on
shortening the time for customs clearance of exports (Section 3.1.1).
3.2.2 Taxes, charges, and levies
3.90. Viet Nam levies export taxes on certain products, such as fish, minerals, coal, rubber, and
raw hides and skins (Table A3.6). The taxes are applied on an MFN basis. Export taxes may be
refunded in accordance with Article 19 of the Law on Export Tax and Import Tax (Law No.
107/2016/QH13). The Law stipulates minimum rates for some groups of goods subject to export
tax.
3.91. The export tax rates changed frequently during the review period. Changes took place in
January 2013, January 2014, January 2016, September 2016, and January 2018; on 25 May 2020,
Decree No. 57/2020/ND-CP was issued, amending some export tax rates.44
3.92. As in the case of imports, MOF Circular No. 274/2016/TT-BTC (on the collection, payment,
management, and use of customs fees and charges for goods and vehicles in transit), issued on
14 November 2016, specifies customs export charges for customs procedures (Table 3.8).45
Table 3.8 Export charges and fees, 2020

No. Content collection Collection rates
1 Customs fee for registering the declaration VND 20,000 per declaration
2 Customs fees for inspection, supervision, or temporary VND 200,000 per application
suspension of customs procedures for exports and imports
subject to intellectual property protection
3 Fee for transit of goods VND 200,000 per application
4 Charge for road transit vehicles (including cars and tractors) VND 200,000 per vehicle
43
Vietnam Customs, Amendments in the Customs Valuation Rules for Exports. Viewed at:
https://www.customs.gov.vn/Lists/EnglishNews/ViewDetails.aspx?ID=702&Category=News%20and%20Events
&language=en-US.
44
Vietnam Customs, Export and Preferential Import Tariff Rates to Appy from 10 July 2020. Viewed at:
https://www.customs.gov.vn/Lists/EnglishNews/ViewDetails.aspx?ID=729&Category=News%20and%20Events
&language=en-US.
45
Before the Circular took effect, customs charges and fees had to comply with the provisions of MOF
Circular No. 172/2010/TT-BTC, issued on 2 November 2010. Fees specified in MOF Circular No. 274/2016/TT-
BTC are generally based on MOF Circular No. 172/2010/TT-BTC. Nonetheless, for example, fees for transiting
vehicles via waterways were increased from VND 200,000 to VND 500,000.
- 71 -
No. Content collection Collection rates

5 Charge for water transport means (including ships, canoes, VND 500,000 per vehicle
tractors, and barges)
Source: Annex to MOF Circular No. 274/2016/TT-BTC.
3.93. Viet Nam levies royalties (severance tax) on natural resources, such as basic metals and
minerals, timber, water, crude oil, and natural gas used in domestic production or exported
(Table 3.9). The 2009 Law on Severance Tax (Law No. 45/2009/QH12) and its implementing
regulations continue to provide the legal basis for these payments.46 The Standing Committee of the
National Assembly established minimum and maximum rates for each product, and the applied
royalty rate is required to remain within the set band (or "the tax frame"). Royalty payments are
levied at ad valorem rates. The f.o.b. export price constitutes the tax base for exported commodities.
In general, the tax base is the exporter's sales price exclusive of VAT or, if individual sales prices
cannot be determined, a regional market price decided by the local People's Committee. Provided it
can be determined, the sales price at the place of delivery constitutes the tax base for timber, crude
oil, natural gas, and coal gas. Royalties on water used in commercial generation of hydropower are
charged on the average sales price of electricity. Royalties may be reduced or refunded in case of
accidents or natural disasters. Natural aquatic resources are currently exempted from royalty
payments.
Table 3.9 Royalty payments on natural resources

(a) Royalties on natural resources (excluding petroleum)
No. Group or category of nature resource Royalty tax Royalty tax
frame rate
(%) (%)
I Metallic minerals
1 Iron 7-20 14
2 Manganese 7-20 14
3 Titan 7-20 18
4 Gold 9-25 17
5 Rare earths 12-25 18
6 Platinum, silver and tin 7-25 12
7 Wolfram, antimony 7-25 20
8 Lead, zinc 7-25 15
9 Aluminium, bauxite 7-25 12
10 Copper 7-25 15
11 Nickel 7-25 10
12 Cobalt, molybdenum, mercury, magnesium and vanadium 7-25 15
13 Other metallic minerals 5-25 15
II Non-metallic minerals
1 Soil exploited for ground levelling and work construction 3-10 7
2 Rock, gravel 5-15 10
3 Rock used for lime baking and cement production 5-15 10
4 White marble 5-15 15
5 Sand 5-15 15
6 Sand used for glass-making 7-15 15
7 Soil used for brick making 5-15 15
8 Granite 7-20 15
9 Refractory clay 7-20 13
10 Dolomite, quartzite 7-20 15
11 Kaolin, mica, technical quartz 7-15 13
12 Mica, technical quartz 7-15 13
13 Pyrite, phosphorite 5-15 10
14 Apatite 3-10 8
15 Serpentine 3-10 6
16 Pit anthracite coal 4-20 10
17 Open-cast anthracite coal 6-20 12
18 Brown coal, fat coal 6-20 12
19 Other coals 4-20 10
20 Diamond, ruby and sapphire 16-30 27
46
The implementing legislation includes: Resolution No. 1084/2015/UBTVQH13, issued on
10 December 2015, and entered into force on 1 July 2016 (replacing Resolution No. 712/2013/ UBTVQH13,
which replaced Resolution No. 928/2010/UBTVQH12); the Law Amending and Supplementing a Number of
Articles of Tax Law No. 71/2014/QH13 (26 November 2011), which includes the amendment of the Law on
Severance Tax.
- 72 -
No. Group or category of nature resource Royalty tax Royalty tax

frame rate
(%) (%)
21 Emerald, alexandrite and black precious opal 16-30 25
22 Adrite, rodolite, pyrope, berine; spinel and topaz 12-25 18
23 Bluish-purple, greenish-yellow or orange crystalline quartz; 12-25 18
chrysolite; white or scarlet precious opal; feldspar; birusa; and
nephrite
24 Other non-metallic minerals 4-25 10
III Natural forest products
1 Timber of Group I 25-35 35
2 Timber of Group II 20-30 30
3 Timber of Group III 15-20 20
4 Timber of Group IV 15-20 18
5 Timber of Groups V, VI, VII and VIII and of other categories 10-15 12
6 Tree branches, tops, stumps and roots 10-20 10
7 Firewood 1-5 5
8 Bamboo of all kinds 10-15 10
8 Sandalwood and calambac 25-30 25
10 Anise, cinnamon, cardamom and liquorice 10-15 10
11 Other natural forest products 5-15 5
IV Natural seafood
1 Pearl, abalone and sea-cucumber 6-10 10
2 Other natural seafoods 1-5 2
V Natural water
1 Natural mineral water, natural thermal water and refined 8-10 10
natural water, bottled or tinned
2 Natural water used for hydroelectricity generation 2-5 5
3 Natural water used for production and business activities,
except water mentioned at Points 1 and 2 of this group
3.1 Used surface water
- Used for producing clean water 1-3 1
- For other purposes 1-3 3
3.2 Used groundwater
- Used for producing clean water 3-8 5
- For other purposes 3-8 8
VI Natural swallow's nests 10-20 20
VII Other resources 1-20 10
(b) Royalty on crude oil, natural gas, and coal gas (unchanged since 2013)
Tax rate (%)
Tax frame Projects Other
No. Output eligible for projects
(%)
investment
promotion
I For crude oil
1 Up to 20,000 barrels/day 6-40 7 10
2 Between over 20,000 and 50,000 barrels/day 6-40 9 12
3 Between over 50,000 and 75,000 barrels/day 6-40 11 14
4 Between over 75,000 and 100,000 6-40 13 19
barrels/day
5 Between over 100,000 and 150,000 6-40 18 24
barrels/day
6 Over 150,000 barrels/day 6-40 23 29
II For natural gas and coal gas
1 Up to 5 million m3/day 1-30 1 2
2 Between over 5 and 10 million m3/day 1-30 3 5
3 Over 10 million m3/day 1-30 6 10

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3.2.3 Export prohibitions, restrictions, and licensing
3.94. As in the case of imports, Viet Nam enforces export prohibitions, restrictions, and licensing in
accordance with the Law on Foreign Trade Management and Decree No. 69/2018/ND-CP
(Table A3.7).47
3.95. In response to the outbreak of the COVID-19 pandemic, Viet Nam imposed temporary export
licensing requirements on face masks (HS 6307.90.40 and HS 6307.90.90) between 11 March 2020
and 29 April 2020, and temporary export quotas on rice (HS 1006) for the purpose of national food
security between 10 April 2020 and 1 May 2020. Currently, Viet Nam has no export quotas.
3.96. Viet Nam does not use minimum export prices.
3.2.4 Export support and promotion
3.97. Since its previous review, Viet Nam has continued to implement the National Program on
Trade Promotion with a view to supporting trade promotion activities; this has been conducted
mainly through the Viet Nam Trade Promotion Agency (Vietrade).48 The Program is implemented in
accordance with the provisions of: (i) Decree No. 28/2018/ND-CP (detailing the Law on Foreign
Trade Management regarding foreign trade development measures), issued on 1 March 2018;
(ii) Prime Minister's Decision No. 12/2019/QD-TTg (on amendment and addition to a number of
articles of the Prime Minister's Decisions on construction, management, and implementation of the
National Trade Promotion Program issued by the Prime Minister's Decision No. 72/2010/QD-TTg),
issued on 26 February 2019; and (iii) MOIT Circular No. 11/2019/TT-BCT (Guiding the
Implementation of Trade Promotion Activities for Foreign Trade Development under the National
Program on Trade Promotion), issued on 30 July 2019. Decree No. 28/2018/ND-CP aims to:
contribute to improving the production and business capacity of the business community; support
the development of commercial infrastructure and logistics of foreign trade activities; and cope with
the changes of import and export markets promptly. The main changes in trade promotion
programmes compared with previous ones relate to the addition of the concept of supporting import
promotion with a view to serving domestic production and exports, and holding trade fairs and
exhibitions in Viet Nam for products, materials, equipment imported for manufacturing of exported
goods, technology products, and inputs for manufacturing products having competitive positions.49
3.98. Specific trade promotion measures under the Program include: (i) organizing and participating
in trade fairs and exhibitions abroad; (ii) organizing international trade fairs, exhibitions, and
conferences in Viet Nam; (iii) organizing the display, introduction, and export of goods through a
common store on an e-commerce trading floor; (iv) organizing overseas trade delegations from
Viet Nam; (v) assisting foreign business delegations entering Viet Nam for conducting business or
discussing investment opportunities; (vi) supporting both developing and existing commercial
infrastructure and logistics in service of foreign trade activities; and (vii) organizing the Viet Nam
Logistics Forum. Other trade promotion measures include activities supporting R&D, improving the
quality of product and goods, and training.
3.99. The Viet Nam Trade Promotion Agency under the MOIT has funding from the State Budget for
the National Program on Trade Promotion of about VND 100 billion per year for the implementation
of 200 to 250 trade promotion projects. The Program is financially supported only by the State;
other sources provide funds for local trade promotion activities.
3.100. As at June 2019, Viet Nam had four export processing zones (EPZs) with a total land area
of about 627 hectares. The EPZs are industrial zones specializing in manufacturing goods for export
47
Decree No. 69/2018/ND-CP replaces Decree No. 12/2006/ND-CP.
48
Vietrade is a governmental organization responsible for national regulation of trade and investment
promotion for the development of industry and trade. Other trade promotion organizations in Viet Nam include
local trade promotion agencies, trade promotion agencies under the ministries and branches, and business and
industry associations. The Viet Nam Trade Promotion Agency does not manage the funding sources of these
organizations. Local trade promotion organizations are allocated part of their annual operation budget from
other sources to carry out trade promotion activities. Non-governmental trade promotion organizations collect
fees from members and other sources.
49
Relevant regulations include Decree No. 28/2018/ND-CP, issued on 1 March 2018, and MOF Circular
No. 11/2019/TT-BTC, issued on 30 July 2019.
- 74 -
to foreign countries or providing services related to import and export activities. 50 For companies
located in the EPZs, the Law on Export Tax and Import Tax and other relevant legislation apply
preferential treatment according to preferential sectors or industries under the Investment Law,
regardless of whether the enterprises are domestic or foreign.51 Imported materials used in
production by firms in the EPZs or export processing enterprises52 out of EPZs under a processing
contract may benefit from a duty exemption.53 Firms in the EPZs and export processing enterprises
out of EPZs are exempt from export duties for goods exported to foreign countries. However, goods
produced in EPZs with imported inputs are subject to import duties, taxes, and formalities if they
enter the domestic market. According to the authorities, there is no legal requirement for investors
in the EPZs to transfer technologies or conduct R&D.
3.101. Definitions of industrial parks, economic zones, and export processing enterprises are
specified in Article 2 of Decree No. 82/2018/ND-CP, issued on 22 May 2018, on the management of
industrial parks and economic zones.
3.102. An industrial zone is an area with a defined geographical boundary, specializing in the
production of industrial goods and providing services for industrial production, established according
to the conditions specified in the Decree. Industrial zones include EPZs 54 and industrial parks
(including eco-industrial parks).55
3.103. An economic zone is an area with a defined geographical boundary, including many
functional zones, established to achieve the objectives of attracting investment, developing socio-
economic projects, and protecting national defence and security. Economic zones include coastal
economic zones and border-gate economic zones.56
3.104. Currently, there are 361 industrial zones in the country (including industrial zones located
in the economic zones), of which 273 are operational. The industrial zones cover approximately
109,000 hectares, of which industrial use accounts for 79,900 hectares.57 Besides industrial zones,
Viet Nam has established 43 economic zones, of which 17 are coastal economic zones covering
50
Article 2 of Decree No. 82/2018/ND-CP, issued on 22 May 2018, stipulates that an export processing
zone is "an industrial zone specialized in the production of exports, providing services for the production of
exports and carrying out export activities, and so forth. Export processing zones are separated from the
outside areas according to regulations applicable to non-tariff areas specified in the Law on Export and Import
Tax".
51
MOF Circular No. 164/2013/TT-BTC of 15 November 2013 (on a preferential tariff of import and
export taxes); MOF Circular No. 182/2015/TT-BTC of 16 November 2015 (on a preferential tariff of import and
export taxes); Decree No. 122/2016/ND-CP of 1 September 2016 (on the export tax schedule, preferential
import tax schedule, and a list of taxable items); and Decree No. 125/2017/ND-CP of 16 November 2017
(amending and supplementing Decree No. 122/2016/ND-CP of 1 September 2016 (on the export tariff, import
tariff by list of taxable items, and a list of goods and absolute tax, compound tax, and import tax outside the
tariff quota). Article 15 of the Law on Investment provides general provisions on the beneficiaries of
investment incentives, including projects belonging to industries, occupations, and areas eligible for investment
incentives.
52
An export processing enterprise is an enterprise established and operating in an EPZ or an enterprise
specializing in the production of products for export and operating in industrial parks or economic zones. An
export processing enterprise not located in an EPZ is separated from the outside area in accordance with
regulations applicable to non-tariff zones in the Law on Export Tax and Import Tax.
53
Article 10 of Decree No. 134/2016/ND-CP.
54
An EPZ is an industrial zone that specializes in the production of exports, the provision of services for
export production, and export activities, and is established according to the conditions, orders, and procedures
applicable to public zones regulations in this Decree. The EPZ is separated from the outside area according to
regulations applicable to non-tariff zones in the Law on Export Tax and Import Tax.
55
An industrial park is an area eligible for investment incentives and is entitled to preferential policies
applicable to geographical areas on the list of geographical areas with difficult socio-economic conditions under
the Investment Law. Industrial zones established in areas on the list of geographical areas with extremely
difficult socio-economic conditions are entitled to preferential policies applicable to those areas.
56
A coastal economic zone is an economic zone formed in the coastal area and the vicinity of the
coastal area. A border-gate economic zone is an economic zone formed in the land border area and the area
adjacent to the land border area with an international border gate or main border gate.
57
Decree No. 82/2018/ND-CP stipulates that new industrial zones can only be established when the
industrial use of already-established industrial zones reaches 60% of their respective surfaces.
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859,000 hectares (inland and water surface combined), and the remaining ones are border-gate
economic zones extending over about 760,000 hectares.58
3.105. Article 24 of Decree No. 82/2018/ND-CP provides for incentives in industrial parks and
economic zones. For example, investment in the construction, operation, or rental of an apartment
building and social infrastructure works serving workers in industrial zones or economic zones is
accorded deductible expenses; and investment in the construction of houses, cultural and sports
works, and social infrastructure works in service of workers working in industrial parks or economic
zones is accorded incentives under the law on social housing construction and related laws.
3.106. According to the OECD Investment Policy Review 2018, there are three high-tech parks in
Viet Nam, which are regulated by Decree No. 99/2003/ND-CP, issued on 28 August 2003. Nearly
200 projects are established in these parks. They manufacture products or provide services in high-
tech production chains; they are entitled to directly export their products or services. They enjoy
investment preferences as prescribed by the Investment Law. They can select their investment forms
and use their land-use right certificates as collateral with credit institutions.
3.107. There also remain three key economic zones (KEZs), which have a larger geographical
coverage than all zones mentioned before. In 2004, an economic development plan for each KEZ
was enacted for the period up to 2020.59 According to the authorities, industrial/economic zones in
the Northern KEZ are mostly oriented to the production of computer, electronic, and optical products,
and machinery and equipment, and they benefit from their proximity to the Chinese market. The
Southern KEZ accounts for around half of the country's industrial surface in industrial/economic
zones, and the zones focus on machinery and equipment, textiles and apparel, fabricated metal
products, and rubber and plastic products. Food processing, fabricated metal products, and other
non-metallic mineral products are the main sectors in the Central KEZ.
3.108. The proportion of industrial output generated in industrial zones (including EPZs) was about
32% in 2019. The authorities state that industrial zones attracted 9,500 domestic projects valued
at USD 22.3 billion and 9,700 FDI projects for more than USD 195 billion by the end of 2019. The
performance of industrial zones is highly uneven between KEZs; for instance, the occupancy rate is
substantially lower in the Central KEZ (52%) than in the Northern KEZ (82%) and the Southern KEZ
(77%).60
3.109. On 22 May 2018, the Government issued Decree No. 82/2018/ND-CP, regulating the
development and management of industrial zones and economic zones. According to the Decree,
new industrial zones and economic zones, as well as their subsequent modifications, are subject to
the approval of the Prime Minister based on a report by the Ministry of Planning and Investment in
consultation with local and provincial People's Committees. It takes up to 30 working days to prepare
a report on the establishment of an industrial zone and up to 40 working days for one on an economic
zone. The Decree also delegates certain responsibilities to management boards of industrial zones
as a means to effectively implement one-stop-shop mechanisms. The Decree also imposes a
minimum use (60%) of the surface for industrial activities in the existing industrial zones prior to
the approval of new ones. The authorities state that the average occupancy rate in operating
industrial zones reached 71% in 2019, compared with 65% in 2010.
3.110. The Government promotes investment for industrial production in industrial zones and
economic zones located in areas with difficult or particularly difficult socio-economic conditions
through investment preferences foreseen in the Investment Law.61 These investment incentives may
consist of a reduced tax rate on enterprise income; an exemption from import duty of fixed assets,
materials, supplies, and components of the investment project; or an exemption or reduction of land
rental, land use levy, or land use tax.
3.111. Viet Nam seeks to attract investment in cleaner production and efficient use of resources by
creating a new type of industrial zone, named eco-industrial parks, for the purpose of economic,
58
Most of the zones are based in the key economic zones, i.e. in South, North, and Central Viet Nam.
59
Prime Minister's Decisions No. 145/2004/QD-TTg, No. 146/2004/QD-TTg, and No. 148/2004/QD-TTg.
60
Rents also differ substantially across regions; average rents in SEZs in the Northern and Southern
regions are twice those observed in the Central region.
61
Decree No. 82/2018/ND-CP and 2014 Investment Law.
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environmental, and social benefits. Currently, there are three pilot eco-industrial parks; the
Government encourages existing industrial zones to transform into eco-industrial parks.
3.112. In the context of the COVID-19 pandemic, Viet Nam conducted trade promotion measures
through online meetings and business matching workshops.
3.2.5 Export finance, insurance, and guarantees
3.113. In Viet Nam, export credit insurance, import and export goods insurance, and guarantee
insurance schemes are currently provided by private insurers. State-owned insurance enterprises
do not provide financial services, insurance, or export guarantees. According to the authorities, no
state support is provided to the schemes. These schemes are regulated by, inter alia: the Law on
Insurance Business (Law No. 24/2000/QH10, issued on 9 December 2000)62; Decree
No. 68/2014/ND-CP (amending and supplementing a number of articles of Decree No. 45/2007/ND-
CP of 27 March 2007, detailing the examination a number of articles of the Law on Insurance
Business), issued on 9 July 2014; and Decree No. 73/2016/ND-CP (detailing the implementation of
the Law on Insurance Business and the Law Amending and Supplementing a Number of Articles of
the Law on Insurance Business), issued on 1 July 2016.
3.114. Before 15 May 2017, loans extended to export contracts were also provided by the Viet Nam
Development Bank (VDB), in accordance with Decree No. 75/2011/ND-CP issued on 30 August 2011.
The lending interest rate was reported by the Chairman of the VDB Board of Directors to the MOF,
and enterprises had to implement loan security measures in accordance with the government
regulations on security transactions. The authorities state that these loans were provided on a
market basis without a subsidy. On 31 March 2017, the Government issued Decree No. 32/2017/ND-
CP, which entered into force on 15 May 2017 (replacing Decree No. 75/2011/ND-CP), under which
the VDB no longer provides loans to export contractors. The State does not provide any funding for
export credit.
3.115. During the review period, a guarantee insurance scheme (trade credit insurance) for exports
was introduced in 2014, based on Decree No. 68/2014/ND-CP. The trade credit insurance is
underwritten by the MOF. In order to support insurance companies during the COVID-19 pandemic,
the MOF reduced the rate of contribution to the scheme in 2020 from 0.15% to 0.05% of the
insurance premium.
3.3 Measures Affecting Production and Trade
3.3.1 Incentives
3.116. The Government provides different forms of incentives, including investment incentives
mainly through tax reductions, sectoral and support programmes by the VDB including interest
subsidies, and support measures to SMEs, the fisheries sector, and high-tech sectors.
3.117. The 2014 Investment Law sets out the eligibility criteria and sectors for investment
incentives.63 In general, incentives are accorded to new projects (excluding mergers and
acquisitions), although expansions of projects not previously benefitting from incentives may be
granted incentives under specific conditions. Eligibility for incentives includes projects in
geographical areas with difficult or extremely difficult socio-economic conditions and those in
industrial zones.64 Investment projects valued at VND 6 trillion or more, those disbursing at least
VND 6 trillion within three years of obtaining their investment certificate, or rural investment projects
employing at least 500 workers are also eligible for incentives. Incentives are granted for the
62
Government Portal, Legal Normative Documents. Viewed at: http://vbpl.vn/TW/Pages/vbpqen-
toanvan.aspx?ItemID=49.
63
Encouraged sectors in the Investment Law are high tech, science and technology, renewable
energies, electronic products, and key mechanical products in agricultural machinery, automobiles, and
shipbuilding, supporting industries, software production, processing of agricultural and aquatic products and
related biotechnology products, waste management, infrastructure development, education, healthcare, sport
and culture, and microfinance institutions.
64
Investment projects in mineral exploitation and in the production and trading of goods and services
subject to special consumption tax (except for automobile production) are not eligible for the incentives
attributed to these areas.
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duration specified in the initial investment plan, and requirements for incentives are to be met during
the project's entire lifetime. Specific investment incentives are implemented in accordance with the
Law on Corporate Income Tax65, as well as other laws on taxation including the Law on Export Tax
and Import Tax, the Law on Value Added Tax66, and the Law on Personal Income Tax.
3.118. The main types of incentives include the reduction of the corporate income tax, which is
levied at the general rate of 20%.67 A preferential rate (17% for 10 years) applies to investment
projects starting from the year they generate their first revenue. 68 Investors may be granted tax
holidays, which involve an exemption for the first two to four years since their start of operations,
and a 50% reduction for the subsequent four to nine years. Specific durations and eligibility criteria
for tax exemptions and reductions are described in Articles 19 and 20 of MOF Circular
No. 78/2014/TT-BTC. Other incentives may include exemptions on import duties on goods used to
create fixed assets and on unavailable domestically materials for project implementation, and
exemptions or reductions on land rental, and land use levies and taxes.
3.119. Besides investment incentives in the Investment Law and other relevant laws, investors
participating in significant public-private partnership (PPP) projects can benefit from incentives
described in Articles 61 to 66 of Decree No. 63/2018/ND-CP (property mortgage and ownership,
guarantees on land use, foreign currency availability, provision of public services, and dispute
settlement).
3.120. Over the years, the VDB has financed numerous programmes and projects assigned by the
Government69, and provided credit guarantees for SMEs to receive loans from commercial banks.
Eligible projects are announced each period, and the VDB prepares internal procedures for the
appraisal of its lending decisions. Since 2009, more than 2,500 enterprises have applied for SME
credit guarantees totalling VND 60 trillion; the VDB has issued over 1,500 certificates for credit
guarantees totalling VND 10.7 trillion. The VDB also implemented other tasks assigned by the
Government, such as providing enterprises in difficulty with working capital to ensure the payment
of salaries during the financial crisis.70
3.121. Viet Nam did not submit subsidy notifications to the WTO between September 2015 and
February 2020, when it notified details of support programmes from 2012 until the present. 71 The
notification does not contain data on the programmes' subsidy per unit. The authorities state that,
due to limited resources, they were not able to collect the data.
3.122. Law No. 04/2017/QH14 (Provision of Assistance for Small and Medium-sized Enterprises),
issued on 12 June 2017, and entered into force on 1 January 2018, stipulates support measures
such as access to credit and credit guarantee funds to SMEs, and reductions or exemptions in land
and water surface rents and use levies. Corporate income taxes can be reduced for companies
investing and trading in production and distribution chains heavily populated by SMEs. Eligible SMEs
are defined in Article 4 of the Law, according to their total capital or revenue and the number of
employees; beneficiaries are SMEs originated as household business, creative start-ups, innovative
65
Law No. 14/2008/QH12 on Corporate Income Tax was amended by Law No. 32/2013/QH13, issued
on 19 June 2013.
66
Law No. 13/2008/QH12 on Value Added Tax was amended by Law No. 31/2013/QH13, issued on
19 June 2013.
67
Rates applied to the prospecting, exploration, and mining of rare natural resources, crude oil, and
natural gas range from 32% to 50%, depending on the specific project and business establishment.
68
Investment in social sectors such as education and health benefits from a lower rate (10%) up to
15 years.
69
Examples of these funding activities are the construction of canals, afforestation, power generation,
sanitation plants, healthcare facilities, investments in the production of cement, and outward investment.
Established in 2006, the VDB is a non-profit institution with chartered capital of VND 30 trillion (as at the end
of 2017). The compulsory reserve ratio of the VDB is 0%, and its solvency is guaranteed by the Government.
The VDB raises capital mainly from the state budget (approximately VND 25 trillion), but it also receives funds
from other sources. The Government entrusted the VDB with the disbursement and management of official
development assistance (ODA) loans, which related to 380 projects with a total commitment of
USD 13.8 billion at the end of 2019.
70
For example, Prime Minister's Decisions No. 14/2009/QD-TTg, No. 30/2009/QD-TTg, and
No. 60/2009/QD-TTg supported enterprises facing difficulties during the 2008 financial crisis through credits by
the VDB. These regulations are no longer in force.
71
WTO documents G/SCM/N/284/VNM (G/SCM/N/315/VNM), 28 February 2020, and
G/SCM/N/343/VNM, 27 February 2020.
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start-ups, and SMEs participating in processing and industrial clusters or value chains. The SME
Development Fund, established by Decree No. 39/2019/ND-CP of 10 May 2019, offers loans to SMEs
at lower interest rates than those of commercial banks. Loans through the Fund can cover up to
80% of investment capital for a project with an interest rate 20% lower than the lowest commercial
loan interest rate for a term up to seven years.
3.123. There are also industry-specific incentives, such as those under Decree No. 111/2015/ND-
CP (on developing supporting industries), issued on 3 November 2015 (Section 4.3). Fisheries
Development Policies provided support measures to the sector, such as credits for new vessels,
subsidized accidental insurance, and tax exemptions between 2015 and 2018 (Section 4.1.3).72
Between 2017 and 2019, solar power projects benefitted from lower corporate income tax,
exemption on import duties, lower land rents, and a selling price of electricity generated above the
average retail price. Currently, a support programme for wind power energy offers similar benefits
for projects between 2019 and 2021.
3.124. Decree No. 13/2019/ND-CP provides further details on the preferential treatment for science
and technology enterprises, such as corporate tax cuts and exemptions, credit incentives, and
exemption or reduction in land and water surface lease fees. Currently, Viet Nam has more than
380 firms certified as science and technology enterprises, of which 43 are considered as high-tech
enterprises.73
3.125. On 17 June 2020, Parliament adopted the new Investment Law (No. 61/2020/QH14), which
entered into force on 1 January 2021.74 Some changes to incentives will apply. Article 15 adds two
groups (creative start-ups, innovation-related centres, and R&D centres; and trading in the product
distribution and supporting technical facilities for SMEs) as potential beneficiaries for investment
incentives. Article 20 stipulates that the Government may grant special investment incentives for
projects generating a great impact on socio-economic development and disbursing more than
VND 3 trillion (in innovation centres and R&D centres) or VND 30 trillion (in other sectors and
businesses) of investment capital in the first three years of the project.
3.126. Following the onset of COVID-19 pandemic, Viet Nam issued a number of legal documents
with the aim of alleviating the impact of the pandemic on enterprises. Decree No. 41/2020/ND-CP,
issued on 8 April 2020, extends the time limit for payment of VAT, corporate income tax, and land
rental. The National Assembly's Resolution No. 116/2020/QH14 and Decree No. 114/2020/ND-CP
apply a 30% reduction of corporate income taxes for 2020 to enterprises, cooperatives, non-business
units, and other organizations with annual turnover of less than VND 200 billion. A 10% temporary
discount in electricity bills for two periods of three months in 2020 was applied by MOIT Official
Dispatches No. 2698/BCT-DTDL and No. 9764/BCT-DTDL.75
3.3.2 Standards and other technical requirements
3.127. During the review period, the overall regulatory framework for standards and technical
regulations remained largely unchanged76; recent legislative changes concern, inter alia, the
adoption of decrees and circulars implementing a more participatory development of standards,
compliance with international conventions, and a new regulation on labelling. Furthermore, new laws
on environmental protection and construction also were enacted and have some impact on technical
standards in these fields.
3.128. The 2006 Law on Standards and Technical Regulations77, as amended, stipulates that the
Ministry of Science and Technology (MOST) is responsible for issuing and managing standards; its
Directorate for Standards, Metrology, and Quality (STAMEQ) is the national standardization body.
72
WTO documents G/SCM/N/284/VNM (G/SCM/N/315/VNM), 28 February 2020, and
73
Prime Minister's Decision No. 19/2015/QD-TTg prescribes the criteria determining high-tech
enterprises, in addition to criteria specified in Article 75 of the 2014 Investment Law. Total expenditure in R&D
and the proportion of employees with a university or higher qualification are some of the requirements
stipulated by the Decision.
74
Baker McKenzie, Vietnam: New Investment Law and Draft Guiding Decree, 27 July 2020. Viewed at:
https://www.lexology.com/library/detail.aspx?g=75ce815f-0e3f-4f5f-94f8-e719fb053ac4.
75
The periods covered by this benefit were April to June and October to December 2020.
76
Standards are voluntary; technical regulations are mandatory.
77
Law No. 68/2006/QH11, amended by Law No. 35/2018/QH14.
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Ministries prepare draft rules on standards and standards-related issues on goods under their
responsibility, and they must consult with STAMEQ on their draft national standards prior to their
approval. Several subsidiary bodies under the STAMEQ are responsible for conformity assessment,
quality system certification, product certification, accreditation of testing and calibration
laboratories, supervision of quality requirements for goods, and other matters related to standards
and technical regulations (Chart 3.3).
Chart 3.3 Standards organizational structure in the Ministry of Science and Technology,
2020
Source: Information from the authorities; and STAMEQ, Organization Structure. Viewed at:
https://tcvn.gov.vn/organization-structure/?lang=en.
3.129. Several ministries are responsible for standards, technical regulations, conformity
assessment procedures, and other measures related to technical requirements. These include the
MOST and the Ministries of: Industry and Trade; Agriculture and Rural Development; Information
and Communication; Natural Resources and Environment; Transport; Health; Education and
Training; Labour, Invalids and Social Affairs; Finance; Culture, Sports and Tourism; National
Defence; Public Security; and Construction. The MOST is responsible for announcing the publication
of national standards on the STAMEQ's website78, keeping an updated repository of valid standards
in Viet Nam79, and coordinating the development of standards and technical regulations with the
other ministries for products and services in its areas of competence. The MOST is also responsible
of preparing five-year and annual plans on the formulation of national standards with the concerned
ministries and agencies. Since 2009, the STAMEQ has adhered to the Code of Good Practice for the
Preparation, Adoption and Applications of Standards in Annex 3 to the TBT Agreement.80
3.130. The TBT Viet Nam Office within the STAMEQ remains the notification authority and enquiry
point for WTO TBT-related issues.81 The Office coordinates a network of domestic enquiry points and
inter-agency committee for TBTs as established by Prime Minister's Decision No. 46/2017/QD-TTg.
78
STAMEQ, Dissemination of National Standards (in Vietnamese). Viewed at:
https://tcvn.gov.vn/category/pho-bien-phap-luat/.
79
STAMEQ, Search Module for National Standard (in Vietnamese). Viewed at:
http://tracuu.tcvn.vn/sdomain/front/viet-nam-standard.
80
WTO document G/TBT/CS/N/175, 20 February 2009.
81
WTO, TBT-IMS Portal. Viewed at: http://tbtims.wto.org/en/NationalEnquiryPoints/Search.
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The STAMEQ represents Viet Nam in international and regional organizations on issues related to
technical requirements (Table 3.10).
3.131. Between June 2013 and June 2020, Viet Nam submitted 152 notifications, covering a large
variety of products, to the WTO TBT Committee.82 During the review period, four specific trade
concerns (STCs) were raised in the Committee. Three of these STCs were raised in 2017: one was
related to volumes of alcoholic beverages allowed to be imported for carrying out conformity
assessments83, another concerned the vehicle type approval certificates and emission, quality, and
safety inspection for every lot of imported cars84, and the third related to provisions of the Law on
Cybersecurity. In May 2020, an STC was raised concerning mandatory quality management for
products and goods under responsibility of Ministry of Information and Communications. 85
Table 3.10 The STAMEQ in international and regional standards organizations, 2020
Organization Status Date
International
International Organization for Standardization (ISO) Member 1977
Global Organization on Barcodes and Numbering (GS1) Member 1995
International Electrotechnical Commission (IEC) Associate member 2002
International Organization for Legal Metrology (OIML) Member 2003
General Conference on Weights and Measures (CGPM) Associate member 2003
WTO Technical Barriers to Trade Committee (WTO/TBT) Member 2007
International Accreditation Forum Member 2008
Regional
Pacific Area Standards Congress (PASC) Member 1992
Asia Pacific Metrology Programme (APMP) Member 1992
Asia Pacific Quality Organization (APQO) Member 1994
ASEAN Consultative Committee for Standards and Quality (ACCSQ) Member 1995
Asian Pacific Legal Metrology Forum (APLMF) Member 1995
Asian Productivity Organization (APO) Member 1996
Asia-Europe Meeting/Trade Facilitation Action Plan/Standards and Member 1996
Conformity Assessment (ASEM/FTAP/SCA)
APEC Subcommittee on Standards and Conformance Member 1998
Source: STAMEQ, International Cooperation, viewed at: https://tcvn.gov.vn/international-

cooperation/?lang=en; and international and regional organizations listed in the table.
3.132. The 2006 Law on Standards and Technical Regulations86 remains the main legal basis for
standards and technical regulations and seeks to promote harmonization of national standards with
international ones. International, regional, and foreign standards must be used as the basis for the
formulation of technical standards and technical regulations, unless they are not suitable to Viet Nam
(because of its geography, climate, and technical or technological characteristics), or they affect its
national interests. The main laws, decrees, and decisions by the Prime Minister that cover standards
and technical regulations are listed in Table A3.8. Besides these, some ministerial circulars and
ministerial decisions provide guidance on the implementation of laws, decrees, and Prime Minister's
decisions.87 The key regulations for standards planning, elaboration, appraisal, publication, and
82
In 2019 and 2020, the notifications covered the following products: transport equipment (road
vehicles and railway material), batteries, iron and steel products, lifts and escalators, petroleum products,
spices and condiments, chemical products (paints, wood-protecting chemicals, disinfection products, etc.),
sugar and sugar products, domestic electrical appliances, and telecommunication equipment.
83
WTO document G/TBT/N/VNM/86 of 26 August 2016, related to Decree No. 105/2017/ND-CP.
84
WTO documents G/TBT/N/VNM/116 of 7 March 2018, G/TBT/N/VNM/116/Add.1 of
25 November 2019, G/TBT/N/VNM/116/Add.2 of 28 April 2020, and G/TBT/N/VNM/140 of 6 April 2019,
notifying Decree No. 116/2017/ND-CP on business requirements for manufacturing, assembly and imports of
automobiles, automobiles' warranty, and maintenance services.
85
WTO notifications G/TBT/N/VNM/161 of 19 February 2020 and G/TBT/N/VNM/161/Add.1 of
3 June 2020, notifying the issuance of Ministry of Information and Communication Circular No. 05/2019/TT-
BTTTT.
86
Law No. 68/2006/QH11, as amended by Law No. 35/2018/QH14.
87
A number of ministerial circulars were issued during the review period to promulgate particular
standards and technical regulations, including Ministry of Transport (MOT) Circular No. 45/2019/TT-BGTVT
promulgating three national technical regulations on batteries, engines used for electric bicycles, and motors
used for electric motorcycles and mopeds; MOT Circular No. 88/2015/TT-BGTVT promulgating the national
technical regulation on technical safety quality for trailers and semi-trailers; and MOST Circular
No. 22/2015/TT-BKHCN promulgating and implementing the national technical regulation on gasoline, diesel
fuel, and biofuel.
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implementation include Circular No. 21/2007/TT-BKHCN Guiding the Formulation and Application of
Standards (as revised by Circular No. 29/2011/TT-BKHCN) and Decision No. 22/2007/QD-BKHCN of
the MOST, promulgating the regulation on organization and operation of the Technical Board for
National Standards. More recently, Decree No. 78/2018/ND-CP aims to broaden the participation of
technical committees developing national standards, notably by including associations, enterprises,
and consumers, and it aims at ensuring the compliance of national standards and technical
regulations with international conventions signed by Viet Nam.
3.133. In Viet Nam, there are two types of standards – national standards (Tieu chuan Viet Nam
(TCVNs)), and company/organization standards (Tieu Chuan Co So (TCCSs))88 – and two types of
technical regulations – national technical regulations (QCVNs) and local technical regulations
(QCDPs).89 Company/organization standards may serve as the basis for the development of national
standards. A specific standard or a part of it becomes mandatory when it is invoked in a legal
document or technical regulation.
3.134. Draft national standards are prepared by technical committees organized by the relevant
ministries, the Viet Nam Standards and Quality Institute in the STAMEQ (VSQI), organizations, and
individuals. The drafts are based on proposals from government agencies or the private sector. The
VSQI is responsible for organizing the development of TCVNs and related consultations90, providing
secretarial support for the technical committees, and planning standardization activities. In 2020,
authorities reported that there were 139 national standards technical committees and 54 sub-
committees. Draft TCVNs are published on the VSQI website91 with 60-day comment periods.92
Interested foreign parties can consult draft standards on request. Based on comments, revisions
should be finalized in 120 days and, if a disagreement between interested parties persists, the MOST
shall report to the Prime Minister for their consideration and decision. A repository of valid standards
in Viet Nam is available online.93 Each year, the VSQI publishes a work-programme listing, which is
regularly updated. The plan for 2020, approved by Decision No. 4099/QD-BKHCN of the MOST,
includes 770 standards being prepared in various technical committees, proposed by different
government ministries.
3.135. Viet Nam has around 12,888 TCVNs in effect, of which 60% were harmonized94 with
international, regional, or foreign standards (up from 40% in 2013). This result is in line with the
objectives set by Prime Minister's Decision No. 712/QD-TTg approving the National Programme on
Products and Goods Productivity and Quality.
3.136. The VSQI also provides support for the development of technical regulations (QCVNs), which
are developed by drafting committees composed of government agencies and experts. Proposals for
the QCVNs are published on the official websites of the relevant ministries, and technical committees
hold seminars for further public consultation and dissemination. Interested parties can comment
either in their capacity as members of the technical committee or through comments to the technical
committees. Draft technical regulations are shared with WTO Members through the TBT Viet Nam
Office. In case the parties do not agree on the evaluation, the promulgating agency of the national
technical regulation shall report to the Prime Minister for their consideration and decision. The final
88
Company/organization standards (TCCS) are developed independently by organizations; the STAMEQ
has no direct involvement, although it issues guidelines (Circular No. 21/2007/TT-BKHCN) on how standards
should be developed. TCCSs must not contradict technical regulations and other relevant regulations; their
publication is the responsibility of the issuing organization. Authorities report that enterprises in Viet Nam
frequently use TCCSs in their own businesses.
89
Local technical regulations (QCDPs) are developed by local authorities, e.g. Chairpersons of People's
Committees, to enforce compulsory application within local management of specific products, goods, services,
processes, and local environmental requirements (Law No. 68/2006/QH11, Article 32, and MOST Consolidated
Document No. 09/VBHN-BKHCN).
90
Decree No. 78/2018/ND-CP stipulates that relevant scientific and technological organizations,
regulatory bodies, associations, enterprises, consumers, and experts must be part of the development of
standards.
91
STAMEQ’s Standards and Quality Institute, National Standard Data Portal (in Vietnamese). Viewed at:
http://tieuchuan.vsqi.gov.vn.
92
The duration for consultations might be shortened in urgent circumstances related to health, safety,
or the environment.
93
STAMEQ, Search Module for National Standard (in Vietnamese). Viewed at:
http://tracuu.tcvn.vn/sdomain/front/viet-nam-standard.
94
Viet Nam assesses harmonization with international standards in accordance to its national standard
TCVN 6709-1:2007, which adopts the ISO/IEC Guide 21-1:2005.
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QCVNs are published on the official websites of the relevant ministries, normally six months before
they become effective.95 In addition, the MOST publishes an annual catalogue of new technical
regulations.
3.137. The authorities state that there are 23 local technical regulations (QCDPs), which provide
further details on national regulations to meet local needs. Some examples of QCDPs include food
safety conditions for dried fish and fish sauce in An Giang province, wine processing in Tra Vinh
province, tea tree oil production in Hue, and waste water treatment in Bac Ninh province.
3.138. Under the Law on Products and Goods Quality, products and goods are classified in two
groups. Products "incapable of causing unsafety" (Group 1) are distinguished from those "capable
of causing unsafety" (Group 2). "Those products and goods which, under rational conditions of
transportation, storage, preservation and use for proper purposes, can latently cause harms to
humans, animals, plants, assets or the environment" belong to Group 2, while all other products
belongs to Group 1.96 Decree No. 74/2018/ND-CP states that the goods' capability of causing
"unsafety" shall be determined based on their chemical, physical, and biological nature; their
functional structure and principles; and their transportation, warehousing, storage, and usage
conditions.97 Products in Group 1 are subject to quality control on the basis of standards announced
by producers. Products in Group 2 are controlled on the basis of relevant technical regulations from
the competent state agencies, which shall also specify the method and procedures for conformity
assessment.98 Different ministries are responsible for the quality control of goods under their
responsibility, and for issuing lists of goods potentially causing "unsafety" and subject to conformity
assessment through mandatory certification, quality inspection, and testing (Table 3.11).
3.139. Producers and importers must fulfil requirements concerning conformity assessment before
selling their products freely in the market, and measures for domestically manufactured and
imported products are similar. Conformity must be declared using the results of assessments carried
out at the discretion of producers and importers, certifications by legally registered or recognized
certification bodies, or certifications by legally designated certification bodies. Importers must
register for inspection using a specific form99 and include certified copies and other documents
related to their registration, according to the method for conformity declaration. If a laboratory test,
certification of conformity, or certification of inspection is required, importers must submit these
documents to the inspection authority within 15 working days of the date of such customs clearance.
Results by foreign laboratories and foreign certifications can be used for conformity assessment
procedures in Viet Nam; however, a unified list of recognized foreign laboratories and certifications
does not exist, as this information is separately handled by each line ministry. Relevant agencies
are responsible for running market surveillance or monitoring schemes for the products under their
management.
3.140. Decree No. 107/2016/ND-CP (as revised by Decree No. 154/2018/ND-CP) prescribes the
conditions for conformity assessment services in Viet Nam, as well as the duties and responsibilities
of management agencies; the Decree replaces previous MOST Circulars 100 on these matters. The
Bureau of Accreditation of the MOST runs the Viet Nam Laboratory Accreditation Scheme (VILAS),
the Viet Nam Certification Accreditation Scheme (VICAS), and the Viet Nam Inspection Scheme
(VIAS). By 2020, the VILAS had accredited more than 1,300 laboratories, including 7 laboratories
abroad. Laboratories in ASEAN countries for electrical and electronic laboratories were recognized
under the ASEAN Sectoral Mutual Recognition Arrangement for Electrical and Electronic Equipment
Framework (ASEAN EEE MRA). The VICAS has accredited 72 certification bodies; and the VIAS has
accredited 84 verification and inspection organizations.
95
The MOIT is responsible for the implementation of 45 QCVNs, of which 21 were issued after 2013.
Other ministries and agencies are responsible for the implementation of QCVNs in their respective domains.
96
Article 3 of the Law on Products and Goods Quality.
97
Goods assigned under management by specific ministries are detailed in Article 32 of Decree
No. 74/2018/ND-CP.
98
Law on Products and Goods Quality, Decree No. 132/2008/ND-CP, and Decree No. 74/2018/ND-CP.
Luggage of incoming passengers, goods of diplomatic organizations and individuals, sample products,
temporary imports for exhibition and promotion, goods temporarily imported to re-export, in-transit goods,
and raw materials and inputs for export processing are exempt from conformity assessment, among others.
99
Form No. 01 in the Appendix to Decree No. 74/2018/ND-CP.
100
MOST Circulars No. 08/2009/TT-BKHCN, No. 21/2010/TT-BKHCN, and No. 10/2011/TT-BKHCN.
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3.141. There are five product certification bodies under the STAMEQ:
• the Viet Nam Certification Centre (QUACERT), which helps enterprises with compliance
with national and international standards and practices, including certification for meeting
national, foreign, regional, and international standards; and
• four Quality Assurance and Testing Centres (QUATEST 1, 2, 3, and 4), which are
responsible for testing imports and exports for compliance with standards and technical
regulations.
3.142. QUACERT is the certification body responsible for compliance with:
• Vietnamese standards and technical regulations (including Vietnamese Good Agricultural

Practices (VietGAP));
• certification of management systems to international standards (ISO 9001, ISO 14001,

ISO 22000, ISO/IEC 27001, quality management systems for petroleum, petrochemical
and natural gas industries (ISO/TS 29001), ISO 50001, Occupational Health and Safety
Assessment Series (OHSAS 18001 and ISO 45001), Good Manufacturing Practices (GMP),
and Hazard Analysis Critical Control Point (HACCP)); and
• standards in other countries (American Society for Testing and Materials (ASTM), Japanese
Industrial Standards (JIS), German Institute for Standardization (DIN), Russian
Federation's Gosstandart (GOST), British Standards Institution (BSI), and People's
Republic of China Guobiao (GB)).101
3.143. QUACERT, QUATEST 1, and QUATEST 3 are the certification bodies responsible for electrical
and electronic equipment under the ASEAN Sectoral Mutual Recognition Arrangement for Electrical
& Electronic Equipment (ASEAN EE MRA).
3.144. Decree No. 43/2017/ND-CP (on Labelling of Goods) of 14 April 2017 prescribes the contents
and ways of recording goods produced in or imported to Viet Nam. Labels must include: the name
of the product; the name and address of the producer or importer responsible for the good; its
origin; and other contents according to the nature of the product. For food products, labels must
show ingredients in order of importance, include production and expiry dates, and warning
information (if any). For alcoholic beverages, the label must also include shelf life, preservation
instructions (for wines), and batch identification (if any). Auxiliary labels are allowed on imported
goods to show compulsory contents in Vietnamese, while keeping the original labels. Domestically
produced goods that cannot be exported and are sold in the local market must include an auxiliary
label with the denomination "Made in Viet Nam" (in bold). Decree No. 21/2011/ND-CP requires
energy labels to be affixed to equipment and vehicles pursuant to the Law on Energy Conservation.
MARD and MOST Joint Circular No. 45/2015/TTLT-BNNPTNT-BKHCN, issued on 23 November 2015,
provides further details on labelling requirements applied to foods containing at least 5% of
genetically modified ingredients.102
Table 3.11 Goods subject to mandatory inspection and quality control, 2020
Ministry of Industry and Trade (Circulars No. 41/2015/TT-BCT and No. 29/2016/TT-BCT)
Tissue paper products
Storage tanks and related material for liquified petroleum gas
Water boilers and heaters
Chemicals
Coal and selected minerals for export
Industrial explosives
Machines and industrial-specific equipment
Ministry of Public Security (Circular No. 14/TT-BCA of 2012)
Fire prevention and fighting equipment
Technical equipment
Ammunitions, weapons
101
QUACERT. Viewed at: https://www.quacert.gov.vn/vi/gioi-thieu-quacert.iso156.html.
102
Government Portal, Legal Normative Documents (in Vietnamese). Viewed at:
http://vbpl.vn/TW/Pages/vbpq-toanvan.aspx?ItemID=94028&Keyword=45/2015/TTLT-BNNPTNT-BKHCN.
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Support instruments
Ministry of Information and Communications (Circulars No. 04/2018/TT-BTTTT and
No. 05/2019/TT-BTTTT)
Telecommunications terminal equipment
Computers, network and IT equipment
Radio and transmission equipment
Ministry of Health (Circular No. 44/2011/TT-BYT)
Foods
Pharmaceuticals
Vaccines
Medical bio-products
Cosmetics
Drug materials
Drugs for human use
Domestic chemicals
Insecticides
Disinfectants
Medical equipment and facilities
Ministry of Agriculture and Rural Development (Circulars No. 50/2009/TT-BNNPTNT,
No. 50/2010/TT-BNNPTNT, and No. 50/2012/TT-BNNPTNT)
Plants
Animals
Fertilizers
Animal feeds
Plant protection drugs
Veterinary drugs
Bio-products for use in agriculture, forestry or aquaculture
Irrigation works and dykes
Ministry of Science and Technology (Circular No. 01/2009/TT-BKHCN)
Petrol, diesel, and biofuels
Motorbike helmets
Electrical and electronic products
Electrical wires
Toys
Ministry of Transport
Means of transport
Loading and unloading means and equipment
Specialized transport equipment for construction, marine exploration, and exploitation equipment
Traffic works
Ministry of Construction
Civil works
Industrial works
Technical infrastructure works
Ministry of Defence (inspections on goods imported for national security purposes)
Military equipment and facilities
Ammunition
Weapons and products in service of defence
Defence works
Note: The mandatory measures are applied to all goods, irrespective of their origin (i.e. domestically
produced, imported, or exported).
Source: Information provided by the authorities; the Law on Products and Goods Quality; and various
ministerial circulars.
3.3.3 Sanitary and phytosanitary requirements
3.145. The Laws on Food Safety, on Plant Protection and Quarantine, on Animal Health, and on
Environmental Protection set out the overarching legal framework for SPS-related matters in
Viet Nam (Table A3.9). Except for the Law on Food Safety, all previous legal texts were enacted
during the review period; plant protection and quarantine, and animal health were previously
regulated by relevant ordinances. Other relevant legislation includes the Laws on Crops (Law
No. 31/2018/QH14, issued on 19 November 2018), on Livestock (Law No. 32/2018/QH14, issued
on 19 November 2018), and on Fisheries (Law No. 18/2017/QH14, issued on 21 November 2017),
as well as decrees on food safety for imported food, on the implementation of the Law on Animal
Health, on quarantine of aquatic animals and fishery products, and on fertilizer management. Other
relevant regulations include MARD Circulars on permitted and banned plant protection products, on
pesticide management, and on maximum residue levels (MRLs) of pesticides on food, and a Decision
- 85 -
of the Minister of Agriculture and Rural Development on products subject to plant quarantine. These
have been notified to the WTO; between June 2013 and June 2020, Viet Nam submitted 84
notifications to the SPS Committee, but no emergency notifications.
3.146. Several ministries and agencies are responsible for SPS-related matters, including the MARD,
the MOIT, the Ministry of Health (MOH), and the MOST. Within the MARD, the Directorate of Fisheries
replaces the former National Directorate of Aquatic Resources Exploitation and Protection as the
competent entity for SPS related to fishery products. The Department of Plant Protection (DPP) and
the Department of Animal Health (DAH) at the MARD remain the other two relevant entities for SPS
issues.
3.147. The national food safety strategy for 2011-20103 aimed at implementing master plans on
food safety from production to consumption by 2015, and at controlling food safety over the entire
food supply chain by 2020. Other specific objectives of the national strategy include: (i) improving
general knowledge of food safety and food safety practices; (ii) building capacity for the food safety
management system; (iii) improving food safety assurance by producers, processors, and traders
through certification; and (iv) effectively preventing cases of acute food poisoning. By 2020, local
agencies were assigned in all 63 provinces to perform the state management of food safety, 83 food-
inspection laboratories complying with ISO/IEC 17025 standards and 106 food-inspection facilities
(some of them belonging to the private sector) operated at the provincial level, certification of
products and producers by VietGAP or by equivalent standards significantly increased in last five
years, and rates of unsafe food samples were four times lower than in 2017. By 2030, all food
producers, processors, traders, managers, and consumers are expected to have knowledge of food
safety practices, and all food production, processing, and trading establishments are expected to
meet food safety conditions. Risk monitoring, communication, and inspection activities are expected
to contribute to achieve these objectives.
3.148. Importers of food products must provide the authorities with a number of supporting
documents (Table 3.12). Decree No. 15/2018/ND-CP details food products under the responsibility
of the MOH, the MARD, and the MOIT. Decree No. 69/2018/ND-CP requires ministries and competent
authorities to publish detailed lists of goods, including their HS codes, for which a Certificate of Free
Sale (CFS) from the competent authorities of the exporting country that has been certified by
consular services is required.104 Appendixes I and IV to MARD Consolidated Document No. 08/VBHN-
BNNPTNT provide detailed lists of products subject to CFS when exported or imported. All products
containing genetically modified materials, irradiated products, and products that were produced by
new technologies require a CFS when imported to Viet Nam.
3.149. Goods in Group 2, i.e. those "capable of causing unsafety", must comply with procedures for
quality inspection stated in Decree No. 74/2018/ND-CP and Decree No. 154/2018/ND-CP. Post-
clearance and post-surveillance inspections are specified in the relevant technical regulations or legal
documents (Circular) of the line ministries. The current guidelines for food safety inspection of
imported plant origin products are specified in MARD Circular No. 12/2015/TT-BNNPTNT, issued on
16 March 2015.
Table 3.12 Certificates required for importing food and agricultural products, 2020
Product Documents Basis Government
Agency
Processed food products Certificate of HACCP, ISO 22000 or Food safety and hygiene MOH/VFA
equivalent
Certificate of analysis Food quality and standards MOH/VFA
Certificate of Free Sale, Health Food safety and quality MOH/VFA
Certificate, or equivalent
Food for health Certificate of HACCP, ISO 22000, or Food safety and hygiene MOH/VFA
protection, medical equivalent
nutrition, or special diets
103
Prime Minister's Decision No. 20/QD-TTg.
104
A CFS is a certificate stating that a product is produced and freely sold in the country issuing the
certificate.
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Product Documents Basis Government

Agency
Nutrition products for Certificate of HACCP, ISO 22000 or Food safety and hygiene MOH/VFA
children up to 36 months equivalent
old
Certificate of Free Sale, Health Food supplemental value MOH/VFA
Certificate, or equivalent functioned to improve
human health
Mixed food additives Certificate of GMP or HACCP or Food safety and hygiene MOH/VFA
with new uses or uses equivalent
not yet permitted
Feed ingredients Certificate of GMP, HACCP, ISO, or Product quality MARD/DLP
equivalent
Certificate of Free Sale Product quality and safety MARD
Certificate of Analysis Product quality, safety and MARD/DLP
hygiene
Plants and plant Phytosanitary certificate Plant health protection MARD/DPP
products with minimum
processing (plant
genetics including seeds,
fruit, vegetable, grain,
oilseeds, forest products,
etc.)
Processed plant products Export certificate Plant protection MARD/DPP
Irradiated plant products Phytosanitary certificate MARD/DPP
Certificate of Free Sale MARD/DPP
Animals and animal Health certificate with additional Animal health protection MARD/DAH
products, except meat requirements depending on the product and human health
and meat products, and and place or origin protection
live aquatic animals
Dairy products Certificate of GMP, HACCP, or Food safety and hygiene MARD/DAH
equivalent
Poultry or porcine meals, Export certificate Product quality, safety and MARD/DAH
bovine blood products, hygiene
gelatine (from porcine,
bovine, hides, and/or
skins)
Meat and meat products, Export certificate Product quality, safety and MARD/DAH
including pork, poultry, hygiene
bovine, and offal
Aquatic animal products Health certificate (export certificate) Food safety and hygiene MARD/DAH
except live aquatic
animals
Note: DAH = Department of Animal Health; DLP = Department of Livestock Production; DPP = Department
of Plant Protection; MARD = Ministry of Agriculture and Rural Development; MOH = Ministry of
Health; VFA = Viet Nam Food Administration.
3.150. Imported and domestically produced foods, other than fresh fruits and meat, require a Food
Standards Registration Certificate from the Viet Nam Food Administration in the MOH, valid for three
years. The registration dossier for processed products includes: (i) a CFS, Certificate of Export, or
Certificate of Health from the competent authority of the exporting country; (ii) the results of food
safety testing or analysis; and (iii) a certificate showing that the establishment meets the conditions
for food safety or Good Manufacturing Practice (GMP) certificate.105
3.151. MOH Circular No. 50/2016/TT-BYT prescribes MRLs for different pesticides and their active
ingredients in plant-based food products, which apply for domestically produced and imported goods.
3.152. Imports of plants, plant products, aquatic and terrestrial animals and animal products, and
processed food products may be inspected; this inspection may include an examination of
105
Decree No. 15/2018/ND-CP, Article 7.
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documentation or visual inspection before transportation to quarantine, where samples may be

taken for laboratory testing.106
3.153. The DPP at the MARD is the national competent agency on plant protection in Viet Nam. It
has 9 regional sub-departments and 10 centres for plant quarantine, 2 centres for post-entry
quarantine, 1 centre for plant inspection, 2 centres for testing, and 1 national centre for fertilizer
testing107; there are also plant quarantine stations at the country's entry points.
3.154. To import plants or plant products, the importer must make a declaration to the DPP at least
24 hours before the import is made and then, within the next working day, the authority will notify
the location and time to conduct the quarantine. According to Article 26 of the Law on Plant
Protection and Quarantine, an import consignment of plants must: (i) be accompanied by a plant
quarantine certificate from the competent authority of the exporting country; (ii) be free of regulated
pests and harmful organisms; (iii) have an import plant quarantine permit from the PPD for objects
subject to pest-risk analysis; and (iv) have packaging that complies with national technical
regulations. MARD Circular No. 30/2014/TT-BNNPTNT contains the list of objects subject to plant
quarantine and those subject to pest-risk analysis. The latter includes living plants; fresh fruits and
bulbs; weeds and weed seeds; beneficial organisms, biological agents, or living organisms harmful
to plant resources; and objects with a high risk of carrying a regulated pest.
3.155. Decree No. 35/2016/ND-CP requires that imports and exports of animals or animal products
must be reported to the DAH at the MARD using the necessary documents.
3.156. For imports of terrestrial animals and animal products on the quarantine list in Circular
No. 25/2016/TT-BNNPTNT, the DAH should reply within five working days, informing the owner of
the goods which quarantine agency is responsible for conducting quarantine. The duration of the
quarantine period for terrestrial animals and animal products may be up to 45 days, and it varies
according to the risk associated with the terrestrial animal or animal product. For imports from
countries reported for the first time or with high risks of animal diseases, the DAH will conduct a risk
analysis.
3.157. The list of aquatic animals and aquatic animal products subject to quarantine and the related
procedures are set out in Circular No. 26/2016/TT-BNNPTNT, as amended by Circular
No. 02/2018/TT-BNNPTNT.108 Importers of aquatic animals and animal products must register for
import quarantine with the DAH. Quarantines can last up to 10 days, but authorities may notify a
longer duration in a written note justifying the reasons. In addition to the quarantine declaration,
the following documents are required: (i) an export quarantine certificate from the competent
authorities of the exporting country; (ii) a copy of a CITES permit for endangered species; and (iii) a
copy of an aquatic product import permit issued by the Department of Fisheries. Other documents
may be required for items not imported for human consumption. The DAH operates a number of
laboratories for sampling and testing.
3.158. Between December 2014 and July 2017, Viet Nam applied automatic import licensing to
fertilizers (urea, and fertilizers containing nitrogen, phosphorus, and potassium). MOIT Circular
No. 07/2017/TT-BCT repeals the automatic import licences on these products, and allows their
importation only through international or main border gates.
3.159. Prime Minister's Decision No. 147/2008/QD-TTg (approving the national action plan on the
acceleration of the implementation of commitments under the agreement on the application of SPS
measures in performing WTO Member obligations) of 17 November 2008 launched an action plan to
meet Viet Nam's obligations under the SPS Agreement, which included harmonizing its food hygiene
and safety, and sanitary and phytosanitary standards with those of Codex Alimentarius, the OIE,
and the IPPC.109 This Decision states that the same standard should be used for exports and domestic
106
MARD Circular No. 33/2014/TT-BNNPTNT.
107
Plant Protection Department. Viewed at: https://www.ppd.gov.vn/co-cau-to-chuc/so-do-to-
chuc.html.
108
Circulars detailing products subject to quarantine and banned products for SPS reasons are
frequently amended or supplemented by the authorities.
109
Viet Nam is a member of the Codex Alimentarius and the World Organisation for Animal Health
(OIE), and a contracting party to the International Plant Protection Convention (IPPC).
- 88 -
consumption and sets out goals for improving risk assessment, control measures, and institutional
capacity.
3.160. The national enquiry point for SPS matters is the Viet Nam SPS Office in the MARD.110
Decision of the Minister of Agriculture and Rural Development No. 04/2008/QD-BNN of
10 January 2008 requires relevant agencies for SPS to coordinate with the Viet Nam SPS Office and
to operate as a network for notifications.
3.161. Since 2013, eight STCs were raised at the SPS Committee. Two STCs, initially raised in 2015,
on restrictions on plant products and fruits were reported as resolved or partially resolved in the
second semester of 2017; all other STCs remain unresolved. Three STCs were initially raised but
have not been reiterated by Members in subsequent meetings. 111 The STCs concerning the
suspension of groundnut seed imports, the market access for "white" offal, and the import
restrictions in the draft Law on Animal Protection have been reiterated, at least once, by Members.112
3.162. Following the onset of the COVID-19 pandemic, Viet Nam indicates to apply the WHO's
guidelines on "COVID-19 and food safety: Guidance for food businesses", and the Department of
Food Safety under the MOH issued guidance on enhancing food safety for food service providers
(Official Letter No. 881/ATTP-NDTT) to prevent the spread of the disease.
3.3.4 Competition policy and price controls
3.3.4.1 Competition policy
3.3.4.1.1 Legal and institutional frameworks
3.163. During the review period, Viet Nam amended its Law on Competition. The new Law
(No. 23/2018/QH14) entered into force on 1 July 2019, and repealed the previous Law
(No. 27/2004/QH11).113 Two implementing decrees were issued by the Government, namely, the
Decree on Sanctioning Administrative Violations in the Competition Area (No. 75/2019/ND-CP,
effective on 1 December 2019)114 and the Decree on Detailing a Number of Articles of the Law on
Competition (No. 35/2020/ND-CP, effective on 15 May 2020).115 The new Law on Competition has
addressed some issues of regulatory deficiencies116; the major amendments included adjusting the
application scope, revising relevant provisions on determining violations, restricting institutional
arrangements, and making other changes.
3.164. The new Law defines its goals as being to enhance market access, improve economic
efficiency and social welfare, and protect consumer interests. Compared with the previous Law, the
new Law expressly expanded its coverage to extraterritorial practices that have or may have
competition-restrictive effects on the Vietnamese market, although this had already been the
practice for many years under the interpretation of the Vietnamese competition authorities of the
old Law. The provisions of the new Law apply to all enterprises, individuals, and industry associations
operating either in Viet Nam or abroad. The new Law also covers the public-utility sector, the public
non-business sector, and the state-monopolized sector. Under the new Law, exemptions may be
110
WTO, Sanitary and Phytosanitary Information Management System: Enquiry Points/Notification
Authorities. Viewed at:
http://spsims.wto.org/en/EnquiryPointsNotificationAuthorities/Search?countryCode=C704.
111
They concern the approval of dairy and meat products (2015), the amendment of MRLs in veterinary
drugs (2018), and general restrictions on imports of fruits, live cattle, and meat (2019).
112
WTO, Sanitary and Phytosanitary Information Management System. Viewed at:
http://spsims.wto.org/.
113
Revised Law on Competition (in Vietnamese). Viewed at: https://thuvienphapluat.vn/van-
ban/Doanh-nghiep/Law-23-2018-QH14-on-competition-387952.aspx.
114
The Decree in Vietnamese is available at: http://congbao.chinhphu.vn/noi-dung-van-ban-so-75-
2019-nd-cp-29759.
115
The Decree in Vietnamese is available at: https://thuvienphapluat.vn/van-ban/thuong-mai/Decree-
35-2020-ND-CP-elaborating-on-several-Articles-of-the-Competition-Law-439832.aspx.
116
Such deficiencies also arose in the OECD peer reviews. OECD, Peer Reviews of Competition Law and
Policy: Viet Nam 2018. Viewed at: https://www.oecd.org/daf/competition/VietNam-OECD-Competition-Review-
2018-ENG.pdf; and OECD, Investment Policy Reviews: Viet Nam 2018. Viewed at:
https://www.oecd.org/countries/vietnam/oecd-investment-policy-reviews-viet-nam-2017-9789264282957-
en.htm.
- 89 -
granted to some anti-competitive acts if such acts are deemed to enhance the competitiveness of
Vietnamese enterprises in the international markets; these provisions raised some concerns about
their application.
3.165. A new competent authority, the National Competition Commission (NCC), was established
by consolidating two separate authorities (i.e. the Viet Nam Competition Council and the Viet Nam
Competition Authority).117 The NCC is authorized to investigate and adjudicate, review exemption
requests, monitor economic concentration, and settle complaints about its decisions. The NCC exists
under the MOIT and is financed through the Ministry's budget. Hence, there is concern over the
NCC's independence and impartiality, particularly when SOEs are involved in an anti-competition
case.118 In response, the NCC notes that under the new legal framework concerning SOEs, the MOIT
is no longer the representative of state ownership; therefore, with ownership transferred out of the
MOIT, the conflict of interest has been addressed.
3.3.4.1.2 Anti-competitive agreements
3.166. The new Law prohibits anti-competitive agreements covering the following conduct: (i) fixing
prices; (ii) dividing up of markets; (iii) limiting or controlling production and sale; (iv) bid rigging;
(v) preventing or restricting market entry of non-parties; (vi) removing non-parties from the market;
(vii) restricting technology development and investments; (viii) sales or product bundling; (ix)
preventing parties from dealing with non-parties; and (x) restricting consumer markets or sourcing
from non-parties.
3.167. The new Law removed the threshold for triggering prohibitions under the previous Law
(previously, the combined market share of parties to an anti-competitive agreement had to be no
less than 30%119, which was criticized for not preventing anti-competitive conduct that had negative
impacts on the market but did not reach the threshold). To determine a violation, the NCC assesses
the specific competition-restrictive effects of an agreement. When it detects signs of crimes
prescribed in the Criminal Code, the NCC transfers the file to the competent authorities for criminal
liability prosecution.
3.168. Exemption from the prohibition on anti-competitive agreements can be made if consumers
benefit from the anti-competitive agreement and the agreement: (i) promotes technological
advancement and raises the quality of goods and services; (ii) enhances the competitiveness of
Vietnamese enterprises on the international market; (iii) promotes the uniform application of quality
standards and technical norms of product categories; or (iv) concerns conditions for contract
performance, delivery, and payment but is not related to price. Exemption requests are reviewed by
the NCC, and a decision is made within 60 days, or 90 days if the case is complicated. The validity
of any exemption can be up to five years.
3.3.4.1.3 Abuse of a dominant market position
3.169. The new Law prohibits the abuse of a dominant market position or monopoly position.
It upholds the market share presumption under the old Law, i.e. an enterprise is considered to have
a dominant market position if it has a market share of 30% or more. Groups of enterprises are
considered to have a dominant position if: (i) two enterprises have a total market share of 50% or
more; (ii) three enterprises have 65% or more; (iii) four enterprises have 75% or more; or (iv) five
enterprises have 85% or more. Any enterprise with less than 10% market share is not considered
to be a member of a group of enterprises with a dominant market position.
3.170. An enterprise or a group of enterprises is considered to have a dominant market position if

it has significant market power based on the following factors: (i) market share; (ii) financial strength
and size of the enterprise(s); (iii) barriers to market entry and expansion for other enterprises; (iv)
117
The dual-authority system of the past, under which the Viet Nam Competition Authority was the
investigative body and the Viet Nam Competition Council was the adjudicative body, was considered to be of
low efficiency and lack sufficient independence to enforce competition legislation. See OECD, Peer Reviews of
Competition Law and Policy: Viet Nam 2018.
118
Duane Morris LLP, "Vietnam: The New Competition Law – Pragmatic Progress, What You Must Know",
Lexology, 16 December 2019. Viewed at: https://www.lexology.com/library/detail.aspx?g=b27b089e-ceb1-
497e-97f7-086621247557.
119
WTO, Trade Policy Review of Viet Nam, WT/TPR/S/287/Rev.1, 4 November 2013.
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capability of accessing and controlling the market for supply, distribution, or sale of goods or
services; (v) advantages in technology and technical infrastructure; (vi) ownership of and the right
to possess and access infrastructure; (vii) ownership of and the right to use intellectual property
rights; (viii) ability to switch to the supply of or demand for other relevant goods or services; and
(ix) special factors in the industry or sector in which the enterprise conducts business.
3.171. State-controlled enterprises operating in state monopoly fields are exempted from the
application of the Law when they decide the purchase or sale prices of goods and services, or the
quantity, volume, and market area of goods and services, or organize markets related to goods and
services in the state monopoly domain.
3.3.4.1.4 Economic concentration
3.172. The previous Law prohibited economic concentration activities such as mergers,
consolidation, and joint ventures, if the combined market share of participating enterprises was
more than 50% of the relevant market, unless: (i) the enterprises remained small or medium-sized;
(ii) one or more of the participants faced dissolution or bankruptcy; or (iii) the economic
concentration contributed to Viet Nam's socio-economic development. Under the new Law,
prohibited activities are determined by whether such activities have or may have significant
competition-restrictive effects on the market. Market share is only one factor to be considered.
3.173. Factors that would be taken into consideration in the assessment of significant competition-
restrictive effects include: (i) the combined market share; (ii) the level of concentration before and
after the concentration activity; (iii) the relationship of relevant enterprises; (iv) competitive
advantages resulting from the concentration activity; (v) the probability of a significant increase in
the price or the profit rate; and (vi) the capability to remove or prevent other enterprises from
entering the market. The NCC would also consider the positive effects of an economic concentration
activity, including those on the development of the industry, the sector, and science and technology,
according to state's strategic planning, the development of SMEs, and the enhancement of the
competitiveness of Vietnamese enterprises in the international market.
3.174. Under the previous Law, an economic concentration activity that could lead to a market
share of 30% or more had to be notified to the authorities before implementation. Under the new
Decree No. 35/2020/ND-CP, the notification threshold is determined based on whether: (i) the total
assets or turnover of relevant enterprises in the domestic market is VND 3 trillion or more; (ii) the
transaction value is VND 1 trillion or more; or (iii) the combined market share is 20% or more. For
enterprises in the credit, insurance, and securities sectors, the thresholds are VND 15 trillion in total
assets, VND 10 trillion in total turnover, or 20% for the combined market share.
3.175. Under the new Law, economic concentration is determined by a two-phase process. First,
the NCC conducts a preliminary review within 30 days from the notification date. Second, where an
official investigation is required, the NCC completes its investigation and announces its decision
within 90 days, which can be extended by up to 60 days for complex cases. Due to the extraterritorial
nature of the new Law, foreign companies involved in offshore economic concentration activities that
impact the Vietnamese market are also subject to the Law.
3.3.4.1.5 Penalties, leniency programme, and enforcement
3.176. The new Law and the Decree on Sanctioning Administrative Violations in the Competition
Area (No. 75/2019/ND-CP) increased the financial penalties for violations, compared with the
previous Law. The fine for anti-competitive agreements and abuse of a dominant market position
can be up to 10% of the total turnover of the violating enterprises, and the fine for violating the
regulations on economic concentration can be up to 5% of the turnover of the violating enterprises.
The NCC has the discretion to increase or decrease the fines under certain circumstances specified
by the Decree. In addition to fines, a range of non-monetary sanctions can be imposed, such as
revocation of practice licences, business licences, or enterprise registrations, or the suspension of
business activities for 6 to 12 months.
3.177. The new Law also established a leniency programme to reduce or exclude penalties for
enterprises that voluntarily report their violation to the NCC prior to the investigation. The first three
applicants for leniency are entitled to a penalty reduction of up to 100%, 60%, and 40%,
- 91 -
respectively. The leniency programme does not apply to enterprises forcing or organizing other
enterprises to participate in anti-competitive conduct.
3.178. Since the new Law's entry into force on 1 July 2019, 20 claims have been filed with the NCC,
of which 11 were related to unfair trade practices, and 9 to anti-competitive agreements and abuse
of a dominant market position. The NCC concluded 10 investigations, and found 3 cases of violation.
There were also 60 economic concentration reviews. The authorities note that the leniency program
has not been utilized.
3.3.4.1.6 International treaties and cooperation
3.179. Viet Nam is a member of the ASEAN Experts Group on Competition. It participates in the
meetings of the International Competition Network and other international working groups on
competition. Among the FTAs that Viet Nam has signed and that have come into effect, six
agreements have separate chapters on competition policy, including the ASEAN -Australia-New
Zealand Free Trade Agreement (AANZFTA), the Viet Nam-Japan Economic Partnership Agreement
(VJEPA), the Viet Nam–Eurasian Economic Union Free Trade Agreement (VN-EAEU FTA), the
Viet Nam-Korea Free Trade Agreement (VKFTA), the CPTPP, and the Viet Nam-EU Free Trade
Agreement. In general, the chapters on competition in these Agreements include provisions on
competition authorities, anti-competitive conduct, enforcement procedures, information security,
transparency, cooperation, consultation and notification of competition issues, technical assistance,
and dispute settlement. In addition, the CPTPP Agreement contains provisions on state-owned
enterprises (SOEs) and subsidies.
3.3.4.2 Price controls
3.180. Price control remains regulated by the Law on Prices (Law No. 11/2012/QH13, issued on
20 June 2012) that came into force on 1 January 2013. The general principle of price control in
Viet Nam is that, while respecting the market mechanism and the right of businesses to set their
own prices, the Government may exercise price regulation to stabilize prices or to protect the
legitimate interests of business entities, consumers, or the State. Price management is achieved
mainly through indirect means, such as the synchronized use of macroeconomic policies and the
harmonization of supply and demand. According to the authorities, price control measures created
jobs, increased investment, and contributed to socio-economic development in the period of
international integration.
3.181. During the review period, Viet Nam issued numerous government decrees and ministerial
circulars implementing the relevant provisions of the Law and specifying price management
measures. The Government's regulations, guidelines, policies, measures, and decisions are
published through press conferences or mass media. The main decrees in this area are included in
Table 3.13. The MOF at the national level and the Department of Finance at the provincial level are
the competent authorities for implementing price controls.
Table 3.13 Decrees on price management, 2020
Date of adoption Decree no. Title
14 November 2013 177/2013/ND-CP Decree on Detailing and Guiding a Number of Articles of the
Law on Prices
11 November 2016 149/2016/ND-CP Decree on Amending, Supplementing a Number of Articles of
Decree No. 177/2013/ND-CP
24 September 2013 109/2013/ND-CP Decree on Prescribing the Sanctioning of Administrative
Violations in the Field of Price, Charges, Fees and Invoices
27 May 2016 49/2016/ND-CP Decree on Amending and Supplementing a Number of Articles
of Decree No. 109/2013/ND-CP
30 June 2018 96/2018/ND-CP Decree on Providing Guidelines for Prices of Irrigation Products
and Services and Financial Support for Use of Public Irrigation
Products and Services
3.182. The list of goods and services subject to price management is regulated by relevant legal
documents and concerns essential public goods and services for economic activities and life; services
- 92 -
funded by the state budget for social security purposes; and areas that are not commercially
attractive to private service providers. The list may be reviewed, amended, or shortened to meet
the requirements of international economic integration.
3.183. Price management measures used by the Government include price stabilization measures,
price fixing, price negotiation, and inspection of the elements of price formation. They apply in the
same manner to imported and domestic goods and services, and to different users or different
groups of companies.
3.184. Price stabilization measures are used when prices of goods or services on the list change
abnormally or the level of change affects socio-economic stability in the event of a natural disaster,
fire, epidemic, enemy sabotage, economic crisis, or temporary supply-demand imbalance. Specific
measures may include regulating the supply and demand balance through goods circulation and
buying in or selling out national reserves. The Government may set up a price stabilization fund
where necessary. Goods and services subject to price stabilization include: (i) refined petrol and oil;
(ii) electricity; (iii) liquefied petroleum gas; (iv) nitrogenous fertilizer and NPK fertilizer; (v) plant
protection chemicals; (vi) vaccines preventing diseases for bovine animals and poultry; (vii) kitchen
salt; (viii) health foods, medical nutrition foods, and supplements, including nutritional products for
children up to 36 months old; (ix) edible sugar; (x) paddy and ordinary rice; and (xi) preventive and
curative medicines for human use. Examples of such measures include improving circulation of goods
in the domestic market; making purchases for national reserves or selling out these reserves;
financial or monetary support; establishing a price stabilization fund for certain products; and fixing
prices or the price frame. According to the authorities, price stabilization is currently applied only to
refined petrol and oil.
3.185. Price fixing is used to define specific rates, price ranges, or minimum or maximum charges
by the State. It applies to state-monopolized sectors, important resources, national reserve goods,
and goods or services for public interest and purchased with the state budget. Goods and services
subject to price fixing include: (i) aviation services, including take-off and landing charges, flight
management, assistance for "flight assurance", and security screening; (ii) telecommunications
connecting services; (iii) electricity, electricity transmission, and electricity system support services;
(iv) domestic air transport on monopoly routes; (v) land and forests, ground water, and potable
water; (vi) lease and rent/purchase options for housing built with state funds; (vii) medical care
services and education/training services; (viii) national reserve goods, goods or services under state
plan, goods or services funded by the state budget for the public interest; (ix) domestically produced
cigarettes; and (x) lease of state-owned infrastructure works.
3.186. Price negotiation, i.e. the mediation of a governmental authority in price discussions between
buyers and sellers, can apply to important goods and services where competition is limited on the
side of the seller and/or buyer. The final price needs to be agreed upon by the buyer and the seller.
Inspection of the elements of price formation is applied for goods and services that are subject to
price stabilization or fixing, and for other goods and services at the request of the Prime Minister,
ministers, or other high-level officials when prices are changing abnormally. The inspection serves
to clarify the reasonableness or irrationality of price decisions and aims to enhance transparency
and to protect legal rights and interests of relevant parties in specific cases.
3.187. Other price management measures include: (i) price declaration by producers or business
organizations or individuals to the competent authorities; (ii) price posting by producers or business
organizations or individuals to inform customers; and (iii) publicizing price information, which is
organized by authorities and relevant business organizations or individuals through press
conferences, mass media, or other appropriate forms.
3.188. The Government is working to establish a national price database for managing and
regulating prices, especially for the purpose of forecasting market price fluctuations. Phase 1 of the
database project was put into practical operation, and Phase 2 is under development. It is expected
that some of the price information will be publicly accessible in the database.
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3.3.5 State trading, state-owned enterprises, and privatization
3.3.5.1 State trading
3.189. Article 6 of the 2005 Law on Commerce stipulates that the State exercises for a definite time
its monopoly over commercial activities with respect to selected goods and services or in certain
geographical areas in order to ensure national interests. On that basis, Decree No. 94/2017/ND-CP
(on goods, services, and areas for execution of state rights in trade activities) was issued on
10 August 2017. Under the Decree, state agencies have the right to exercise a state monopoly in
commercial activities directly or through designating other organizations or individuals to perform
commercial activities. According to the Decree, industrial explosive materials, gold materials for the
production of gold bars, cigarette and cigars (imports), national reserve activities, and fireworks are
subject to state-trading requirements.
3.190. During the review period, Viet Nam notified to the WTO its state-trading enterprises
concerning cigarettes, cigars, newspapers, journals, and periodicals. 120 Viet Nam also submitted
replies to questions posed in the Working Party on State Trading Enterprises; in these documents,
the status of certain companies, including Vinafood I and Vinafood II, concerning rice exports and
imports, for example, is mentioned.121
3.3.5.2 State-owned enterprises and privatization
3.191. Data provided by the authorities indicate that, as at 31 December 2018, SOEs in Viet Nam
had 1.13 million workers (of which 669,700 were employed in enterprises that were 100% owned
by the State, and 457,000 worked in enterprises that were more than 50% owned by the State),
accounting for 7.6% of the employees of the corporate sector, down 6.2% over the same period in
2017. In 2018, SOEs' pre-tax profit was VND 190,357 trillion (of which, 100% SOEs had a pre-tax
profit of VND 103,014 trillion, and the business sector with more than 50% state capital had a pre-
tax profit of VND 87,343 trillion).
3.192. At the end of 2019, Viet Nam had 487 SOEs; of which 54 were centrally managed and 433
were managed by a Provincial People's Committee. Data provided by the authorities indicate that
the number of 100% SOEs fell from 1,309 at the end of 2011 to 487 at the end of 2019. The
Government continues to hold a controlling stake, i.e. more than 51% of the charter capital, in 185
enterprises. Table 3.14 shows some large SOEs.
Table 3.14 Selected large SOEs, 2019

Parent
company
charter
Name of group Main business Financial data Group structure
capital
(VND
billion)
Viet Nam National − Petroleum research, .. Investing in 15 ..
Oil and Gas Group exploration, and subsidiaries, 3 joint
(PetroVietnam) exploitation ventures, and 9 associate
− Oil refinery and companies
petrochemical filtration
− Gas industry
− Electricity
− High-quality petroleum
services
120
WTO documents G/STR/N/15/VNM and G/STR/N/16/VNM, 20 April 2016.
121
WTO documents G/STR/Q1/VNM/7, 5 March 2020, G/STR/Q1/VNM/6, 9 October 2018,
G/STR/Q1/VNM/5/Corr.1, 25 September 2018, G/STR/Q1/VNM/5, 31 August 2018, G/STR/Q1/VNM/4,
11 January 2018, G/STR/Q1/VNM/3, 8 November 2017, G/STR/Q1/VNM/2, 2 October 2017, and
G/STR/Q1/VNM/1, 2 June 2016.
- 94 -
Parent
company
charter
Name of group Main business Financial data Group structure
capital
(VND
billion)
Viet Nam National − Coal industry − Revenue: Holding company: 35,000
Coal-Mineral − Mineral and industrial VND 104,644 − Dependent
Industries Holding explosive materials billion accounting units: 27
Corporation industry − Profit before − One-member limited
Limited − Power industry tax: liability company: 9
(Vinacomin) − Mechanical industry VND 3,856 − Joint-stock
billion companies: 30
− Profit after tax: − Joint venture-
VND 3,098 associate enterprises:
billion 1
Viet Nam − Production, − Revenue: Holding company: 198,279
Electricity (EVN) transmission, VND 338,127 − Dependent
distribution, and trading billion accounting unit: 31
of electricity − Profit before − One-member limited
− Management of tax: liability company: 9
production, VND 2,107 − Joint-stock
transmission, billion companies: 4
distribution, and − Profit after tax: − Joint venture-
allocation of electricity VND 2,103 associate
in the national grid billion enterprises: 1
− Export and import of
electricity, investment
and management of
invested capital in
electricity projects
− Management, operation,
repair, maintenance,
overhaul and upgrade of
equipment, machinery,
and automated systems
Viet Nam National − Production and trading .. Vinachem invests in 23 ..
Chemical Group of fertilizer, pesticides subsidiaries. Vinachem
(Vinachem) − Mineral exploitation and holds 100% of the
processing to produce charter capital in 4
fertilizer and chemicals subsidiaries, and between
− Rubber processing 50%-99% in 19
− Production and trading subsidiaries.
of basic chemicals,
household chemicals,
and pharmaceutical
chemistry
Viet Nam Rubber − Rubber plantation and − Revenue Parent company and 24 ..
Group (VRG) exploitation (parent subsidiaries:
company: − 20 subsidiaries are
Rubber one-member limited
Industry liability companies
Group): VND − 4 non-business units
3,877 billion
− Profit after tax:
VND 2,591
billion
Viet Nam Textile − Textile − Net revenue Parent company and 5,000
Group (Vinatex) − Cotton (consolidated eight subsidiaries
− Clothes manufacturing data):
VND 18,986
billion
− Profit before
tax
(consolidated
data):
VND 1,515
billion
.. Not available.
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3.193. Concerning the governance and management of SOEs in Viet Nam, a number of laws and
regulations were issued during the review period, including: (i) the new Enterprise Law (Law
No. 68/2014/QH13), issued on 26 November 2014, and entered into force on 1 July 2015; (ii) Law
on Management and Use of State Capital Invested in Production and Business Activities in Enterprises
(Law No. 69/2014/QH13), issued on 26 November 2014, and entered into force on 1 July 2015; (iii)
Decree No. 91/2015/ND-CP (on investing state-owned capital in enterprises and managing and using
capital and assets at enterprises) dated 13 October 2015; (iv) Decree No. 32/2018/ND-CP
(amending and supplementing some articles of Decree No. 91/2015/ND-CP), issued on
8 March 2018; (v) Decree No. 131/2018/ND-CP (defining the functions, tasks, powers, and
organizational structure of the Committee for State Capital Management in Enterprises), issued on
29 September 2018; (vi) Decree No. 10/2019/ND-CP (on exercising rights and responsibilities of
owner representatives) issued on 30 January 2019; (vii) Decree No. 126/2017/ND-CP (on
transforming SOEs and one-member limited liability companies with 100% of charter capital invested
by state enterprises into joint-stock companies), issued on 16 November 2017; (viii) Prime Minister's
Decision No. 58/2016/QD-TTg (on the classification criteria for wholly SOEs, partially SOEs, and the
list of SOEs undergoing restructuring in the 2016-20 period), issued on 28 December 2016;
(ix) Prime Minister's Decision No. 707/2017/QD-TTg (approving the Project "Restructuring of SOEs,
focusing on state-owned groups and corporations in the 2016-20 period"), issued on 25 May 2017;
(x) Prime Minister's Decision No. 1232/2017/QD-TTg (approving the List of partially SOEs divesting
capital in the 2017-20 period), issued on 17 August 2017; and (xi) Prime Minister's Decision
No. 26/2019/QD-TTg (approving the list of enterprises to be equitized until the end of 2020), issued
on 15 August 2016.
3.194. Between 2016 and 2020, Viet Nam focused on increasing the value of equitization122 of SOEs
in accordance with the following documents: Prime Minister's Decision No. 58/2016/QD-TTg,
stipulating that 137 enterprises must be equitized during the period; Official Letter No. 991/TTg-
DMDN, issued on 10 July 2017, approving the list of 137 SOEs to complete equitization between
2017 and 2020; and Prime Minister's Decision No. 26/2019/QD-TTg. The authorities state that the
Ministry of Planning and Investment will submit to the Prime Minister for approval the plan and
roadmap for SOE equitization for the 2021-25 period.
3.195. The authorities state that policies related to promoting production and competitiveness of
enterprises in each sector of the economy apply equally to all types of enterprises regardless of
ownership.
3.196. During the review period, the establishment and reorganization of SOEs was governed by
Decree No. 172/2013/ND-CP (on the establishment, reorganization, and dissolution of one-member
limited liability companies funded by the State, and one-member limited liability companies as a
subsidiary of a one-member limited liability company owned by the State), issued on
13 November 2013. The Decree has specific provisions on the process of SOE dissolution as follows:
the person competent to decide on dissolving a company shall set up a Dissolution Council to
appraise the proposal of the company dissolution; after the dissolution decision is made, the one-
member limited liability company shall comply with the provisions of Article 29; the tax authority
directly managing the tax collection of the company is responsible for issuing documents confirming
the fulfilment of tax obligations of the company within five working days of the date of receiving the
written request for confirming the fulfilment of the company's tax obligations.
3.197. Every year, the MOF reports to the Prime Minister on the state capital investment in
enterprises; relevant documents include: Government Report No. 441/BC-CP of 16 October 2017;
Government Report No. 480/BC-CP of 12 October 2018; Official Letter No. 13784/BTC-TCDN of
9 November 2018; Official Letter No. 1441/BTC-TCDN of 30 January 2019; Official Letter
No. 11589/BTC-TCDN of 1 October 2019; Government Report No. 499/BC-CP of 16 October 2019;
and Official Letter No. 1283/BTC-TCDN of 25 October 2019.
3.198. Three documents – Decree No. 126/2017/ND-CP on conversion from SOEs and one-member
limited liability companies with 100% of charter capital invested by SOEs, issued on 16 November
122
Equitization involves the transformation of ownership in wholly SOEs and determining which
enterprises would: (i) remain 100% state owned (i.e. no equitization); (ii) be majority state-owned; or
(iii) have a minority state shareholding or no state ownership at all. Thus, equitization as such does not
necessarily mean full-scale privatization, and diversity of ownership has been foreseen, including stakes held
by the State and by the employees.
- 96 -
2017123, Prime Minister's Decision No. 58/2016/QD-TTg on the criteria on classification of 100%
SOEs and the list of SOEs to be equitized in the period 2016-20, issued on 28 December 2016, and
Prime Minister's Decision No. 26/2019/QD-TTg – provide equitization rules and list the SOEs to be
equitized, including Viet Nam Bank for Agriculture and Rural Development (Agribank), Viet Nam
National Coal – Mineral Industries Holding Corporation Limited (Vinacomin), Viet Nam Posts and
Telecommunications Group (VNPT), Viet Nam Mobile Telecom Services (MobiFone
Telecommunication Corporation), Viet Nam National Chemical Group (Vinachem), Viet Nam
Electricity Power Generation Corporation 1 (EVN Genco 1), and Viet Nam Electricity Power
Generation Corporation 2 (EVN Genco 2). Pursuant to Decision No. 26/2019/QD-TTg, after the
equitization and divestment process is completed, it is expected that the State will still own more
than 65% of Agribank, more than 65% of Vinacomin 124, between 50% and 65% of VNPT, between
50% and 65% of MobiFone, between 50% and 65% of Vinachem, less than 50% of EVN Genco 1125,
and less than 50% of EVN Genco 2.126 The Vietnam Post Corporation (VNPost) and the Vietnam
Railway Corporation remain enterprises whose 100% charter capital is held by the State.127
3.199. Businesses that will remain 100% state-owned include enterprises considered essential for
national security and the maintenance of public order, for socio-economic development, or to
guarantee the supply of key services. These enterprises are involved in electricity distribution, grid
management, multipurpose hydropower, railroad infrastructure, air traffic services and related
safety services, maritime safety, public postal services, lottery businesses, and publishing. The
Government also intends to maintain majority ownership in equitized companies in large and
"sensitive" sectors of the economy, e.g. in food (rice wholesale), energy (large-scale mineral mining,
gas, manufacture of basic metals, petrol and oil importation, electricity retail), telecommunications
services with a network infrastructure, aviation (airport management, air navigation systems, air
transport services), and financial and banking services.
3.200. During the review period, Viet Nam reduced the degree of state involvement (e.g. reduction
in state ownership of shares) in food (rice wholesale), energy (large-scale mining, gas, electricity
generation, and retail), transport (railway transport, air transport services), and banking in
accordance with Prime Minister's Decision No. 58/2016/QD-TTg. Viet Nam's regulations were
reviewed and adjusted in order to narrow the number of industries and fields that the State holds
100% of charter capital; in which, the State holds 100% of capital mainly in the fields of state
monopoly, security and defence, public services that non-public sectors do not provide, and social
security. Specifically, according to Decision No. 58/2016/QD-TTg on the criteria for classification of
SOEs and the list of SOEs to be rearranged in the 2016-20 period, the State holds 100% of the
charter capital in only 103 enterprises operating in 11 fields of state monopoly, security and defence,
public postal services, and key infrastructure such as railway and road.
3.201. Between 2011 and 2015, equitization plans for 508 enterprises were approved by competent
authorities (among them, 14 enterprises in 2011, 25 in 2012, 73 in 2013, 175 in 2014, and 221 in
2015), with a total actual value of VND 761.9 trillion, of which the value of state capital was
VND 189.4 trillion. Between 2016 and 2019, equitization plans for 171 enterprises were approved
(of which, 66 enterprises in 2016, 70 in 2017, 23 in 2018, and 12 in 2019), with a total enterprise
value of VND 443.1 trillion, of which the value of state capital was VND 206.7 trillion.
123
This regulation repealed Decrees No. 59/2011/ND-CP of 18 July 2011, No. 189/2013/ND-CP of
20 November 2013, and No. 116/2015/ND-CP of 11 November 2015.
124
Currently, in order to equitize Vinacomin, it must handle financial issues and rearrange and handle
houses and land, according to the provisions of Decree No. 167/2017/ND-CP, issued on 31 December 2017.
125
The Committee for State Capital Management in Enterprises issued Decision No. 633/QD-UBQLV on
31 December 2019 regarding the equitization of EVN Genco 1.
126
The authorities state that EVN Genco 2 completed the equitization progress in accordance with Prime
Minister's Decision No. 26/2019/QD-TTg. The Committee for State Capital Management in Enterprises issued
Decision No. 150/QD-UBQLV on 30 March 2020 on the determination of enterprise value of EVN Genco 2 for
equitization.
127
VNPost is designated by the Prime Minister as a public postal service provider (Prime Minister's
Decision No. 41/2011/QD-TTg, issued on 3 August 2011). According to Prime Minister's Decision
No. 58/2016/QD-TTg, issued on 28 December 2016, the State holds 100% of the charter capital of enterprises
operating in the field of "Public postal service".
- 97 -
3.202. After the initial equitization, the State occasionally divested its assets by selling part or all
of its remaining shares to the public or to a strategic investor. The State Capital Investment
Corporation (SCIC) continues to carry out divestments.
3.203. The authorities state that Viet Nam has not introduced any measures regarding state
trading, SOEs, and privatization in response to the COVID-19 pandemic.
3.3.6 Government procurement
3.3.6.1 Overview of legal and institutional framework
3.204. Government procurement follows the general principles of competitiveness, fairness,

transparency, and economic efficiency. Furthermore, it is used as an important tool to achieve
specific economic or social goals, e.g. promoting the development of domestic industries and SMEs,
and securing domestic employment and women's employment. Viet Nam also maintains "buy
national" requirements and preferential treatment for certain suppliers and service providers.
3.205. Viet Nam has been an observer in the WTO Committee on Government Procurement since
December 2012. As it is not a signatory of the WTO Agreement on Government Procurement (GPA),
it does not undertake any commitment within the WTO legal framework to open its government
procurement market to other WTO Members. Viet Nam is a party to the CPTPP. As such, it undertakes
market access commitments in the area of government procurement.128 Viet Nam also signed a
bilateral free trade agreement with the European Union, which contains a government procurement
chapter.129 The two agreements constitute Viet Nam's first commitments to open its government
procurement to foreign suppliers bidding directly from abroad (Section 3.3.6.4).
3.206. Government procurement remains regulated by the Law on Bidding. During the review
period, the Law was amended by Law No. 43/2013/QH13, which came into effect on 1 July 2014.130
Decree No. 63/2014/ND-CP (detailing the implementation of several provisions of the Law on Bidding
and the Law Regarding the Selection of Contractors) was issued on 26 June 2016. 131
3.207. Compared with its previous version, the amended Law on Bidding expanded its scope of
application. It covers: (i) development investment projects financed by state agencies, political
organizations, socio-political organizations, professional socio-political organizations, socio-
professional organizations, social organizations, units of the people's armed forces, and public non-
business units; (ii) development investment projects of SOEs; (iii) development investment projects
with no less than 30% of the capital originating from the state budget or total capital of more than
VND 500 billion; (iv) procurements financed by the state budget to maintain regular operations of
state agencies, political organizations, socio-political organizations, professional socio-political
organizations, social organizations, socio-professional organizations, units of the people's armed
forces, and public non-business units; (v) the purchase of national reserve goods financed by the
State; (vi) the purchase of drugs and medical supplies financed by the State, the medical insurance
fund, or revenues of public medical establishments; (vii) overseas direct investment projects of
Vietnamese enterprises financed by the State with 30% of the capital originating from the state
budget or total capital of more than VND 500 billion; and (viii) PPP investment projects.
3.208. Government procurement in the form of PPP is regulated by the Law on Public-Private
Partnership Investment (Law No. 64/2020/QH14), promulgated on 18 June 2020 and entered into
128
The legal text of the CPTPP is available at New Zealand Foreign Affairs & Trade, Comprehensive and
Progressive Agreement for Trans-Pacific Partnership Text and Resources. Viewed at:
https://www.mfat.govt.nz/en/trade/free-trade-agreements/free-trade-agreements-in-
force/cptpp/comprehensive-and-progressive-agreement-for-trans-pacific-partnership-text-and-resources/.
129
The EU-Viet Nam FTA was signed on 30 June 2019, and entered into force on 1 August 2020. The
text of the agreement is available at European Commission, EU-Vietnam Trade and Investment Agreements.
Viewed at: https://trade.ec.europa.eu/doclib/press/index.cfm?id=1437.
130
Both the Law on Bidding and the implementing decree are posted on the official website. Viewed at:
http://muasamcong.mpi.gov.vn. An unofficial English translation of the revised Law on Bidding can be found at
Vietnam Law in English, Vietnam Bidding Law 2013, Law No. 43/2013/QH13. Viewed at:
https://vietnamlawenglish.blogspot.com/2013/11/vietnam-bidding-law-2013-law-no.html.
131
An unofficial English translation of the Decree is available at: https://vanbanphapluat.co/decree-no-
63-2014-nd-cp-several-provisions-of-the-law-on-bidding-regarding-the-selection-of-contractors.
- 98 -
force on 1 January 2021.132 The Law on Public Investment (Law No. 49/2014/QH13) is also relevant
for regulating government procurement. If the procurements are related to the petroleum sector,
including services directly related to the search for, exploration of, and mining of petroleum, the
relevant provisions set forth in the Law on Petroleum prevail. Government procurement projects
funded by official development assistance (ODA) loans and grants are usually governed by
regulations of relevant donors or in accordance with international treaties or agreements between
the Government and its development partners.
3.209. The Ministry of Planning and Investment is the authority for general administration of public
procurement and the management of procurement projects that are under the decision competence
of the Prime Minister. Other ministries and provincial governments are responsible for administering
procurement projects within their own jurisdictions.
3.210. Government procurement is conducted both in centralized and decentralized modes.

Centralized procurement is organized for goods and services that need to be procured in large
quantities and in similar categories by many entities. Framework agreements can also be used in
centralized procurement for long-term purchasing agreements between the central procuring entity
and selected contractors. The maximum period of a framework agreement is three years. The MOF
is responsible for issuing the national list of goods and services subject to centralized procurement.
Local governments and SOEs can issue their own lists.
3.211. Government procurement is divided into domestic bidding and international bidding.
Domestic bidding is organized for most procurement projects. In the case of domestic bidding, only
domestic tenderers are allowed to participate in a tender.133 International bidding is organized only
when: (i) the sponsor of a project requests international bidding; (ii) the concerned goods cannot
be manufactured in Viet Nam or Vietnamese goods fail to meet technical, quality, or price
requirements; or (iii) domestic providers of the services concerned cannot meet performance
requirements. International bidding is also organized for investment projects in the form of PPPs and
investment projects with land use, except for limited cases prescribed by the Law on Investment.
3.212. All suppliers must register in the national bidding network system before participating in a
bidding procedure. Foreign suppliers must have a partnership with domestic contractors or be
sub-contractors of domestic contractors when participating in an international bid, unless domestic
contractors do not have full capacity to participate in a bidding. This partnership requirement does
not apply to suppliers from the European Union and the CPTPP countries when participating in
procurements covered by these two FTAs.
3.3.6.2 Procurement methods, time periods, bid evaluation, and bid protests
3.213. The revised Law on Bidding provides for eight procurement methods (Table 3.15), with open
bidding and competitive quotation being the most widely used methods. The other six are: (i) limited
bidding; (ii) direct appointment of contractor; (iii) direct procurement; (iv) self-implementation; (v)
selection of investors in special cases; and (vi) community participation in project performance. For
each procurement procedure, the procurement notice must indicate the method to be used and also
whether it is a domestic or international bidding.
132
An unofficial English translation of the Law is available at: https://english.luatvietnam.vn/aw-on-
investment-in-the-form-of-public-private-partnership-no-64-2020-qh14-dated-june-18-2020-of-the-national-
assembly-186267-Doc1.html.
133
According to the authorities, a domestic tender is a Vietnamese national, or an economic
organization with no foreign investors as members or shareholders, as provided in the Law on Investment.
- 99 -
Table 3.15 Procurement methods and conditions for use, 2020
Procurement
Description/Conditions for use
method
Open bidding The number of participating tenderers is unrestricted.
Competitive The procurement is for:
quotation 1. commonly used goods that are readily available on the market and have
standardized technical features and are similar to each other in quality;
2. commonly used and simple non-advisory services; or
3. construction works that are simple and have had the approved construction
drawing design.
Limited bidding The subject matter of procurement has high technical requirements or technical
peculiarities for which only a limited number of tenderers are capable of satisfying.
Direct appointment The procurement serves to:
of contractor 1. address an urgent situation caused by force majeure;
2. ensure national security;
3. address an urgent situation to protect people's life, health, and assets;
4. procure drugs, chemicals, and health equipment to prevent and treat urgent
epidemics;
5. protect national sovereignty, national borders, and islands;
6. procure from the original suppliers to ensure technological compatibility;
7. procure research or tests;
8. procure copyright;
9. procure from an architect who has already won a design competition;
10. procure a work of art;
11. procure the service of relocation of technical infrastructure works managed
directly by a specialized unit in order to serve the work of ground clearance;
12. procure services of detection and disposal of bombs, mines, or explosives in
order to prepare construction of works; or
13. procure public products and services subject to a maximum price, as prescribed
by the Government in line with economic-social conditions.
Direct procurement The procurement is to obtain goods or services similar to or the same as existing
ones. The contractor has already won a tender through open or limited tendering and
has already signed a previous contract.
Self- It is used when the procuring entity has the technical and financial capability and
implementation experience to implement the project by itself.
Selection of It is used when none of the above methods can be applied. The competent person
tenderers/investors shall prepare a plan for selection of a contractor or investor and submit it to the
in special cases Prime Minister for consideration and decision.
Community Communities, organizations, teams, or groups of workers may be assigned to
participation in perform an entire or part of a local project if this project is under national support
performance programmes for hunger elimination, poverty reduction, and communities in
mountainous and remote areas, islands, or areas with special economic-social
difficulties; or if the project is small in scale.
3.214. The time-period granted to suppliers to prepare tenders, i.e. from the date of the issuance
of tender documentation to the final date of the submission of tenders, should be no less than
20 days for domestic bidding and 40 days for international bidding. When suppliers need to be pre-
qualified, the time-period for suppliers to submit their pre-qualification documents shall be at least
10 days for domestic bidding and 20 days for international bidding.
3.215. In selecting tenders, the lowest price method is used for simple and small procurements in
which technical, financial, and commercial aspects of tenders are of similar competitiveness.
Life-cycle costs may also be taken into account where necessary. For procurement of technically
complicated goods, services, and construction works, both the technical aspect and the price of the
tenders are taken into account. The weight of technical aspects in the total score varies depending
on the technical nature of the procurement and should be published in the tender notice. The
tenderer with the highest overall score is ranked first.
3.216. In order to ensure the consistency and transparency of online bidding, the Prime Minister
approved the master plan and the roadmap for the application of online bidding in the period 2015-
25. The Ministry of Planning and Investment is responsible for building, managing, and operating
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the National Procurement Network134, which was established on 1 January 2016. All bidding
information must be published online and in designated media.135 All procurements using the
methods of open bidding, limited bidding, competitive quotation, direct procurement, and direct
appointment of contractor must be conducted through the Network.
3.217. In addition, the Department of Public Procurement of the Ministry of Planning and
Investment developed a national online PPP network; the new system came into operation in 2018.
3.218. When a supplier considers that its rights and benefits under the Law on Bidding or other
legal provisions are severely affected, it can either make a protest to the procuring entity or the
regulatory authority or bring a case to a court. When a substantial violation of the Law on Bidding
or other legal provisions is found, the procurement can be suspended, and the bidding result can be
invalidated. The responsible entity must compensate for damages.
3.3.6.3 Domestic preference and other preference policies
3.219. "Buy national" requirements are a key feature of Viet Nam's government procurement policy.
They take the form of preferential treatment of tenders that meet the domestic content or domestic
labour requirements. In accordance with the Law on Bidding and its implementing decree,
preferential treatment is granted to certain suppliers if they meet the following criteria:
a. in both domestic and international bidding for goods, tenderers whose goods contain no less
than 25% domestic content in value;
b. in international bidding of services and construction works, domestic tenderers or foreign

tenderers in partnership with domestic tenderers in which domestic tenderers fulfil no less
than 25% of the value of the tender;
c. in domestic bidding of services and construction works, tenderers whose employees are
made up of no less than 25% women, or persons with disabilities; or
d. tenderers that are SMEs.136
3.220. Compared with the previous Law, the domestic content requirement has been relaxed.137
Preferential treatment is provided, as appropriate, when comparing and ranking different tenders.
If a tenderer is eligible for more than one preference, it will be accorded the more substantial one.
When two tenders are ranked the same after preferential treatment has been accorded, the tenderer
whose supply has more domestic content or who employs more local workers will be selected.
Construction contracts with values of less than VND 5 billion are set aside for small and micro
enterprises.
3.221. In international bidding for goods, services, and construction works, tenderers that meet the
preferential treatment criteria will be granted an advantage margin of 7.5% in respect of either the
tender price or tender score in the comparison and rating. In domestic bidding for goods, the
preferential treatment is the same as in international bidding for goods. In domestic bidding for
services and construction works, tenderers that meet the preferential treatment criteria will be
selected if they rank the same as other tenderers.
3.3.6.4 Government procurement commitments under FTAs
3.222. The government procurement chapters of both the CPTPP Agreement and the
European Union-Viet Nam FTA (EVFTA) are based, to a large extent, on the legal text and market
Portal of the National Procurement Network (in Vietnamese). Viewed at:

134
http://muasamcong.mpi.gov.vn/.
135
Tenders are normally published in newspapers such as Dau Thau, Nhan Dan, Lao Dong, and Saigon
Giai Phong, all of which are in Vietnamese, and in the English-language newspapers Viet Nam News and
Viet Nam Investment Review. Bidding information is also posted on the Electronic Government Procurement
system and the Bidding newspaper, according to regulations.
136
The authorities note that the SME preference is accorded to Vietnamese SMEs.
137
Under the previous Law, the threshold for receiving preferential treatment was 30% in terms of
domestic costs and 50% in terms of local labour employment.
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access schedule structure of the GPA. On the whole, the market accession commitments undertaken
by Viet Nam under the EVFTA are broader than those undertaken under the CPTPP. A comparison in
this regard is provided in Table 3.16.
In order to improve its government procurement legal framework and to codify the commitments
on government procurement under the CPTPP, the Government issued an implementing decree
(Decree No. 95/2020/ND-CP) on 24 August 2020.138 A decree guiding the implementation of the EU-
Viet Nam FTA will be issued later.
Table 3.16 Comparison of market access offers under the CPTPP and the EVFTA
Comparison aspect CPTPP EVFTA
Entity Central 18 ministries, 2 ministerial-level 18 ministries, 2 ministerial-level
coverage government agencies, and 1 government agencies, and 1 government agency
agency
Sub-central None Hanoi City and Ho Chi Minh City
government
Other 38 entities, including the Viet Nam 42 entities, including the Viet Nam
News Agency, 3 research News Agency, 3 research institutes, 34
institutions, and 34 public hospitals public hospitals under the direct control
under the direct control of the of the Ministry of Public Health, 2
Ministry of Public Health research institutes, and 2 SOEs
(Viet Nam Railways and Viet Nam
Electricity)
Thresholds Central Goods and services: gradual Goods and services: gradual reduction
government reduction from SDR 2,000,000 to from SDR 1,500,000 to SDR 130,000 in
SDR 130,000 in 25 years 15 years
Works: gradual reduction from SDR Works: gradual reduction from SDR
65,200,000 to SDR 8,500,000 in 40,000,000 to SDR 5,000,000 in 15
15 years years
Sub-central n.a. Goods and services: gradual reduction
government from SDR 3,000,000 to SDR 1,000,000
in 15 years
Works: gradual reduction from SDR

40,000,000 to SDR 15,000,000 in 15
years
Other Goods and services: gradual Goods and services: gradual reduction
reduction from SDR 3,000,000 to from SDR 3,000,000 to SDR 1,000,000
SDR 2,000,000 in 5 years in 15 years
Works: gradual reduction from SDR Works: gradual reduction from SDR
65,200,000 to SDR 15,000,000 in 40,000,000 to SDR 15,000,000 in
20 years 15 years
Procurement Goods All goods are covered with a few Similar but not fully identical to those
items exemptions and special set-asides under the CPTPP
for purchases of pharmaceutical
products
Services A number of sectors, including Similar to but slightly narrower than
most computer-related services. under the CPTPP
Distribution services of
pharmaceutical products are
excluded
Construction All construction services except All construction services except
services dredging services; construction in construction in remote, mountainous,
remote, mountainous, and and extremely difficult areas and on
extremely difficult areas, and on islands located beyond Viet Nam's
islands located beyond Viet Nam's territorial sea; or construction of
territorial sea; or construction of ministerial-level headquarters.
ministerial-level headquarters Dredging services are included in the
schedule
138
The Decree is posted at: http://vanban.chinhphu.vn.
- 102 -
Comparison aspect CPTPP EVFTA

Other flexibilities Viet Nam is permitted to apply Offsets are applicable for 18 years.
offsets for 25 years and delay Other flexibilities are similar but not
implementation of several identical to those under CPTPP
obligations
n.a. Not applicable.

Note: SDR is the IMF special drawing right.
3.3.7 Intellectual property rights
3.3.7.1 Overview
3.223. During the review period, Viet Nam modernized its IP system. While some challenges
remain, protection of IP improved significantly. From 2006 to 2018, the number of patent
applications submitted by, and the number of patents granted to, Vietnamese nationals increased
annually by 9.86% and 20.05%, respectively.139 Trademarks and geographical indications (GIs)
became more important for enterprises and the Government. In 2019, Viet Nam was ranked 42nd of
129 economies in the Global Innovation Index140, which was substantial progress compared with its
ranking of 76th of 142 in 2013. Viet Nam actively participates in multilateral, regional, and bilateral
cooperation in the area of IPRs, which helps it introduce international standards and best practices
and improve its efficiency in IPRs registration and protection.
3.224. Notwithstanding Viet Nam's enhanced efforts to improve its IP regime, innovation remained
a weak area in its socio-economic development. The number and value of IP assets are still low, and
few Vietnamese products based on IP are competitive either in the region or in the world. The recent
rate of domestic patent filings is about 10 per million people.141 Vietnamese applicants filed 10.3%
of patent applications in 2018. Few Vietnamese enterprises or producers built up their brands or
GIs. Counterfeiting and piracy in both physical and online markets remain major concerns of
Viet Nam's trade partners, especially in the areas of software, music and movies, books and journals,
pharmaceuticals, pesticides, and consumer goods.142 The number of reported infringement cases
increased significantly between 2013 and 2019. Reasons for these shortcomings may include low
awareness of the value of their IP assets by enterprises and individuals, and inadequate enforcement
of IPRs by the Government.143
3.225. To address these challenges and to create an innovation ecosystem, Viet Nam launched its
first National Intellectual Property Strategy in August 2019144, the first such policy at the national
level. The Strategy will guide IP policies in the country for the next decade to support
competitiveness and promote economic, cultural, and social development. It sets out specific targets
on various IPRs aspects and assigns implementation responsibilities to related ministries and local
governments. The authorities have organized publicity activities to promote the Strategy. They have
139
MOST, Viet Nam's Intellectual Property Strategy Until 2030, 14 May 2020. Viewed at:
https://www.most.gov.vn/en/news/753/viet-nam%E2%80%99s-intellectual-property-strategy-until-2030--
driving-force-for-development-of-intellectual-property-assets.aspx.
140
The Global Innovation Index (GII) is co-published by Cornell University, INSEAD, and the World
Intellectual Property Organization (WIPO). The Index is a ranking of the innovation capabilities and results of
world economies. It measures innovation based on criteria that include institutions; human capital and
research; infrastructure; credit; investment; linkages; the creation, absorption, and diffusion of knowledge;
and creative outputs. Global Innovation Index 2019. Viewed at: https://www.globalinnovationindex.org/gii-
2019-report#.
141
MOST, Viet Nam's Intellectual Property Strategy Until 2030, 14 May 2020. Viewed at:
https://www.most.gov.vn/en/news/753/viet-nam%E2%80%99s-intellectual-property-strategy-until-2030--
driving-force-for-development-of-intellectual-property-assets.aspx.
142
International Chamber of Commerce and BASCAP, Promoting and Protecting Intellectual Property in
Viet Nam. Available at: https://cms.iccwbo.org/content/uploads/sites/3/2019/05/bascap-vietnam-country-
report-translation-vietnam-eng.pdf.
143
International Chamber of Commerce and BASCAP, Promoting and Protecting Intellectual Property in
Viet Nam.
144
Lawsoft (Vietnamese legal documents in English reference portal), Prime Minister's Decision on
Approving the Intellectual Property Strategy through 2030. Viewed at: https://thuvienphapluat.vn/van-ban/so-
huu-tri-tue/Quyet-dinh-1068-QD-TTg-2019-Chien-luoc-so-huu-tri-tue-den-2030-422277.aspx.
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also issued relevant implementation guidance and work plans, and have been revising the IP Law
and regulations accordingly.
3.3.7.2 Legislative and institutional framework/developments
3.226. The overall structure of the legislative framework for IPRs remained largely unchanged
during the review period (Table A3.10). The Civil Code No. 91/2015/QH13 of 24 November 2015
sets out the basic civil principles of the IP system. The 2015 Criminal Code, as amended and
supplemented in 2017 and taking effect from 1 January 2018, provides criminal penalties for
infringements of copyright and industrial property rights on a commercial scale. The Law on
Intellectual Property (Law No. 50/2005/QH11 of 29 November 2005 (IP Law)), amended and
supplemented by Law No. 36/2009/QH12 in 2009, and further amended by Law No. 42/2019/QH14
in June 2019, covers the full range of IPRs. Its implementation is generally regulated by decrees
and circulars issued by relevant authorities.
3.227. The 2019 amendments to the IP Law were aimed at implementing commitments that
Viet Nam undertook in the CPTPP Agreement. A new proposal to amend and supplement several
articles of the IP Law is being prepared and is planned to be submitted to the National Assembly in
2021. The proposal concerns policies related to copyright assignment or transfer, IPRs created from
the state budget, copyright registration procedures, the balance of interests between IP
rightsholders and users in various areas, collective representatives of copyright and other IP rights,
IP enforcement, and the implementation of international obligations.
3.228. Since 2013, several new decrees and circulars have been issued by relevant authorities to
address certain issues and concerns, such as examination procedures, and to align Viet Nam's IP
system with international best practices.
3.229. Another development in IP-related legislation is the promulgation of the revised Law on
Technology Transfer (Law No. 07/2017/QH14), which came into effect on 1 July 2018.145 Reportedly,
the revised Law aims at facilitating technology transfer and application, supporting technology R&D
activities, and controlling the quality of technology transferred into Viet Nam. It requires that cross-
border technology transfer contracts be registered with the competent authority 146, provides for tax
incentives, and facilitates the development of IP portfolios. The implication of this revised Law for
the IPRs regime mainly concerns the disclosure of technological secrets. Specifically, the 2006 Law
banned disclosing technology secrets. The revised Law allows technology secrets to be disclosed
under certain circumstances, such as to ensure national security, national defence, social welfare,
and other interests of the State and society, similar to the circumstances permitted by Article 7.3 of
the IP Law.
3.230. In 2018, the IP Office of Viet Nam changed its English name from "National Office of
Intellectual Property" to "Intellectual Property Office of Viet Nam" (IP Viet Nam) and adjusted its
organizational structure. IP Viet Nam is under the MOST. It advises and assists the Minister in the
overall management of the national IP system; chairs and coordinates with other relevant agencies
to draft IP policies and measures to guide, organize, and supervise the implementation of such
policies and measures, and to organize IPR advocacy activities, training, and participation in
international treaty negotiations; and manages industrial property rights. IP Viet Nam is composed
of 17 units, of which 9 (including the 2 branch offices in Ho Chi Minh City and Da Nang) are divisions
that manage state functions, and 8 are administrative service centres for specific IPR areas such as
patent examination, industrial design examination, trademark examination, GIs and international
trademark examination, and post-registration examination.
3.231. The Copyright Office of Viet Nam under the Ministry of Culture, Sports and Tourism is
responsible for the implementation of copyrights. Its functions, tasks, powers, and organizational
structure are defined by Decision of the Minister of Culture, Sports and Tourism No. 3954/QD-
145
The new Law on Technology Transfer is available in English on the MOST's website. Viewed at:
https://www.most.gov.vn/en/Pages/Detaildocument.aspx?vID=45.
146
The MOST (at the national level) and the Department of Science and Technology (at the provincial
level) have the authority to receive applications for registration of technology transfer contract. The Ministry of
National Defence has the authority to receive applications related to national defence.
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BVHTTDL of 20 October 2017.147 Other agencies are involved in aspects of the IP system,
e.g. granting of plant variety certificates, issuance of compulsory licences, and enforcement.
3.3.7.3 Industrial property
3.232. Overall, data on industrial property registration indicate that there is a growing interest in
protection of IPRs (Table 3.17). Trademark remains the area where applications grew significantly,
although the number of grants was relatively moderate. The number of patent applications and
grants increased notably. The number of industrial property registered by and granted to Vietnamese
abroad also increased during the review period, indicating Viet Nam's further integration into global
grade and economy.
Table 3.17 Trademarks, industrial designs, and patents and utility solutions, 2013-19
2013 2014 2015 2016 2017 2018 2019
Trademark applications
Resident 36,236 38,854 45,230 54,963 55,313 60,731 43,647
Non-resident 21,482 22,308 22,514 26,965 29,463 33,465 10,154
Total 57,718 61,162 67,744 81,928 84,776 94,196 53,801
Abroad 2,032 2,734 3,482 3,733 4,442 7,244 ..
Trademarks granted
Resident 22,515 23,831 21,971 20,466 22,504 22,699 22,265
Non-resident 21,315 21,704 22,851 20,862 24,901 27,070 6,555
Total 43,830 45,535 44,822 41,328 47,405 49,769 28,820
Abroad 1,592 5,191 2,332 2,718 5,044 4,470 ..
Industrial design applications
Resident 1,556 1,736 1,839 2,060 1,763 1,891 1,841
Non-resident 873 873 1,046 1,334 1,420 1,475 1,650
Total 2,429 2,609 2,885 3,394 3,183 3,366 3,491
Abroad 712 287 1,639 927 826 425 ..
Industrial designs granted
Resident 960 1,144 1,029 988 1,504 1,433 1,234
Non-resident 597 819 652 671 1,104 1,391 938
Total 1,557 1,963 1,681 1,659 2,608 2,824 2,172
Abroad 754 219 1,759 574 1,115 345 ..
Patent applications
Resident 443 487 582 560 592 646 720
Non-resident 3,552 3,960 4,451 4,668 4,790 5,425 6,800
Total 3,995 4,447 5,033 5,228 5,382 6,071 7,520
Abroad 54 74 100 73 71 103 ..
Patents granted
Resident 59 36 63 76 111 205 169
Non-resident 1,123 1,361 1,325 1,347 1,634 2,014 2451
Total 1,182 1,397 1,388 1,423 1,745 2,219 2620
Abroad 11 24 25 42 48 43 ..
Utility solution applications
Resident 226 246 310 326 273 370 395
Non-resident 47 126 140 152 161 187 204
Total 273 372 450 478 434 557 599
Abroad .. .. 4 1 .. 2 ..
.. Not available.
Source: WTO Secretariat, based on WIPO statistics data, last updated in June 2020 (for 2013-18). Statistics
for 2019 provided by the authorities.
3.233. One of the challenges faced by IP Viet Nam in managing industrial property applications is
the shortage of examination capacity, resulting in a backlog.148 Along with the increasing number of
applications, the average time for granting a patent increased from 73 months in 2013 to 77.5
months in 2017.149 Building patent examination capacity is a particular focus. During the review
147
Copyright Office of Viet Nam. Viewed at: http://www.cov.gov.vn/.
148
MOST, Intellectual Property Office of Viet Nam, 2018 Intellectual Property Activities Annual Report.
Viewed at: http://ipvietnam.gov.vn/documents/20182/687634/Baocaothuongnien+2018+.pdf/aa49c9cf-0436-
4a27-bd15-c811fa43c94c.
149
The authorities note that the average time for granting a patent runs from the date of filling to the
date of granting a certificate.
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period, IP Viet Nam provided training for examiners, upgraded technical infrastructure, and
improved internal management. Following the amendments to the IP Law in 2019, applications can
be filed electronically.150
3.3.7.3.1 Patents
3.234. Patent administration remained largely unchanged during the review period. IP Viet Nam
receives and examines patent applications. Patents are classified into invention patents and utility
solution patents, the latter of lower inventiveness. The maximum terms of protection are 20 and 10
years, respectively. Giving effect to a CPTPP undertaking, the 2019 amendments extended the grace
period for patents from 6 to 12 months, so that an invention will not to be deemed as having lost
its novelty if a patent application is submitted within 12 months of certain forms of prior publication
or public exhibition.151 In terms of compulsory licensing, the IP Law reflects the main TRIPS
provisions, and there has been no change since the last Review. On 23 January 2017, Viet Nam
notified its acceptance of the 2005 Protocol amending the TRIPS Agreement (WT/L/641) regarding
patents and public health.152 The authorities indicate that Viet Nam is amending the IP Law to permit
compulsory licensing for export of medicines to countries without sufficient production capacity. No
compulsory licences have been granted since the IP Law was enacted.
3.235. IP Viet Nam is implementing pilot Patent Prosecution Highway (PPH) programmes under
bilateral cooperation mechanisms with the Japan Patent Office and the Korean Intellectual Property
Office. However, Viet Nam accepts at most 200 PPH requests per year from Japan and 100 from the
Republic of Korea. The implementation of a PPH programme with the European Union is under
bilateral discussion.
3.3.7.3.2 Industrial designs
3.236. Viet Nam protects two- and three-dimensional designs. The term of protection is five years
from the grant date, renewable for two consecutive periods of five years. Prior use of industrial
designs that are independently created is not considered to infringe the owner's right. On
30 September 2019, Viet Nam joined the Geneva Act (1999) of the Hague Agreement.153 The Act
entered into force in Viet Nam on 30 December 2019, enabling industrial designs of Viet Nam and
other contracting parties of the Act to realize the protection through a single international
application.
3.3.7.3.3 Layout designs of integrated circuits
3.237. During the review period, there were no amendments to the provisions on layout designs of
integrated circuits in the IP Law. They reflect the provisions of the TRIPS Agreement, including the
provisions of the Washington Treaty incorporated in the Agreement. IP Viet Nam conducts a formal
(rather than a substantive) examination of applications. Between 2013 and 2019, 50 applications
were submitted and certified (Table 3.18).
Table 3.18 Applications of layout design of integrated circuits and certificates granted,
2013-19
Year 2013 2014 2015 2016 2017 2018 2019 Total
Applications 12 19 5 7 2 5 0 50
Certificates 12 19 5 7 2 5 0 50
150
Intellectual Property Online Service Portal (in Vietnamese). Viewed at:
http://dvctt.noip.gov.vn:8888/HomePage.do.
151
As specified in Article 60.3 of the IP Law as amended in 2019.
152
WTO, Implementation of Paragraph 6 of the Doha Declaration on the TRIPS Agreement and Public
Health. Viewed at: http://www.wto.org/english/tratop_e/trips_e/implem_para6_e.htm; and WTO, Amendment
of the TRIPS Agreement. Viewed at: http://www.wto.org/english/tratop_e/trips_e/amendment_e.htm.
153
WIPO, Viet Nam Joins the Hague System, 30 September 2019. Viewed at:
https://www.wipo.int/hague/en/news/2019/news_0009.html.
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3.3.7.3.4 Trade secrets
3.238. The IP Law provides for general protection of trade secrets, as well as of test data in the
pharmaceutical and agrichemical sectors, in line with Article 39 of the TRIPS Agreement.154 The Law
and relevant regulations further specify that a competent Vietnamese authority shall not grant
licences to subsequent applicants to use protected test data without the consent of the original
submitter of such data for a period of five years starting from the date the licence is granted to the
data submitter.155
3.3.7.3.5 Trademarks
3.239. In general, trademark rights are granted through registration in Viet Nam or the recognition
of international registration by IP Viet Nam, in accordance with applicable international treaties.
International registration is available under the Madrid System. The term of protection is 10 years,
renewable indefinitely. Trademark holders have to use their trademarks continuously. If a trademark
is not used continuously for five years or more, the certificate will be invalidated when so requested
by another organization or individual.156 Under the 2019 amendment of the IP Law, use of a
trademark by a licensee is also deemed to constitute the use by the holder. A trademark licence
does not need to be registered at the competent authority in order to have legal validity to a third
party. New regulations on organizations having the right to register collective marks and certification
marks and on the process of handling international trademark applications in Viet Nam were issued
in June 2016.157 The registration process can take up to 15 months. Well-known trademarks are
defined as marks that are "widely known by consumers throughout the territory of Viet Nam". 158
IPRs in relation to well-known marks are established by use and not dependent on registration
procedures. There is no formal procedure for recognizing the fame of a mark. IP Viet Nam has the
authority to recognize, ex officio, the well-known status.
3.3.7.3.6 Geographical indications
3.240. Viet Nam considers GIs as an important instrument to manage the quality of agricultural
products, promote their competitiveness, achieve greater economic value in domestic and
international markets, and preserve relevant culture and traditions. The IP Law provides protection
of GIs through registration at IP Viet Nam. The authorities note that GIs are protected as certification
marks. The right to register GIs of Vietnamese origin belongs to the State, which allows organizations
and individuals to register GIs. Nonetheless, the party exercising the right to register a GI does not
become the owner of the GI. The 2019 amendments to the IP Law implementing CPTPP undertakings
further clarify that names and indications that have become common names of goods widely
accepted by consumers in Viet Nam cannot be registered as protected GIs. It also supplements
grounds for refusing a GI application when the subject matter of the application is identical with or
similar to a trademark with an earlier filing date or priority date and the use of such a GI is likely to
cause a confusion as to the origin of products. Once registered, the protection has an indefinite
duration. By the end of 2019, 73 GI certificates were issued for Vietnamese products. Six GIs from
foreign countries are registered and protected in Viet Nam.
3.3.7.3.7 Protection of plant varieties
3.241. Viet Nam is a member of the International Union for the Protection of New Varieties of Plants.
The UPOV Convention (1991 Act) entered into effect for Viet Nam on 26 December 2006. The Plant
Variety Protection Office under the MARD is the main authority responsible for protecting plant
variety. The IP Law sets out conditions for obtaining protection of plant varieties, exclusive rights,
and compulsory licences. Decree No. 88/2010/ND-CP, issued on 16 August 2010, provides details
on the implementation of the Law. There was no change to the relevant legislation during the review
154
IP Law (as amended in 2019), Article 128.
155
Ministry of Health Circulars No. 44/2014/TT-BYT and No. 32/2018/TT-BYT, Decision No.
69/2006/QD-BNN of the Minister of Agriculture and Rural Development, Decree No. 108/2017/ND-CP, the 2013
Law on Plant Protection and Quarantine, Decree No. 39/2017/ND-CP, and the 2015 Law on Animal Health.
156
IP Law (as amended in 2019), Article 136.2.
157
WIPO IP Portal, Viet Nam: Circular No. 16/2016/TT-BKHCN dated 30 June 2016. Viewed at:
https://wipolex.wipo.int/en/legislation/details/17743.
158
The Law Amending and Supplementing a Number of Articles of the Law on Intellectual Property (Law
No. 36/2009/QH12), Article 1, Item 2.20.
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period. As at end-2019, the Plant Variety Protection Office issued 771 certificates for plant variety
protection, including 155 plant variety rights in the crops sector.
3.3.7.4 Copyright and related rights
3.242. The IP Law provides protection of copyright for a period of the life of the author plus
50 years. For cinematographic works, photographic works, works of applied art, and anonymous
works, the term of protection is 75 years from the date of first publication or 100 years from the
date of creation, if the works remain unpublished within 25 years of the date of creation. This is
longer than the minimum protection of 50 years required by the Berne Convention and the
TRIPS Agreement. Although registration of copyrights is not mandatory, Viet Nam maintains a
copyright registration system in which registered copyright holders can obtain certificates that can
be used as evidence in case of litigation. Guidelines on procedures for registration are contained in
Decree No. 22/2018/ND-CP, issued on 23 February 2018. In 2019, a total of 8,446 copyright and
related rights certificates were issued. Online registration became available as at 1 May 2020.
3.243. During the review period, two new non-governmental copyright collection societies, namely
the Association for Protection of the Rights of Vietnamese Music Performers (APPA) and the Viet Nam
Association for Copyright Protection of Movies and TV Films (Ban Quyen Phim) were established.
Four others were already established: the Viet Nam Literary Copyright Center (VLCC); the Recording
Industry Association of Viet Nam (RIAV); the Viet Nam Center for Protection of Music Copyright
(VCPMC); and the Viet Nam Reproduction Rights Organization (VIETRRO).
3.244. Despite copyright protection efforts, infringements in this area are hard to prevent due to
the complexity of violations. For example, much of the illegal broadcasting of television programmes
and movies is delivered by overseas website servers that use technologies to avoid detection. On 19
June 2012, the Ministry of Information and Communications and the Ministry of Culture, Sports and
Tourism issued a joint circular stipulating the duty of enterprises providing intermediary services to
protect copyright and related rights on the Internet and telecommunication networks. 159 Inspectors
from the two ministries coordinated to handle violations in this area. The authorities also learned
from other countries about enhancing enforcement, including through collective copyright protection
societies.
3.3.7.5 Parallel imports
3.245. There were no changes in the IP Law regarding parallel imports during the review period.
Viet Nam has a regime of international exhaustion. Therefore, parallel imports are not considered to
infringe IPRs.
3.3.7.6 Enforcement
3.246. Legislation in Viet Nam provides for a comprehensive enforcement regime including civil,
administrative, criminal, and border measures. According to the authorities, criminal and
administrative measures are prescribed to address counterfeiting and piracy. IPR enforcement is
primarily practiced through the imposition of administrative penalties.160 Civil and criminal remedies
are rarely or ineffectively used (Table 3.19). The authorities, however, note that actions against IPR
infringement were stepped up at the border; 33 cases involving goods valued at VND 48.6 million
led to arrest in 2019, up from 17 cases in 2013.161
159
Ministry of Information and Communications, Joint Circular No. 07/2012/TTLT-BTTTT-BVHTTDL dated
19 June 2012. Viewed at: https://english.mic.gov.vn/Pages/VanBan/11264/07_2012_TTLT-BTTTT-
BVHTTDL.html.
160
WIPO, Minutes of the Advisory Committee on Enforcement, Twelfth Session, Geneva, 4-6 September
2017. Viewed at: https://www.wipo.int/edocs/mdocs/enforcement/en/wipo_ace_12/wipo_ace_12_5.pdf.
161
No data are available for the total value of goods involved in the 17 cases that led to arrest in 2013.
- 108 -
Table 3.19 IPR infringement cases, 2013-19

2013 2014 2015 2016 2017 2018 2019
Criminal cases handled by the court 2 11 4 1 2 1 1
Cases handled by the Inspector of 142 113 149 26 21 18 ..
Science and Technology
Cases by market surveillance 3,274 3,436 3,740 4,483 4,521 5,000 4,097
Cases handled by Customs 17 23 15 22 31 46 33
Cases handled by local administrative 2,216 1,106 1,500 1,957 2,954 1,811 3,296
agencies
.. Not available.
3.247. Counterfeiting and piracy remain the major IPR infringements. According to the International
Chamber of Commerce's BASCAP Report, a broad range of counterfeit products continue to be sold,
e.g. garments, accessories, food products, wines and spirits, cosmetics, pharmaceuticals, computer
software, vehicle spare parts, engine lubricants, electro-mechanical products, and consumer
electronics.162 Online piracy is also a serious concern, and the authorities took important
enforcement steps over the past few years. In addition, domestic manufacturing of counterfeit
products is emerging as a concern.
3.248. The BASCAP Report identifies a number of shortcomings in Viet Nam's IPR protection
system. To further promote and improve the efficiency of IPR enforcement, the National Intellectual
Property Strategy with Visions to 2030 sets out detailed tasks, such as streamlining relevant
administrative measures and strengthening judicial enforcement including criminal investigation.163
3.249. To enhance coordination and efficiency among relevant administrative agencies, a National
Steering Committee against Smuggling, Counterfeiting and Trade Fraud (National Steering
Committee 389) was established in March 2014. The Committee is chaired by a Deputy Prime
Minister, and its members include relevant ministers. The MOF is the standing agency of the
Committee. At the sub-central levels of government, the standing agency is determined by local
authorities. The Committee coordinates enforcement activities and investigations to tackle serious
counterfeiting acts. IP Viet Nam provides technical support to relevant enforcement activities.
3.3.7.6.1 International cooperation and integration
3.250. During the review period, Viet Nam participated in international cooperation activities in the
IP area. On the multilateral front, Viet Nam is a party to a number of WIPO-related treaties
(Table 3.20). Viet Nam is also considering joining several other WIPO treaties.164
162
ICC BASCAP, Promoting and Protecting Intellectual Property in Viet Nam. Viewed at:
https://iccwbo.org/content/uploads/sites/3/2019/05/bascap-vietnam-country-report-translation-vietnam-
eng.pdf.
163
National Intellectual Property Strategy, Vision to 2030. Viewed at: https://thuvienphapluat.vn/van-
ban/so-huu-tri-tue/Decision-1068-QD-TTg-2019-approval-for-intellectual-property-strategy-by-2030-
445454.aspx.
164
WIPO IP Portal, WIPO-administered Treaties. Viewed at:
http://www.wipo.int/treaties/en/ShowResults.jsp?country_id=185C.
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Table 3.20 International IPR treaties in force for Viet Nam, 2020
Subject matter (non-exhaustive list Date of accession Date of entry into
Treaty
of elements) or ratification force
WIPO Convention Constituent instrument of WIPO 7 April 1981 21 July 1976
(Declaration of
Continued
Application)
Berne Convention Copyright (artistic and literary works, 26 July 2004 26 October 2004
etc.)
Rome Convention Related rights (performers, producers of 1 December 2006 1 March 2007
phonograms and broadcasting
organizations)
Phonograms Convention Protection of producers of phonograms 6 April 2005 6 July 2005
against unauthorized duplication of their
phonograms
Brussels Convention Distribution of programme-carrying 12 October 2005 12 January 2006
signals transmitted by satellite
Paris Convention, 1883; Industrial property (patents, trademarks, 7 April 1981 2 July 1976
Stockholm Act, 1967 utility models, trade names, industrial
designs, GIs and appellations of origin,
unfair competition, enforcement, etc.)
Patent Co-operation International patent applications 10 December 1992 10 March 1993
Treaty (PCT), 1970
Madrid Agreement International registration of marks 7 April 1981 2 July 1976
(Marks), Stockholm Act, (Declaration of
1967 Continued Application
of the Stockholm Act)
Protocol relating to the International registration of marks 11 April 2006 11 July 2006
Madrid Agreement
(Marks)
Hague Agreement International registration of industrial 30 September 2019 30 December 2019
design
UPOV Convention 1961 Sui generis system of protection of plant 24 November 2006 24 December 2006
1991 Act varieties
Source: WTO Secretariat, based on WIPO information on treaties. Viewed at: www.wipo.int/treaties/en/.
3.251. Viet Nam also participated in IP activities within the framework of APEC and ASEAN. It is a
member of the ASEAN Patent Examination Cooperation (ASPEC), the first regional patent
programme to share search and examination results.165
3.252. Regarding regional trade agreements, in both the CPTPP Agreement and the EVFTA,
Viet Nam undertook commitments to provide enhanced protection to IPRs. Viet Nam is also
negotiating with the European Free Trade Association (EFTA) and participating in the Regional
Comprehensive Economic Partnership (RCEP) Agreement negotiations.
3.253. In addition, IP Viet Nam participated in activities to implement international agreements on

IP that have been signed or initiated, specifically on: (i) implementation of the bilateral Trade
Agreement with the United States; (ii) the Agreement with the Russian Federation on IP in military
technical cooperation; and (iii) the proposed Viet Nam-United Kingdom Free Trade Agreement.
3.254. As mentioned previously, Viet Nam also strengthened its cooperation with countries
including the European Union, Japan, and the Republic of Korea on various projects to help Viet Nam
build its capacity in patent application examination, GIs, and the protection of traditional knowledge.
It signed memoranda of understanding with several foreign IP offices on cooperation plans.
ASEAN Intellectual Property Portal, What Is ASPEC. Viewed at:

165
https://www.aseanip.org/Services/ASEAN-Patent-Examination-Co-operation-ASPEC/What-is-ASPEC.
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4 TRADE POLICIES BY SECTOR
4.1 Agriculture, Forestry, and Fisheries
4.1.1 Features
4.1. In 2019, agriculture, forestry, and fisheries contributed 15.5% to GDP (down from 20.0% in
2013) and 34.5% to employment (down from 46.7% in 2013), reflecting lower labour productivity
as compared with other sectors. The main agricultural products include rice, coffee, and rubber
(Table 4.1). By the end of 2016, about 4,400 enterprises operated in agriculture, forestry, and
fisheries; these accounted for less than 1% of total enterprises nationwide. Many agricultural
businesses are micro, small, and medium-sized enterprises (MSMEs), and the majority (about 55%)
have capital of less than VND 5 billion. The authorities consider that the ability of agriculture,
forestry, and fishery enterprises to apply science and technology remains low; 75% of enterprises
use fully depreciated machinery, and many still use outdated technologies.
4.2. In 2017, 53.7% (62.2% in 2011) of households engaged in agriculture, forestry, and fishery
activities. In 2016, there were 62,523 cooperative groups, an increase of 541 compared with 2012.
As at 1 December 2016, 7,869 cooperatives had been registered and reorganized under the
Cooperative Law; they function as a bridge between the Government, social and political
organizations, and farmers.
4.3. Viet Nam adopted measures to increase the total capacity of the irrigation system. This led to
an increase in irrigation available for rice cultivation to 7.48 million hectares in 2019 (compared with
6.92 million hectares in 2013).1
Table 4.1 Production of selected commodities, 2013-19

2013 2014 2015 2016 2017 2018 2019
Rice, '000 7,902.5 7,816.2 7,828.0 7,737.1 7,737.1 7,570.9 7,470.1
paddy hectares
(ha)
'000 11,039.1 44,974.6 45,091.0 43,165.1 43,165.1 44,046.0 43,448.2
tonnes
Coffee, '000 ha 581.3 589.8 593.8 597.6 617.1 618.9 618.1
green '000 1,326.6 1,408.4 1,453.0 1,460.8 1,577.2 1,616.3 1,678.8
tonnes
Cashew '000 ha 300.9 288.3 280.3 281.0 283.8 283.7 276.4
nuts '000 275.5 345.1 352.0 305.3 215.8 266.4 284.0
tonnes
Cassava '000 ha 543.9 552.8 567.9 569.0 532.6 513.0 519.3
'000 9,757.3 10,209.9 10,740.2 10,909.9 10,267.7 9,846.9 10,105.1
tonnes
Rubber '000 ha 548.1 570.0 604.3 621.4 653.2 685.5 698.1
'000 946.9 966.6 1,012.7 1,035.3 1,094.5 1,137.7 1,167.3
tonnes
Maize '000 ha 1,170.4 1,179.0 1,178.9 1,152.7 1,099.5 1,032.9 990.8
'000 5,191.2 5,202.3 5,287.2 5,246.5 5,109.6 4,874.1 4,757.0
tonnes
Sugar '000 ha 310.4 305.0 284.2 267.6 281.0 269.3 233.7
cane '000 20,128.5 19,821.6 18,337.3 17,211.2 18,356.4 17,945.5 15,269.9
tonnes
Bananas '000 ha 112.0 114.0 115.0 120.0 125.0 128.0 150.0
'000 1,893.0 1,858.0 1,943.0 1,942.0 2,045.0 2,087.0 2,194.3
tonnes
Pepper '000 ha 7,902.5 7,816.2 7,828.0 7,737.1 7,737.1 7,570.9 7,470.1
'000 11,039.1 44,974.6 45,091.0 43,165.1 43,165.1 44,046.0 43,448.2
tonnes
Pig meat '000 1,326.6 1,408.4 1,453.0 1,460.8 1,577.2 1,616.3 1,678.8
tonnes
1
The Ministry of Agriculture and Rural Development (MARD) reviewed irrigation plans in the context of
climate change and sea-level rise, adding standards and procedures for irrigation, dikes, reservoir safety, and
repairing and upgrading 633 lakes with a view to improving management efficiency of irrigation works.
Localities built and upgraded reservoirs, pumping stations, irrigation culverts, and canals. The Government
invested in many small irrigation projects associated with hunger eradication and poverty alleviation,
population stabilization, and security and national defence in mountainous, island, and border areas.
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2013 2014 2015 2016 2017 2018 2019

Cattle '000 300.9 288.3 280.3 281.0 283.8 283.7 276.4
meat tonnes
Hen eggs '000 9,757.3 10,209.9 10,740.2 10,909.9 10,267.7 9,846.9 10,105.1
tonnes
Source: FAOSTAT, Food and Agriculture Data. Viewed at: http://faostat.fao.org; and data provided by the
authorities.
4.4. All land belongs to the population of Viet Nam; the State acts as the owners' representative
regarding land management. Under Article 126 of the Land Law (Law No. 45/2013/QH13), issued
on 29 November 2013 and entered into force on 1 July 2014, the term for the lease of land used for
agriculture by households and individuals directly engaged in agricultural production is 50 years2
(compared with 20 years for annual crops and 50 years for perennial crops under the previous
legislation); the lease of agricultural land to households and individuals shall not exceed 50 years.
Upon the expiration of the land-lease term, the household or individual may request the State to
allow it to continue leasing the land.
4.5. In 2019, Viet Nam had a deficit in agricultural trade. Both imports and exports of agricultural
products increased between 2013 and 2018; in 2019, they both declined. In 2019, the main exports
included coconuts, rice, and coffee; the main imports included cotton and maize (Table 4.2). 3
Table 4.2 Exports and imports of agricultural products, 2013-19

HS 2013 2014 2015 2016 2017 2018 2019
2002
Exports
TOTAL 13,157.3 15,213.2 15,390.6 16,458.8 18,631.7 18,196.9 17,632.8
(not including rubber)
0801 Coconuts, '000 .. 418.4 .. 411.9 409.9 .. 519.9
Brazil nuts and tonnes
cashew nuts USD 1,668.6 2,049.6 2,404.2 2,810.7 3,482.6 3,290.7 3,072.1
million
1006 Rice '000 6,594.7 6,334.8 6,603.1 4,811.2 5,820.5 2,892.1 5,467.0
tonnes
USD 2,926.3 2,936.9 2,807.9 2,160.0 2,634.6 2,621.4 2,434.3
million
0901 Coffee '000 1,269.1 1,646.3 1,283.7 1,705.2 1,466.2 874.1 1,421.9
tonnes
USD 2,551.4 3,311.4 2,415.4 3,040.2 3,101.4 2,891.5 2,218.8
million
0810 Other fruit, '000 124.7 151.7 281.6 621.5 989.8 1,041.5 ..
fresh tonnes
USD 252.8 324.7 570.5 1,248.8 1,785.7 1,832.7 1,820.6
million
1108 Starches; '000 1,506.0 1,495.7 .. .. 620.0 500.1 2091.8
inulin tonnes
USD 710.7 738.8 916.7 740.5 746.7 798.5 872.5
million
0904 Pepper '000 133.7 156.6 132.5 182.5 217.5 97.8 266.9
tonnes
USD 893.4 1,206.5 1,262.8 1,441.6 1,131.0 752.4 682.6
million
2008 Fruit, nuts, '000 50.3 40.8 .. .. 66.4 68.7 87.0
otherwise tonnes
prepared or USD 149.9 122.0 165.4 241.8 284.0 345.8 501.0
preserved million
2101 Extracts, '000 48.1 45.0 59.2 76.0 100.6 40.1 119.8
concentrates tonnes
of coffee, tea, USD 332.8 246.4 260.4 299.0 405.2 447.9 458.9
or maté million
2309 Preparations '000 92.4 125.6 136.4 172.2 190.4 215.2 256.9
used in animal tonnes
feed USD 145.7 191.4 224.4 244.0 282.6 349.2 396.0
million
2
The term for agriculture-based organizations is a period approved by the authorities of no longer than
50 years.
3
For the purposes of this Review, agricultural products are defined as set out in Annex 1 of the
Agreement on Agriculture, where fish products are defined under the HS02 nomenclature headings 0208.40,
03, 0511.91, 1504, 1603, 1604, 1605, and 2301.20. Although not defined as an agricultural product under the
Agreement on Agriculture, export data for rubber are included under exports in Table 4.2 but are not included
in the total for exports and imports of agricultural products.
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HS 2013 2014 2015 2016 2017 2018 2019

2002
4001 Rubber '000 990.2 982.2 783.4 665.7 573.0 .. 750.0
tonnes
USD 2,378.7 1,668.8 1,065.8 881.2 943.0 953.7 1,004.8
million
Imports
TOTAL (not including 11,876.3 13,671.7 15,162.8 16,427.7 18,639.1 20,812.5 20,788.6
rubber)
5201 Cotton, not '000 571.7 742.2 999.3 1,018.2 1,269.3 1,398.5 1,340.7
carded or tonnes
combed USD 1,154.6 1,422.7 1,607.2 1,643.3 2,331.8 2,727.5 2,400.2
million
1005 Maize '000 2,186.5 4,764.0 7,622.4 8,444.8 7,725.5 .. 11,447.7
tonnes
USD 672.7 1,216.0 1,650.9 1,672.4 1,503.9 2,108.1 2,313.0
million
2304 Oil-cake and '000 3,094.1 3,141.1 3,316.9 4,465.1 4,342.1 4,457.6 4,689.3
other solid tonnes
residues USD 1,743.3 1,859.8 1,966.1 1,854.7 1,728.2 2,054.2 1,845.2
million
0801 Coconuts, '000 640.0 579.1 892.9 1,039.2 1,298.9 180.8 1,327.4
Brazil nuts and tonnes
cashew nuts USD 601.4 651.5 1,130.1 1,658.7 2,578.1 1,995.4 1,795.1
million
2106 Food '000 .. .. .. .. .. .. ..
preparations, tonnes
not elsewhere USD 388.7 451.0 499.9 532.5 552.9 614.3 836.0
specified million
1001 Wheat and '000 1,816.6 2,075.6 2,328.7 4,743.8 4,663.8 5,417.9 2,760.1
meslin tonnes
USD 619.5 648.8 600.9 1,005.0 994.4 1,177.6 720.3
million
1201 Soya beans '000 1,297.5 1,519.5 1,707.6 1,546.2 1,646.0 1,529.1 1,718.5
tonnes
USD 784.2 873.3 765.0 661.0 707.9 771.1 686.3
million
0102 Live bovine '000 .. .. .. 115.0 96.8 104.3 197.6
animals tonnes
USD 85.2 268.8 453.9 350.1 315.6 349.8 615.1
million
1511 Palm oil and its '000 404.5 508.0 429.4 594.7 602.6 566.4 672.5
fractions tonnes
USD 518.2 559.1 458.7 510.9 568.7 541.5 530.9
million
2309 Preparations '000 222.3 250.3 280.0 372.4 342.1 370.4 368.6
used in animal tonnes
feed USD 366.7 427.1 480.6 540.6 490.1 543.5 526.3
million
.. Not available.
Source: UN Comtrade database.
4.1.2 Agriculture
4.1.2.1 Legal, institutional, and policy framework
4.6. During the review period, the main agricultural policy development was the adoption of various
laws, such as the Laws on Irrigation, Animal Health, Animal Husbandry, and Crop Production, and
relevant regulations.
4.7. The main legislation governing the sector includes: (i) the Law on Irrigation (Law
No. 08/2017/QH14), issued on 19 June 2017 and entered into force on 1 July 2018; (ii) the Law on
Animal Health (Law No. 79/2015/QH13), issued on 19 June 2015 and entered into force on
1 July 2016; (iii) the Law on Animal Husbandry (Law No. 32/2018/QH14), issued on
19 November 2018 and entered into force on 1 January 2020; (iv) the Law on Crop Production (Law
No. 31/2018/QH14), issued on 19 November 2018 and entered into force on 1 January 2020;
(v) Decree No. 57/2018/ND-CP (on incentive policies for enterprises investing in agriculture and the
rural development sector), issued on 17 April 2018; (vi) Decree No. 13/2020/ND-CP, issued on
21 January 2020 (guiding the Law on Animal Husbandry); (vii) Decree No. 107/2017/ND-CP (on
amendments and supplements to Decree No. 193/2013/ND-CP dated 21 November 2013), issued
on 15 September 2017; (viii) Decree No. 40/2017/ND-CP (on management of salt production and
trading), issued on 5 April 2017; (ix) Decision No. 369/QD-BNN-CBTTNS (approving the sugar cane
- 113 -
development project to 2020, and orientation to 2030), issued on 18 April 2018; (x) Decree
No. 83/2018/ND-CP (on agricultural extension), issued on 24 May 2018; (xi) the Law on Plant
Protection and Quarantine (Law No. 41/2013/QH13), issued on 25 November 2013; (xii) Decree
No. 107/2018/ND-CP (on rice export trading), issued on 15 August 2018; (xiii) Decree
No. 202/2013/ND-CP (on fertilizer management), issued on 27 November 2013; and (xiv) Decree
No. 62/2019/ND-CP (on amending and supplementing articles of Decree No. 35/2015 on
management and use of rice land), issued on 11 July 2019.
4.8. The Ministry of Agriculture and Rural Development (MARD) has primary responsibility for
agricultural policy, including preparing draft legislation, implementing the legislation, supporting
production, and regulating inputs and outputs. It is also responsible for fisheries and other
subsectors. Its structure is set out in Decree No. 15/2017/ND-CP (defining the functions, tasks, and
organizational structure), issued on 17 February 2017. Under the MARD, several agencies are
responsible for the delivery of agricultural services, such as the Centre for Informatics and Statistics,
the National Centre for Agriculture and Fisheries Extension, and the National Centre for Rural Water
Supply and Environmental Sanitation. Other ministries responsible for some aspects of agricultural
policy include the Ministry of Natural Resources and Environment (MNRE) (responsible for land use),
the Ministry of Industry and Trade (MOIT) (responsible for food distribution and trade), the Ministry
of Health (responsible for social policies and food security), and the Ministry of Finance (MOF)
(responsible for fiscal policy, including support to agriculture). In addition, the People's Committees
are responsible for some aspects of agricultural policy in the provinces.
4.9. The private sector is represented by the Vietnam Food Association (VFA) for enterprises
engaged in trade and processing agricultural products, and the Viet Nam Farmers' Union, with some
sector-specific associations also representing producers. Agricultural exporters are not obliged to
join the VFA.
4.10. State-owned enterprises (SOEs) play a critical, though declining, role in the production,
processing, and trade of agricultural products. Examples include the following:
• Viet Nam Northern Food Corporation (Vinafood1) and the Viet Nam Southern Food
Corporation (Vinafood2), which purchase, process, import, and export food and salt
products. About 15% of Viet Nam's rice is exported by these two corporations since 2019.
• Viet Nam National Coffee Corporation (Vinacafe) which, through its subsidiaries, member
companies, and associated companies, has interests in all stages of the coffee production
chain. The Corporation's interests in production are mostly limited to research into coffee
production, and it assists producers by providing seeds and advice.
• Viet Nam Rubber Corporation, which is the largest natural rubber company in Viet Nam.
• Viet Nam National Tea Corporation (Vinatea), which is involved in all stages of tea
production, processing, and marketing, and in research and providing extension services.
4.11. During the review period, the authorities focused on the restructuring of SOEs to promote
equitization and divestment of investment capital to achieve efficiency of state capital. According to
the authorities, 18 SOEs were corporatized by the end of 2017.
4.1.2.2 Border measures
4.12. The simple average applied MFN tariff on agricultural products (WTO definition) was 18.1%
in 2020, higher than the overall average of 11.9%. Among agricultural products, Viet Nam has tariff
quotas on eggs, sugar cane, and tobacco. The most recent notification on imports under tariff quotas
for 2019 shows no imports of eggs under the tariff quota; about one quarter of the sugar quota was
used, and about two thirds of the tobacco quota.4 In addition, Viet Nam has quotas for preferential
imports of rice, paddy, and unmanufactured tobacco from Cambodia and the Lao People's
Democratic Republic (Section 3.1.3).
4
WTO document G/AG/N/VNM/12, 12 May 2020.
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4.13. As a measure related to the COVID-19 pandemic, rice (HS 1006) was made subject to an
export quota between 10 April 2020 and 30 April 2020, inclusive.5 According to the authorities, rice
is an essential foodstuff, and the authorities adopted the quota to ensure domestic supply of rice for
national food security. The quota was 400,000 tonnes for export in April 2020, and it was allocated
on a first-come, first-served basis.
4.14. Export prohibitions/restrictions are applied, inter alia, to certain precious and rare,
endangered, or wild animals and plants in accordance with the international agreements to which
Viet Nam is party (Section 3.2.3).
4.15. The authorities state that Viet Nam has not provided any export subsidies on agricultural
products since its accession.
4.16. The authorities state that Viet Nam does not impose any price controls on agricultural
products. Decree No. 107/2018/ND-CP (on rice export trading), issued on 15 August 2018, removed
regulations on the criteria for the registration of rice export contracts and regulations on minimum
export prices.6 In addition, MOF Circular No. 17/2020/TT-BTC, issued on 27 March 2020, abolished
Circular No. 89/2011/TT-BTC, which stipulated guidelines to determine the floor price for rice
exports.
4.17. Under Decree No. 107/2018/ND-CP, rice exporters require a certificate from the MOIT. They
must stock at least 5% of the amount of rice they exported in the previous six months; rice exporters
must also organize, under the direction of the competent state agency, a rice distribution system to
which they must supply the rice reserve.
4.1.2.3 Domestic support
4.18. According to the latest notification to the WTO concerning domestic support for agriculture,
among programmes notified as exempt from reduction commitments under Annex 2 to the
Agreement on Agriculture (Green Box) (VND 33.3 trillion in 2013), most support was continued to
be accorded for infrastructure, regional assistance, and relief from natural disasters.7 The Total
Aggregate Measurement of Support in 2013 was VND 20.5 trillion; at the time of its accession to the
WTO, Viet Nam bound its Total Aggregate Measurement of Support at VND 3,961.6 billion.
4.19. The general objectives for agricultural development are set out in the Master Plan of
Production Development of Agriculture to 2020, Vision to 2030. The Plan was approved by
Prime Minister's Decision No. 124/QD-TTg, issued on 2 February 2012. In it, objectives for
agricultural development are to: develop modern, sustainable, and comprehensive agriculture by
promoting comparative advantages; apply science and technology to increase productivity, quality,
efficiency, and high competitiveness, and to ensure national food security, in both the short and long
terms, while meeting diverse domestic and export demands; and improve the efficiency of land,
water, labour, and capital use. It was also approved by Resolution No. 63/NQ-CP, issued on
23 December 2009. In this Resolution, objectives for Agricultural Development by 2020, Vision to
2030, are to: ensure enough food supplies with an output higher than the population growth rate;
end food shortages and improve the quality of meals; and ensure that rice farmers have an average
profit of over 30% compared with production costs.
4.20. On 10 June 2013, Prime Minister's Decision No. 899/QD-TTg (approving the project titled
"Restructuring the agricultural industry towards increasing added value and sustainable
development") was issued. The Decision aims to, inter alia: (i) raise productivity, quality, and value-
added in agriculture, with a target of achieving value-added growth in agriculture by 2.6% to 3.0%
during 2011-15, and by 3.5% to 4.0% during 2016-20; (ii) raise the income and improve the living
standards of rural residents, ensure food security, and contribute to the reduction of poverty, with
a target of, inter alia, achieving, by 2020, an increase in rural household income to 2.5 times that
of 2008; and (iii) enhance natural resource management, reduce greenhouse gas emissions and
negative impacts on the environment, utilize environmental benefits, raise capacity for risk
management, and enhance disaster preparedness. On 19 December 2013, Decree
5
WTO document G/AG/N/VNM/13, 4 August 2020.
6
Decree No. 107/2018/ND-CP replaced and repealed Decree No. 109/2010/ND-CP on rice export
businesses.
7
WTO document G/AG/N/VNM/6, 23 June 2016.
- 115 -
No. 210/2013/ND-CP (on policies to encourage enterprises to invest in agriculture and rural areas)
was issued. The main measures include support for training human resources, market development,
the application of science and technology in the investment of cattle and poultry slaughterhouses,
and the planting of medicinal herbs and macadamia trees.
4.21. On 9 April 2015, Prime Minister's Decision No. 458/QD-TTg (issuing the plan for implementing
Central Executive Committee Resolution of the Political Ministers No. 97-KL/TW (on some policies
and solutions to continue the implementation of Central Resolution 7 of the Central Party Committee
(term X) on agriculture and countryside) of 15 May 2014) was issued. Subsequently, the MARD
issued Decision No. 1777/QD-BNN-KH on 18 May 2015 (the Action Plan of the MARD implementing
Prime Minister's Decision No. 458/QD-TTg). Accordingly, the MARD was assigned to develop plans
for specific tasks, and to organize the effective implementation, inspection, and supervision of
Central Resolution 7. Some main tasks include: (i) updating and promoting the Resolution (according
to Conclusion 97-KL/TW and Prime Minister's Decision No. 458/QD-TTg); (ii) reviewing, adjusting,
and improving the quality of planning; (iii) promoting agricultural and rural industrialization and
modernization in association with agricultural restructuring and rural economic restructuring; (iv)
stepping up the rehabilitation of rural areas; (v) renovating production enterprises, focusing on the
development of suitable and effective forms of agricultural, forestry, and fishery production; (vi)
promoting the research, transfer, and application of advanced science and technology in the
production, preservation, and processing of agricultural, forestry, and fishery products; (vii)
updating and improving the quality of vocational training for rural labourers; (viii) renewing
mechanisms and policies, and mobilizing resources; and (ix) improving the capacity of agricultural
management. The authorities state that the MARD adopted policies to, inter alia: achieve simplicity,
accessibility, and non-discrimination; and review inspection procedures for imports and exports.
They also note that several domestic businesses and corporations have played an important role in
recent years in the process of restructuring the sector, through researching, investing, and applying
high-tech solutions to the production of agriculture products on a large scale. Between 2014 and
2017, the MARD made seven new subsector development plans and 17 plans to restructure the
agriculture and rural development sector.
4.22. With a view to encouraging and reducing agricultural production costs, VAT has not been
imposed on fertilizers since 1 January 2015, in accordance with the provisions of the Law on
Amendments to Tax Laws (Law No. 71/2014/QH13, issued on 26 November 2014).
4.23. The state-owned Viet Nam National Chemical Group (Vinachem) and PetroVietnam Fertilizer
and Chemicals Corporation are the biggest fertilizer producers in the country. According to the
authorities, gas is supplied to the fertilizer plants on the basis of market prices.
4.24. Rice is on the list of goods and services subject to price stabilization, in accordance with the
Law on Prices. It is also on the list of national reserve goods under the Law on the National Reserve.
Thus, the State may use it in times of national emergencies or natural disasters, in the interests of
national defence and security. The purchase or sale of national reserve goods is one of the measures
the Government may use to stabilize prices. According to the authorities, however, in recent years,
the Government has not used the national reserve to stabilize rice prices. Both the import and export
of rice are carried out according to the plan assigned at the beginning of each year to maintain the
national reserve. The authorities state that Viet Nam does not have a price subsidy policy for rice,
and the rice price follows the market price. If necessary, the State may use price stabilization
measures, including purchasing, setting the maximum or minimum prices, or selling national reserve
goods to balance supply and demand for rice.
4.25. The authorities state that Viet Nam does not use price controls on any agricultural products;
there are no state trading requirements on any agricultural products.
4.1.3 Fisheries
4.1.3.1 Features
4.26. Fisheries remain an important part of the economy, representing 2.3% of merchandise
exports in 2019 (down from 3.8% in 2013). In 2018, the fishery catch amounted to 3,590 tonnes,
an increase of 6% compared with 2017.
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4.1.3.2 Trade
4.27. During the review period, Viet Nam had a trade surplus in fisheries products.8 The main
exports included frozen shrimp and prawns, and frozen fillets of catfish. The main imports included
frozen shrimp and prawns, and flours, meals, and pellets of fish or crustaceans, molluscs, or other
aquatic invertebrates (Table 4.3).
Table 4.3 Exports and imports of fishery products, 2013-19

HS 2013 2014 2015 2016 2017 2018 2019
2002
Exports
Total USD 6,899.8 8,045.5 6,777.0 7,343.1 8,584.3 8,913.1 8,681.2
million
030617 Shrimp & prawns, '000 252.2 284.2 184.6 223.1 245.6 196.6 235.7
frozen tonnes
USD 1,988.9 2,481.8 1,731.4 1,820.3 2,204.6 1,973.1 1,961.7
million
030462 Frozen fillets of '000 577.1 541.6 520.8 516.0 450.1 546.1 545.6
catfish tonnes
USD 1,973.7 1,721.3 1,584.2 1,610.0 1,422.5 1,530.2 1,571.0
million
160529 Shrimp & prawns, '000 73.3 78.3 40.8 48.6 32.2 39.0 63.4
prepared/preserved, tonnes
in airtight USD 984.9 927.0 402.5 548.8 392.8 478.6 734.8
containers million
030499 Fish fillets & other '000 77.0 91.5 89.1 102.1 123.0 164.2 118.3
fish meat, n.e.s. tonnes
USD 302.5 346.5 355.8 349.8 374.5 473.9 459.2
million
160521 Shrimps & prawns, '000 63.4 78.2 61.5 71.3 59.2 38.1 32.5
prepared/preserved, tonnes
not in airtight USD 589.1 791.8 709.5 733.9 656.5 435.0 356.8
containers million
030487 Frozen fillets of '000 13.2 15.9 18.3 19.8 20.7 23.3 34.2
tuna, skipjack or tonnes
stripe-bellied bonito USD 127.9 175.8 187.5 199.3 231.2 274.7 328.6
million
160414 Tuna, skipjack and '000 63.4 78.2 61.5 71.3 59.2 38.1 32.5
Atlantic bonito, tonnes
prepared/preserved USD 589.1 791.8 709.5 733.9 656.5 435.0 356.8
million
Imports
Total USD 913.5 1,287.6 1,295.6 1,360.7 1,755.3 1,848.1 1,875.9
million
030617 Shrimp & prawns, '000 24.4 48.7 37.1 37.2 46.2 40.8 29.8
frozen tonnes
USD 201.7 436.5 385.6 331.7 430.1 387.5 220.9
million
230120 Flours, meals & '000 109.0 105.3 112.9 119.7 160.8 145.5 129.5
pellets of fish or tonnes
crustaceans, USD 146.4 169.9 174.1 182.4 233.0 228.5 194.0
molluscs or other million
aquatic
invertebrates
030342 Yellowfin tuna, '000 23.2 28.4 39.2 49.0 55.6 43.3 64.3
frozen tonnes
USD 63.7 85.4 100.7 108.2 146.1 118.9 166.3
million
030743 Cuttlefish and '000 .. .. .. .. .. 17.9 97.0
squid, frozen tonnes
USD 19.3 26.1 33.8 26.0 47.2 27.9 131.9
million
030354 Mackerel, frozen '000 .. .. 38.0 60.8 82.7 54.7 71.1
tonnes
USD 24.8 32.7 49.3 47.3 68.8 89.5 131.5
million
.. Not available.
Source: UN Comtrade database.
8
For the purposes of this Review, fish products are defined as HS02 Headings 0208.40, 03, 0511.91,
1504, 1603, 1604, 1605, and 2301.20.
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4.1.3.3 Policies
4.28. The principal pieces of legislation on fisheries are the Law on Fisheries (Law
No. 18/2017/QH14), issued on 21 November 20179, and Decree No. 26/2019/ND-CP (detailing a
number of articles and measures for the implementation of the Law on Fisheries), issued on
8 March 2019, which repealed a number of earlier decrees on fisheries.10 The provisions of the Law
include: (i) planning regarding the protection and exploitation of aquatic resources, and the
establishment of protected marine areas; (ii) the import and export of aquatic breeds; (iii) the
breeding, raising, artificial propagation, import, and export of aquatic species prescribed in the
appendices to the CITES; (iv) the management of fishing vessels and their capture; and (v) the
combat of illegal, unreported, and unregulated (IUU) fishing. The Law introduced policies to:
promote the investment by enterprises in the infrastructure of aquaculture and fish seed production;
support fishermen and offshore fishing activities; and encourage investment in the construction,
trading, and management of aquatic product markets. The Law introduced sanctions against IUU
fishing. It also established a system for the Government to grant management rights to community
organizations regarding the protection of aquatic resources. Under the Law, foreign commercial
fishing vessels may only enter the fishing port specified in the commercial fishing licence or the
fishing ports approved by the MARD.11 According to the authorities, compared with the previous
regime under the 2003 Law on Fisheries, the new Law, inter alia: (i) covers fishing activities
undertaken by Vietnamese enterprises and individuals outside Viet Nam's maritime boundary; (ii)
establishes quotas for fishing licences; (iii) requires fishing boats to be at least 15 metres long to be
granted licence to operate in the offshore area; and (iv) details IUU fishing activities and stipulates
strict punishments compared with administrative penalties for violations in other fields. Decree
No. 26/2019/ND-CP, issued on 8 March 2019 (on guidelines for implementation of the Law on
Fisheries), details certain clauses of the Law on Fisheries, and measures to implement the Law.
4.29. The MARD is responsible for fisheries policies, the development of draft legislation, and the
implementation of existing legislation. Within the Ministry, the Directorate of Fisheries is responsible
for advising the Minister on policy development and the implementation of established policies and
laws. Another institution under the Directorate is the Viet Nam Institute of Fisheries Economics and
Planning, which, inter alia, studies the economics, mechanisms, and policies and plans for fisheries
development. Non-governmental institutions established to support the fisheries sector include the
Viet Nam Association of Seafood Exporters and Producers, the Viet Nam Fishery Society, the
Viet Nam Pangasius Association, the Viet Nam Sea Culture Association, and the Viet Nam Tuna
Association.
4.30. The fisheries policy is included in the Master Plan on Fisheries Development through 2020,
Vision to 2030 (Prime Minister's Decision No. 1445/QD-TTg issued on 16 August 2013). The Plan
sets objectives for turning fisheries into a highly competitive, large community production sector.
Its targets for 2020 included a seafood export value of around USD 11 billion, with an annual average
growth rate of 7%-8% between 2011 and 2020; for 2030, its targets include a seafood export value
of USD 20 billion, with an annual average growth rate of 6%-7% between 2020 and 2030.
4.31. In accordance with the Law on Fisheries, Viet Nam took concrete steps in the fight against
IUU fishing.12 A national committee was established in May 2019 to coordinate efforts by central
agencies and local authorities to combat IUU fishing. Coastal towns and provinces established their
own anti-IUU units to supervise fishing activities. Fishing boats using seaports must file reports on
their cargoes, origin of product, and ships' logs. The authorities state that Viet Nam is improving its
legal framework, and trackers are installed on boats to monitor seafood product origin and enforce
maritime law. According to the authorities, the Law and a number of government decisions and
guidelines allow agencies and localities to combat IUU effectively. Viet Nam also established
9
FAO, FAOLEX Database: Viet Nam. Viewed at: http://www.fao.org/faolex/results/details/en/c/LEX-
FAOC171855.
10
These include: Decrees No. 27/2005/ND-CP, 8 March 2005; No. 59/2005/ND-CP, 4 May 2005;
No. 14/2009/ND-CP, 13 February 2009; No. 32/2010/ND-CP, 30 March 2010; No. 33/2010/ND-CP, 31 March
2010; No. 52/2010/ND-CP, 17 May 2010; No. 53/2012/ND-CP, 20 June 2012; No. 66/2005/ND-CP, 19 May
2005; No. 80/2012/ND-CP, 8 October 2012; No. 102/2012/ND-CP, 29 November 2012; No. 57/2008/ND-CP,
2 May 2008; and No. 55/2017/ND-CP, 9 May 2017.
11
FAO, FAOLEX Database, Viet Nam. Viewed at: http://www.fao.org/faolex/results/details/en/c/LEX-
FAOC171855.
12
MARD, VN Adopts EU Recommendations to Combat IUU Fishing. Viewed at:
https://www.mard.gov.vn/en/Pages/vn-adopts-eu-recommendations-to-combat-iuu-fishing.aspx.
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communications channels with neighbouring countries to spot and address IUU violations. MARD
Decision No. 1481/QD-BNN-TCTS, issued on 2 May 2019, established quotas for fishing licences. It
divided the fishing grounds into three zones: coastal, inland, and offshore. The size of the fishing
boats is clarified solely for fishing operations in each zone; for example, boats over 15 metres in
length in the offshore zone, 12-15 metres in the inland zone, and less than 12 metres in the coastal
zone.
4.32. Under the Law on Severance Tax (Royalties), natural aquatic products are subject to royalties
of 2% of the sale price, except for abalone, sea cucumbers, and pearls for which the royalties are
10%.13
4.33. Aquatic food to be exported must comply with the Law on Food Safety and its guiding
documents, including MARD circulars detailing the safety management of exported aquatic food:
Circulars No. 48 /2013/TT-BNNPTNT (providing regulations on inspection and certification of aquatic
food for export), issued on 12 November 2013; No. 02/2017/TT-BNNPTNT (amending and
supplementing a number of articles in Circular No. 48/2013/TT-BNNPTNT), issued on
13 February 2017; and No. 16/2018/TT-BNNPTNT (amending and supplementing a number of
articles of Circulars No. 48/2013/TT-BNNPTNT and No. 02/2017/TT-BNNPTNT), issued on
29 October 2018.
4.34. As notified to the WTO, the Fisheries Development Policies provide support measures to the
sector, such as credits for new vessels, subsidized accident insurance, and tax exemptions between
2015 and 2018.14 The Policies are based on, inter alia, Decree No. 67/2014/ND-CP, issued on
7 July 2014, and its amendments. The objectives of the Policies include: (i) upgrading and building
fishing ports, fishing vessel shelters, and other infrastructure and facilities, so as to improve the
management, monitoring, supervision, and inspection of fishing activities; (ii) upgrading and
modernizing artisanal and small fishing vessels, and converting from wooden to steel vessels to
increase safety and minimize risks for people participating in fishing activities; (iii) promoting
poverty alleviation; (iv) maintaining and developing traditional fisheries in a sustainable manner;
(v) training and raising awareness; and (vi) supporting the conversion of fishing gear, to eliminate
the use of destructive gear. Several support programmes were, or are being, implemented to support
the fisheries sector15, including:
• An insurance system for people participating in fishing activities and for fishing vessels
operating at sea, in accordance with Decree No. 67/2014/ND-CP;
• Tax and fee exemptions: no registration fee imposed on fishing vessels, to encourage
fishing vessel registration; exemption from personal income tax for individuals and
households that operate substantive fishing, etc.; exemption from import duties on
machinery, equipment, materials, and components that are not produced locally, in
order to build or upgrade vessels to reduce the number of small fishing vessels.
4.35. Viet Nam is a member of several international and regional intergovernmental organizations
involved in fisheries and aquaculture, including the Food and Agriculture Organization (FAO) and the
Asia-Pacific Fishery Commission, which is an FAO Article XIV Regional Fisheries Body. Viet Nam is
also a member of the Southeast Asian Fisheries Development Center, the Network of Aquaculture
Centres in Asia-Pacific, and the Mekong River Commission. It is also a cooperating non-member of
the Western and Central Pacific Fisheries Commission to improve the monitoring and management
of the tuna catches in Viet Nam and to contribute to reducing IUU fishing.
13
Standing Committee of Parliament Resolution No. 712/2013/UBTVQH, issued on 16 December 2013.
14
WTO documents G/SCM/N/284/VNM and G/SCM/N/315/VNM, 28 February 2020; and
15
OECD, OECD.Stat, Fisheries Support Estimate. Viewed at:
https://stats.oecd.org/Index.aspx?datasetcode=FISH_FSE#.
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4.2 Mining and Energy
4.2.1 Mining
4.36. Viet Nam has diverse mineral resources throughout the country.16 In 2019, it was a major
producer of bismuth17, tungsten (5.6% of world production), fluorspar (3.4%), cement (2.3%), and
tin (1.5%).18 It is the second largest producer of tungsten in the world, and it holds some of the
world's largest reserves of bauxite and alumina (12.3%) and rare earths (18.3%), as well as
significant deposits of titanium mineral concentrates (ilmenite), iron ore, chromite, and copper.19
4.37. The mining sector is heavily concentrated around coal production, which is mostly oriented
towards the domestic market for energy production.20 In the coal-mining subsector, two SOEs, i.e.
the Viet Nam National Coal-Mineral Industries Holding Corporation Limited (Vinacomin) and the
Dong Bac Corporation (DBC), account for around 90% of national production. 21 Besides these SOEs,
several private enterprises exploit some small mines, and one foreign enterprise (Vietmindo)
participates in Dong Vong-Uong Thuong coal mine under a contract running until end-2020. Until
2013, Viet Nam was a net exporter of coal, and exports represented 28% of national production in
that year. Coal exports reduced substantially during the review period and Viet Nam became a net
importer of coal in 2019.22 Planned coal consumption in early 2020 was 58.1 million tonnes.
4.38. Since 2013, Viet Nam started exploiting rare earth mines in the northern provinces of Lai
Chau, Lao Cai, and Yen Bai. It is reported that the country has proven reserves for 11 million tonnes
of rare earth elements (the third-largest reserves worldwide).23 Current annual production is
estimated at around 900 tonnes.
4.39. In 2019, mining and quarrying (including mineral fuels) accounted for 7.5% of GDP and 0.4%
of total employment. In the same year, mineral exports (HS Chapters 25-27) represented 2.1%
(8.2% in 2013) of total merchandise exports. The sector underwent negative growth for the third
consecutive year in 2018 (-3.11%), a decline mainly driven by the decrease in the price of crude oil.
Sectoral labour productivity is the highest in the country, corresponding to almost 18 times the level
in the rest of the economy.24 All mines belong to the State and to its enterprises conducting natural
resource exploitation.
4.40. The 2010 Mineral Law25 regulates the sector.26 It was amended by Law No. 35/2018/QH14
(amendment and addition to a number of articles of 37 laws relating to planning), issued on
20 November 2018 and entered into force on 1 January 2019. The amendments concern aspects
related to the preparation, adjustment, and approval of plans on the exploration, extraction,
processing, and use of minerals, including of restricted minerals. In 2011, Viet Nam adopted the
Mineral Resources Strategy to 2020, Vision to 2030, and an action plan for the strategic orientation
16
Minerals include antimony, barite, bauxite, bismuth, chromite, coal, copper, fluorspar, nickel, rare
earths, silica sand, silver, tin, titanium, tungsten, zinc, and zircon. US Department of Interior, US Geological
Survey (2018). Viewed at: https://s3-us-west-2.amazonaws.com/prd-
wret/assets/palladium/production/mineral-pubs/mcs/mcs2018.pdf.
17
Recent official data for the Vietnamese production of bismuth are not available.
18
US Department of Interior, US Geological Survey (2020), Mineral Commodity Summaries. Viewed at:
https://pubs.usgs.gov/periodicals/mcs2020/mcs2020.pdf.
19
US Department of Interior, US Geological Survey (2020), Mineral Commodity Summaries. Viewed at:
https://pubs.usgs.gov/periodicals/mcs2020/mcs2020.pdf.
20
Given the rise in electricity demand in recent years and related forecasts for the coming years, mining
remains a key sector for sustained economic growth.
21
Six open-cut and 13 underground mines exploit coal. In 2019, Vinacomin and the DBC produced
45.6 million tonnes and 10.9 million tonnes of coal, respectively.
22
Coal exports gradually decreased from 12 million tonnes in 2013 to slightly more than 1 million
tonnes in 2019. In parallel, coal imports surged (+1,508%) between 2013 and 2019. During the same period,
the average MFN tariff rate on coal (HS Heading 2701) increased from 0% to 2%.
23
Hanoi Times, "Vietnam May Compete with China in Rare Earth Export", 3 June 2019. Viewed at:
www.hanoitimes.vn/vietnam-may-compete-with-china-in-rare-earth-export-846.html.
24
This significant difference in labour productivity is related to the high capital intensity of the industry.
25
Issued on 17 November 2010 and entered into force on 1 July 2011.
26
The Mineral Law protects unexploited minerals, and regulates geological surveys of mineral resources,
mineral exploration and mining, and the management of minerals nationwide.
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of mineral resources and their exploitation.27 The Strategy provides for, inter alia: (i) non-renewable
mineral resources to be managed, protected, exploited, and used rationally; (ii) the survey and
evaluation of mineral resources to be implemented in advance, to permit efficient planning;
(iii) exploration and mining to be associated with the potential for the processing and use of each
type of mineral, in light of the needs of all economic sectors; (iv) only processed products with high
economic value to be exported for large-scale deposits of minerals; and (v) international cooperation
to be utilized to access scientific knowledge and environmentally friendly technologies. The
authorities state that results achieved by the Strategy include: geological and mineral mapping in
land and marine areas; the assessment of mineral reserves of titanium, bauxite, and other minerals;
the exploration and survey of new resources; the management and control of mineral activities; and
the protection of rights and local interests by local authorities.
4.41. The MNRE oversees the mining sector, and coordinates with other ministries in line with the
Strategy. People's Committees at all local levels also oversee mining activities within their
jurisdictions. All mining projects must be submitted for approval to the Appraisal Council, consisting
of the MOIT, the Ministry of Construction, and the relevant provincial or municipal People's
Committee.28 Projects involving advanced and environmentally friendly techniques are strongly
encouraged; ordinary projects are given consideration depending on the characteristics and the need
for the exploitation. All mining, oil, and gas projects require the Prime Minister's approval, regardless
of capital source or size.29
4.42. Reconnaissance surveying activities are organized by the MNRE on the basis of a surveying
plan. Private investors can contribute capital for reconnaissance activities, except for projects related
to uranium and thorium. As regards exploration and exploitation, the acquisition of a licence requires
commitments on the part of the licence holder: at least 50% equity in the total proposed capital
investment for the implementation of an exploration project, and at least 30% of the total
investment capital for a mining project. A fee applies to each licence, and rates are based on the
quality and type of minerals to be mined, the mining conditions, reserves, and the value of the
property. The maximum term of exploration licences is 48 months. A mining licence whose initial
term is 30 years can be extended for another 20 years.
4.43. According to the authorities, the Government promoted the restructuring of Vinacomin and
the DBC with the aim of achieving higher efficiency. Prime Minister's Decision No. 2006/QD-TTg,
issued on 12 December 2017, approved the restructuring scheme for Vinacomin over the period
2017-20.30 Decisions of the Minister of Defence No. 1894/QD-BQP on the Restructuring Plan for
Dong Bac Corporation to 2015, issued on 27 May 2014, and No. 5917/QD-BQP on the Plan for
Restructuring, Renewing and Improving the Operational Efficiency of Dong Bac Corporation to 2020,
issued on 29 December 2017, approved similar plans for the DBC. In addition to organizational
restructuring, the Decisions prescribed the equitization of subsidiaries and the transfer of shares in
associated companies operating ineffectively.31 The DBC reduced its participation in three associated
companies and equitized two subsidiaries in recent years.
4.44. The Master Plan for the Development of Coal Industry to 2020, Vision to 2030, was revised
by Prime Minister's Decision No. 403/QD-TTg (on approval and adjustment of the Master Plan for
the Development of Coal Industry to 2020, Vision to 2030) on 14 March 2016. The revision aims at
ensuring national energy security, prioritizing domestic demand, and incrementally reducing coal
27
Coal, uranium, metals, non-metals, construction materials, natural thermal water, mineral water, oil,
and gas are the products prioritized by the Strategy. Politburo Resolution No. 02-NQ/TW (on strategic
orientation on minerals and mining industry to 2020, Vision to 2030), issued on 25 April 2011; Prime Minister's
Decision No. 2427/QD-TTg (approving the Mineral Strategy to 2020, Vision to 2030), issued on 22 December
2011; and Resolution No. 103/NQ-CP (on the action plan to implement Resolution No. 02-NQ/TW), issued on
22 December 2011.
28
Prime Minister's Directive No. 03/CT-TTg (on strengthening mineral policies and laws), issued on
30 March 2015.
29
Appendix 4 to the 2014 Investment Law (No. 67/2014/QH13), issued on 26 November 2014 and
entered into force on 1 July 2015.
30
Due to difficulties in establishing the enterprise valuation, Vinacomin foresees a completion of this
step for its equitization by 2022. In the meantime, Vinacomin was transferred under the responsibility of the
Commission for the Management of State Capital in Enterprises.
31
Vinacomin has more than 50 subsidiaries operating in the form of independent accounting units,
foreign subsidiaries, one-member limited liability companies, and joint-stock companies. Vinacomin,
Introduction, Subsidiaries. Viewed at: http://www.vinacomin.vn/introduction/subsidiaries-
201507151618348546.htm.
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exports32 through management plans and other regulatory measures in line with state management
and international commitments. It calls for further exploration of coal resources to ensure reliable
resources for the sustainable development of the coal industry; an increase in outward investment
and trading, with the objective of supplying coal domestically; the establishment of sustainable coal
production in line with long-term domestic demands; and the diversification of modes of coal
investment and trading.
4.45. MOF Circular No. 152/2015/TT-BTC (guidance on natural resources tax), issued on
2 October 2015, guides the implementation of the 2009 Law on Severance Taxes (Royalties)33,
notably by defining products subject to royalties, taxpayers, tax bases, taxable resource output, and
reference price.34 Royalty rates were adjusted under National Assembly Standing Committee
Resolution No. 1084/2015/UBTVQH13 (issuing the natural resources tax rate schedule), issued on
10 December 2015. Royalty rates range between 1% and 35%, and the adjustment led to an
average increase of about 4% for metallic and non-metallic minerals with respect to rates in National
Assembly Standing Committee Resolution No. 928/2010/UBTVQH12 (issuing the natural resources
tax rate schedule), issued on 19 April 2010. Royalties are levied at the same rate on both exported
and domestically consumed products; no information on the amount collected in royalties on mineral
output was available.
4.46. Enterprises operating in mining, including oil and gas exploration and exploitation, are subject
to a higher corporate income tax (standard rate of 20% for other sectors), ranging between 32%
and 50% depending on the location, mining conditions, and mining reserves. Exports of mineral
products are subject to an export tax of between 0% and 40% 35, while export taxes on oil and gas
products range between 0% and 10%. Minerals to be exported must be on the list of minerals eligible
for export.36 Exporters of minerals containing thorium or uranium equal to or greater than 0.05%
by weight must obtain an export permit for radioactive material from the Ministry of Science and
Technology. Technical specifications apply to exports of construction and building materials, such as
natural sand, granite, slate, marble, building stone, curb stones, limestone, quartz, gravel, and
crushed stone.37 MOF Official Letter No. 7406/TCHQ-GSQL, issued on 10 November 2017, imposed
an export ban on silica white sand. The Government holds the exclusive right to produce gold bullion,
and to import and export gold material.38 No other production or export restriction on minerals is
applied. Various types of minerals are VAT-free.39
4.47. Since 2013, 21 projects have attracted USD 1.65 billion of foreign direct investment (FDI).
However, the mining sector faces challenges attracting foreign investors. Roughly 1% of all FDI
between 2013 and 2020 was directed to the sector.
4.48. Between 2013 and 2020, average applied MFN tariff protection for ores, slag, and ash
(HS Chapter 26) declined from 3.6% to 3.4%, due to the splitting of two tariff lines. Regarding salt,
32
Only types of coal not in demand in the country should be exported.
33
Law No. 45/2009/QH12, issued on 25 November 2009 and entered into force on 1 July 2010, as
amended by Law No. 71/2014/QH13 (amendments and additions to a number of articles in tax laws), issued
on 26 November 2014 and entered into force on 1 January 2015.
34
This Circular also defines exemptions for specific taxpayers (e.g. households using water for domestic
use) and circumstances allowing a reduction in royalties (e.g. fire or natural disaster causing damage to the
declared resource). The taxable price for crude oil, natural gas, and coal gas is set according to Decree
No. 50/2010/ND-CP (detailing and guiding the implementation of a number of articles of the 2009 Law on
Severance Taxes), issued on 14 May 2010, as amended by Decree No. 12/2015/ND-CP (guiding the
implementation of a number of articles in Law No. 71/2014/QH13), issued on 12 February 2015.
35
Mineral ores and concentrates (e.g. iron, manganese, lead, tin, chromium, tungsten), metal scraps
(e.g. copper, nickel, aluminium, lead, zinc), and various kinds of monumental or building stones are subject to
export taxes.
36
MOIT Circular No. 41/2012/TT-BCT (on mineral exports), issued on 20 December 2012, as amended
by MOIT Circular No. 12/2016/TT-BCT (amendment to a number of articles in MOIT Circular No. 41/2012/TT-
BCT), issued on 5 July 2016.
37
Ministry of Construction Circular No. 05/2018/TT–BXD (guiding exports of minerals used as building
materials), issued on 29 June 2018, as amended by Ministry of Construction Circular No. 05/2019/TT–BXD
(amendments and additions to Appendix to Circular No. 05/2018/TT–BXD), issued on 10 October 2019.
38
Gold material is defined as gold bullions, bars, grains, pieces and other forms. Decree
No. 24/2012/ND-CP (on management of gold business activities), issued on 3 April 2012.
39
Exported products from natural resources and minerals, without further processing or directly
processed, with a total value (plus energy cost) of 51% or more of the prime cost, are non-taxable. For other
cases, VAT is 0%.
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sulphur, earths and stones, lime, and cement (HS Chapter 25), the average applied MFN tariff
increased from 5.0% to 5.9% during the same period, 40 while the average applied MFN tariff on
mineral fuels and oils obtained from bituminous substances and on mineral waxes (HS Chapter 27)
increased from 4.5% to 7.1%.
4.2.2 Energy
4.49. The future growth of the economy is directly related to its capacity to satisfy its continuously
growing demand for energy. Energy consumption is forecast to grow at an average annual rate of
3% between 2020 and 2029.41 Power shortages remain a challenge for the development of the
country, and the supply of hydroelectric generation is at its lowest level due to a severe heatwave
and scanty rainfall in 2019.42 Viet Nam imports power from China and the Lao People's Democratic
Republic43, as well as coal and fuel for energy production. It now prioritizes coal and gas resources
for domestic energy generation. In the medium term, it is expected that the country will remain a
net importer of coal, while imports of oil and natural gas will rise. 44 In 2017, 36.1% of domestic
energy production came from coal, with oil (25.3%), natural gas (10.0%), hydropower (9.8%), and
biofuels and waste (18.8%) supplying the remainder.45 In 2017, final energy consumption was:
30.8% petroleum products, 23.2% electricity, 23.1% coal, 1.6% gas, and 21.2% biofuels and waste.
In 2018, industry accounted for 55.0% of final energy consumption, and the remainder was absorbed
by transport (19.8%) and residential consumers (18.4%).46 SOEs remain key players in the energy
sector (Sections 4.2.2.1 and 4.2.2.2).
4.50. Viet Nam aims to achieve higher energy efficiency and conservation, in line with the Law on
Energy Saving and Efficiency.47 Prime Minister's Decision No. 280/QD-TTg, issued on
13 March 2019, approved the National Energy Program on Efficiency (VNEEP3) for the period
2019-30, with energy saving targets of 5%-7% for 2025 and 8%-10% for 2030. Prime Minister's
Decision No. 04/2017/QD-TTg, issued on 9 March 2017, updated the list of devices and equipment
subject to energy labelling, the application of the minimum energy-efficiency requirements, and the
relevant implementation roadmap until 2020.48 The VNEEP3 specifies savings potentials for different
industries, such as beverages, plastics, paper, chemicals, and heavy industry products. The
authorities indicate that the VNEEP for the period 2011-15 contributed to savings of 5.65% of the
total energy demand during that period. Similarly, Prime Minister's Directive No. 20/CT-TTg (on
strengthening electricity saving for the period 2020-25), issued on 7 May 2020, seeks to save at
least 2% of the total power consumption annually. In 2019-20, the Government approved
VND 10 billion for the VNEEP3 for policies and communication on economical and efficient use of
energy. Prime Minister's Directive No. 30/CT-TTg, issued on 27 November 2015, urged several
ministries to enhance control on investment projects that intensively use energy and resources and
potentially cause environmental pollution. These ministries were requested to prepare technical
regulations and energy-use norms applicable to each manufacturing industry. Moreover, the National
Action Plan for Green Growth in the period 2014-2049 promoted the reduction of greenhouse gas
40
The averages for HS Chapter 25 exclude out-of-quota rates, as this information was not available for
2013.
41
Economist Intelligence Unit (2020), Energy Report - Vietnam. Viewed at:
http://country.eiu.com/filehandler.ashx?issue_id=520455435&mode=pdf.
42
For instance, the water flow was at its lowest level in 30 years in the Da River Basin. In 2019,
hydroenergy drastically diminished, by around 16.3 billion kWh in comparison to 2018. VN Express, "No Power
Shortages in 2020, PM Orders", 26 December 2019. Viewed at:
https://e.vnexpress.net/news/business/economy/no-power-shortages-in-2020-pm-orders-4033157.html; and
VN Express, "Hydropower Dams Run Out of Water on Lack of Rain", 22 December 2019. Viewed at:
https://e.vnexpress.net/news/news/hydropower-dams-run-out-of-water-on-lack-of-rain-4031062.html.
43
Imports from the Lao People's Democratic Republic started in 2013, and corresponded to slightly
more than 1.2 billion kWh in 2018. Imports from China reduced over the period, from over 5 billion kWh in
2010 to less than 2 billion kWh in 2018.
44
Economist Intelligence Unit (2020), Energy Report - Vietnam. Viewed at:
45
International Energy Agency, Viet Nam. Viewed at: https://www.iea.org/countries/viet-nam.
46
International Energy Agency, Viet Nam. Viewed at: https://www.iea.org/countries/viet-nam.
47
Law on Energy Saving and Efficiency No. 50/2010/QH12, issued on 17 June 2010 and entered into
force on 1 January 2011.
48
The items subject to these requirements are household appliances, office and commercial equipment,
industrial equipment, and means of transport, including passenger cars of nine seats or less, motorbikes, and
mopeds.
49
Approved by Prime Minister's Decision No. 403/QD-TTg, issued on 20 March 2014.
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emissions and the use of clean and renewable sources of energy in a wide range of activities in
agriculture and industry.
4.51. The construction of two nuclear power plants 50 was terminated in 2016, due to lower
projections in electricity demand. Prime Minister's Decision No. 11/2017/QD-TTg (on the mechanism
for the promotion and development of solar-power projects in Viet Nam), issued on 4 April 2017,
established favourable conditions for the development of solar-power projects; Prime Minister's
Decision No. 37/2011/QD-TTg (on the mechanism supporting the development of wind-power
projects in Viet Nam), issued on 29 June 2011, as amended by Prime Minister's Decision
No. 39/2018/QD-TTg, issued on 10 September 2018, does the same for wind-power projects.
Besides tax and import incentives (Section 3.3.1), these Decisions aim to ensure a higher price than
the average retail price for electricity produced by these projects. The authorities note a substantial
uptake of solar- and wind-power projects, mainly by private investors.
4.2.2.1 Electricity
4.52. Some specific segments of the electricity market witnessed a major shift towards increased
competition between service providers during the review period, and power consumption continues
to surge by a 2-digit growth rate on a yearly basis. Viet Nam aims to achieve a balanced development
of its electricity market as a critical element for economic growth. The authorities estimate that the
total investment capital needed to respond to the demand increase is currently about USD 10 billion
per year, and this need will continue increasing up to USD 50 billion to USD 60 billion in 2035.51
4.53. Increases in demand pushed electricity consumption above 200 billion kWh in 2018. The
authorities forecast that it will reach 245 billion kWh in 2020 – 2.1% growth annually – and will
reach about 550-600 billion kWh by 2030. Nearly all communes are connected to the electricity grid,
and more than 98% of rural households have electricity. The Rural Electrification Project, with the
financial support of the Asian Development Bank, aimed to connect 99.9% of the population to the
grid by 2020.52
4.54. In 2018, the electricity generation capacity was 49,410 MW, mainly from coal-fired power
plants and hydropower generation, which accounted for 38% and 34%, respectively. The remainder
of the installed capacity consisted of gas and oil-fired turbines (18.0%), renewable energy (8.0%),
and imports (1.2%). In 2016, the majority of the electricity supply was delivered by hydropower
and coal-fired plants, which accounted for 42.1% and 34.0% of total electricity output, respectively;
these were followed by gas (17.4%) and oil (2.9%). The remaining 3.4% consisted of electricity
imports from China and the Lao People's Democratic Republic.53 In 2016, the industry and
construction sector and the administration and residential sector were the main buyers of electricity,
with a demand share of 54.6% and 33.2%, respectively, in 2016.54
4.55. The current production capacity is not able to cope with the development of the electricity
market. Delays in the construction of thermal power plants, mainly coal-fired ones, and transmission
losses due to an unbalanced distribution of power plants across regions contribute to the mismatch
50
Reuters, "Vietnam Abandons Plan for First Nuclear Power Plants", 22 November 2016. Viewed at:
https://www.reuters.com/article/us-vietnam-politics-nuclearpower-idUSKBN13H0VO.
51
VN Express, "Power Shortage May Pose a Development Challenge for Vietnam", 16 July 2018. Viewed
at: https://e.vnexpress.net/news/business/power-shortage-may-pose-a-development-challenge-for-vietnam-
3776784.html.
52
The project was executed by the MOIT and Viet Nam Electricity, and ran between 2015 and 2020.
Asian Development Bank, Viet Nam: Rural Electrification Project. Viewed at:
https://www.adb.org/projects/49131-002/main#project-pds.
53
Information provided by EVN's National Load Dispatch Centre (NDLC).
54
Information provided by EVN's NDLC.
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between supply and demand.55 Recently, severe climate conditions also worsened the production
capacity of hydropower generation, and increased the risk of power shortages.56
4.56. According to the 2004 Law on Electricity57, as amended by Laws No. 24/2012/QH13
(amendments and additions to a number of articles of the Law on Electricity), issued on
20 November 2012 and entered into force on 1 July 2013, and No. 28/2018/QH14 (amendments
and additions to a number of articles of 11 laws related to planning), issued on 15 June 2018 and
entered into force on 1 January 2019, the State holds a monopoly in transmission, management of
the national electricity system, and construction and operation of "large" electricity plants of socio-
economic, defence, or security significance. In line with the objectives of the Power Development
Plan VII (PDPVII)58, Viet Nam adopted a roadmap to establish a competitive market for electricity
through Prime Minister's Decision No. 63/2013/QD-TTg (regulations on the power sector, and
conditions and structure for the development of the electricity market in Viet Nam), issued on 8
November 2013.59 Three segments are being considered for increased competition in this market:
generation, wholesale, and retail. Each segment is to be liberalized gradually and sequentially until
a completely liberalized retail market becomes effective in 2024, while the Government plans to
continue regulating retail prices to ensure that consumers benefit from increased competition in the
market. Greater competition and private participation are expected to improve efficiency and reduce
transmission and distribution losses.
4.57. Decree No. 137/2013/ND-CP, issued on 21 October 2013, as amended by Decree

No. 08/2018/ND-CP, issued on 15 January 2018, and Decree No. 17/2020/ND-CP, issued on
5 February 2020, prescribe the requirements to obtain licences for the generation, transmission,
distribution, wholesale, retail, export, and import of electricity. MOIT Circular No. 21/2020/TT-BCT,
issued on 9 September 2020, details the content of dossiers to be submitted by operators, and
specifies a maximum duration of licences, ranging between 10 and 20 years, for different activities.
4.58. The MOIT sets the general policy direction, and issues licences for electricity operations. The
regulatory functions concerning electricity are also under the MOIT.
4.59. The state-owned Viet Nam Electricity (EVN)60 plays an important role in the electricity market,
as it intervenes, through its dependent units and subsidiaries61, in all segments (generation,
transmission, wholesale, and retail distribution). In 2019, the EVN's generation corporations (its
hydropower plants, EVN Genco 1, EVN Genco 2, and EVN Genco 3)62 accounted for 53% of electricity
production. Another two SOEs, PetroVietnam Power Corporation (PVN) and Vinacomin Power
Corporation, accounted for 8% and 3% of the production capacity, respectively, while Build-Operate-
Transfer (BOT) projects accounted for 7%, and independent power producers (IPPs) 63 accounted for
the remaining 27% in the same year. The Electric Power Trading Company, the National Power
55
In 2016, distribution and transmission losses were estimated at 5.2% and 2.4%, respectively, of the
total electricity supply. Nga, V., et al. (2019), "The Challenges and Opportunities for the Power Transmission
Grid of Vietnam", European Journal of Electrical Engineering, Vol. 21, No. 6, December; and VN Express,
"Power Shortage May Pose a Development Challenge for Viet Nam", 16 July 2018. Viewed at:
https://e.vnexpress.net/news/business/power-shortage-may-pose-a-development-challenge-for-vietnam-
3776784.html.
56
VN Express, "Hydropower Dams Run Out of Water on Lack of Rain", 22 December 2019. Viewed at:
https://e.vnexpress.net/news/news/hydropower-dams-run-out-of-water-on-lack-of-rain-4031062.html.
57
Law No. 28/2004/QH 11 was issued on 3 December 2004 and entered into force on 1 July 2005.
58
The National Power Development Plan for the 2011-20 Period, Vision to 2030, was approved by Prime
Minister's Decision No. 1208/QD-TTg, issued on 21 July 2011, and revised by Prime Minister's Decision
No. 428/QD-TTg, issued on 18 March 2016.
59
Further restructuring of the electricity industry included the transformation of the National Power
Transmission Corporation into a one-member limited liability company directly under the EVN.
60
Note that the Commission for the Management of State Capital in Enterprises (CMSC) exercises state
ownership over the EVN.
61
Most subsidiaries operate in the form of one-member liability companies, or joint-stock companies for
those who complete their equitization.
62
In total, 55 power-generation plants are under the management of the EVN. Eleven strategic
hydropower plants are dependent units of the EVN, while all other generation plants (hydropower, coal-fired,
gas-fired, and oil-fired) were redistributed among the three independent EVN Gencos initially operating as one-
member liability companies.
63
Currently, the largest IPP and the largest foreign-invested power project is the Mong Duong 2 Power
Plant in Quang Ninh province. An investment of USD 2.1 billion was needed for the construction of this coal-
fired power plant, which has a capacity of 1,240 MW. Another 79 power plants (hydro, thermal, gas, and
renewables) operate in Viet Nam, 74 of which have a production capacity greater than 30 MW.
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Transmission Corporation, and five power corporations (Hanoi, Ho Chi Minh City, Northern, Central,
and Southern) – all units or subsidiaries of the EVN – are the sole providers for wholesale and retail
distribution in each specific region.64
4.60. Regarding the establishment of a competitive market for the generation segment, Prime
Minister's Decision No. 852/QD-TTg, issued on 14 June 2017, approved the Master Plan on
Restructuring and Rearranging Enterprises under the EVN for the period 2017-20; the Decision
stipulated, inter alia, the equitization of the three generation corporations. Similarly, Prime Minister's
Decision No. 1977/QD-TTg, issued on 8 December 2017, approved the Equitization Plan of
PetroVietnam Power Corporation, while the equitization of Vinacomin Power Corporation was part of
a general equitization programme of subsidiaries that was started in 2012 by Vinacomin. At end-
2020, three of the five power-generation corporations (EVN Genco 3, Vinacomin Power, and
PetroVietnam Power) were equitized65; EVN Genco 1 and EVN Genco 2 remain to be equitized.
4.61. Electricity production remains an attractive sector for FDI; 61 projects amounted to
USD 15.4 billion (10.8% of all FDI) between 2013 and 2019, making it the third most invested sector
over this period. The authorities consider that a competitive market for power generation has been
operating since 2012. The equitization of power-generation corporations under SOEs has not
significantly increased the participation of the domestic and foreign private sectors in major power-
generation corporations. In 2019, 20% of the shares of PetroVietnam Power Corporation were held
by domestic and foreign investors, while less than 1% of those of EVN Genco 3 were held by
shareholders other than the EVN.66
4.62. Regarding wholesale, the EVN's National Load Dispatch Centre is responsible for the system
and market operations.67 Under the Viet Nam Competitive Generation Market project, the Centre
built the IT infrastructure, developed procedures and regulations, and provided training to human
resources for the operation of the electricity market. After a pilot phase, the Viet Nam Wholesale
Electricity Market (VWEM) started operations on 1 January 2019. More than 100 power plants (out
of 273 in the country), accounting for half of the installed capacity, are connected to an electricity
market information system, and can sell their production directly to wholesaler purchasers. IPPs with
a production capacity of at least 30 MW can also sell directly to wholesaler purchasers, while BOT
projects and renewable generation plants (other than hydropower) participate indirectly in the
market.68
4.63. Before the establishment of the VWEM, all generation units sold their production to the EVN.
In this first phase of the VWEM, the electricity wholesale purchasers include the five Power
Corporations under the EVN and the EVN's Electric Power Trading Company (EPTC). The EPTC acts
as an intermediary buying energy from generation units participating indirectly in the VWEM and
selling it to Power Corporations for retail distribution.69 Spot prices for direct sales in the VWEM are
determined based on offers by generation units, which cannot be above ceiling prices calculated
according to their variable costs and type of generation unit (MOIT Circular No. 45/2018/TT-BCT,
Articles 14 and 43, as amended by MOIT Circular No. 24/2019/TT-BCT). In the long term, it is
expected that eligible70 customers for electricity will also participate in the VWEM and purchase their
energy directly on the market.
64
Note that Article 4, Clause 2, of the Law on Electricity does not foresee a state monopoly for
wholesale and retail distribution. Article 5 of the Law promotes the participation of domestic and foreign private
investors.
65
At end-2019, 20% of the shares of PetroVietnam Power were held by foreign shareholders and
shareholders other than the Government, and only 0.8% of the shares of EVN Genco 3 by shareholders other
than the EVN.
66
EVN Genco 1 and PetroVietnam Annual Reports 2019.
67
MOIT Decisions No. 6463/QD-BCT (approving the plan for the VWEM), issued on 22 July 2014, and
No. 8266/QD-BCT (approving the detailed plan for the VWEM), issued on 10 August 2015, and MOIT Circular
No. 45/2018/TT-BCT (regulating the operation of the VWEM and amending and supplementing a number of
articles of MOIT Circular No. 56/2014/TT-BCT), issued on 15 November 2018, approved the plans, the
organization, and the necessary steps for the liberalization of this segment.
68
MOIT Circular No. 45/2018/TT-BCT, Article 4.
69
The EPTC can also purchase electricity for generators selling their production directly on the VWEM
and, thus, it also competes with Power Corporations on the spot market.
70
MOIT Decision No. 2093/QD-BCT, issued on 7 August 2020, stipulates that electricity consumption,
connection voltage, and other infrastructure requirements will be used to determine this eligibility. Specific
criteria or thresholds are not yet mentioned in the current regulation.
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4.64. According to the roadmap announced by the Prime Minister, Viet Nam aims to have a fully
operational retail electricity market in 2024. This setup foresees that competition between retail
distributors emerges and that consumers can choose among retailers for electricity supply. The MOIT
issued Decision No. 2093/QD-BCT on 7 August 2020 to approve the scheme for the retail electricity
market, and submitted a proposal to the Prime Minister for a reform of the electricity sector to fulfil
the requirements of a competitive retail market.
4.65. The Government maintains control over retail electricity prices. Articles 29 and 31 of the
Electricity Law specify that a reasonable electricity retail price should be adopted for different
customer groups (production, business, administration, and residential use) and that the retail price
should be within the price bracket determined by Prime Minister's decisions; currently, Prime
Minister's Decisions No. 28/2014/QD-TTg (on the structure of electricity retail price tariffs), issued
on 7 April 2014, and No. 24/2017/QD-TTg (on the mechanism for adjusting the average retail
electricity price), issued on 30 June 2017, stipulate the retail tariff structure and the mechanism for
adjustments of the average retail price. Retail prices are fixed with respect to this average retail
price by taking into consideration consumption levels for residential users, and time of consumption
(normal, off-peak, and peak hours), voltage levels, and type of activity for other customer groups.71
The electricity price is to be set through consideration of costs of electricity production, the allowed
profit,72 and estimated total commercial electricity generation.73 The average electricity price can be
readjusted only after a period of at least six months from the latest adjustment. Decreases in
average electricity price must be reflected in the retail price, while a 10% increase in the average
electricity price is needed for the retail price to be raised. Since March 2019, the average electricity
price has been set at VND 1,864/kWh (1,437/kWh in 2012).74 To counter the negative impact of the
COVID-19 pandemic, MOIT Official Dispatches No. 2698/BCT-DTDL and No. 9764/BCT-DTDL
approved a 10% temporary discount in electricity bills for six months in 2020.75
4.66. In accordance with Circular No. 02/2017/TT-BCT, the MOIT approves transmission fees
proposed by the EVN on a yearly basis. The fee takes into consideration the total allowed revenue
(including capital expenditure, operation, and maintenance costs) of the National Power
Transmission Corporation (NPTC) and the forecast of the total amount of electricity to be
transmitted. Distribution costs are determined based on the average electricity retail price.
4.67. In 2016, the Prime Minister approved a revised version of the seventh Power Development
Plan (PDPVII), which covers the period 2011-20.76 The revised PDPVII included a shift towards coal-
fired generation as a response to rapidly growing demand; the Government expects that coal power
plants will provide 53.2% of the power supply by 2030 (34.4% in 2015). The revised PDPVII also
provided for the increase of renewable energy resources from 3.5% of total electricity production in
2010 to 4.5% in 2020 and 6.0% in 2030.77 Public interviews and press articles in early 2020 suggest
a boost on targets for solar and wind generation, and a lowering of coal capacity in the long term.
The Electricity and Renewable Energy Authority (EREA), another agency under the MOIT, was
established in 2017 to be in charge of the infrastructure planning, development, and promotion of
the renewable energies. The authorities note that renewable power is expected to represent about
35%-40% of the installed capacity and 25%-30% of the output by 2030. Wind, solar, and biomass
power are expected to account for 15%-20% of the installed capacity and 10%-15% of the output
71
Poor households are supported with a monthly allowance equivalent to 30 kWh for domestic use.
72
Authorities indicate that the retail prices are regulated considering a maximum allowed profit of 3%
on EVN's equity.
73
Changes in inputs of all phases, including generation, transmission, retail distribution, administration,
and ancillary services should be captured by total cost of electricity generation. Therefore, fluctuations in
foreign exchange, fuel prices, and electricity productivity affect this estimation.
74
Different voltage-based prices were applicable to consumers using electricity for production (range
between VND 970/kWh and VND 3,076/kWh), services provision (between VND 1,361/kWh and
VND 4,587/kWh), administration (between VND 1,659/kWh and VND 1,902/kWh), and residential (between
VND 1,678/kWh and VND 2,927/kWh) as prescribed in MOIT Decision No. 648/QD-BCT, issued on 20 March
2019.
75
The discount was effective in April, May, June, October, November, and December 2020.
76
Prime Minister's Decisions No. 1208/QD-TTg, issued on 21 July 2011; and No. 428/QD-TTg, issued on
18 March 2016.
77
Prime Minister's Decision No. 1208/QD-TTg, issued on 21 July 2011, and revised by Prime Minister's
Decision No. 428/QD-TTg, issued on 18 March 2016.
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by the same period. These objectives are expected to be reflected in the ongoing drafting of the new
Power Development Plan VIII (PDPVIII).78
4.68. The Renewable Energy Development Strategy to 2030, Vision to 2050 79, also set objectives
for the development of renewables, and some sector-specific policies have been implemented since
2016. For instance, Prime Minister's Decisions No. 11/2017/QD-TTg, No. 37/2011/QD-TTg, and
No. 39/2018/QD-TTg stipulate favourable conditions for the development of solar-power and wind-
power projects, notably by guaranteeing a feed-in tariff scheme through long-term contracts to
renewable energy producers.
4.69. Imports of electricity (HS 2716.00.00) are subject to an applied MFN tariff of 1%, which has
remained unchanged since last Review.
4.2.2.2 Hydrocarbons
4.70. Viet Nam's oil and gas industry considerably reduced its contribution to national exports,
falling from almost 7% in 2013 to slightly more than 1% in 2019. This reduction in export shares is
not only due to the fall of international prices but also to substantial reduction of volumes exported
(e.g. -57% of quantities for crude oil). Domestic oil production, including production by foreign-
invested enterprises, was 13 billion cubic metres (bcm), which corresponds to 78% of production in
2013 (16.7 bcm). As for imports, refined oil remains the main imported product in mining and
quarrying, although imported values have remained relatively stable since 2013. During this period,
crude oil imports increased by 239%. The transport sector drives the demand in petroleum products;
diesel and gasoline are the main products in domestic demand. The production of natural gas
remained stable during the review period with slight fluctuations around 9.75 bcm per year. It is
consumed in power generation (80%), fertilizers (11%), and industrial and household operations
(9%). As with mining, oil and gas projects require the Prime Minister's approval, as they are listed
as conditional business sectors in the Investment Law.
4.2.2.2.1 Upstream
4.71. The upstream oil sector is operated by the state-owned Viet Nam Oil & Gas Group
(PetroVietnam). PetroVietnam, the country's biggest company in terms of profits in 2019, is under
the authority of the MOIT and currently contributes 10% of the state budget in terms of earnings
and tax payments. PetroVietnam is the largest company in terms of profits in Viet Nam; its pre-tax
profit amounted to USD 2.2 billion in 2019.80 The current organizational structure and operation of
PetroVietnam are stipulated in Decree No. 07/2018/ND-CP, issued on 10 February 2018.81 As is the
case with other large state-owned conglomerates, PetroVietnam is no longer under the responsibility
of the MOIT, and the ownership role of the State is now exercised by the Commission for the
Management of State Capital in Enterprises (CMSC).
4.72. The Law on Petroleum continues to govern the sector.82 The MOIT remains the regulatory
authority for oil and gas activities. Decree No. 95/2015/ND-CP, issued on 16 October 2015,
implements regulations prescribed in the Law and replaced all previous regulations in this regard.
This regulation prescribes conditions applying to activities related to exploration and extraction;
78
In addition, the development of a power grid with neighbouring countries, the adaptation to climate
change, the reliability of the power supply, and the promotion of investment in electricity development are
considerations for the drafting of the PDPVIII.
79
Prime Minister's Decision No. 2068/QD-TTg (approving Viet Nam's Renewable Energy Development
Strategy to 2030, Vision to 2050), issued on 25 November 2015.
80
Ha, V., "PetroVietnam Ranks First in Profit", Vietnam Investment Review, 30 September 2019. Viewed
at: https://www.vir.com.vn/petrovietnam-ranks-first-in-profit-70831.html.
81
PVN's functions are to carry out oil and gas activities; organize exploration and exploitation of
resources and their storage and processing; guide oil and gas production and business as prescribed by law;
establish contracts with companies operating in the sector; and invest through subsidiaries and associates.
82
Law No. 18-L/CTN (on oil and gas), issued on 6 July 1993 and entered into force on
1 September 1993, as amended by Laws No. 19/2000/QH10 (amendments and additions to a number of
articles of Law No. 18-L/CTN), issued on 9 June 2000 and entered into force on 1 July 2000, and
No. 10/2008/QH12 (amendments and additions to a number of articles of Law No. 18-L/CTN), issued on
3 June 2008 and entered into force on 1 January 2009. The amendment implemented by Law
No. 35/2018/QH14, issued on 20 November 2018 and entered into force on 1 January 2019, concerns only the
removal of a word in Article 38.
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bidding procedures in oil and gas projects; processing, storing, and transporting oil and gas from
the mining area to the point of delivery; and cleaning works for equipment and facilities engaged in
petroleum activities. Three forms for the selection of contractors83 exist: open bidding, competitive
bidding, and contractor selection. The contract duration between PetroVietnam and contractors must
not exceed 25 years, during which the exploration period must not exceed 5 years. For "encouraged"
projects, the contract duration must not exceed 30 years, during which the exploration period must
not exceed 7 years. Contracts might be extended for additional period of five years. 84 Decree
No. 124/2017/ND-CP, issued on 15 November 2017, regulating offshore investment in oil and gas
activities stipulates conditions for the transfer of funds, goods, machinery and equipment, the
application requirements for offshore investment registration certificate, and the administrative
obligations and operations within Viet Nam including remittances and capital transfers.
4.73. Prime Minister's Decision No. 49/2017/QD-TTg (on cleaning works for equipment and facilities
engaged in oil and gas activities), issued on 21 December 2017, regulates the conditions applying
to cleaning works following oil and gas activities. Within nine months of commercial operation,
contractors are requested to submit a clean-up plan to the MOIT. The clean-up plan must include
technical solutions, technology, total cost and cleaning schedule, and equipment to be used. 85
Contractors are notably responsible for establishing a fund to cover the financial obligations for these
works.
4.74. Prime Minister's Decision No. 1748/QD-TTg, issued on 14 October 2015, approved the
Development Strategy for the Oil and Gas Industry of Viet Nam to 2025, Vision to 2035. It aims at
mobilizing resources to invest and develop the petroleum industry; enhance the financial, scientific,
and technological competences of enterprises operating in the sector; and increase competitiveness.
The Strategy's goals by 2025 are to: (i) almost double current gas production with an objective of
21 bcm per year; (ii) have a total refining capacity of 18-20 million tonnes per year; (iii) enhance
the capacity to import liquified natural gas (4 bcm); and (iv) improve the stockpiling capacity to 90
days of net import.
4.75. The Prime Minister issued the Official Dispatch No. 1182/TTg-DMDN on 11 August 2017,
approving a list of enterprises under PetroVietnam to arrange, equitize, and divest capital for the
period 2017-20. In recent years, the following subsidiaries were equitized: PetroVietnam Oil
Corporation, PetroVietnam Gas Corporation, PetroVietnam Power Corporation, and Binh Son
Petrochemical Refinery. In 2018, PetroVietnam collected VND 16.5 trillion (USD 717 million) after
completing the equitization of PetroVietnam Power Corporation, PetroVietnam Oil Corporation, and
Binh Son Refining and Petrochemical Company.86
4.76. Foreign investors participate mainly in exploration activities. In 2019, production of crude oil
related to foreign-invested firms represented around 90% of domestic production.87 PetroVietnam
maintains partnerships with several other international oil companies, national oil companies, and
smaller independent energy companies.88 The authorities note that in the past three years, the oil
and gas industry mobilized investment capital of about VND 90 trillion (USD 3.87 billion USD), of
which commercial loans represented 65%-70% and direct capital contribution from domestic
enterprises and foreign investment the remaining 30%-35%.
4.77. Decree No. 1084/2015/UBTVQH13, issued on 10 December 2015, stipulates royalty rates
(ranging between 2% and 29%) for crude oil; natural gas and coal gas are taxed at progressive tax
rates depending on the daily average production output. Lower rates continue to be applied to
"encouraged" investment projects, and royalty rates range between 1% and 23% (1-6 percentage
83
Potential contractors for these biddings include PetroVietnam subsidiaries.
84
In that case, the exploration period may be extended up to one additional year.
85
The regulation provides further conditions according to the location and type of resource under
exploitation.
86
Ha, V., "PetroVietnam Ranks First in Profit", Vietnam Investment Review, 30 September 2019. Viewed
at: https://www.vir.com.vn/petrovietnam-ranks-first-in-profit-70831.html.
87
The main foreign companies conducting these activities include Zarubeznheft, Nippon Oil, Exxon
Mobil, Rosneft, Gazprom, Korea National Oil Corporation, SK Group, Perenco, and PTT Exploration and
Production (PTTEP).
88
These include Exxon Mobil, Chevron, Eni, Vietgrazprom, Rosneft, Zarubeznheft, Korea National Oil
Corporation (KNOC), SK Group, India's ONGC, Malaysia's Petronas, Nippon Oil of Japan, Thailand's PTTEP,
Premier Oil, SOCO International, Murphy Corporation, and Jadestone Energy.
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points lower than for ineligible projects).89 Their valuation basis is the selling price at the place of
delivery or the export price according to Article 6(d) of the Law on Severance Taxes (Royalties).
4.78. The average applied MFN tariff on mineral fuels and oils obtained from bituminous substances,
and on mineral waxes (HS Chapter 27) increased from 4.5% in 2013 to 7.1% in 2020. Prime
Minister's Decision No. 28/2019/QD-TTg (amendment and addition to Article 2 of Prime Minister's
Decision No. 45/2017/QD-TTg), issued on 16 September 2019, reduced the applied MFN tariff for
crude oil from 5% to 0%.
4.2.2.2.2 Downstream
4.79. Currently, Viet Nam has two refineries in operation. The country's first crude oil refinery, the
Dung Quat refinery, is managed by Binh Son Refining and Petrochemical Company, an equitized
company in which the participation of PetroVietnam accounts for 92% of shares. Until 2018, it was
Viet Nam's only refining facility; it covered about 30% of the demand in petroleum products. Refined
product imports amounted to USD 7.6 billion in 2017 (20.4% of all mining and quarrying imports).
In 2018, a second refinery came into operation, run by Nghi Son Refinery and Petrochemical
Company, an international consortium with PetroVietnam participating in about a quarter of the
shares. This second refinery enabled Viet Nam to start importing larger quantities of crude oil.
Between 2017 and 2019, imports of crude oil were multiplied by a factor of 5.9 (USD 3.8 billion in
2019), and exports of crude oil decreased substantially over the same period (-40%). By 2022, the
combined capacity of the two refineries will be 392,000 barrels per day.90 A third refining complex
is under construction. Viet Nam does not apply quotas on domestic production of crude oil to supply
domestic refineries.
4.80. Viet Nam National Petroleum Group (Petrolimex), an equitized company91, is a major actor in
other downstream operations. It has more than 5,500 petroleum stations across the country, and
owns a distribution network of more than 570 km of petroleum pipelines. Petrolimex is the primary
company for importing petroleum products, and accounts for about 30% of the total petroleum
distribution market; PVOil, a subsidiary of PetroVietnam, accounts for another 10% of the
distribution market.
4.81. Decree No. 83/2014/ND-CP (on petroleum business), issued on 3 September 2014, as
amended by Decree No. 08/2018/ND-CP, issued on 15 January 2018, stipulates the conditions for
enterprises to obtain a business permit for oil and gas trading, export, and import activities. Among
their obligations, licensed companies must import a designated amount annually based on previous
performance of each company and a forecast of the minimum import volume required for domestic
consumption. In 2020, the total volume required for Viet Nam was estimated at 7 million tonnes.
4.82. Article 37 of Decree No. 83/2014/ND-CP prescribes conditions to set up the Price Stabilization
Fund (PSF) used for the purpose of market stabilization and price stabilization for different petroleum
products, i.e. gasoline, diesel, kerosene, and mazut oils. Traders set aside funds for the PSF and
submit monthly financial statements of their accounts to the MOF and the MOIT. The funds are
financed with a specific amount (VND 300 per litre or kg) collected on the retail sale of petrol and
oil. The balance of PSF is published quarterly on the MOIT's and MOF's websites; at the end of the
third quarter 2020, the balance of PSF was VND 10.05 trillion (approximately USD 436 million). The
PSF intervenes when the base price (see below) for each petroleum product is above the current
retail price and a price adjustment of more than 3% becomes necessary. For adjustments beyond
89
Projects eligible for investment promotion include oil and gas activities in deep water and offshore
areas, areas with especially difficult geographical conditions and complicated geological conditions, and other
projects pursuant to paragraph 2, Article 1, of Law No. 10/2008/QH12, which amended and supplemented a
number of articles of the Petroleum Law.
90
After the completion of the expansion plan, 200,000 barrels per day will come out of Nghi Son
Refinery and Petrochemical Company, while Binh Son Refinery and Petrochemical Company produces 192,000
barrels per day.
91
The State holds 83.8% of shares in Petrolimex through participations by the CMSC and PetroVietnam.
Petrolimex, Annual Report 2019.
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3% and up to 7%, the PSF covers 50% of the increase beyond 3%.92 For adjustment above 7%, the
Prime Minister might consider other measures.
4.83. MOIT and MOF Joint Circular No. 39/2014/TTLT-BCT-BTC, issued on 29 October 2014, as
amended by Circular No. 90/2016/TTLT-BTC-BCT, issued on 24 June 2016, provides further details
on the calculation of the base price considering elements such as cost-insurance-freight (c.i.f.) price,
import duty, special consumption tax, foreign exchange rate, VAT, operating expenses, an
established profit margin, environmental protection tax, other taxes, and deductions according to
current law provisions. The price is calculated based on the average over 15 days. Price increases
of less than 3% from the previous base price are directly implemented by operators; increases
between 3% and 7% must be decided by the MOIT and the MOF within three days; and increases
above 7% must be approved by the Prime Minister. Price decreases are directly implemented by the
operators. The interval between two consecutive retail price adjustments is at least 15 days for a
base price increase, and a maximum of 15 days for a decrease. In all cases, operators must declare
adjustments to the MOIT.
4.84. Applied MFN rates on tariff lines related to HS Subheading 271012 have remained unchanged
since 2013. An MFN tariff rate of 20% is applied to most of these tariff lines, and only 2 of 22 tariff
lines are subject to a 7% tariff rate. Preferential tariff rates for HS Subheading 271012 were modified
multiple times during the review period through MOF Circulars.
4.85. As at January 2019, the environmental protection tax levied on items that can cause a
negative environmental impact was adjusted for petroleum products.93 The current tax consists of
specific rates ranging from VND 1,000 per litre (fuel) to VND 4,000 per litre (gasoline, except
ethanol) set from a specific tax frame.
4.2.2.2.3 Natural gas
4.86. Prime Minister's Decision No. 60/QD-TTg, issued on 16 January 2017, approved the Master
Plan for the Development of the Gas Industry to 2025, Vision to 2035. It aims to promote an overall
development of the gas value chain with the aim of ensuring an indigenous production of 17 bcm to
21 bcm per year. The strategy foresees the imports of gas will amount up to 4 bcm by 2025 and
peak at 10 bcm by 2035. Thus, the strategy plans to build three or four terminals, mainly in southern
Viet Nam, for liquified natural gas.
4.87. PetroVietnam Gas Joint Stock Corporation, an equitized company in which PetroVietnam holds
nearly 96% of the share capital, is the main company of the natural gas sector, and it cooperates
with foreign partners in the production and development of natural gas resources. 94 Royalty rates
(ranging between 2% and 10%) for natural gas are taxed at progressive tax rates, depending on
the daily output of the facility and lower rates apply to "encouraged" investment projects (ranging
between 1% and 6%).95 Decree No. 87/2018/ND-CP, issued on 15 June 2018, regulates several
aspects of business operations for liquified petroleum gas, liquified natural gas, and compressed
natural gas. It prescribes that prices are to be decided by importers and exporters, and it also
provides business conditions for traders, retailers, and filling stations.
4.88. Natural gas price for power-generation plants is based on market price, which is fixed at 46%
of the average monthly fuel oil (MFO) price in the Singapore market according to Platts Index.
However, this price should not be lower than the wellhead price and related costs of natural gas.
Currently, there is no regulation on pipeline costs for gas transport.
92
MOIT and MOF Joint Circular No. 39/2014/TTLT-BCT-BTC (providing a calculation method of base
price and management and use of the PSF regulated in Decree No. 83/2014/ND-CP), issued on 29 October
2014, as amended by MOIT and MOF Joint Circular No. 90/2016/TTLT-BTC-BCT (amendments and additions to
Joint Circular No. 39/2014/TTLT-BCT-BTC), issued on 24 June 2016, Article 7.
93
Kerosene is the only petroleum product not subject to the environmental protection tax. National
Assembly Standing Committee Resolution No. 579/2018/UBTVQH14, issued on 26 September 2018, replaces
National Assembly Standing Committee Resolution No. 1269/2011/UBTVQH12, issued on 14 July 2011, as
amended by National Assembly Standing Committee Resolution No. 888a/2015/UBTVQH13, issued on
10 March 2015.
94
Its main foreign partners are Zarubeznheft, Nippon Oil, Exxon Mobil, Rosneft, Gazprom, Korea
National Oil Corporation, SK Group, Perenco, and PTTEP.
95
Decree No. 1084/2015/UBTVQH13, issued on 10 December 2015.
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4.89. The applied MFN tariff on propane (HS 271112) decreased from 5% in 2013 to 2% in 2020;
imports of natural gas remain free of duty, and all other tariff lines in HS Heading 2711 are subject
to an MFN duty of 5%.
4.3 Manufacturing
4.90. Manufacturing increased its contribution to GDP during the review period; it accounted for
18.3% in 2019 (3.5 percentage points more than in 2013). With 11.3 million manufacturing jobs,
the employment share of the sector reached 20.7% in 2019, and a significant increase in the number
of jobs (+ 2.5 million) was observed during the review period. Manufacturing exports more than
doubled (+130%) between 2013 and 2020. In 2019, telephones and spare parts, electronic products
and components, textiles and textile articles, and machinery and electrical equipment accounted for
27.1%, 18.1%, 10.6%, and 8.6% of total merchandise exports, respectively. Labour productivity
grew by 27.2% between 2013 and 2019. In 2019, foreign-invested enterprises exported
USD 183.2 billion, accounting for nearly 70% of the total merchandise exports.
4.91. Prime Minister's Decision No. 879/QD-TTg, issued on 9 June 2014, approved the Industrial
Development Strategy to 2025, Vision to 2035.96 Industries whose development is prioritized by the
Strategy include mechanical engineering and metallurgy (shipbuilding, non-ferrous metals, and new
materials); chemicals (pharmaceutical products); agricultural, forest, and fishery product
processing; textiles, garments, leather, and footwear; electronic and telecommunications industries
(computer equipment products, and telephones and components); and renewable energy
industries.97 The objectives set by the Strategy are that industry (including construction) will account
for 40%-41% of GDP by 2035, share of industrial products in merchandise exports will reach 90%
by 2025, and high-tech industrial products and related applications will account for over 50% of GDP
after 2025. In line with these objectives, the Strategy aims to increase the quality of industrial
products, and to develop supporting industries and industrial services. The MOIT, in coordination
with other relevant ministries, oversees the implementation.
4.92. Decree No. 111/2015/ND-CP (on developing supporting industries), issued on

3 November 2015, and MOIT Circular No. 55/2015/TT-BCT (regulating the order and procedures for
confirmation of incentives and concessional conditions for projects of producing supporting industrial
products under the list of supporting industrial projects preferred for development), issued on
30 December 2015, regulate the procedures for providing incentives for the development of
supporting industries, which are industries that produce raw materials, materials, components, and
spare parts used to manufacture finished products. Incentives accorded may include reduced rates
for corporate income tax, import duties, concessional loans from the Viet Nam Environmental
Protection Fund, and investment credits, as well as some flexibilities in the declaration of VAT. A
Supporting Industry Development Program (SIDP) was established to promote research,
development, training, and other objectives covered by the Strategy. Among the benefits of the
SIDP, projects may receive funding for activities in management systems, human resources training,
research and development including technology transfer, and information development. The
programme of activities for the SIDP and funding sources and management of resources for the
period 2016-25 were announced in Prime Minister's Decisions No. 68/QD-TTg (approving the SIDP
from 2016 to 2025), issued on 18 January 2017, and No. 10/2017/QD-TTg (on management and
implementation of the SIDP), issued on 3 April 2017. MOF Circular No. 29/2018/TT-BTC (guiding the
establishment, management, and use of funds for the SIDP), issued on 28 March 2018, provides
further guidance on units in charge of the implementation of the SIDP, conditions applying to
supported enterprises, and maximum expenditure limits by supported enterprises. Initially, the SIDP
consisted of two phases: Phase I (2016-2020) and Phase II (2021-2025). However, the programme
has been implemented only since 2018, and 161 projects were supported with funds amounting to
VND 640 billion during this period.98
4.93. Through international cooperation, the Industrial Development Strategy aims at promoting
technology transfer to support research, development, application, and innovation in the pilot
96
Viet Nam is currently drafting an update to the Industrial Development Strategy through 2025, Vision
to 2035, with an extended scope until 2045.
97
Appendix to Prime Minister's Decision No. 879/QD-TTg.
98
VND 430 billion originated from the state budget approved in Decision No. 68, and VND 210 billion
was part of other capital budget.
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production of components, spare parts, and materials. However, projects involving technology
transfer have not yet been submitted to the authorities.
4.94. The National Industrial Development Policy to 2030, Vision to 2045, is currently being drafted.
4.95. Customs established a customs value database, which is regularly updated by the General
Department of Customs, serving as the basis for assessing the value risk of exported or imported
goods. In 2020, Viet Nam's average applied MFN tariff on industrial products (HS 25-97) is 10.7%
(9% in 2013), applied MFN tariffs range between 0% and 100%, and 32.6% of tariff lines are
imported duty free. The peak ad valorem tariff rate is 100% (HS 630900: worn clothing) and 75%
(27 tariff lines in HS Heading 8711 concerning motorcycles). In 2020, six 2-digit HS product groups
(e.g. articles of leather, footwear, umbrellas, prepared feathers, human hair and wigs, ceramic
products, and vehicles other than railway/tramway) were subject to average applied MFN tariff rates
at twice the average rate for non-agricultural products; these ranged from 22.9% (articles of leather)
to 38.9% (vehicles other than railway/tramway).
4.96. Since 2011, Viet Nam has kept a list of products not encouraged for import, as specified in
MOIT Decision No. 1380/QD-BCT. In 2009, the campaign "Vietnamese people prioritize using
Vietnamese products" was launched, and it is still ongoing.
4.97. Domestic support to manufacturing activities is provided, inter alia, in line with investment
incentives in the Investment Law (e.g. duty concessions, and temporary corporate income tax
exemption or reductions) for firms operating in industrial and economic zones. Preferential rates on
loans are provided for SMEs through the SME Development Fund.
4.3.1 Textiles and garments
4.98. USD 38.8 billion of textiles and garments were exported in 2019, accounting for 14.7% of
merchandise exports; Viet Nam was among the world's largest textile and apparel exporters in 2019.
The main destinations for exports are the United States (39%), the European Union (11%), China
(10.6%), Japan (10.8%), and the Republic of Korea (9.9%). The textiles and garments industry has
more than 7,000 enterprises mainly located in industrial parks or craft villages (mostly SMEs), and
around 1.75 million workers, equivalent to 17.5% of all manufacturing and processing employment.
The garments subsector accounts for 84.6% of the industry's output.
4.99. The authorities state that no SOE is operating in the textiles and garments sector; Vinatex
was equitized, and the State keeps a majority participation (53.49%) under the management of the
State Capital Investment Corporation.99 Currently, all domestic production is made by private
enterprises, joint-stock enterprises, and foreign-invested enterprises. As at end-2018, 2,225 foreign
investment projects, valued at VND 17.4 trillion, were registered in the sector. 100 In 2019, foreign-
invested companies accounted for 59% of total exports of textiles and garments. Lower labour costs
and a supply of relatively skilled workers are drivers behind the shifts of manufacturing units to
Viet Nam in recent years.
4.100. The 2008 Master Plan for the Textiles Sector, Vision to 2020, generated positive results in
the sector whose exports increased by 16.6% between 2011 and 2018. Garment products and fibres
of all kinds led the growth. However, employment results were lower than those targeted by the
Strategy.
4.101. The COVID-19 pandemic has affected the textiles and garments industry, with a shortage of
raw material imports and reduced demand for garments in Viet Nam's main export destinations.
Both shifts led to order cancellations, as well as revenue and job losses for domestic manufacturers.
The authorities note that about 30% of workers in the textiles and garments industry lost their jobs
between February and June 2020, and the productivity level of the remaining 70% reduced by 50%-
60%. Decision of the Minister of Finance No. 436/QD-BTC (addition of items to the list of duty-free
items for the prevention of coronavirus issued by Decision No. 155/QD-BTC), issued on
99
Other shareholders in Vinatex include private investors: Vingroup (10%), and Intochu Textile
Prominent (ASIA) Limited (13%).
100
Information provided by the Viet Nam Textile and Apparel Association (VITAS). The authorities report
that all foreign investors in the sector operate within the general framework established by the Investment
Law.
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27 March 2020, applies a temporary elimination of import tariffs on non-woven fabrics for the
production of protection clothing used to fight against the COVID-19 pandemic.
4.102. In 2020, applied MFN tariff protection for the textiles and garments sector ranges from zero
to 20% (HS Chapters 50-63), except for worn clothing (HS 63) whose applied MFN tariff might reach
100%. Average MFN tariff protection, by HS chapter, ranges from 5.7% (HS 51: wool, fine or coarse
animal hair) to 19.8% (HS 61: apparel and clothing). The authorities note that no policy related to
price control, pricing guidelines, or subsidies is implemented for textile materials or inputs.
4.3.2 Motor vehicles
4.103. With 28 vehicles per 1,000 people in 2019, Viet Nam remains a small car market, and
motorbikes remain the dominant mode of transport. There are over 50 million motorbikes in
Viet Nam, and each year more than 3 million are sold.
4.104. Domestic production of cars consists mainly of completely-knocked-down (CKD) vehicles

assembled for the domestic market. Local content amounts to 20%-25% on average, and only a few
models approach 40%. Global carmakers101 are present in Viet Nam through joint ventures, and
local producers102 manufacture for international brands. As for the motorbike market, leading global
brands103 compete with local brands in the domestic market but also export to other countries from
facilities in Viet Nam.104 The authorities note that the proportion of local inputs ("localization rate")
used in the manufacturing of motorcycles is above 90%. In 2019, 3.25 million motorbikes were sold
in the Vietnamese market, and Honda Viet Nam, a joint venture with 89% State participation,
dominates nearly 80% of the market.
4.105. In August 2019, the Development Plan for Viet Nam's Automobile Industry105 expired
following Government Resolution No. 63/NQ-CP. The authorities report that no specific development
strategy or policies currently exist for this sector and that motorcycle production is regulated by the
market.
4.106. The authorities note that there is no requirement on the use of local inputs for automobile
manufacturing and assembly projects. Benefits such as reduced corporate income tax rate and excise
tax are applied according to the Investment Law and relevant regulations. The authorities state that
Viet Nam applies technical measures to second-hand motor vehicles, in compliance with the
TBT Agreement. Prime Minister's Decisions No. 249/2005/QD-TTg and No. 16/2019/QD-TTg
prescribe the implementation of emission standards for new, operating, and imported 106 motor
vehicles, including motorbikes. Second-hand motor vehicles less than five years from the date of
manufacture can be imported; Decree No. 122/2016/ND-CP, issued on 1 September 2016, as
amended by Decree No. 125/2017/ND-CP, issued on 16 November 2017, regulates the type of tariff
(specific, ad valorem, or compound) that applies to each type of car. Periodical inspections on
emissions for motorcycles are to be included in the amendment to the Law on Road Traffic, which is
currently being drafted.
4.107. MOF Circular No. 229/2016/TT-BTC (on rates, collection, payment, and management fees
for registration and circulation plates of road motor vehicles), issued on 11 November 2016,
regulates the management and fees relative to motor vehicle registration and issuance of plates;
fees vary according to the type of motor vehicle and the location where the registration takes place.
Motor vehicles might also be subject to other local taxes. Energy labelling requirements in Prime
Minister's Decision No. 04/2017/QD-TTg, issued on 9 March 2017, also apply for passenger cars up
to nine passengers, motorbikes, and mopeds. MOIT Circular No. 06/2019/TT-BCT prescribes that
cars under 16 seats can be imported only through specific ports 107, and MOIT Circular
101
These include Toyota, Honda, Mercedes, Ford, and Hyundai.
102
Thaco, Mekong, and Hyundai Thanh Cong are the main local manufacturers.
103
Honda Viet Nam, Piaggio, Suzuki, SYM, and Yamaha, among others.
104
Imports of completely built-up units represent a marginal share of the motorbike market (less than
2% in 2019).
105
Prime Minister's Decision No. 1211/QD-TTg, issued on 14 July 2014.
106
Imported vehicles include new and second-hand imported vehicles.
107
The specific ports are Quang Ninh (Cai Lan), Hai Phong, Da Nang, Ho Chi Minh City, and Ba Ria-
Vung Tau. Land imports of these vehicles are not permitted
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No. 27/2018/TT-BCT abolished automatic import licensing for motorcycles with 175 cm 3 engines or
larger.
4.108. The average applied MFN tariff on motor vehicles (HS 8703) decreased by 4.9 percentage
points between 2013 and 2020 (53.7% in 2020).108 This average rate is almost four times the
average for all non-agricultural products.
4.3.3 Other manufacturing activities
4.109. Production in the leather and footwear industry amounted to USD 19.5 billion in 2019 (7.4%
of total merchandise exports). The domestic production increased by 75% between 2012 and 2018.
Sports shoes is the fastest growing segment, and it represented 70% of the national production in
2018. According to the Viet Nam Leather and Footwear Association, the sector consisted of
2,181 enterprises in 2017, 94.8% of which were enterprises with fewer than 3,000 employees. In
2018, 350 foreign-invested companies operated in the country, accounting for nearly 80% of
exports. In 2020, footwear was one of the sectors with the highest protection, with an average
applied MFN tariff of 23.2%.
4.110. The MOIT is currently preparing a Strategy for the Development of the Leather and Footwear
Industry to 2030, Vision to 2035. This strategy is expected to follow up on the Master Plan for
Viet Nam's Leather and Footwear Industry Development to 2020, Vision to 2025, adopted by MOIT
Decision No. 6209/QD-BCT, issued on 25 November 2010.
4.111. Prime Minister's Decision No. 68/QD-TTg, issued on 10 January 2014, approved the National
Strategy for the Development of the Pharmaceutical Industry to 2020, Vision to 2030. It aims to:
(i) improve the availability and supply of medicines; (ii) supply domestic inputs that account for 20%
of inputs used in 80% of medicines consumed in Viet Nam; (iii) produce 40% of generic drugs
locally; and (iv) enhance the quality of distribution systems. In line with those objectives, the
Strategy seeks to attract foreign investment in drug manufacturing (including franchised
manufacturing), production of biological vaccines and antibiotic raw materials, and bioavailability
research and bioequivalence assessment.
4.112. Viet Nam enacted the Law on Pharmacy (Law No. 105/2016/QH13), issued on 6 April 2016
and entered into force on 1 January 2017. Decree No. 54/2017/ND-CP, issued on 8 May 2017, guides
its implementation, and Decree No. 155/2018/ND-CP, issued on 12 November 2018, regulates
investment and business conditions for enterprises operating in pharmaceuticals. Import and export
regulations applied to medicine and medicinal materials, as well as conditions for foreign-invested
enterprises to import and export, are described in these Decrees. The new regulatory framework
removed the requirement for new drugs in Viet Nam to undergo complete clinical trials for
registration purposes.109 Except for vaccines, the clinical trial requirement is waived for all new
drugs, provided that they have sufficient clinical data on safety and efficiency, and they are circulated
in at least one country. If domestically produced drugs satisfy the health requirements on medical
treatment, price, and supply, tenders must stipulate that tenderers are not allowed to provide
imported drugs. In 2017, the National Centralised Drug Procurement Centre was established to
coordinate the purchase of a list of centralized procurement drugs promulgated by the Ministry of
Health. The 2016 Law on Pharmacy allows for parallel import of drugs under the condition that the
price of the imported product is lower than the price of the original drug circulated in Viet Nam.
4.113. Ministry of Health Circular No. 30/2015/TT-BYT (on imports of medical equipment), issued
on 12 October 2015, provides that an import licence is required for 49 diagnostic and treatment
devices. This regulation also stipulates that used medical devices for commercial purpose are not
allowed into Viet Nam.
108
Under HS Chapter 98, 230 tariff lines concerning CKD units are subject to specific conditions.
109
A waiver was possible for drugs that have circulated legally for at least five years in their country of
origin.
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4.114. Between 15 April and 5 May 2020, Viet Nam applied a temporary export ban on certain drugs
(37 items) used in the treatment of COVID-19.110 No other import or export ban applied to
pharmaceutical products was reported by the authorities.
4.115. Imports in 2018 amounted to more than USD 3 billion, mainly from France, Germany, India,
the United States, Italy, Switzerland, the Republic of Korea, and the United Kingdom. In 2020, the
applied MFN rate for protection in pharmaceutical products (HS Chapter 30) was low (2.2%). Applied
tariffs range from zero to 14% (waste pharmaceuticals); 63.6% of tariff lines are imported duty
free.
4.116. Viet Nam notified a number of ongoing anti-dumping investigations to the WTO Committee
on Anti-Dumping Practices (Section 3.1.6). Definitive measures are currently applied on cold-rolled
stainless steel (from China, Indonesia, Malaysia, and Chinese Taipei), galvanized coating steel (from
China and the Republic of Korea), H-beam (from China), flat-rolled iron or non-alloy steel (from
China and the Republic of Korea), and aluminium bars, rods, and profiles (from China).
4.117. The import of used machinery older than 15 to 20 years (depending on the product) for
mechanical engineering, wood production and processing, and paper and paper pulp production was
banned in June 2019.111
4.4 Services
4.4.1 Features
4.118. Services facilitate all economic activities, including production and trade of goods; their
performance remains a key component of overall international competitiveness for any country. In
2018, Viet Nam was the world's 53rd largest exporter and 46th importer of services.112 Trade in
services remains a small component of Viet Nam's foreign trade: in 2018, exports of commercial
services represented about 5.7% of total exports of goods and services, and imports of commercial
services accounted for about 6.9% of total imports of goods and services. In 2019, Viet Nam had a
trade deficit in services of approximately USD 2.5 billion.
4.119. The share of services (excluding construction, energy, electricity, and water supply) in GDP
continuously increased during the review period, up to 41.6% in 2019. The sector's share in total
employment reached 35.4% in 2019, and wholesale and retail trade, tourism and accommodation,
education and training, and transport and storage were the subsectors employing the largest share
of workers in 2019. Between 2010 and 2019, labour productivity of services increased by 133%; in
2018, it was 16% higher than the overall average level of the economy.113 Between 2018 and 2019,
the services sector grew by 7.3% and contributed approximately 42% of overall economic growth.
4.120. Although the services sector showed more dynamic growth than the overall Vietnamese
economy in the period 2011-19, its growth rate of 6.9% was still 1 percentage point lower than the
targets of the Master Plan for the Development of the Services Sector to 2020, approved by Prime
Minister's Decision No. 175/2011/QD-TTg, issued on 27 January 2011. Some inconsistencies
between legal documents and policies, particularly for new subsectors (casino businesses and
e-commerce), lack of coordination among state agencies, and infrastructure not yet up to the
requirements for the development of the sector are some of the reasons for a result that is lower
than foreseen. External competition, the institutional reform of state management, and geopolitical
and economic tensions are perceived by the authorities as future challenges for the development of
the sector.
110
Notices No. 4162/QLD-KD, issued on 15 April 2020, and No. 5595/QLD-KD, issued on 5 May 2020,
by the Drug Administration of Viet Nam.
111
Prime Minister's Decision No. 18/2019/QD-TTg (on imports of used machinery and production
technology), issued on 19 April 2019.
112
WTO, Trade Profile of Viet Nam. Viewed at:
https://www.wto.org/english/res_e/statis_e/daily_update_e/trade_profiles/VN_e.pdf.
113
Information provided by the authorities.
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4.4.2 Overall commitments under the General Agreement on Trade in Services
4.121. Viet Nam's services market was liberalized to reflect its WTO accession commitments, which
created opportunities across a range of sectors, including telecommunications, transportation, and
distribution. During the review period, the services sector expanded at an average annual growth
rate of 6.85%. Viet Nam's GATS commitments cover 11 major services categories (out of 12 services
categories) and 105114 subsectors (out of 155 subsectors).115 In some cases, Viet Nam reserves the
right to limit foreign ownership of service companies operating in the domestic market. Foreign
investors are not required to form a joint venture with Vietnamese counterparts to operate in most
of the services sectors or subsectors under Viet Nam's GATS schedule.116 Viet Nam's list of Article II
(MFN) exemptions covers preferences extended under its bilateral investment treaties.117
4.122. Upon its accession to the WTO, Viet Nam adjusted its relevant domestic laws and regulations
with a view to meeting its GATS commitments. The authorities state that Viet Nam fully complied
with its undertakings through the legal text ratifying its Protocol of Accession; they consider that
Viet Nam's laws and regulations in services sectors are consistent with its WTO and GATS
commitments.118 The authorities consider that, in general, the implementation of the GATS
commitments helped create a more favourable, transparent, and open business and investment
environment for both domestic and foreign services suppliers.
4.4.3 Regional and bilateral agreements on services
4.123. Services are covered in Viet Nam's regional trade agreements within the ASEAN framework
(the ASEAN's agreements with Australia and New Zealand; China; Hong Kong, China; India; and the
Republic of Korea). Additionally, Viet Nam, as an individual contracting party, has bilateral trade
agreements covering services with the Eurasian Economic Union, European Union, Japan, the
Republic of Korea, and the United States. It also made commitments of services in the CPTPP and
the recently signed RCEP (Table 2.1).119 Except for the CPTPP, all services chapters or agreements
under these agreements refer to Article XV of the GATS and follow the positive listing approach. The
authorities maintain that regional trade agreements, in particular the ASEAN FTA, imply liberalization
through GATS+ commitments in some sectors and subsectors.120
114
According to the authorities, Viet Nam's commitments cover more than 110 subsectors.
115
Sector-specific commitments cover: business services; communication services; construction and
related engineering services; distribution services; educational services; environmental services; financial
services; health-related and social services; tourism and travel-related services; and recreational, cultural, and
sporting services (Schedule CLX, WTO document GATS/SC/142, 19 March 2007; and WTO, Trade Profile of
Viet Nam, September 2012. See also WTO documents WT/ACC/VNM/48/Add.2, 27 October 2006, and
GATS/EL/142, 19 March 2007). The authorities indicate that a number of legal documents were issued to
provide further clarity and guidance for the implementation of the GATS commitments in telecommunications,
advertising, distribution, and logistics services, among others.
116
Exceptions for which caps for foreign capital apply include: veterinary services; technical testing and
analysis services; services incidental to agriculture, hunting, and forestry; wire-based and mobile terrestrial
services; satellite-based services; some non-facilities-based and facilities-based services in
telecommunications; motion picture production and projection services; statutory insurance services;
electronic games businesses; maritime transport services; maritime auxiliary services; internal waterways
transport; rail transport services; road transport services; and services auxiliary to all modes of transport
(WTO document GATS/SC/142, 19 March 2007).
117
WTO document GATS/EL/142, 19 March 2007. The intended durations of exemptions for maritime
transport and certain services related to sea transport were limited for 5 and 10 years following accession.
118
Resolution No. 71/2006/QH11, issued on 29 November 2006.
119
In addition to the ASEAN Framework Agreement on Services (AFAS) (Section 2.3.2), Viet Nam
signed eight services-related mutual recognition arrangements (MRAs) with ASEAN countries, on engineering
services (2005), nursing services (2006), architectural services (2007), surveying qualifications (2007), dental
practitioners (2009), medical practitioners (2009), accountancy services (2009), and tourism professionals
(2009).
120
For instance, business services, healthcare services, tourism and travel-related services, and
transport services.
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4.4.4 Financial services
4.4.4.1 Banking
4.124. Financial services in Viet Nam have been progressively liberalized and have grown rapidly in
recent years121; loans and deposits grew by 16% and 7.8%, respectively, on a yearly basis between
2015 and 2018. The use of banking services is surging in the country122, although Viet Nam's banking
penetration rate is still less than 40%.123 The loan-to-deposit ratio has been stable around 83%
since 2015, highlighting a strong domestic supply of loanable funds in the economy. Viet Nam was
hit by a domestic market downturn between 2008 and 2012, due mainly to asset price bubbles,
followed by monetary tightening and growth slowdown. The inflation rate became lower than 4%
only after 2014. In 2019, financial services accounted for 5.9% of GDP and employed 0.9% of the
labour force; consequently, the sector's labour productivity is among the highest in the country.
4.125. Viet Nam's banking sector remains dominated by state-owned banks124, accounting for 47%
of the total deposits in the system in 2018. The rest of the sector is served by over 1,200 institutions,
including commercial banks, foreign bank branches, and credit unions. As at end-December 2018,
the system of credit institutions included 4 state-owned commercial banks (SOCBs)125, 3 banks
under the supervision of the State Bank of Viet Nam (SBV) after compulsory acquisition (see below),
2 state-owned policy banks (Bank for Social Policies, and Viet Nam Development Bank), 28
joint-stock commercial banks, 2 joint-venture banks, 9 wholly foreign-owned banks with locally
incorporated subsidiaries126, 50 foreign bank branches, 26 financial and financial leasing companies,
1 Cooperative bank127, 1,182 Local People's Credit Funds128, and 4 microfinance institutions. In 2013,
some consolidation took place among credit institutions, and wholly foreign-owned banks entered
the market. Most credit institutions remain small and urban-based, and their portfolios are mainly
composed of small loans and deposits. The latest annual report of the SBV indicates that the SOCBs
have 41.1% of total assets in the system, and account for 47.2% of domestic lending (48% in 2012)
and 44.6% of capital mobilization (45% in 2012). Although much smaller in size than the SOCBs,
joint-stock commercial banks accounted for 41% of total assets in the sector, and joint-venture and
foreign banks held about 10% in 2018. Chartered capital and equity have continuously increased for
all categories of banks.129 Several domestic banks are seeking opportunities abroad; in September
2011, the VietinBank opened a branch in Germany, making it the first European branch of a
Vietnamese bank, while others have opened branches in Cambodia, the Lao People's Democratic
Republic, and Myanmar. In 2017, Vietcombank received approval from the SBV to open a
representative office in New York.130
4.126. During the review period, the State reduced its participation in the SOCBs with a view to
improving their efficiency and minimizing the related risks for public finance. Three SOCBs (BIDV,
VietinBank, and Vietcombank) are now listed on the Ho Chi Minh Stock Exchange (HOSE). Regarding
121
Viet Nam's financial asset base was close to 200% of GDP in 2018. Total assets of the whole credit
institution system reached VND 12,600 trillion (USD 545 billion) in 2019.
122
According to the SBV, more than 90 million electronic point-of-sale (POS) transactions were done in
the last quarter on 2019. The value of these transactions rose by 63% compared with the same period in 2018.
Similarly, transactions at automatic teller machines (ATMs) increased by 15.5% and their value by 9%.
123
A low banking penetration rate implies that a significant part of domestic savings remains outside the
banking system and that domestic resources cannot be substantially mobilized for domestic investment.
Australian Trade and Investment Commission (2020), Digital Banking in Vietnam – A Guide to Market. Viewed
at: https://www.austrade.gov.au/ArticleDocuments/4569/digital-banking-vietnam-report.pdf.aspx.
124
Note that some of these state-owned banks are no longer wholly owned by the State, although the
State retains the majority of shares.
125
These are the Bank for Investment and Development of Viet Nam (BIDV), the Viet Nam Bank for
Agriculture and Rural Development (Agribank), the Viet Nam Bank for Industry and Trade (VietinBank), and
the Commercial Bank for Foreign Trade of Viet Nam (Vietcombank).
126
These foreign banks are ANZ Bank (Australia); CIMB Bank, Hong Leong Bank, and Public Bank
(Malaysia); HSBC and Standard Chartered (the United Kingdom); Shinhan Bank and Woori Bank (the Republic
of Korea); and United Overseas Bank (Singapore).
127
The Central People's Credit Fund transformed into the new Cooperative Bank during the review
period.
128
The authorities indicate that local People's Credit Funds operate mainly in rural areas and that they
do not operate as other credit institutions.
129
SBV, Annual Report 2018.
130
This trend of internationalization is expected to continue; however, it will depend on the financial
state of commercial banks to ensure their foreign expansion. Economist Intelligence Unit (2020), Financial
Services – Vietnam. Viewed at: http://country.eiu.com/filehandler.ashx?issue_id=100408393&mode=pdf.
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Agribank, the only strictly SOCB131, Prime Minister's Decision No. 26/2019/QD-TTg (on approval of
the list of enterprises to be equitized by the end of 2020), issued on 15 August 2019, initiated the
preparation of the roadmap for its equitization, which initially requires a corporate valuation that
may take up to 14 months. The State plans to keep 65% of the shared capital in this bank in the
medium term. Private investors seeking to buy shares during the equitization process must obtain
approval from the SBV as specified by SBV Circular No. 50/2018/TT-NHNN; those becoming a
strategic shareholder must meet a number of criteria on total assets and operational experience as
prescribed by SBV Circular No. 10/2011/TT-NHNN. In addition to the previous requirements, foreign
investors in equitized banks must comply with Decree No. 01/2014/ND-CP on caps for foreign capital
participation in credit institutions.
4.127. In recent years, consolidation took place, in most of cases, to support weak banks in the
system. In 2015, the SBV approved a number of mergers and acquisitions, including: the merger of
VietinBank and Petrolimex Group Bank (PG Bank); the acquisition of Mekong Housing Bank – another
SOCB – by BIDV; and the merger of Sai Gon Thuong Tin Commercial Bank (Sacombank) and the
Southern Bank.132 The SBV has also acquired a majority stake or taken complete control of
institutions facing difficulties133; no Vietnamese bank has gone bankrupt. Banking activities can be
performed only by licensed credit institutions.
4.128. The regulatory framework for banking and non-banking credit institutions continues to be
provided by Law No. 47/2010/QH12 on Credit Institutions, issued on 16 June 2010 and entered into
force on 1 January 2011, which was amended by Law No. 17/2017/QH14 (amendment and addition
to a number of articles of the Law on Credit Institutions), issued on 20 November 2017 and entered
into force on 15 January 2018. The amendment stipulates procedures, duties, and powers of the
SBV over credit institutions under its special control. It also prescribes further details on the
implementation of plans for merger, consolidation, transfer, or dissolution of institutions under
special control of the SBV.
4.129. Foreign credit institutions continue to be allowed to establish a commercial presence in

Viet Nam in a number of forms, including representative offices, branches of foreign commercial
banks, commercial joint-venture banks with foreign capital contribution not exceeding 50% of
charter capital, and banks with 100% foreign-owned capital.134 A 100% foreign-owned bank is
accorded full MFN and national treatment with respect to establishment of a commercial presence.
Foreign credit institutions are permitted to issue credit cards on a national treatment basis. Foreign
bank branches are granted national treatment and allowed to raise deposits in local currency. The
authorities state that the current restrictions are in line with the reservations it made in the WTO,
including restrictions on the equity participation of foreign investors in commercial banks of
Viet Nam135, and restrictions on the opening of branch offices outside the head office of a foreign
bank. These conditions did not change during the review period.
4.130. Since its WTO accession, Viet Nam has aimed to align its regulatory regime for foreign bank
branches, including minimum capital requirements, with commonly accepted international practices
and to fully implement other commitments in the banking and financial services sectors. A key
condition for establishing a branch of a foreign commercial bank in Viet Nam is that the parent bank
131
Agribank has been a 100% state-owned limited liability company since January 2011.
132
This last merger resolved issues of cross-shareholding in the two banks.
133
The SBV acquired three banks in 2015: Global Petro Commercial Joint Stock Bank (GPBank),
Viet Nam Construction Bank (VNCB), and Ocean Commercial Joint Stock Bank (OceanBank).
134
The SBV granted licences to wholly foreign owned banks for the first time in 2008. The organizational
structure, governance, administration, and internal control and audit of foreign branches in Viet Nam must be
approved by the SBV before the branches are established (Law on Credit Institutions, Article 89).
135
Decree No. 01/2014/ND-CP (on the foreign investor purchase of stocks of a Viet Nam credit
institution), issued on 3 January 2014, loosened foreign shareholding restrictions in local banks and eliminated
distinctions between institutional investors as credit institutions or otherwise. The current regulation applies the
same ceilings for all credit institutions. No foreign individual may own more than 5% of equity, and a foreign
organization 15% (unless it is a strategic investor, then the limit is 20%); the total equity of all foreign
investors in a credit institution is limited to 30%. Any foreign investor and its related parties may not control
more than 20% of equity of a local institution.
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has total assets of more than USD 20 billion at the end of the year prior to application 136; minimal
capital requirements for non-bank credit institutions range from VND 100 million (Local People's
Credit Fund) to VND 3 trillion (Cooperative banks and commercial banks).
4.131. The SBV is the main financial regulatory agency and the sole supervisory agency; it is a
ministerial-level government agency and continues to operate under government oversight. 137 The
SBV is regulated by the 2010 Law on the State Bank of Viet Nam138, which stipulates its
independence in the implementation, administration, and selection of monetary instruments. Its
areas of operation include the provision of liquidity support, monetary policy, the management of
foreign currency reserves and foreign exchange rates, and the issuance of banking licences. The
SBV remains accountable to the National Assembly as a mechanism to increase transparency in the
decision-making process. Regarding supervision and inspection, the SBV is responsible for the
monetary and banking sector, and the MOF is responsible for securities and insurance.139
4.132. Since the last Review, Viet Nam has taken actions to improve the efficiency, safety, and
transparency of its banking system, including restructuring the financial and banking system,
strengthening the position of financially weak banks, and dealing with bad loans. Although the
country is not a member of the Basel Committee on Banking Supervision, the Government decided
on compliance with Basel II requirements as an objective for the banking system. 140 In this regard,
the National Financial Supervisory Commission estimated in September 2018 that Vietnamese banks
needed to double their charter capital. The authorities intended to fully comply with the Basel II
requirements by 1 January 2020141, but given the challenges of small banks, the authorities now
intend to achieve this goal by 2023.142 By the end of 2019, only 18 banks (16 Vietnamese and 2
foreign-invested) out of nearly 50 satisfied the requirements before the original deadline. In 2019,
some major banks (Agribank, VietinBank, and Vietcombank) requested to further increase foreign
ownership limits or to allow the payment of dividends in shares instead of cash. Other banks opted
to list their shares or offer opportunities for FDI to raise capital, such as the purchase of a 15% stake
in the BIDV by a Korean KEB Hana Bank in 2019. Since 2016, nine joint-stock commercial banks
were listed on the HOSE, bringing the total to 21 listed commercial banks, including 3 SOCBs.143
4.133. Since the last Review, regulations on limits and prudential ratios have been updated several
times. SBV Circular No. 22/2019/TT-NHNN (stipulating the limits and the safety guarantee ratio in
the operation of banks and foreign bank branches), issued on 15 November 2019, prescribes
136
Currently, Decree No. 86/2019/ND-CP (on the legal capital of credit institutions and foreign bank
branches), issued on 14 November 2019, fixes this and other legal capital requirements for the banking
sectors. VND 3 trillion (about USD 130 million) of legal capital is requested for a joint-venture bank, an SOCB,
or a cooperative or investment bank; VND 345 billion (about USD 15 million) for a foreign bank branch; and
VND 5 trillion (about USD 215 million) for development and policy banks. Note that all requirements on legal
capital are in local currency, except the one for foreign bank branches, which is denominated in US dollars.
137
The Vietnamese authorities distinguish independence in terms of mechanism and organizational
structure from independence in terms of operation.
138
Law No. 46/2010/QH12, issued on 16 June 2010 and entered into force on 1 January 2011.
139
In a supplementary role, the Deposit Insurance Agency of Viet Nam (DIV) protects the legitimate
right and interests of depositors according to Law No. 06/2012/QH13 on Deposit Insurance, Decree
No. 68/2013/ND-CP detailing and guiding the implementation of the Law on Deposit Insurance, and some
other guiding documents.
140
For the implementation of Pillars II and III of Basel II, the SBV issued Circular No. 13/2018/TT-
NHNN, prescribing the internal control system of commercial banks and foreign bank branches, and Circular
No. 41/2016/TT-NHNN, requiring banks to disclose and report information on capital needs, risk control, and
management.
141
SBV Circular No. 41/2016/TT-NHNN (on capital adequacy ratio provisions for banks and foreign bank
branches), issued on 30 December 2016, as amended by Circular No. 22/2019/TT-NHNN (on limits and safety
guarantee ratios in the operation of banks and foreign bank branches), issued on 15 November 2019,
stipulates the safe-ratio capital for banks and foreign bank branches, while SBV Circular No. 13/2018/TT-NHNN
(on the internal control system of commercial banks and foreign bank branches), issued on 18 May 2018, as
amended by Circular No. 40/2018/TT-NHNN (amendment and addition to a number of articles of Circular
No. 13/2018/TT-NHNN), issued on 28 December 2018, prescribes further internal control systems.
142
SBV Circular No. 22/2019/TT-NHNN (on limits and safety guarantee ratios in the operation of banks
and foreign bank branches), issued on 15 November 2019, extends the period for compliance under the
establishment of a roadmap to be approved by the SBV. SBV Circular No. 08/2020/TT-NHNN (amendment and
addition to a number of articles of the Circular No. 22/2019/TT-NHNN), issued on 14 August 2020 and entered
into force on 1 October 2020, extends the period for compliance by a year.
143
Additionally, five joint-stock commercial banks registered for trading on the Unlisted Public Company
Market (UPCoM).
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minimum levels of 9% for capital adequacy ratios (CAR) for banks. According to the SBV Annual
Report 2019, the overall CAR of banks in Viet Nam was 12.1% (the SOCBs at 9.5%, joint-stock
commercial banks at 11.2%, joint-venture and foreign banks at 25.9%, and financial and financial
leasing companies at 19.5%).144 The Circular also stipulates prudential ratios for the credit limit, the
affordability rate, the maximum rate of short-term funds for loans, the capital contribution limit, and
the outstanding loans to total amount of deposits. Law No. 06/2012/QH13 on Deposit Insurance and
its implementing Decree No. 68/2013/ND-CP require credit institutions to apply a deposit insurance
scheme and to inform its customers. SBV Circular No. 39/2011/TT-NHNN, issued on 15 December
2011, continues to regulate the independent audit activities of credit institutions and foreign bank
branches, and stipulates the scope of audit activities.
4.134. Handling non-performing loans (NPLs) in credit institutions was also a key objective for the
Government in recent years. The Viet Nam Asset Management Corporation (VAMC), established by
Decree No. 53/2013/ND-CP (establishment, organization, and operation of the VAMC), issued on
18 May 2013, as amended by Decree No. 18/2016/ND-CP (amendment and addition to a number of
articles in the Decree establishing and organizing the VAMC) and the SBV's intervention in piloting
the NPL Resolution Scheme as required by Resolution of the Parliament No. 42/2017/QH14 (on pilot
settlement of credit institutions' bad debt), issued on 21 June 2017, played a major role in keeping
the on-balance-sheet NPL ratio of the whole credit institution system at 1.9% in 2018 (4.1% in
2012).145 The VAMC offers a refinancing window for fresh capital to credit institutions, which receive
fresh cash or the VAMC's bonds in exchange for their NPLs. Resolution No. 42/2017/QH14 allows
credit institutions to seize collateral and to sell and trade NPLs with non-governmental actors at
prices lower than book value. By the end of 2018, the VAMC held 17% of all outstanding NPLs in the
system, and about half of them (49%) are in the hands of credit institutions using a credit risk
provision. In February 2020, 12 banks, some of which are major SOCBs, transferred all of their
outstanding NPLs to the VAMC. During the first three quarters of 2020, bad debts of VND 1.08 trillion
were sold to the VAMC.
4.135. SBV Circular No. 13/2018/TT-NHNN (regulations on the internal control system of
commercial banks and foreign bank branches), issued on 18 May 2018, introduced changes in the
governance and administration of credit institutions with a view to preventing, addressing, and
mitigating losses and failures in the banking system in a timely manner. It prescribes three lines of
internal control that must be established to mitigate risk in banking activities: (i) managerial control
on performance and human resources; (ii) legal and external risk management by specific
departments; and (iii) internal audit. The Government aimed to effectively implement limits for
cross-ownership within the banking system as foreseen by the Law on Credit Institutions. SBV
Circular No. 46/2018/TT-NHNN (regulations on time, order, and procedure for transfer of major
shareholders of a credit institution and related persons of shareholders owning more than 5% of the
charter capital of another credit institution), issued on 28 December 2018, as amended by SBV
Circular No. 14/2019/TT-NHNN (amendment and addition to a number of articles in Circulars
providing regulations on periodic reporting regime of the SBV), issued on 30 August 2019, is
expected to speed up the transition period for transfer of shares in the hands of individual and
institutional shareholders (having a majority participation in another credit institution) below limits
set by law, i.e. 5% and 15%, respectively.146
4.136. The SBV's objectives include curbing the inflation rate below the target, maintaining
macroeconomic stability, and ensuring adequate liquidity in credit institutions and the stability of
exchange rates and the foreign exchange market contributing to stabilizing the market interest rate
(Section 1.2.3). Since 2013, the SBV has managed monetary policy tools to promptly meet the
liquidity needs of credit institutions and to maintain interbank interest rates at appropriate levels in
144
SBV (2019), Annual Report. Furthermore, the ratio of short-term capital used as long-term loans
rose from 16.8% in 2012 to 28.4% in 2018.
145
The general objective is that the ratio of NPLs on credit institutions' balance sheets must be lower
than 3%. By August 2018, NPL ratios of VPBank (4.1%) and Sacombank (3.7%) were above that threshold,
and NPL ratios for other banks (Eximbank, MBBank, NCB, OCB, SHB, Techcombank, TPBank, and VIB)
increased during 2018 but remained below the 3% benchmark. See SBV Annual Report 2019; Intellasia,
"Which Bank Has the Highest NPL Ratio?", 31 August 2018. Viewed at: https://www.intellasia.net/which-bank-
has-the-highest-npl-ratio-682872; and Customs News, "Waiting for Breakthroughs in Handling Non-performing
Loans", 23 June 2019. Viewed at: https://customsnews.vn/waiting-for-breakthroughs-in-handling-non-
performing-loans-11094.html.
146
Viet Nam News, "SBV to End Cross-ownership in Vietnamese Banks", 29 January 2019. Viewed at:
https://vietnamnews.vn/economy/484635/sbv-to-end-cross-ownership-in-vietnamese-banks.html.
- 141 -
line with the macroeconomic conditions and market developments. The lending and deposit rates of
credit institutions declined during the review period. At present, the average annual interest rates
for deposits in local currency are around 6%, while the average lending rates are around 10.0%.
The SBV fixes the maximum lending rate in each period as prescribed by Article 13 of SBV Circular
No. 39/2016/TT-NHNN, and it does not intervene in commercial arrangements between credit
institutions and their customers. The previous Circular, which regulates lending activities of credit
institutions and foreign bank branches to customers, also stresses the autonomy of credit institutions on
accepting or refusing loan requests of their customers and on negotiating their related conditions (lending
rates).147 Two state-owned banks implement preferential credit policies; those of the Viet Nam
Development Bank are directed at supporting economic policies, and those of the Viet Nam Bank for
Social Policies are directed at social policies to support the poor, remote areas, and agriculture.
4.137. To mitigate the adverse impact of the COVID-19 pandemic, the SBV implemented measures
on credits and interest rates to alleviate negative setbacks for customers, following the instructions
of the Government and the Prime Minister. SBV Circular No. 01/2020/TT-NHNN, issued on 13 March
2020, and SBV Directive No. 02/CT-NHNN, issued on 31 March 2020, create the legal basis and
provide guidance to credit institutions on restructuring debts and interest for customers and on
keeping low interest rates and fees for customers implementing production and business projects.
SBV Circular No. 05/2020/TT-NHNN, issued on 7 May 2020, and SBV Decision No. 925/QD-NHNN,
issued on 13 May 2020, prescribe the refinancing of the Vietnam Bank for Social Policies with the
aim of allowing employers to borrow to cover salaries and other employment benefits. Additionally,
the SBV reduced interest rates three times during 2020 (on 17 March, 13 May, and 1 October) to
provide liquidity for credit institutions.
4.138. Viet Nam considers that it has achieved significant results in improving the legal framework
for the sector, ensuring the stability of credit institutions, improving the credit quality through the
resolution of NPLs, meeting international standards on capital adequacy by banks, and reducing
cross-ownership. However, the restructuring of credit institutions and the need to closely monitor
NPL ratios continue to be key elements in recent legal documents, such as the Development Strategy
of Vietnam's Banking Sector to 2025, Vision to 2030, approved by Prime Minister's Decision
No. 986/QD-TTg of 8 August 2018 and the Masterplan of Restructuring Credit Institutions and NPL
Resolution in the Period 2021-25, recently drafted by the SBV.
4.4.4.2 Insurance
4.139. Viet Nam's insurance market has continued to expand since the last Review; as at end-2019,
insurance premiums were valued at USD 8 billion (3.1% of GDP).148 The Government expects that
the sector will continue to grow rapidly, by around 18% annually, and that the coverage rate of life
insurance will continue to broaden. The market currently offers more than 2,478 non-life insurance
products and 544 life insurance products. At the end of 2019, there were 67 insurance companies,
according to the Insurance Supervisory Authority (ISA) under the MOF. 149 Also at the end of 2019,
18 life insurance firms were operating in Viet Nam150; Bao Viet Life (74% of shares held by the
State) and three foreign-owned companies (Prudential Viet Nam Assurance (the United Kingdom),
Manulife Viet Nam (Canada), and Dai Ichi Life Insurance (Japan)) control the bulk of the market
(71% of premium revenues).151 There are 31 non-life insurance enterprises operating in
Viet Nam152; the four largest firms in this segment – all domestic firms (Bao Viet Insurance,
PetroVietnam Insurance, Post and Telecommunication Insurance, and Bao Minh Insurance) –
147
Similar conditions are described in Articles 7 and 91 of Law No. 47/2010/QH12 on Credit Institutions.
148
The contribution to the GDP by the insurance sector is still below the objective adopted in 2012 by
the Strategy for the Development of the Insurance Market between 2012 and 2020 approved by Prime
Minister's Decision No. 193/QD-TTg of 15 February 2012.
149
Besides non-life and life insurers, 2 reinsurance companies and 16 insurance brokers operate in the
market.
150
Thirteen life insurers operate as one-member limited liability companies, another 4 as limited liability
companies with 2 or more members, and only 1 as a joint-stock company.
151
Foreign-invested AIA is the fifth-largest company in the life insurance segment, with nearly 10% of
the market share.
152
Nine non-life insurers operate as one-member limited liability companies, 4 as limited liability
companies with 2 or more members, 17 as joint-stock companies, and 1 as a branch of a foreign non-life
insurer. Only one branch of a foreign non-life insurance enterprise operates in Viet Nam.
- 142 -
accounted for 50.9% of premium revenue in 2019.153 Between 2013 and 2020, the total revenue of
the industry grew by an average annual of 19.7%, and revenue from premiums and investment
activities by 20.2% and 19.4%, respectively. Life insurance grew at a faster pace than non-life
insurance and, in 2018, almost two thirds (64.7%) of insurance premiums were related to life
insurance. The authorities indicate that almost all insurance companies were profitable in 2019. 154
4.140. The regulatory framework established by the Law on Insurance Business155, which came into
force on 1 April 2001, largely remained unchanged until Law No. 42/2019/QH14 (amending and
adding to a number of articles of the Law on Insurance Business and the Intellectual Property Law),
issued on 14 June 2019 and entered into force on 1 November 2019. Law No. 42/2019/QH14
stipulates guidelines on insurance auxiliary services provided by insurers and financial services
providers.156 Decree No. 73/2016/ND-CP (detailed provisions on the implementation of the Law on
Insurance Business and the Law Amending and Adding a Number of Articles of the Law on
Insurance), issued on 1 July 2016, regulates the organization and operation of life and non-life
insurers, legal capital requirements, conditions on foreign companies and brokers, criteria on
managerial and operational staff, requirements for internal organization and audit, and the provision
of cross-border insurance services. Foreign-invested insurance companies are accorded access to
information on measures relating to or affecting the supply of insurance services in Viet Nam on a
national-treatment basis.157
4.141. The authorities indicate that licensing criteria follow Viet Nam's GATS commitments,
implying that 100% foreign-invested enterprises are allowed to operate in the country (except for
some statutory insurance businesses158) and that non-life branches of foreign insurance are
permitted. Foreign-invested companies are allowed to supply compulsory insurance services
(including motor vehicle third-party liability coverage). A range of circulars were issued to regulate
insurance agent certificates, apply requirements to agency activities, and regulate other insurance-
related products, e.g. retirement insurance products.159 The authorities indicate that no preferential
personal tax treatment or benefit can be claimed based on the purchase of life (or other) insurance
from domestically owned companies.
4.142. The ISA, which is responsible for the supervision and implementation of operational
requirements of the sector, conducts an average of six inspections each year to detect and deal with
violations in the insurance industry; the main violations include not complying with regulations on
reserves, investment, revenue, expenses, and agents. Legal capital requirements are:
(i) VND 300 billion for non-life or for health insurance companies; (ii) VND 400 billion for non-life
and for health re-insurance enterprises; (iii) VND 600 billion for life and health insurance enterprises;
153
Economist Intelligence Unit (2020), Financial Services – Vietnam. Viewed at:
154
Out of 18 life insurers, 15 reported being profitable in 2019. For non-life insurers and reinsurance
companies, 31 of 33 were also profitable during the same period.
155
Law No. 24/2000/QH10 (on Insurance Business), issued on 9 December 2000 and entered into force
on 1 April 2001, as amended by Law No. 61/2010/QH12 (amendment and addition to a number of articles in
the Law on Insurance Business), issued on 24 November 2010 and entered into force on 1 July 2011. The
amendment in 2010 was seen as a step towards incorporating international practices and the completion of
Viet Nam's GATS commitments.
156
Related to auxiliary insurance services, Decree No. 80/2019/ND-CP (amendment and addition to a
number of articles of Decree No. 73/2016/ND-CP, and Decree No. 98/2013/ND-CP, as amended by Decree
No. 48/2018/ND-CP), issued on 1 November 2019, and MOF Circular No. 65/2019/TT-BTC (regulating the
content of training, exam, and certification of insurance auxiliary), issued on 16 September 2019, provide
relevant information on business conditions, as well as on training and recognition.
157
WTO document WT/ACC/VNM/48, 27 October 2006.
158
Insurance in construction and installation, insurance for oil and gas projects, and construction
projects of high danger to the public security and the environment remain restricted business areas for 100%
foreign-invested enterprises, per WTO document GATS/SC/142, 19 March 2007.
159
MOF Circulars No. 135/2012/TT-BTC (guiding the provision of unit-linked insurance products), issued
on 15 August 2012, No. 52/2016/TT-BTC (guiding the implementation of universal insurance products), issued
on 21 March 2016, No. 50/2017/TT-BTC (guiding the implementation of Decree No. 73/2016/ND-CP), issued
on 15 May 2017, and No. 125/2018/TT-BTC (on the certification of insurance agents), issued on
24 December 2018.
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(iv) VND 700 billion for life and for health re-insurance enterprises; and (v) VND 1.1 trillion for
enterprises that offer life, non-life, and health re-insurance services simultaneously.160
4.143. The authorities note that Viet Nam fully complies with 13 of 25 insurance management and
supervision principles established by the International Association of Insurance Supervisors
(IAIS).161 The authorities state that during the review period, management and supervision activities
were strengthened and standardized in accordance with the IAIS standards. They also recognize
certain challenges in the implementation of the Strategy for the Development of the Insurance
Market between 2012 and 2020, approved by Prime Minister's Decision No. 193/QD-TTg of
15 February 2012.162
4.144. Prime Minister's Decision No. 242/QD-TTg of 28 February 2019 approved the Plan on
Restructuring the Stock Market and the Insurance Market to 2020, Vision to 2025. A key objective
of the Plan is to submit the amendment to the Law on Insurance Business to the National Assembly.
The current draft aims to: supplement regulations on organizational models and operation conditions
of insurance businesses; complete regulations on financial management for insurance companies;
guide the implementation of risk-based management in the sector; further ensure the principles of
equality, transparency, and safety in insurance transactions; encourage the use of information
technology in insurance activities; and regulate loss limitation, insurance fraud, and dispute
settlement.
4.4.4.3 Securities
4.145. The two stock exchanges, Ho Chi Minh (HOSE) and Hanoi (HNX), and the related stock
market grew significantly in last seven years.163 In December 2019, 750 stocks were listed on both
exchanges (680 in 2013), with a market capitalization close164 to VND 4,400 trillion (equivalent to
72.6% of GDP), which denotes an increase in capitalization of 4.6 times, compared with its size in
2013. In December 2019, the HOSE recorded 378 listed companies and 43 bonds (corporate and
municipal), and its market capitalization reached VND 3,280 trillion.165 At the end of 2019, the HNX
reported 365 listed companies and 539 bonds (government, municipal, and government-
guaranteed), and its market capitalization was valued at VND 1,343 trillion.166
4.146. The majority of listed firms are former SOEs that have undergone equitization. The average
transaction value per session increased 3.4 times between 2013 and 2019, and it reached
VND 4.7 trillion per session by the end of 2019. Foreign-invested enterprises have the right to
transform into local shareholding companies and be listed on the local stock market. There are
around 80 brokerage firms in Viet Nam and the leading firms are SSI Investments (14.0% market
share in 2019) and Ho Chi Minh City Securities (10.5%).167
4.147. A third stock market, the Unlisted Public Company Market (UPCoM) for public companies not
yet listed, was launched in June 2009. Securities registered for the UPCoM must be registered for
depository at the Securities Depository Center. Delisted or suspended stocks from the HOSE or the
160
Note that additional services (aviation insurance, satellite insurance, and pension insurance) may
increase the legal capital requirements applied to insurers. Decree No. 73/2016/ND-CP (on details of
implementation of the Law on Insurance Business and the Law on amendments to certain articles of the Law
on Insurance Business), issued on 1 July 2016, as amended by Decree No. 80/2019/ND-CP (amendment and
addition to a number of articles of Decree No. 73/2016/ND-CP, and Decree No. 98/2013/ND-CP, as amended
by Decree No. 48/2018/ND-CP), issued on 1 November 2019.
161
Twenty-five Insurance Core Principles (ICPs) issued by the IAIS cover general processes and
procedures supervisors should have in place with respect to supervisory review and reporting.
162
The Strategy aimed at fully complying with the IAIS ICPs by 2020.
163
The plan to merge the two stock markets was abandoned in January 2019. The markets continue to
operate independently, although they are subsidiaries of a new state company under the MOF named the
Vietnam Stock Exchange. This new company is tasked with issuing regulations, and monitoring and supervising
the two stock markets. VN Express, "Vietnam Scraps Plan to Merge Stock Exchanges", 16 January 2019.
Viewed at: https://e.vnexpress.net/news/business/economy/vietnam-scraps-plan-to-merge-stock-exchanges-
3869407.html.
164
This valuation does not include investment funds.
165
Information provided by the HOSE.
166
Information provided by the HNX.
167
The top 10 brokers in the country account for 62% of the market share. Economist Intelligence Unit
(2020), Financial Services – Vietnam. Viewed at:
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HNX with more than 100 shareholders are moved to the UPCoM for trading. As at December 2019,
875 companies were listed on the UPCoM, with a market capitalization of VND 912 trillion.
4.148. The bond market showed rapid growth. By the end of 2019, 516 government and corporate
bonds were listed with a value of VND 1,100 trillion. The trading of derivatives and covered warrants
was launched in 2017, and it is at its initial stages.168
4.149. The State Securities Commission (SSC) under the MOF is in charge of direct regulation and
supervision of activities in securities and the securities market, and of management of public services
in securities and the securities market, in accordance with applicable laws.169 Viet Nam is an ordinary
member of the International Organization of Securities Commissions.
4.150. The recently enacted Law No. 54/2019/QH14 on Securities, issued on 26 November 2019,
entered into force on 1 January 2021. Authorities report that the new legislation will improve the
competence of the management agencies in the management, supervision, and handling of
violations in the market; improve the quality of corporate governance, information disclosure, and
protection to investors; and diversify goods and improve their quality in the market.
4.4.5 Telecommunications
4.151. Viet Nam's telecommunications market continued to grow in recent years; operators provide
indications of a dynamic market where profits grow at two-digit rates annually.170 This expansion is
expected to be sustained in coming years, given the Government's plan to promote the application
and development of IT solutions to meet objectives of sustainable economic growth and economic
integration. The development of IT-related activities in the country continues to boost the demand
for telecommunications services. In 2019, the telecommunications services accounted for 7.7% of
GDP and 0.6% of total employment, indicating that labour productivity in the sector almost doubled
the national average.171 In 2018, the revenue of telecommunications services was estimated at
USD 16.3 billion172, and mobile data is its most important segment (36% of market share).173 In
2019, almost all users (99.8%) had access to 2G coverage. 174 Since then, the country has made
significant progress in upgrading its telecommunications systems; 4G/LTE services have been
offered since 2017, and they cover up to 97% of the population in 2020. Piloting of the 5G network
was launched in 2019, and its pilot commercialization started in December 2020. 175
4.152. Compared with the six providers licensed for mobile phone services, the fixed-telephone
segment is more diversified with 73 providers, but represents only a small share of the market. The
fixed-telephone penetration rate is currently 34.5 per 100 inhabitants, while mobile-cellular
subscriptions are 131.7 per 100 habitants.176 Internet services, which are also dominated by SOEs,
consist of a national fibre-optic network along main roads extending to all borders, metropolitan
fibre-optic rings around the main cities, five submarine cables, and Internet Exchange Points in the
three largest cities. The market is driven by mobile broadband subscriptions rather than fixed
broadband ones, and two thirds (68.7%) of the population has access to the Internet.
168
Currently, the derivatives market has only two products: a futures contract on the VN30 index and a
five-year government bond futures contract. Decree No. 42/2015/ND-CP (on derivate securities and derivative
securities market), issued on 5 May 2015, and related circulars regulate these activities.
169
Economist Intelligence Unit (2020), Financial Services – Vietnam. Viewed at:
170
Viet Nam News, "FPT's Profit Up by Nearly 19% in Q1", 20 April 2020. Viewed at:
http://vietnamnews.vn/economy/715477/fpts-profit-up-by-nearly-19-per-cent-in-q1.html; and Viet Nam
News, "Viettel Urged to Maintain Its Lead in Country's Telecom Market", 17 July 2020. Viewed at:
https://vietnamnews.vn/economy/769722/viettel-urged-to-maintain-its-lead-in-countrys-telecom-market.html.
171
Information reported by the authorities.
172
General Statistics Office of Viet Nam (2019), Statistical Yearbook of Viet Nam 2019, Table 311.
173
International Trade Administration, US Department of Commerce. Viewed at:
https://www.trade.gov/knowledge-product/vietnam-information-and-communication-technologies.
174
Ministry of Information and Communications (2019), White Book on Information and Communication
Technology 2019.
175
PR Newswire, "Viettel Becomes the First 5G Carrier in Vietnam", 1 December 2020. Viewed at:
https://www.prnewswire.com/news-releases/viettel-becomes-the-first-5g-carrier-in-vietnam-301182313.html.
176
This penetration rate implies simultaneous subscriptions to several providers among a part of the
population. Ministry of Information and Communications (2019), White Book on Information and
Communication Technology 2019.
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4.153. The Government intends to develop software and digital content outsourcing services to
enable a thriving telecommunications industry; it also aims to ensure equal and affordable access
for its citizens. Private/foreign participation in all market segments is open except for: listed
telecommunications services with network infrastructure in which the State keeps a dominant
position (65% or more of share-ownership); services subject to cross-ownership regulations; and
areas with foreign investment limitations set in accordance with Viet Nam's commitments under
relevant international treaties.177 The market is dominated by three state-owned operators: the
Viet Nam Post and Telecommunications (VNPT) and MobiFone Telecommunications Corporation
under the CMSC178, and the Ministry of Defence-owned Viettel. Jointly, they control more than 95%
of the market in three of the telecoms subsectors (fixed telephone, mobile telephone, and mobile
broadband). In the fixed broadband services, VNPT and Viettel currently have 80% market share,
and a private company, FPT, accounts for 15.5% of this segment.179 VNPT is the main actor in the
two segments related to fixed connections, while Viettel is the dominant actor in mobile subscriptions
(52%-55% of market share). Viettel is the major telecommunications company in Viet Nam, and its
revenues in 2018 represented 55% of the sector's total revenue.180
4.154. Prime Minister's Decision No. 26/2019/QD-TTg announced that, among SOEs, the two
telecommunications corporations under the responsibility of the CMSC are to be equitized by the
end of 2020.
4.155. The policy framework regulating the sector has remained largely unchanged since the last
Review. During the period 2013-2019, Viet Nam sought to improve the effectiveness and efficiency
of law enforcement. During the review period, 3 decrees, 1 decision, and 21 circulars were enacted
on administrative penalties for violation of regulations, the provision and use of Internet services,
the responsibilities of the Department of Telecommunications, quality control and testing
procedures, call and interconnection charges, limits for promotions, number portability, and the use
of telecommunications data and storage. The MIC is the sector's policy-making and regulatory body;
it, inter alia, guides the development of telecommunications and Internet services, manages
telecommunication licences and interconnection charges between operators, manages the provision
of public utility services, and protects the rights of users. 181 During the review period, the
responsibility for setting consumer tariffs for telecommunications and Internet services was
transferred from the MIC to the MOF. The transfer of large state-owned telecommunications
corporations from the MIC to the CSMC is considered by authorities as a step to ensure the
independence of the Viet Nam Telecommunications Authority, which is the regulator in the sector.
According to the authorities, Decree No. 81/2016/ND-CP (amending and supplementing a number
of articles of Government Decree No. 25/2011/ND-CP, detailing and guiding the implementation of
a number of articles of the Law on Telecommunications), issued on 1 July 2016, increased the
transparency in telecommunications licensing by a reduction in administrative procedures and an
increase of post-licensing examination to ensure the compliance of enterprises. The country also
promoted the domestic production of telecommunications equipment, and the launch of the 5G
network will rely entirely on domestic products.182 Mobile number portability became available on
16 November 2018, and it is expected to foster competition among providers.
177
Prime Minister's Decision No. 55/2011/QD-TTg (providing the list of enterprises of network
telecommunications service provided by the State and its capital contribution), issued on 14 October 2011;
Article 3 of Decree No. 25/2011/ND-CP, issued on 6 April 2011, providing implementation guidelines for a
number of articles of the Law on Telecommunications; and MIC Circular No. 10/2012/TT-BTTTT (providing the
list of telecommunications services regulations in Clause 1, Article 3, of Decree No. 25/2011/ND-CP), issued on
10 July 2012.
178
The CMSC was established by Decree No. 131/2018/ND-CP, and it is assigned to exercise the rights
and responsibilities of the State as an owner in large corporations. Currently, 19 corporations are under its
management. Viewed at: http://cmsc.gov.vn/web/english/history.
179
MobiFone Telecommunications Corporation is not active in the fixed segment.
180
Viet Nam News, "Viettel Urged to Maintain Its Lead in Country's Telecom Market", 17 July 2020.
Viewed at: https://vietnamnews.vn/economy/769722/viettel-urged-to-maintain-its-lead-in-countrys-telecom-
market.html.
181
MIC, Main Functions. Viewed at: https://english.mic.gov.vn/Pages/ThongTin/114253/Main-
Functions.html.
182
The purchase of telecommunications equipment of businesses and organizations are stipulated in
Law on Bidding No. 43/2013/QH13, issued on 26 November 2013 and entered into force on 1 July 2014, and
other related legal documents. Viet Nam News, "Viet Nam to Commercialise 5G in October", 11 July 2020.
Viewed at: https://vietnamnews.vn/economy/749464/viet-nam-to-commercialise-5g-in-october.html.
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4.156. All enterprises, state-owned or not, require licences to provide telecommunications services.
Since 2013, Viet Nam has issued more than 70 operating licences, although most of them provide
fixed communication services only. Viet Nam allows joint ventures with foreign partners to provide
telecommunications services related to network infrastructure, such as telephone services,
packet-switched data transmission services, circuit-switched data transmission services, telex
services, telegraph services, facsimile services, and private leased circuit services. Equity caps
applicable to foreign investment in both fixed and mobile communications, as well as Internet
services, are set at 49% in facilities-based services (i.e. infrastructure); they may increase up to
65% (70% for VPN services) after a three-year investing period in Viet Nam in non-facilities-based
services (i.e. telephony services with no network infrastructure).183
4.157. Article 14 of the Law on Telecommunications184 guarantees non-discrimination towards

telecom providers without infrastructure in granting access to and use of public telecommunications
transport networks; public telecom service providers have an obligation to allow other public telecom
service providers to interconnect with their network under equitable and reasonable conditions.
Interconnection prices for voice calls between international and domestic, as well as between mobile
and fixed, networks are regulated by MIC Circulars No. 35/2009/TT-BTTTT (regulations on
connection charges for voice calls from foreign fixed telecom networks to the domestic fixed telecom
network), issued on 19 November 2009; No. 22/2011/TT-BTTTT (regulations on connection charges
for voice calls from land mobile network to domestic fixed telecom network), issued on 1 November
2011; No. 13/2016/TT-BTTTT (regulations on incoming international call charges), issued on 25 May
2016; and No. 48/2017/TT-BTTTT (regulations on connecting charges for voice calls from domestic
fixed telecom network to the land mobile network of the country and connection charges for calls
between two terrestrial mobile network nationwide), issued on 29 December 2017. Decree
No. 81/2016/ND-CP (amendments and additions to a number of articles of Decree No. 25/2011/ND-
CP), issued on 1 July 2016, requires service providers to register their model contracts and general
transaction terms with the MIC, provides further details on application and extension dossiers for
licences, and shortens the processing times for licences. Decree No. 49/2017/ND-CP (amendments
to Article 15 of Decree No. 25/2011/ND-CP and Article 30 of Decree No. 174/2013/ND-CP), issued
on 24 April 2017, modifies the conditions applying to points of telecommunications services (POS)
and notably allows for subscription of contracts at mobile and authorized POS.
4.158. The authorities state that both the 2018 Law on Competition 185 and the Law on
Telecommunications apply to telecommunications service providers, including SOEs. The Law on
Telecommunications contains provisions for a pro-competition regulatory regime, covering abuse of
market power regulation, interconnection rules, and access to essential facilities. MIC Circular
No. 11/2010/TT-BTTTT (on promotion activities for mobile communication services), issued on
14 May 2010, as amended by MIC Circular No. 47/2017/TT-BTTTT (on promotion limitations for
mobile information services), issued on 29 December 2017, stipulates that a promotion cannot be
higher than a 50% reduction with respect to the price of services and that promotion for a product
or service cannot last more than 90 days per year. According to Decree No. 25/2011/ND-CP, the
telecommunications regulator has responsibility to receive and resolve competition complaints;
however, no complaints were registered during the review period.
4.159. The Government retains control over interconnection rates, and operators have the freedom
to determine retail tariffs for other services.186 However, dominant operators must pre-register their
proposed tariffs with the Department of Telecommunications under the MIC before applying them.
The authorities indicate that operators set their own tariffs based on the market mechanism and
that operators must publicly announce their tariffs. In 2017, the ITU reported that prices for mobile
telecommunications, fixed broadband, and mobile broadband were lower (as % of GNI) than the
regional average for Asia and the Pacific, which generally is the world benchmark.
183
Decree No. 121/2008/ND-CP (investment activities in posts and telecommunications), issued on
3 December 2008.
184
Law No. 41/2009/QH12 (on Telecommunications), issued on 23 November 2009 and entered into
force on 1 July 2010, was amended by Law No. 21/2017/QH14 (on Planning), issued on 24 November 2017
and entered into force on 1 January 2019.
185
Law No. 23/2018/QH14 was issued on 12 June 2018 and entered into force on 1 July 2019.
186
MIC Circulars No. 35/2009/TT-BTTTT, No. 22/2011/TT-BTTTT, No. 13/2016/TT-BTTTT, and
No. 48/2017/TT-BTTTT fix the rates for interconnection charges.
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4.160. Since 2004, the Viet Nam Public Utility Telecommunication Service Fund (VTF) 187 has
supported the development and provision of public-utility telecommunications services (i.e. universal
and compulsory telecommunications services) in regions where market mechanisms fail to deliver
them on a cost-effective basis. The VTF financial support consists of direct funding for the
development and maintenance of public-utility telecoms services in designated regions, and soft
financing to assist enterprises in building, upgrading, and expanding telecommunications
infrastructure, Internet, and other facilities. National programmes on the provision of public-utility
telecommunications services for the periods 2011-15 and 2016-20 were approved by the Prime
Minister.188 MOF Circular No. 57/2016/TT-BTC, as amended by MOF Circular No. 83/2019/TT-BTC,
prescribes the collection and payment of contributions to the VTF and fifty-six operators contributed
to the VTF fund during the review period.
4.161. Under the Viet Nam-European Union FTA (EVFTA), Viet Nam committed to increase the caps
on EU foreign investment in some telecommunications segments. Foreign equity caps in non-
facilities-based virtual private network services will be raised to 75%. Caps will be completely
removed in non-facilities-based value-added services (no further need to establish a joint venture),
they will be fixed at 65% in facilities-based value-added services, and they will be increased to 75%
in non-facilities-based Internet services and 65% in facilities-based Internet services.189 No further
improvements or liberalization beyond GATS commitments were made in bilateral trade agreements
with the Eurasian Economic Union, India, and the Republic of Korea.190
4.4.6 Transport
4.162. The development of physical infrastructure for the transport sector is a key to sustaining
economic growth. Although needs were already identified by national policymakers in the Transport
Development Strategy to 2020, Vision to 2030, projects continued to be planned and executed
largely in isolation without a strategic multimodal approach and with little regard to supply-demand
considerations. This has contributed to perpetuating some transport bottlenecks: fragmentation of
services, underutilization of existing infrastructure, and substandard provision of services. 191 Traffic
congestion around ports and along the connecting national highway systems exacerbates cargo
movement, causes delays, and negatively affects urban mobility of major cities. Transport and
logistics need to be expanded and upgraded to support the country's transformation and to ensure
that it remains competitive with respect to its peers in the region.192
4.163. In 2019, transportation and storage accounted for 3.1% of GDP and 3.6% of total
employment. Labour productivity in transportation and storage increased by 92.5% during
2010-18.193 During the same period, Viet Nam's freight transport increased by 85% (volume), and
passenger transport grew by 87.5%. According to Ministry of Transport (MOT) data, current
transportation remains heavily dependent on road transport, which accounts for 77% of all cargo
and 95% of all passengers.194
4.164. According to the MOT, Viet Nam's needs for the development of its transport infrastructure
were valued at VND 1,015 trillion (approximately USD 44.7 billion) for the 2018-2023 period. Of this
187
Prime Minister's Decision No. 191/2004/QD-TTg, issued on 8 November 2004, established the VTF in
2004; however, its current organization and operations are prescribed by Prime Minister's Decision
No. 11/2014/QD-TTg (on the organization and operation of Viet Nam Public Telecommunications Service Fund),
issued on 27 January 2014.
188
Prime Minister's Decisions No. 1643/QD-TTg (approving the programme on public
telecommunications services for the period 2011-15), issued on 21 September 2011; No. 1168/QD-TTg
(approving the programme on public telecommunications services by 2020), issued on 24 July 2015; and
No. 868/QD-TTg (amendments and additions to Prime Minister's Decision No. 1168/QD-TTg), issued
16 July 2018.
189
Anh, H. "Vietnam to Open Up Telecom Market for Foreign Investors", Hanoi Times, 7 October 2018.
Viewed at: http://hanoitimes.vn/vietnam-to-open-up-telecom-market-for-foreign-investors-2991.html.
190
WTO documents WT/REG371/1, 13 April 2017; WT/REG372/1, 22 August 2016; and WT/REG385/1,
21 June 2019.
191
World Bank (2014), Efficient Logistics: A Key to Vietnam's Competitiveness.
192
World Bank (2017), Vietnam at a Crossroads: Engaging in the Next Generation of Global Value
Chains.
193
SBV, Annual Report 2018.
194
MOT presentation, International Seminar Transforming Urban Transportation in ASEAN Big Cities,
19 June 2019. Viewed at: https://www.lexivox.org/norms/BO-L-N26.xhtml?dcmi_identifier=BO-L-
N26&format=xhtml.
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total, 64% corresponds to road development, 11.7% for railways, 10% for air transport, and another
10% for sea routes and inland waterways. One third of this budget was expected to come from
private sources inside and outside the country.195 Besides investment incentives in the Investment
Law and other relevant laws, investors participating in significant public-private partnership (PPP)
projects can benefit from incentives described in Chapter IX of Decree No. 63/2018/ND-CP, such as
property mortgage and ownership, and foreign currency availability, among others.
4.165. Despite the significant investment in road infrastructure, the Government announced in
March 2017 its objective to reduce the share of transport that circulates by road and to increase the
inland waterway and railway transport capacity.196 Following Prime Minister's Decision No. 995/QD-
TTg, issued on 9 August 2018, the MOT is preparing five national transport plans (road, railway,
seaport system, airport system, and inland water infrastructure) for the period 2021-30.
4.4.6.1 Maritime transport
4.166. Viet Nam plays an important role for maritime traffic both globally and, particularly,
regionally; it is a gateway to the sea for neighbouring countries and regions such as the Lao People's
Democratic Republic, north-western Thailand, and south-eastern China. The total tonnage of the
Vietnamese fleet increased by around 5% between 2010 and 2019 to reach 7.55 million DWT. It is
the world's 29th largest fleet and the 4th largest in the ASEAN region197; it consists of 1,507 vessels,
including 1,047 cargo ships, 100 bulk carriers, 156 tankers, 39 container ships, and 19 ships
transporting liquified gas.198 Half of the cargo vessels carried domestic freight, while the other half
are international transport ships mainly serving routes to East and Southeast Asia. 199 The authorities
report challenges for the development of the sector related to sustaining its international
competitiveness, rapidly renovating the national fleet to meet market demand, and respecting
international commitments. The state-owned shipping company, Viet Nam National Shipping Lines
(Vinalines), accounts for 25% of the fleet's total deadweight tonnage. In 2019, the average age of
Vietnamese ships was about 16.3 years, and its transport volume was estimated at 154.6 million
tonnes. The overseas cargo shipping market remains dominated by foreign firms (75%-80% cargo
in 2019). Shipping fees and surcharges by shipping companies continue to be relatively high, which
affects the international competitiveness of Vietnamese exports.200 MOT Circular No. 54/2018/TT-
BGTVT regulates tariff brackets for different services at Vietnamese seaports; the Viet Nam Maritime
Administration (Vinamarine) is currently reviewing applied shipping fees and surcharges as a first
stage for the drafting of an amendment and a supplement to MOT Circular No. 54/2018/TT-BGTVT.
4.167. The authorities state that all businesses operate in equal conditions, and all support
measures (e.g. subsidies) to domestic transport companies were removed upon Viet Nam's
accession to the WTO. Ships flying the national flag are entitled to inland sea transport (cabotage)201,
according to the 2015 Maritime Code, and the country has no commitment for inland transport at
the WTO.
4.168. The 2005 Maritime Code202 was replaced by the 2015 Maritime Code (Law
No. 95/2015/QH13), issued on 25 November 2015 and entered into force on 1 July 2017.203 The
195
Vietnam Insider, "GMS Transport Projects Make Vietnam Better Connected", 12 April 2018. Viewed
at: https://vietnaminsider.vn/gms-transport-projects-make-vietnam-better-connected/.
196
Le, A., "Ministry Looks to Reduce Road Transport", Saigon Times, 31 March 2017. Viewed at:
https://english.thesaigontimes.vn/53238/ministry-looks-to-reduce-road-transport.html.
197
UNCTADstat. Viewed at: https://unctadstat.unctad.org/wds/ReportFolders/reportFolders.aspx.
198
In recent years, Viet Nam's fleet has specialized to meet the requirements for domestic freight. For
instance, the number of ships transporting containers doubled between 2013 and 2019.
199
Only some bulk carriers ship cargo on European routes.
200
Viêt Nam News, "Ministry Rejects Proposal of Lowering Container Service Charges", 20 April 2020.
Viewed at: https://vietnamnews.vn/economy/715528/ministry-rejects-proposal-of-lowering-container-service-
charges.html.
201
However, some specialized vessels not carrying the Vietnamese flag may exceptionally transport
liquified petroleum gas (LPG), bulk cement, and other materials. No foreign ship owner or shipping line was
allowed to operate domestic shipping services during the review period. Twelve ships carrying a foreign flag
and owned by Vietnamese enterprises were licensed to transport super-long, overweight, or other specialized
cargoes.
202
Law No. 40/2005/QH11, issued on 14 June 2005 and entered into force on 1 January 2006.
203
Some articles of the 2015 Maritime Code were amended by Law No. 35/2018/QH14 (amendments
and additions to a number of articles of 37 Laws related to planning), issued on 20 November 2018 and
entered into force on 1 January 2019.
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2015 Maritime Code updates definitions of maritime vessels and registration procedures of vessels
and infrastructure at sea; it also stipulates details on maritime stakeholders' duties regarding crew
benefits and the compliance of Viet Nam's commitments to the 2006 Maritime Labour Convention.
The 2015 Maritime Code requires the update of a substantial number of regulations and at least 16
decrees and 33 circulars have been published since its entry into force. These regulations cover a
variety of subjects, including provisions on maritime safety services, licensing of foreign vessels,
working conditions and training requirements for seafarers, shipbuilding and repair services,
registration of ships, logistic services, conditions for commercial operation of seaports, passenger
transport in internal waters and across borders, container inspections, the Vessel Traffic Service
System, and maritime fees and charges.
4.169. Decree No. 171/2016/ND-CP (on registration, deregistration, purchase, sale, and building of
ships), issued on 27 December 2016, prescribes the conditions for the registration of vessels flying
the Vietnamese flag. Notably, it sets limits on the age of used ships registered in Viet Nam, which
varies between 10 and 20 years, according to the ship characteristics. Private companies are
encouraged to participate in the maritime industry; foreign investors can set up joint ventures with
a capital contribution (49%) as stated in Viet Nam's commitment on maritime transport services
(passenger and freight transportation less cabotage) to the WTO. 204 Additionally, two thirds of crew
members are required to be Vietnamese. Detailed provisions on inland transport activities are
specified in Decree No. 160/2016/ND-CP (on conditions for maritime transportation, ship agency
services, and ship tolling services), issued on 29 November 2016, and on logistic services in Decree
No. 163/2017/ND-CP (regulations on logistics services), issued on 30 December 2017. Viet Nam
seeks to increase the capital contribution from private investors through an equitization programme
for SOEs (Section 3.3.5).
4.170. Ports in Viet Nam experienced a rapid development up to 2013; trade value passing through
seaports have stagnated since then.205 According to Vinamarine, Vietnamese ports operated at or
near their capacity in 2019 and moved 654 million tonnes of cargo (3.3 times the level in 2009).
Half of the cargo is dry bulk cargo, and another third of it is containerized cargo (approximately
5 million TEU container units in 2018). Maritime cargo is heavily concentrated around five seaports:
Ho Chi Minh City, Cai Mep–Thi Vai, Hai Phong, Quang Ninh, and Da Nang. Main imported products
are machines and parts, electronics and electrical equipment, plastics, iron and steel, and vehicles.
Main exported products through seaports are electronics and electrical equipment, clothing and
accessories, shoes and sandals, and machines and parts.
4.171. Viet Nam has an extensive seaport system, which includes 45 ports and nearly
200 terminals, and more than 82.8 km of wharves with a total capacity of over 550 million tonnes
per year.206 Today's capacity is 6-7 times more than at the beginning of the port development plan
in 1999. In large seaports (Cai Mep–Thi Vai and Hai Phong) and in projects under construction (Van
Phong Khanh Hoa), investments were made to meet the increasing demand for trade by sea. Decree
No. 37/2017/ND-CP (on conditions for business operations of seaports), issued on 4 April 2017,
prescribes the requirements for seaport operations and allows for private ownerships of ports.
Foreign capital contribution must not exceed 50% as per Viet Nam's commitment at WTO on
container handling services.207 Vietnamese seaports are subject to the supervision of the MOT,
Vinamarine, and provincial governments. Ports in Viet Nam are owned and directly operated under
different schemes, such as state-owned enterprises, domestic companies, and joint ventures.
4.172. To date, Cai Mep–Thi Vai port area has 23 ports in operation (out of 35 planned), including
6 container terminals (out of 8 planned). Its current capacity reaches 6.8 million TEUs per year, and
it can receive ships up to 195,000 DWT (or 18,000 TEU).208 The first two container terminals of the
Lach Huyen port area209 entered into operation in May 2018, and both domestic and foreign investors
participated in their development. In October 2019, it was approved that Hai Phong Port Joint Stock
Company invest in the development of two ports in this area. Since 2019, the Van Phong
204
WTO document GATS/SC/142, 19 March 2007.
205
Estimated at approximately USD 180 billion by the World Bank, Vietnam Development Report 2019.
206
World Bank, Vietnam Development Report 2019.
207
WTO document GATS/SC/142, 19 March 2007.
208
The total capacity planned for the Cai Mep–Thi Vai port area is over 10 million TEUs.
209
At its completion, this port area is to include 23 ports (16 container terminals and 7 general harbours
and passenger ports), and the cargo capacity is to be over 100 million tonnes per year.
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international transhipment port area is completed, and the multi-purpose general port started
operations in July 2019 with a limited volume of goods during this initial phase.
4.173. Some challenges for enhancing ports' efficiency include getting cargo from the port to the
road, connecting expansions of port capacities with the most dynamic economic areas, streamlining
complex customs formalities, and improving the connection between ports and surrounding areas. 210
On top of that, major gateways for maritime transport are working at or near their capacity. The
authorities consider that connectivity for multimodal transport is improving and, for instance, most
ports now have a convenient road connection. The volume of goods transferred from and to the road
represents 67% of the ports' capacity. Prime Minister’s Decision No. 1037/QD-TTg (approving the
Revised Viet Nam Port System Planning to 2020, Vision to 2030), issued on 24 June 2014, aimed at
fostering the development of the coastal transport route and the cargo transhipment cargo from
seaports to inland water transport. Currently, the inland water transport absorbs more than 30% of
cargo transiting through seaports.
4.174. To promote the use of new infrastructure in Cai Mep–Thi Vai port, a 40% reduction in
maritime security and maritime pilotage charges has been applied since 2012 to vessels of over
50,000 DWT carrying import-export containers and transhipment containers. According to the
authorities, the preferential rates at Cai Mep–Thi Vai port were terminated on 31 December 2020,
and the general fee schedule as in other ports across the country shall be applied. Port user charges
(i.e. tonnage charges, maritime assurance fees, pilotage charges, charges for anchoring and mooring
at quay or roadstead, charges for use of piers and mooring buoys in seaport areas, and clearance
fee) are decided by the facility operators in line with the relevant regulations.211 According to these
regulations, discounts can be granted and depend on factors including the cargo capacity of the
vessel and the frequency of voyages at the same port. Between 2011 and 2019, the total amount
of fee reductions amounted to VND 1.08 trillion (USD 48.5 million).
4.175. As part of its EVFTA commitments, Viet Nam allows European shipping lines to perform
empty consolidation and container transport services on the Quy Nhon-Cai Mep route and European
businesses to set up joint ventures to provide dredging services. Five years after the implementation
of the Agreement, Viet Nam will extend the provision of empty container transportation services on
all routes. No further improvements or liberalization beyond GATS commitments were made in
recent trade agreements with the Eurasian Economic Union, India, and the Republic of Korea.212
4.176. To counter the negative impact of the COVID-19 pandemic, Vinamarine is currently
considering the extension of fee reductions for vessels over 50,000 DWT in Cai Mep–Thi Vai port
until the end of 2022. Proposals for exemption or reduction of maritime fees for vessels subject to
quarantine requirements are also under review.
4.4.6.2 Air transport
4.177. The overall aviation market showed double-digit growth between 2013 and 2019, with cargo
shipments and passengers surging up to 12.6% and 17.8%, respectively, year-on-year. Although
growth rates are high, they are lower than those observed before 2013, in particular for cargo
transportation, which grew by 30% during that period. Total air cargo reached 1.6 million tonnes in
2019 (a 12.4% increase compared with 2018), and two thirds of air cargo is shipped internationally.
Regarding passenger transport, 116.1 million passengers flew through Vietnamese airports;
41.6 million on international flights.213 The national flag carrier, Viet Nam Airlines, accounts for one
third (36.3%) of the domestic passenger market and one fifth (21.4%) of international flights.
210
Kuo, Lu, and Le (2020), "Exploring the Performance and Competitiveness of Vietnam Port Industry
Using DEA", The Asian Journal of Shipping and Logistics, March.
211
MOF Circular No. 261/2016/TT-BTC (providing for maritime fees, charges, and schedule of
collection), issued on 14 November 2016, as amended by MOF Circular No. 17/2017/TT-BTC (guiding the
collection, payment, management, and use of marine fees and charges), issued on 28 February 2017; and MOF
Circular No. 90/2019/TT-BTC (amendments to Circulars No. 261/2016/TT-BTC and No. 17/2017/TT-BTC),
issued on 31 December 2019.
212
21 June 2019.
213
The increase in passenger transport was accompanied by an increase of the aircraft fleet in the
country (221 in total, 124 more than in 2013) and an expansion of the route network consisting of
130 international and 60 domestic routes (70 additional routes, 20 domestic and 50 international, compared
with 2013).
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VietJet Air, a private company, became a major provider of air transportation services in recent
years, and it accounts for similar shares as the national flag carrier (18.4% of the international
passenger transport market, and 41.7% of the domestic passenger transport market). Before the
COVID-19 pandemic, scenarios by the International Air Transport Association (IATA) foresaw that
air transport would triple in the next 20 years, which could be related to an increase of approximately
USD 35 billion of GDP and the creation of around 2.4 million jobs. 214 Between 2013 and 2020, 17
new international carriers started operations in Viet Nam. Vietnamese airlines and sale agents can
freely choose computer reservation system (CRS) providers for their operations. As at June 2020,
there are 75 passenger airlines and 19 cargo airlines with regular scheduled flights to and from
Viet Nam. Vietravel, a new local carrier, obtained its licence for both domestic and international
operations in December 2020 and it is expected to start flights during the first half of 2021.215
4.178. Viet Nam Airlines (VNA), the national flag carrier controlled at 86.2% by the State, owns
100% of Viet Nam Air Service Company (VASCO)216, a regional airline in southern Viet Nam; 68.9%
of the low-cost carrier Jetstar Pacific Airlines (JPA); and 49% of the Cambodian national airline
Cambodia Angkor Air.217 VNA also holds a 32.5% stake in Viet Nam Air Leasing Company (VALC), a
joint venture. JPA, the VNA subsidiary specialized in the low-cost segment, is the third most
important carrier in the domestic market with a market share of 13.7%; however, its market share
in international passenger transport is only marginal (2.4%). VNA underwent a partial
"capitalization" ("equitization", or privatization) in 2014; All Nippon Airways (ANA) Holdings is the
strategic foreign partner with a capital share of 8.8%, several local (45) and foreign (36) institutional
partners, as well as numerous individual shareholders, mostly local, hold the remaining 5% of shared
capital. Since November 2014, VNA has been is listed on the HOSE.
4.179. Viet Nam continues to liberalize and develop its market through bilateral and multilateral
agreements. The country has 69 bilateral agreements and is part of 6 multilateral agreements on
air transport liberalization. These agreements cover different aspects, including criteria for the
designation of airlines, submissions of air transport service prices, liberalization of third and
fourth freedom rights, gradual liberalization of the fifth freedom right, frequency of international and
domestic operations, freedom to determine prices on international flights 218, and partnership and
multimodal operations. Foreign airlines are not allowed to operate in the domestic market for
passenger transport and cargo (cabotage). Under bilateral air transport agreements, codeshare
agreements between Vietnamese, another party's, and a third country's airlines are possible; they
need to be approved by the relevant authorities. The implementation of the ASEAN Open Skies policy
in January 2015, which allows airlines to fly freely throughout the ASEAN member states in a unified
air transport market, is a milestone in the liberalization of air services in Viet Nam; market access
was improved by enabling multiple designations of airlines, operational flexibility 219, and granting of
third, fourth, and fifth freedom rights while removing limitations on capacity, frequency, and aircraft
types. This regional framework for air services is more ambitious than previous bilateral air service
agreements, which were perceived as restrictive in some instances given limits on capacity,
designated airports, and pricing.
4.180. The 2006 Civil Aviation Law220, as amended by Law No. 61/2014/QH13 (amending and
supplementing a number of articles of the Civil Aviation Law), issued on 21 November 2014, provides
the legal framework for the activities of the sector. Direct investment by foreign investors must not
exceed 34% of the registered capital in aviation businesses, and the total contribution of foreign
capital through other forms of business partnerships must not exceed 49% of the registered
214
IATA, "The Importance of Air Transport to Vietnam", undated. Viewed at:
https://www.iata.org/en/iata-repository/publications/economic-reports/vietnam--value-of-aviation/.
215
VN Express, "Vietnam's Sixth Carrier to Take off in mid-January Dams Run Out of Water on Lack of
Rain", 22 December 2019. Viewed at: https://e.vnexpress.net/news/business/companies/vietnam-s-sixth-
carrier-to-take-off-in-mid-january-4212756.html.
216
VASCO serves only domestic routes in the southern part of the country and represents 1.8% of the
domestic market.
217
In total, VNA has 15 subsidiaries and 5 affiliates. Viet Nam Airlines, Annual Report 2019. Viewed at:
https://www.vietnamairlines.com/~/media/FilesDownload/AboutUs/Investor-Relations/Bao-Cao-Thuong-
Nien/2019-bctn-english.pdf.
218
The price of domestic air transport services is based on the price frame set by the Ministry of
Transport (2006 Civil Aviation Law, Article 116, Clause 2).
219
Operational flexibility relates to the exercise of the fifth freedom within ASEAN, which can be done in
any combination or order without any directional or geographical limitation.
220
Law No. 66/2006/QH11 was issued on 29 June 2006 and entered into force on 1 January 2007.
- 152 -
capital.221 Through the participation of foreign operators, Viet Nam aims at creating a dynamic and
competitive air passenger and cargo transport environment. The authorities report that Vietnamese
and foreign airlines operate under equal conditions, national carriers do not benefit from any direct
or indirect support, and there is no obligation for the private and public sectors to employ national
airlines. To promote operations of new airlines and new routes, MOT Circular No. 53/2019/TT-
BGTVT, issued on 31 December 2019, indicates that take-off, landing, and air navigation fees at
Vietnamese airports are halved during the first 36 months of operation for new airlines and reduced
by 10%-50% for 12-24 months for new routes.
4.181. The aviation industry is under the management of the Civil Aviation Authority of Viet Nam
(CAAV), a government agency under the MOT.222 Its functions include: formulating plans and
programmes to develop civil aviation; drafting legal normative documents, regulations, and
standards relating to civil aviation; information dissemination and education on aviation law; aviation
safety and security; airport, aircraft, and flight management; environmental protection; search and
rescue; development of price brackets for domestic air services in Viet Nam; guidance, direction,
and inspection of specialized aviation service prices223; research and development; handling
complaints and/or violations of aviation law; administrative reform; and financial and personnel
affairs. Other fees and charges such as fees for flights over airspace, operating franchise fee, and
fees for granting certificates and licences related to civil aviation activities are regulated by the MOF.
The MOT grants the air transport business licence following approval by the Prime Minister. Criteria
for approving carriers include conditions on the organizational structure, on capital and foreign
ownership, and on the business plan and the development strategy of the company. 224 Compared
with 2013, requirements on the structural organization, notably nationality requirements on legal
representatives, were eased, the limit for foreign participation in share capital was increased (34%
instead of 30%), and minimum capital requirements were lowered.
4.182. Slot allocation at airports is now regulated by CAAV Decision No. 370/QD-CHK of 27 February
2020. The authorities indicate that criteria for slot allocation are consistent with recommendations
by the IATA, including historic slots, proportion of slots for new entrants, frequency, and periods of
operations, among others. The Allocation Council headed by the CAAV was established in 2016 and
includes representatives from the Airports Corporation of Viet Nam, the Viet Nam Air Traffic
Management Corporation, and air carriers. Allocation has been scheduled using an allocation
software since 2016.
4.183. There are 22 airports with civil service in operation throughout Viet Nam and international
carriers operate in 9 of them. The three major international airports are Noi Bai Airport in the north
(Hanoi), Da Nang in the centre, and Tan Son Nhat in the south (Ho Chi Minh City).225 Six international
airports (Can Tho, Chu Lai, Da Lat, Hai Phong, Hue, and Nha Trang) have been built or upgraded
since 2013, and currently all of them receive international flights. Some airports have implemented
infrastructure and facilities projects, such as ILS navigation equipment, signal lights, AWOS
meteorological monitoring, and wind-shear warning systems, but have not yet been able to reach
full operational capacity due to limited financial resources and scheduling constraints.
4.184. The Government strongly encourages the private sector to invest in aviation infrastructure
to ease the pressure on the state budget. Private sector participation is possible under different
forms, including a PPP or a concession. The Van Don International Airport is the first airport in
221
Decree No. 92/2016/ND-CP (providing for conditional business sectors or activities in the civil
aviation industry), issued on 1 July 2016 and amended by Decree No. 89/2019/ND-CP (amendment and
addition to Decree No. 92/2016/ND-CP and Decree No. 30/2013/ND-CP), issued on 15 November 2019; Decree
No. 30/2013/ND-CP (regulating air transportation business and general aviation operations), issued on
8 April 2013.
222
Decree No. 66/2015/ND-CP (on aviation authorities), issued on 12 August 2015, designates the
national aviation authority, and MOT Decisions No. 2606/QD-BGTVT on 7 September 2017 and No. 1055/QD-
BGTVT on 31 May 2019 provide further details on CAAV's tasks, powers, and structure.
223
These include take-off and landing services, flight control services to and from the airport, support
services to warrant flight operations, passenger services, and aviation security.
224
As required by the 2006 Civil Aviation Law and Decrees No. 30/2013/ND-CP of 8 April 2013,
No. 92/2016/ND-CP of 1 July 2016, and No. 89/2019/ND-CP of 15 November 2019.
225
These four airports have separate cargo terminals, and two of them have onsite logistics centres. The
two main airports in the country, Noi Bai and Tan Son Nhat, account for 25% of Viet Nam's trade value.
According to the World Bank's Vietnam Development Report 2019, three quarters of trade through airports is
electronics and electrical equipment.
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Viet Nam to be developed under a BOT scheme, and it started operations in December 2018.226
Other regions aim at implementing similar schemes to develop their airports. For instance, a BOT
scheme is under review for the Phan Thiet Airport and components of the future Sa Pa Airport will
be proposed under a PPP.
4.185. The Airports Corporation of Viet Nam (ACV), a formerly state-owned limited liability company
partially equitized in 2015, manages 21 airports, excluding Van Don International Airport, in
collaboration with 8 subsidiaries specialized in maintenance, ground services, and cargo services. 227
In terms of air traffic management, new technologies were adopted during the review period or are
currently being deployed.228
4.186. Auxiliary services prescribed by Decree No. 92/2016/ND-CP (providing for conditional
business sectors or activities in the civil aviation industry), issued on 1 July 2016 as amended by
Decree No. 89/2019/ND-CP (amendment and addition to Decree No. 92/2016/ND-CP and Decree
No. 30/2013/ND-CP), issued on 15 November 2019, are passenger terminal operation services,
airfield operation services, air cargo terminal or warehouse operation services, aviation fuel supply
services, ground engineering and commercial services, airline catering services, aviation equipment
repair and maintenance services, aviation engineering services, and aviation security services. At
major international airports229, four providers are active in ground services: the VNA's subsidiary
Viet Nam Airport Ground Services Company (VIAGS) operates in the three main airports; Hanoi
Ground Services Company (HGS) operates in Noi Bai; Saigon Ground Services Company (SGS)
operates in Tan Son Nhat, Da Nang, and Cam Ranh; and Aviation Ground Services Company (AGS)230
at Cam Ranh Airport. At other airports, the ACV is the main service provider.
4.187. Through its subsidiaries, the VNA is also involved in the maintenance and overhaul of aircraft,
catering services, cargo services, and air fuel supply. Its subsidiary Viet Nam Airlines Engineering
Company (VAECO) is internationally certified and performs maintenance and technical services for
all VNA aircraft, as well as those of another 40 airlines. Air fuel distribution, catering services, and
ground and cargo services ensured a return on investment of 15.9% in 2019 and contributed
significantly to the overall performance of the VNA. Self-handling, mutual handling, and/or
third-party handling is allowed without restriction for international carriers at major airports. Foreign
airlines can also provide their own aircraft maintenance services and contract co-supply by existing
service providers. National carriers may have their aircraft repaired/maintained abroad at their
discretion. Aviation services are a conditional business sector under the Investment Law, and capital
participation is capped at 30% for foreign investors.
4.188. Air traffic control is provided by the Viet Nam Air Traffic Management Corporation (VATM).
4.189. Viet Nam became a party to the 1999 Convention for the Unification of Certain Rules for
International Carriage by Air (Montreal Convention) on 27 September 2018.
4.190. To support the sector during the COVID-19 pandemic, the MOT issued Circular
No. 19/2020/TT-BGTVT on 1 September 2020, which applies a 50% reduction for take-off, landing,
and air navigation service fees231 between 1 March and 30 September 2020. The Standing
Committee of the National Assembly issued Resolution No. 979/2020/UBTVQH14 on 27 July 2020,
226
The SunGroup manages and operates this infrastructure. Decree No. 92/2016/ND-CP enables the
participation of the private sector and foreign investors in the operation of airport business, and Decree
No. 102/2015/ND-CP authorizes the provisions of air services by the private sector.
227
The ACV is tasked with using and developing airport facilities and related equipment, e.g. managing
and maintaining land and buildings, providing security and safety of aviation activities, providing maintenance
and ground-handling services, collecting airport-related revenue, and importing and exporting aviation
equipment. ACV, About ACV. Viewed at: https://www.vietnamairport.vn/en/about-acv.
228
These include the implementation of Air Traffic Services Inter-facility Data Communication (AIDC)
and of Controller Pilot Data Link Communications (CPDLC) for communications between controllers and pilots;
the deployment of Digital Automatic Terminal Information Service (D-ATIS) in Noi Bai Airport and its upcoming
extension to four major aerodromes; and the implementation of Performance-Based Navigation (PBN)
procedures in various aerodromes and to all aerodromes in Vietnam by 2022.
229
According to the number of passengers, the main Vietnamese airports are Tan Son Nhat, Noi Bai,
Da Nang, and Cam Ranh.
230
The AGS is a joint venture of the VIAGS and the Cam Ranh Airport Services Joint Stock Company.
Viewed at: https://www.ags.com.vn/vn/introduce/gioi-thieu-ve-ags-1.
231
Fees are specified in MOT Circular No. 53/2019/TT-BGTVT, issued on 31 December 2019.
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reducing by 30% the environmental protection tax applied on jet fuel from 1 August to
31 December 2020.
4.191. Viet Nam committed to liberalize five subsectors232 of air transport services within the EVFTA
framework to a greater extent than its GATS commitments. No further improvements or
liberalization beyond its GATS commitments were made in recent trade agreements with the
Eurasian Economic Union, India, and the Republic of Korea.233
4.4.6.3 Land transport
4.192. Road transport is the most common means of transport in Viet Nam (Section 4.6.6).
Currently, the road system has a total length of 595,316 km; 25,151 km of national highways
account for 4.2% of the national road network, while expressways extend over less than
1,000 km.234 Another 786 km of expressways are under construction under PPPs or similar schemes.
The road network235 covers the whole territory, and about 65% of the road network is paved.
Authorities note that the road infrastructure (scale and quality) connecting with some airports,
railway stations, seaports, and inland waterways needs to be improved. Some improvements have
been made in recent years: expressways did not exist 10 years ago, and cargo by road had an
annual growth of 10%. The future plan includes densifying the expressway network (to be increased
by more than fivefold until 2030), maintaining current infrastructure, improving the connectivity
between roads and other modes of transport, and upgrading routes connecting with Cambodia,
China, and the Lao People's Democratic Republic. The Project Management Unit, the Directorate for
Roads of Viet Nam (DRVN), and the Viet Nam Expressway Corporation, all under the MOT, are the
bodies in charge for the development of road infrastructure at the national level.236 The MOT
recognizes that funding mobilization and budget allocation are limited compared with the demand
for road infrastructure, and thus implementation schedules tend to suffer delays. The authorities
expect that projects will continue to be developed under PPPs under the conditions of the recently
enacted Law on Investment in the form of Public-Private Partnership (Law No. 64/2020/QH-14).
4.193. The railway sector consists of only a very small share of the transport segment (passenger
and cargo combined), and its competitiveness has eroded over last 15 years (Section 4.4.6). In
2019, the railway system carried 0.2% of all passengers compared with 0.7% in 2007. A similar
trend is observed for cargo transport, despite a well-known higher cost-efficiency for long-haul traffic
than trucking. These results point out an underperformance with respect to the objectives set by
Prime Minister's Decision No. 214/QD-TTg (on the revised Development Strategy for Vietnamese
Railway Transport to 2020, Vision to 2050), issued on 10 February 2015. The authorities indicate
that five investment projects were executed in the period 2016-20 (44 in the period 2011-15) with
budget allocated by the State and that infrastructure quality, railway speed, and safety are gradually
improving.
4.194. The legal framework of the sector was recently updated by the 2017 Railway Law 237, which
entered into force on 1 July 2018. Since 2003, Viet Nam has separated infrastructure development
from transport services, and the Government has committed to finance infrastructure upgrading and
maintenance expenses. The Viet Nam Railways Administration (VNRA) under the MOT is responsible
for planning and supervising all railway projects, while the Viet Nam Railways Corporation (VRC)
currently under the CMSC, is in charge of business operations. The VRC pays 10% of its gross
revenues to the VNRA as a track-access charge. A foreign party must enter into a joint venture with
the VNRA or the VRC to operate in the sector; the foreign party's capital contribution may not exceed
51%. The private capital invested in the railway industry accounts for 21% of the total charter
232
The five subsectors are: (i) ground-handling services, excluding aircraft servicing and cleaning,
surface transport, airport management and air services navigation, and in-flight meal services; (ii) sales and
marketing air products services; (iii) maintenance and repair of aircraft; (iv) computer reservation services;
and (v) in-flight meal services.
233
WTO documents WT/REG371/1, 13 April 2017; WT/REG372/1, 22 August 2016; and, WT/REG385/1,
21 June 2019.
234
Expressways benefit from a fully access-controlled toll system.
235
Most of the network consists of local roads, classified as district, commune, or urban roads.
236
Local governments are in charge of road development infrastructure.
237
Law No. 06/2017/QH14 (on Railways), issued on 16 June 2017, as amended by Law
No. 35/2018/QH14 (amendments and additions to a number of articles of 37 Laws related to planning), issued
on 20 November 2018 and entered into force on 1 January 2019.
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capital.238 The private sector also participates in the development projects of the railway system,
such as container yards. No foreign investment is active in the railway sector. The VNRA remains
the unique operator in the cargo segment. The project implementing the restructuring of the VRC
and the equitization of its subsidiaries is under consideration of the Prime Minister.
4.195. The VRC recently launched technology applications to improve the customer experience,
allowing for online purchases and to improve operational efficiency through freight management
software.
4.4.7 Distribution services
4.196. In 2019, the distribution sector contributed 12.4% to GDP239, and the sector was expected
to grow by more than 50% between 2016 and 2019. Modern retail stores, including air-conditioned
mini-marts, supermarkets, and small shopping complexes, are increasing their presence, and
consumers, particularly younger generations, are moving away from traditional outdoor markets.
According to the Viet Nam Retailers Association, there were more than 1,084 supermarkets and 240
shopping centres in 2019. The number of supermarkets and shopping centres increased by
approximately 52% between 2012 and 2020. Although supermarkets are increasingly becoming the
favourite distributor in the country, convenience stores are also on the rise, and ferocious
competition with local and traditional family shops is taking place.240 In last five years, the retail
sector consolidated as key players pursued strategic acquisitions of smaller companies, allowing
them to extend their network, enter new retail channels, increase their market share, and reduce
competition.241 For instance, the Vinmart brand from the Vingroup emerged from a series of mergers
between domestic and foreign brands and has the largest number of supermarkets and convenience
stores. Foreign-invested firms compete with domestic groups such as Saigon Co.op, which owns
multiple brands. As for the total retail market, Mobile World, a group initially specialized in electronics
but with activities including other branches such as pharmacy, emerged as the major retailing group.
Saigon Co.op; Central Group, a Thai consortium specialized in department stores; Vingroup, whose
activities broadened to hospitality; and FPT Corporation, a retailer of technology and
telecommunication products complete the top five retailing companies in the country.
4.197. Following the removal of the general cap at 49% for foreign investment in 2015, wholly
foreign-owned companies may engage in all distribution services including commission agent sales,
wholesaling, retailing, franchising, and warehousing.242 MOIT Circular No. 34/2013/TT-BCT (on the
roadmap for distribution services and related activities for foreign-invested enterprises), issued on
24 December 2013, prohibits foreign-invested enterprises from distributing cigarettes and cigars,
precious metals and stones, pharmaceutical products and drugs, and explosives. Retail sales in their
own shops of rice, sugar, recorded items, books, newspapers, and magazines, and the wholesale of
lubricants or greases for producers of lubricants and distributors of machinery, are now permitted.
4.198. Investors building warehouses and logistic centres in regions with socio-economic difficulties
are entitled to incentives as stipulated by the Investment Law.
4.199. Decision No. 1371/2004/QD-BTM (on regulations on supermarkets and trade centres),
issued on 24 September 2004, classifies supermarkets and shopping centres according to their
surface and the number of products they offer.243 The authorities indicate that there is no provision
in the legislation regulating the distance between supermarkets, shopping malls, and traditional
markets.
238
The private sector participates to 25 joint-stock companies (17.5% of the charter capital) and 15
associates (78.5% of the charter capital) of the VRC.
239
GDP share for wholesale and retail trade, including repair of vehicles.
240
It is estimated that 2.2 million traditional family shops exist in Viet Nam, and major food retail chains
are also increasing the direct competition with small shops.
241
For instance, European supermarket groups have withdrawn from Viet Nam in the last five years.
Viewed at: https://www.intellasia.net/fierce-competition-in-retail-market-750097.
242
Fully foreign businesses without equity limitation have been able to engage in retailing activities
since 2009.
243
According to MOIT regulations, the retail outlets are classified as follows: multifunctional/general
supermarkets (>5,000m2 and >20,000 items; >2000m2 and >10,000 items; and >500 m2 and >4,000 items);
specialized supermarkets (>1,000m2 and >2,000 items; >500m2 and >1,000 items; and >250m2 and >500
items); and commercial centres (>50,000m2, >30,000m2, and >10,000m2).
- 156 -
4.200. The establishment of a retail outlet beyond the first one is subject to an economic needs test
(ENT) as specified in Decree No. 09/2018/ND-CP, detailing regulations on the Law on Commerce,
and the Law on Foreign Trade Management, regarding sale of goods and other related activities by
foreign investors and foreign-invested businesses. Each province sets up its own Economic Needs
Testing Council, which evaluates the need for the new retail outlet based on the number of existing
retail outlets, the market stability, the population density, the size of the district, and other elements
related to district planning.244 This procedure implies that there is no nationwide implementation of
the ENT criteria, as every region's needs differ due to uneven economic conditions. Article 7 of MOIT
Circular No. 08/2013/TT-BCT specifies that an ENT is not required to establish an outlet of less than
500 m2 within the area planned for trading activities and where infrastructure already exists.
4.201. Article 7 of Decree No. 09/2018/ND-CP allows foreign-invested enterprises to import goods
under the following conditions: (i) imported goods are not listed as banned products from import,
temporarily suspended from import, or forbidden to import, according to the international treaties
to which Viet Nam is a member; and (ii) foreign-invested enterprises must obtain a licence for
imported goods subject to licensing or other conditions prescribed by law. Trading rights and
distribution rights are separately granted, and an importer does not necessarily have the distribution
rights of an imported good.
4.202. The licensing scheme implemented by Decree No. 94/2012/ND-CP (on wine production and
trading), issued 12 November 2012, generated a shortage of licences for wine producers and
retailers. The Government issued Decree No. 105/2017/ND-CP (on alcohol trade), issued on
14 September 2017, as amended by Decree No. 17/2020/ND-CP, issued on 5 February 2020, to
create more favourable conditions for enterprises to participate in wine trading.
4.203. As part of the EVFTA, Viet Nam committed to remove the requirement for an ENT five years
after the implementation of the Agreement. No further improvements or liberalization beyond GATS
commitments were made in recent trade agreements with the Eurasian Economic Union, India, and
the Republic of Korea.245
244
In case of proximity of the new location to another city or province, the ENT Council must include a
representative from the contiguous region.
245
21 June 2019.
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5 APPENDIX TABLES
Table A1.1 Merchandise exports by HS sections and major HS subgroups, 2012-19

(USD billion)
HS section/chapter/subheading 2012 2013 2014 2015 2016 2017 2018 2019
Total exports 114.5 132.0 150.2 162.0 176.6 215.1 243.7 264.6
(% of total exports)
01 Live animals and products 4.5 4.1 4.1 3.2 3.2 3.0 2.8 2.5
03 Fish and crustaceans 4.3 3.8 3.8 3.0 2.9 2.9 2.6 2.3
02 Vegetable products 10.4 7.7 8.2 7.3 7.5 7.0 5.9 5.0
08 Edible fruit and nuts 1.7 1.5 1.7 2.0 2.6 2.9 2.5 2.2
080132 Cashew nuts, shelled 1.3 1.2 1.3 1.4 1.5 1.6 1.3 1.1
03 Fats and oils 0.3 0.2 0.2 0.2 0.1 0.1 0.1 0.1
04 Prepared food, beverages and tobacco 2.7 3.2 3.0 2.9 2.7 2.4 2.3 2.3
05 Mineral products 10.7 8.2 7.0 3.8 2.5 2.8 2.3 2.1
06 Chemicals and products thereof 1.9 1.8 1.8 1.6 1.5 1.5 1.6 1.6
07 Plastics and rubber 5.1 4.3 3.6 3.2 3.2 3.3 3.3 3.4
08 Raw hides and skins; leather, furskins 1.4 1.6 1.8 2.0 2.0 1.7 1.5 1.5
and articles thereof
09 Wood, cork, straw 1.4 1.7 1.5 1.7 1.4 1.2 1.4 1.4
10 Pulp of wood; paper and paperboard 0.4 0.4 0.4 0.3 0.3 0.4 0.4 0.5
11 Textiles and textile articles 15.8 16.3 16.8 16.8 16.3 14.8 15.0 14.9
61 Clothing, knitted or crocheted 5.8 6.0 6.1 6.2 6.1 5.6 5.7 5.6
62 Clothing, not knitted or 6.5 6.7 7.0 7.0 6.6 5.7 5.9 5.7
crocheted
12 Footwear, headgear, etc. 6.8 6.8 7.3 7.9 7.9 7.3 7.1 7.4
64 Footwear 6.6 6.6 7.1 7.7 7.6 7.1 6.9 7.2
6403 Footwear with uppers of 2.8 2.8 2.9 2.9 2.4 2.1 2.1 2.1
leather
6404 Footwear with uppers of 1.9 2.2 2.4 3.0 3.5 3.5 3.4 3.5
textile materials
13 Articles of stone, plaster, cement 1.0 1.0 1.1 1.1 0.9 0.9 0.8 0.7
14 Precious stones and metals 0.5 0.5 0.5 0.4 0.6 0.3 0.3 0.8
15 Base metals and articles thereof 3.7 3.6 3.8 3.5 3.6 3.9 4.5 4.3
16 Machinery, electrical equipment 24.7 30.7 30.2 35.5 37.9 40.2 40.3 41.7
84 Machinery and mechanical 5.1 6.2 5.9 6.2 5.5 5.2 4.8 4.9
appliances, parts thereof
85 Electrical machineries and 19.6 24.5 24.3 29.3 32.4 35.0 35.5 36.7
parts thereof
8517 Telephone sets, including 11.5 16.6 16.2 19.3 20.4 22.2 22.1 21.3
telephones for wireless networks
851712 Telephones for cellular 8.8 14.6 14.2 15.5 15.4 13.8 12.8 12.9
networks or for other wireless
networks
851770 Parts 2.0 1.3 1.4 3.1 4.1 7.4 7.4 6.6
8542 Electronic integrated circuits 1.7 1.6 1.5 2.5 2.9 3.1 3.2 4.4
and microassemblies
854231 Processors and controllers 1.5 1.4 1.1 2.1 2.6 2.8 2.9 4.0
17 Transport equipment 2.1 1.9 2.1 1.9 1.8 1.6 1.7 1.6
18 Precision equipment 2.2 1.9 2.1 2.2 2.5 3.5 3.2 2.0
90 Optical, photographic, medical, 2.1 1.9 2.0 2.1 2.5 3.5 3.2 2.0
etc.
19 Arms and ammunition 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
20 Miscellaneous manufactured articles 4.0 3.9 4.0 4.2 4.1 3.9 3.8 4.5
94 Furniture, bedding, lamps, etc. 3.3 3.2 3.3 3.4 3.3 3.1 3.0 3.6
21 Works of art, etc. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other 0.3 0.4 0.4 0.4 0.1 0.1 1.6 1.7

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Table A1.2 Merchandise imports by HS sections and major HS chapters, 2012-19

(USD billion)
HS section/chapter/subheading 2012 2013 2014 2015 2016 2017 2018 2019
Total imports 113.8 132.0 147.8 165.8 175.0 213.2 236.9 253.4
% of total imports
01 Live animals and products 1.3 1.4 1.8 1.6 1.4 1.4 1.5 1.6
02 Vegetable products 3.1 3.0 3.2 3.5 3.9 4.0 3.8 3.4
03 Fats and oils 0.7 0.5 0.5 0.4 0.4 0.4 0.3 0.3
04 Prepared food, beverages and tobacco 3.5 3.7 3.4 3.2 3.2 2.6 2.7 2.6
05 Mineral products 10.6 8.1 7.5 5.1 4.8 5.6 6.9 6.8
27 Mineral fuels and oils 10.1 7.7 7.1 4.8 4.4 5.2 6.3 6.1
2710 Petroleum oils other than crude 8.2 5.6 5.4 3.6 3.2 3.6 3.4 2.5
06 Chemicals and products thereof 9.1 8.5 8.0 7.4 7.3 7.1 7.0 6.7
07 Plastics and rubber 7.6 7.6 7.6 7.0 7.3 7.4 7.5 7.3
39 Plastics and articles thereof 6.3 6.4 6.6 6.0 6.3 6.2 6.5 6.3
08 Raw hides and skins; leather, furskins and 1.0 1.0 1.3 1.3 1.1 1.0 0.9 0.8
articles thereof
09 Wood, cork, straw 1.2 1.2 1.5 1.3 1.0 1.0 0.8 0.8
10 Pulp of wood; paper and paperboard 1.6 1.6 1.6 1.4 1.4 1.4 1.4 1.3
11 Textiles and textile articles 9.6 9.7 9.8 9.3 9.2 8.4 8.6 8.2
52 Cotton 2.1 2.2 2.2 2.1 1.9 1.9 2.0 1.7
60 Knitted or crocheted fabrics 1.9 2.1 2.2 2.1 2.2 2.1 2.1 2.1
12 Footwear, headgear, etc. 0.3 0.4 0.4 0.4 0.5 0.5 0.4 0.5
13 Articles of stone, plaster, cement 0.8 0.7 0.7 0.7 0.9 0.8 0.8 0.9
14 Precious stones and metals, pearls 0.3 0.4 0.4 0.4 0.3 0.3 0.2 0.2
15 Base metals and articles thereof 12.2 11.6 11.9 11.3 10.9 10.3 11.0 9.9
72 Iron and steel 6.6 6.1 6.3 5.3 5.2 5.0 5.1 4.5
16 Machinery, electrical equipment 31.3 35.0 34.6 38.0 39.1 40.5 37.8 39.9
84 Machinery and mechanical appliances, parts 11.2 11.2 11.6 12.7 11.8 10.6 9.1 9.2
thereof
85 Electrical machineries and parts thereof 20.2 23.8 23.1 25.2 27.3 29.9 28.7 30.7
8517 Telephone sets, including telephones for 4.7 6.5 6.3 7.1 6.9 8.6 7.3 6.3
wireless networks
851770 Parts 3.8 5.4 5.0 5.8 5.4 7.1 6.2 5.2
8541 Photosensitive semiconductor devices, 0.5 0.6 0.6 0.8 1.0 1.0 1.3 1.8
(…), light-emitting diodes (LED)
8542 Electronic integrated circuits and 6.4 7.7 7.0 7.8 9.3 9.9 10.2 12.1
microassemblies
854239 Other than processors and controllers, 4.8 6.1 5.5 5.5 6.2 6.5 6.7 7.2
memories, amplifiers, and parts
17 Transport equipment 2.8 2.4 2.5 4.3 3.4 2.4 2.2 2.9
87 Motor vehicles, motorcycles, etc. 1.5 1.4 2.2 3.3 2.8 2.2 1.9 2.5
18 Precision instruments 1.9 1.9 2.0 2.2 2.7 4.0 4.0 3.6
90 Optical, photographic, medical, etc. 1.9 1.9 2.0 2.2 2.7 3.9 3.9 3.5
19 Arms and ammunition 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
20 Miscellaneous manufactured articles 0.7 0.8 0.8 0.8 1.0 0.8 0.8 0.9
21 Works of art, collectors' pieces and antiques 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Other 0.3 0.5 0.5 0.5 0.1 0.1 1.4 1.4

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Table A1.3 Merchandise exports by destination, 2012-19

(USD billion)
2012 2013 2014 2015 2016 2017 2018 2019
Total exports 114.5 132.0 150.2 162.0 176.6 215.1 243.7 264.6
(% of total)
Americas 20.4 21.7 23.4 25.5 26.7 24.2 23.6 27.7
United States 17.2 18.1 19.1 20.7 21.8 19.3 19.5 23.2
Other America 3.2 3.6 4.3 4.8 4.9 4.8 4.1 4.5
Canada 1.0 1.2 1.4 1.5 1.5 1.3 1.2 1.5
Europe 19.0 19.6 19.9 20.1 20.4 18.9 17.9 16.8
EU-28 17.7 18.4 18.6 19.0 19.3 17.8 17.2 15.7
Netherlands 2.2 2.2 2.5 2.9 3.4 3.3 2.9 2.6
Germany 3.6 3.6 3.4 3.5 3.4 3.0 2.8 2.5
United Kingdom 2.6 2.8 2.4 2.9 2.8 2.5 2.4 2.2
France 1.9 1.7 1.6 1.8 1.7 1.6 1.5 1.4
Italy 1.6 1.7 1.8 1.8 1.8 1.3 1.2 1.3
Austria 0.9 1.4 1.4 1.4 1.5 1.7 1.7 1.2
EFTA 0.5 0.3 0.3 0.2 0.4 0.2 0.1 0.6
Other Europe 0.8 0.9 1.0 0.9 0.8 0.9 0.6 0.4
Commonwealth of Independent States 1.7 1.8 1.6 1.1 1.1 1.2 1.2 1.2
(CIS)
Africa 2.1 2.1 2.0 1.9 1.5 1.2 1.0 1.0
Middle East 2.8 4.0 4.0 4.4 3.6 3.1 2.8 2.5
United Arab Emirates 1.8 3.1 3.1 3.5 2.8 2.3 2.1 1.8
Asia 52.9 49.6 47.7 45.6 46.0 50.3 51.9 49.2
China 11.2 10.0 9.9 10.2 12.4 16.5 17.0 15.7
Japan 11.4 10.3 9.8 8.7 8.3 7.8 7.7 7.7
Other Asia 30.3 29.4 28.0 26.7 25.3 26.1 27.2 25.8
Korea, Republic of 4.9 5.1 4.8 5.5 6.5 6.9 7.5 7.5
Hong Kong, China 3.2 3.1 3.5 4.3 3.4 3.5 3.3 2.7
India 1.6 1.8 1.7 1.5 1.5 1.7 2.7 2.5
Thailand 2.5 2.3 2.3 2.0 2.1 2.2 2.2 1.9
Chinese Taipei 1.8 1.7 1.5 1.3 1.3 1.2 1.3 1.7
Cambodia 2.6 2.2 1.8 1.5 1.2 1.3 1.6 1.6
Malaysia 3.9 3.8 2.6 2.2 1.9 2.0 1.7 1.4
Philippines 1.6 1.3 1.5 1.2 1.3 1.3 1.4 1.4
Australia 2.8 2.6 2.7 1.8 1.6 1.5 1.6 1.3
Indonesia 2.1 1.9 1.9 1.8 1.5 1.3 1.5 1.3
Singapore 2.1 2.0 2.0 2.0 1.4 1.4 1.3 1.2
Other 1.1 1.1 1.5 1.3 0.6 1.1 1.5 1.6
Memorandum:
ASEAN 15.2 14.1 12.7 11.2 9.9 10.1 10.1 9.4

- 160 -
Table A1.4 Merchandise imports by origin, 2012-19

(USD billion)
2012 2013 2014 2015 2016 2017 2018 2019
Total imports 113.8 132.0 147.8 165.8 175.0 213.2 236.9 253.4
(% of total)
Americas 7.1 6.8 7.6 8.4 8.3 7.5 8.5 8.8
United States 4.3 4.0 4.3 4.7 5.0 4.4 5.4 5.7
Other America 2.9 2.8 3.4 3.7 3.3 3.1 3.2 3.2
Argentina 0.8 0.9 1.2 1.3 1.5 1.2 1.0 1.3
Brazil 0.9 1.0 1.3 1.5 1.0 0.9 1.0 1.1
Europe 8.3 7.6 6.5 6.8 6.9 6.2 6.4 6.5
EU-28 7.7 7.1 6.0 6.2 6.4 5.7 5.9 5.9
Germany 2.1 2.2 1.8 1.9 1.6 1.5 1.6 1.5
Ireland 0.6 0.7 0.1 0.2 0.6 0.6 0.8 1.0
Italy 0.9 0.9 0.9 0.9 0.8 0.8 0.7 0.7
France 1.4 0.8 0.8 0.8 0.7 0.6 0.6 0.6
EFTA 0.5 0.4 0.4 0.5 0.5 0.4 0.4 0.4
Other Europe 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Commonwealth of Independent 1.0 1.1 0.9 0.6 0.9 0.9 1.1 0.8
States (CIS)
Russian Federation 0.7 0.6 0.6 0.4 0.6 0.7 0.9 0.7
Africa 0.9 1.1 1.1 1.2 1.5 1.9 1.3 1.1
Middle East 2.1 2.1 2.2 1.9 1.5 1.3 2.2 2.3
Kuwait, State of 0.6 0.5 0.4 0.1 0.1 0.1 1.1 1.4
Saudi Arabia, Kingdom of 0.8 0.9 0.9 0.7 0.7 0.6 0.6 0.5
Asia 80.1 80.3 80.6 80.0 80.1 81.2 79.2 79.1
China 25.5 27.9 29.5 29.8 28.6 27.5 27.7 29.8
Japan 10.2 8.8 8.7 8.6 8.6 7.9 8.0 7.7
Other Asia 44.4 43.6 42.4 41.6 42.8 45.9 43.5 41.6
Korea, Republic of 13.7 15.7 14.7 16.6 18.4 22.0 20.1 18.5
Chinese Taipei 7.5 7.1 7.5 6.6 6.4 6.0 5.6 6.0
Thailand 5.1 4.8 4.8 5.0 5.1 5.0 5.1 4.6
Malaysia 3.0 3.1 2.8 2.5 3.0 2.8 3.1 2.9
Indonesia 2.0 1.8 1.7 1.7 1.7 1.7 2.1 2.3
India 1.9 2.2 2.1 1.6 1.6 1.9 1.8 1.8
Australia 1.6 1.2 1.4 1.2 1.4 1.5 1.6 1.8
Singapore 5.9 4.3 4.6 3.6 2.7 2.5 1.9 1.6
Philippines 0.8 0.7 0.5 0.5 0.6 0.5 0.5 0.6
Hong Kong, China 0.9 0.8 0.7 0.8 0.9 0.8 0.7 0.5
Other 0.5 1.0 0.9 1.2 0.8 0.9 1.3 1.3
Memorandum:
ASEAN 18.3 16.1 15.5 14.3 13.8 13.3 13.4 12.7

- 161 -
Table A2.1 Selected notifications, 2013-20

Agreement Requirement/content Periodicity WTO document and date
(latest document if recurrent)
Agreement on Agriculture
Articles 10 and Export subsidies Annual G/AG/N/VNM/7, 19 September 2016
18.2
Article 18.2 Table MA.2 – Imports under Annual G/AG/N/VNM/12, 12 May 2020
tariff quotas
Article 18.2 Domestic support Annual G/AG/N/VNM/6, 13 June 2016
Agreement on Implementation of Article VI of the GATT 1994 (Anti-dumping)
Article 16.4 Reports concerning anti- Ad hoc G/ADP/N/341, 20 May 2020
dumping actions
Semi-annual reports of anti- Semi-annual G/ADP/N/335/VNM, 31 March 2020
dumping actions (taken within
the preceding six months)
Article 18.5 Laws and regulations Once, then G/ADP/N/1/VNM/3;
changes G/SCM/N/1/VNM/2; G/SG/N/1/VNM/3,
28 May 2020
Agreement on Implementation of Article XVI:1 of the GATT 1994 (Subsidies and countervailing
measures)
Article 25.1 Subsidies G/SCM/N/284/VNM;
G/SCM/N/315/VNM, 28 February 2020;
Article 25.11 Semi-annual reports of any Semi-annual G/SCM/N/356, 13 December 2019
countervailing duty actions
(taken within the preceding six
months)
28 May 2020
Agreement on Safeguards
Article 12.1(a) Investigation initiation Ad hoc G/SG/N/6/VNM/6, 18 May 2017
Articles Finding and decision Ad hoc G/SG/N/8/VNM/6; G/SG/N/10/VNM/5;
12.1(b) and (c) G/SG/N/11/VNM/7, 13 March 2018
and 12.4
Articles 9 and Mid-term review G/SG/N/11/VNM/8, 16 December 2019
12.5
28 May 2020
Article XVII:4(a) of the GATT 1994 (State trading)
State trading enterprises G/STR/N/15/VNM; G/STR/N/16/VNM,
20 April 2016
Enabling clause
Paragraph 4(a) Notification of regional trade Ad hoc WT/COMTD/RTA13/N/1, 14 January
agreement 2020
Agreement Implementation of Article XXIV:7(a) of the GATT 1994 (Free-trade areas)

Article XXIV Free-trade area for trade in Ad hoc S/C/N/920; WT/REG/395/N/1, 20
goods December 2018
General Agreement on Trade in Services
Article V:7(a) Free-trade agreements Ad hoc S/C/N/920; WT/REG/395/N/1, 20
December 2018
Agreement on Import Licensing Procedures
Articles 1.4(a) Laws and regulations Once, then G/LIC/N/1/VNM/2, 29 January 2013
and/or 8.2(b) changes
Articles 5.1, Notification of an automatic Ad hoc G/LIC/N/2/VNM/12, 16 December
5.2, and 5.3 import licensing programme 2019
- 162 -
Agreement Requirement/content Periodicity WTO document and date

(latest document if recurrent)
Article 7.3 Replies to questionnaire on G/LIC/N/3/VNM/2, 26 September 2014
import licensing procedures
Articles 5.1 Judicial decisions and Ad hoc
and 5.2 administrative rulings and
modifications of rules of origin
Articles Investigations, findings, and Ad hoc
12.1(a)-(c), decisions related to safeguard
and Article 9.1, measures
footnote 2
Article 12.6 Laws and regulations Once, then
changes
Agreement on the Application of Sanitary and Phytosanitary Measures
Article 7 and Laws, regulations, and Ad hoc G/SPS/N/VNM/112, 18 March 2020
Annex B emergency measures
Agreement on Technical Barriers to Trade
Article 10.6 Proposed and adopted technical TBT/N/VNM/173, 10 July 2020
regulations/conformity
assessment procedures
Paragraph 4 of Annex II of the Agreement on Rules of Origin
Article 5 Preferential rules of origin Ad hoc G/RO/N/183, 15 April 2019
Agreement on Trade-Related Aspects of Intellectual Property Rights
Article 63.2 Laws and regulations Once, then IP/N/1/VNM/O/15, 16 October 2013
changes
Agreement on Trade Facilitation
Articles 1.4, Category A commitments G/TFA/N/VNM/2, 25 September 2019
10.4.3, 10.6.2,
and 12.2.2
Articles 15 and Additional category G/TFA/N/VNM/1, 16 November 2018
16 commitments
Source: WTO Secretariat.

- 163 -
Table A3.1 Legislation pertaining to Viet Nam's rules of origin, 2013-20

No. Title of document Changes since 2013
1 Decree No. 31/2018/ND-CP (on detailing a number of Introduction of self-certification of origin
Articles of the Law on Foreign Trade Administration in (C/O)
terms of origin of goods), issued on 8 March 2018 Application and issuance of electronic C/O
(documentary proof issued by an issuing
authority of an exporting country, group of
countries, or territory based on relevant
regulations and requirements on origin,
clearly identifying the origin of the good)
Procedure of issuing C/O in combination with
applicant classification during that procedure
Strengthening post-inspection and
combating frauds of goods' origin
Handling violations of goods' origin
Training on goods' origin
2 MOIT Circular No. 05/2018/TT-BCT (on the origin of Non-preferential product origin criteria in the
goods), issued on 3 April 2018 case of not wholly obtained or produced in a
country: allowing traders of the same
product to choose one of the three origin
criteria: wholly obtained goods (WO), local
value content (LVC), or change in tariff
classification (CTC)
3 MOIT Circular No. 22/2016/TT-BCT (on
implementation of rules of origins in the ASEAN Trade
in Goods Agreement), issued on 3 October 2016
4 Decision No. 3624/QD-BCT (adopting procedure of New procedure for issuing electronic Form D
issuing electronic Form D C/O) of the Minister of C/O
Industry and Trade, issued on 9 December 2019
5 MOIT Circular No. 25/2019/TT-BCT (on amending and
supplementing a number of Articles of MOIT Circular
No. 22/2016/TT-BCT (on implementation of rules of
origins in the ASEAN Trade in Goods Agreement)),
issued on 14 November 2019
6 MOIT Circular No. 21/2019/TT-BCT (on Implementing the new international
regulating the rules of origin in ASEAN-Hong agreement
Kong China Free Trade Agreement), issued on 8
November 2019
supplementing a number of Articles of MOIT Circular
No. 20/2014/TT-BCT (on the implementation of the
Rules of Origin under the ASEAN-Korea Free Trade
Agreement)), dated 31 July 2019
8 MOIT Circular No. 12/2019/TT-BCT (prescribing rules Some new provisions on rules and criteria of
of origin in the framework agreement on origin
comprehensive economic co-operation between the
ASEAN and China), issued on 30 July 2019
supplementing MOIT Circular No. 22/2016/TT-BCT
(on the implementation of the Rules of Origin under
ASEAN Agreement on Trade in Goods), issued on
31 July 2019
10 MOIT Circular No. 03/2019/TT-BCT (on providing the To implement the CPTPP Agreement
rules of origin under the Comprehensive and
Progressive Agreement for Trans-Pacific Partnership),
issued on 22 January 2019
11 MOIT Circular No. 21/2016/TT-BCT (on the
implementation of rules of origin provided for in the
free trade agreement between Viet Nam and Eurasian
Economic Union), issued on 20 September 2016
supplementing MOIT Circular No. 31/2015/TT-BCT of
24 September 2015 (on the implementation of the
Rules of Origin under Agreement on establishing
ASEAN-Australia-New Zealand Free Trade Area)),
issued on 12 November 2018
- 164 -

13 MOIT Circular No. 11/2018/TT-BCT (on amending and Amending the Product-Specific Rules
rules of origin of goods provided in the Free Trade
Agreement between Viet Nam and the Eurasian
Economic Union)), issued on 29 May 2018
implementation of the Rules of Origin under the
ASEAN-Korea Free Trade Agreement), issued on
25 June 2014
supplementing Annex IV issued under MOIT Circular
No. 20/2014/TT-BCT of 25 June 2014 (on the
implementation of the rules of origin of goods
provided in the ASEAN-Korea Free Trade
Agreement)), issued on 14 September 2018
16 MOIT Circular No. 36/2010/TT-BCT dated
15 November 2010 on the implementation of the
amended rule on procedures for C/O issuance and
inspection of origin and the Product-Specific Rules
according to the 2007 version of the Harmonized
System under the goods Trade Agreement within the
framework agreement on Comprehensive Economic
Cooperation between the Association of Southeast
Asian Nations and the People's Republic of China
17 MOIT Circular No. 14/2016/TT-BCT dated 5 August
2016 amending and supplementing MOIT Circular
No. 36/2010/TT-BCT dated 15 November 2010 on
implementation of the amended procedures for C/O
issuance and inspection and Product-Specific Rules
according to the 2007 version of the Harmonized
System under the goods Trade Agreement within the
framework agreement on Comprehensive Economic
Cooperation between the Association of Southeast
Asian Nations and the People's Republic of China
18 MOIT Circular No. 01/2011/TT-BCT dated (amending
and supplementing MOIT Circular No. 36/2010/TT-
BCT dated 15 November 2010 on implementation of
the amended procedures for C/O issuance and
inspection and Product-Specific Rules according to the
2007 version of the Harmonized System under the
goods Trade Agreement within the framework
agreement on Comprehensive Economic Cooperation
between the Association of Southeast Asian Nations
and the People's Republic of China), issued on
14 January 2011
implementation of the rules of origin provided in the
agreement between the Ministry of Industry and
Trade of the Socialist Republic of Viet Nam and the
Ministry of Industry and Trade of the Lao People's
Democratic Republic on rules of origin applicable to
goods eligible for Viet Nam-Lao PDR preferential
import tariff treatment), issued on 25 January 2010
20 MOIT Circular No. 15/2018/TT-BCT (on providing the
channelling in the process of issuance of preferential
certificates of origin), issued on 29 June 2018
21 MOIT Circular No. 40/2015/TT-BCT (on the Rules of
Origin under Viet Nam-Korea Free Trade Agreement),
18 November 2015
dated 18 November 2015 of the Ministry of Industry
and Trade on the Rules of Origin under Viet Nam-
Korea Free Trade Agreement), issued on
14 December 2015
- 165 -

supplementing the Product-Specific Rules issued
under MOIT Circular No. 20/2014/TT-BCT dated
25 June 2014 of the Ministry of Industry and Trade on
the Implementation of the Rules of Origin under
ASEAN-Korea Free Trade Agreement), 16 March 2015
24 Decision No. 44/2008/QD-BCT of the Minister of
Industry and Trade (adopting rules on issuing Form
AJ C/O for preferential treatment under ASEAN-Japan
Comprehensive Economic Partnership), dated 8
December 2008
implementation of the rules of origin provided in the
ASEAN-India Free Trade Area Agreement),
15 April 2010
implementation of rules of origin in the Agreement
establishing the ASEAN-Australia-New Zealand Free
Trade Area), 24 September 2015
implementation of Rules of Origin under the
Viet Nam-Chile Free Trade Area), 15 November 2013
supplementing a number of forms of the Certificate of
Goods Origin issued with MOIT Circular
No. 31/2013/TT-BCT (on the implementation of the
origin regulations in Free Trade Agreement Between
Viet Nam and Chile), issued on 15 November 2014)),
27 March 2015
29 MOIT Circular No. 38/2018/TT-BCT (on prescribing Application for REX (number registration
certification of origin of goods under the GSP of the number assigned to an exporter for use
European Union, Norway, Switzerland, and Turkey), when carrying out GSP certification of origin
issued on 30 October 2018 procedures)
Revocation of REX number
Additional measures against origin-related
frauds
Principles for application
30 MOIT Circular No. 39/2018/TT-BCT (on prescribing Methods, circumstances, procedures for
the checking and verification of origin of export inspection and verification of products' origin
goods), issued on 30 October 2018
31 MOIT Circular No. 28/2015/TT-BCT (on pilot
implementation of self-certification of origin of goods
provided in the ASEAN Trade in Goods Agreement),
20 August 2015
dated 20 August 2015 (on pilot implementation of
self-certification of origin of goods provided in the
ASEAN Trade in Goods Agreement)), issued on
6 December 2017
33 Decision 1313/QD-BCT of the Minister of Industry and
Trade (on amending and supplementing Decision
No. 2412/QD-BCT of the Minister of Industry and
Trade (on adopting procedure for issuing preferential
Certificate of Origin via Internet), issued on 15 June
2016)), issued on 17 April 2017
Trade (adopting Pilot Procedure of issuing Form D C/O
via Internet (Phase 2)), issued on 15 September 2015
Trade (adopting the List of Traders selected for the
Pilot Procedure of issuing C/O via Internet),
25 April 2015
Trade (adopting Pilot Procedure of issuing Form D C/O
via Internet), 24 April 2015
- 166 -

supplementing MOIT Circular No. 03/2019/TT-BCT on
providing the rules of origin under the Comprehensive
and Progressive Agreement for Trans-Pacific
Partnership), issued on 24 March 2020
Rules of Origin under Agreement on establishing
ASEAN-Australia-New Zealand Free Trade Area)),
issued on 30 March 2020
implementation of rules of origins in the Viet Nam-
Cuba Trade Agreement), issued on 08 April 2020
implementation of rules of origins in the Viet Nam-EU
Free Trade Agreement), issued on 15 June 2020
supplementing MOIT Circulars on implementation of
rules of origins in the ASEAN Trade in Goods
Agreement)

- 167 -
Table A3.2 Tariff summary, 2020

Number of Average Standard Duty free Range
lines (%) deviation (%) (%)
Totala 10,813 12.0 14.9 29.2 0-135
HS 01-24 1,726 18.6 16.2 11.2 0-135
HS 25-97a 9,087 10.7 14.3 32.6 0-100
By WTO category
WTO agricultural products 1,370 19.1 17.6 11.8 0-135
Animals and products thereof 152 14.1 11.2 10.5 0-40
Dairy products 45 10.2 5.8 4.4 0-20
Fruit, vegetables, and plants 357 19.3 12.2 9.8 0-40
Coffee and tea 43 26.4 9.3 0.0 10-40
Cereals and preparations 200 20.4 16.3 8.0 0-80
Oils seeds, fats, oil and their
222 14.2 10.8 7.7 0-35
products
Sugars and confectionery 31 27.4 28.8 6.5 0-100
Beverages, spirits and tobacco 122 49.6 24.8 0.0 15-135
Cotton 5 6.0 4.9 40.0 0-10
Other agricultural products,
193 7.1 7.2 36.8 0-20
n.e.s.
WTO non-agricultural productsa 9,443 11.0 14.2 31.7 0-100
Fish and fishery products 437 14.4 8.8 14.6 0-35
Minerals and metals 1,553 9.6 11.2 31.1 0-60
Chemicals and photographic
1,507 4.1 6.1 52.2 0-27
supplies
Wood, pulp, paper and furniture 557 10.7 9.4 27.5 0-25
Textiles 855 10.0 6.4 9.4 0-100
Clothing 351 19.7 2.2 0.0 5-20
Leather, rubber, footwear and
322 12.3 11.2 11.2 0-35
travel goods
Non-electric machinery 1,328 4.7 7.5 54.6 0-50
Electric machinery 719 8.8 9.2 37.6 0-35
Transport equipmenta 1,019 35.0 27.6 7.5 0-75
Non-agricultural products, n.e.s. 751 10.0 10.6 42.2 0-35
Petroleum 44 12.5 7.6 4.5 0-20
By ISIC sector
ISIC 1 – Agriculture, hunting and
686 12.5 15.2 24.8 0-90
fishing
ISIC 2 – Mining 122 4.2 11.1 44.3 0-60
ISIC 3 – Manufacturinga 10,004 12.1 14.9 29.3 0-135
Manufacturing excluding food
8,882 10.9 14.4 32.1 0-100
processinga
Electrical energy 1 1.0 0.0 0.0 1
By stage of processing
First stage of processing 1,133 10.8 14.2 29.1 0-100
Semi-processed products 2,855 6.1 7.9 39.7 0-100
Fully processed productsa 6,825 14.8 16.5 24.8 0-135
By HS section
01 Live animals and products 589 12.5 10.7 15.8 0-80
02 Vegetable products 492 15.3 11.1 13.2 0-60
03 Fats and oils 175 16.5 10.8 0.0 3-35
04 Prepared food, beverages and
470 30.3 21.2 7.4 0-135
tobacco
05 Mineral products 218 6.9 10.7 31.7 0-60
06 Chemicals and products thereof 1,260 3.0 5.1 59.4 0-27
07 Plastics, rubber, and articles
565 8.8 8.2 15.0 0-35
thereof
08 Raw hides and skins, leather,
91 12.7 10.8 26.4 0-25
and its products
09 Wood and articles of wood 228 7.3 9.4 47.8 0-25
- 168 -
Number of Average Standard Duty free Range

lines (%) deviation (%) (%)
10 Pulp of wood, paper and
300 12.7 8.1 12.3 0-25
paperboard
11 Textiles and textile articles 1,175 12.6 7.0 8.0 0-100
12 Footwear, headgear, etc. 84 22.3 10.3 7.1 0-30
13 Articles of stone, plaster,
250 19.9 14.2 5.6 0-45
cement
14 Precious stones and metals,
86 12.2 13.2 20.9 0-30
pearls
15 Base metals and articles
1,034 8.0 8.7 35.3 0-35
thereof
16 Machinery, electrical
2,132 6.2 8.4 48.8 0-50
equipment, etc.
17 Transport equipmenta 1,033 34.5 27.6 8.2 0-75
18 Precision equipment 326 4.5 7.9 67.5 0-25
19 Arms and ammunition 30 5.2 11.1 80.0 0-30
20 Miscellaneous manufactured
267 17.8 8.6 6.4 0-30
articles
21 Works of art, etc. 8 3.8 6.5 62.5 0-20
a For 230 tariff lines, under motor vehicles (HS Chapter 87), no rates are provided as duties are based
on special instructions provided under Chapter 98.
- 169 -
Table A3.3 Tariff lines whose applied MFN tariff rates exceed bound rates, 2020
HS code Description MFN Bound
applied
02076000 Meat and edible offal of guinea fowl, not cut into pieces 40%
Not cut into pieces 40%
Other, than not cut into pieces 15%
02089090 Other meat 10% 5%
07095910 Truffles 20% 15%
07099100 Globe artichokes 15% 13%
20056000 Asparagus, preserved / prepared 35% 30%
10062090 Husk brown rice, other than Home Mali rice 60% 40%
16052100 Shrimp and prawns, preserved/prepared, not in airtight 35% 30%
containers
20089940 Other fruit or nuts preserved/prepared 40% 30%
20089990 Other fruit or nuts preserved/prepared 40% 30%
27150010 Polyurethane tar coatings 20% 5%
48043990 Kraft paper, other 20% 18%
68042200 Millstones (...) of other agglomerated abrasives or of ceramics 20%
Containing brown corundum grindstone granules 8%
Other 20%
68042300 Millstones (...) of natural stone 20%
Other 20%
68043000 Hand sharpening or polishing stones 20%
Other 20%
70199020 Glass fibres and articles thereof, blinds 30% 3%
71012200 Culture pearls, worked 4% 3%
84336010 Machines for cleaning, sorting eggs, fruit etc., electrically 5% 1%
operated
84336020 Machines for cleaning, sorting eggs, fruit etc., not electrically 5% 1%
operated
84719030 Electronic fingerprint identification system 3% 0%

- 170 -
Table A3.4 Goods subject to import restriction, 2020

Measure/affected products
Import subject to specific control
Under the Ministry of Industry and Trade
− Goods subject to import control in accordance with international treaties to which Viet Nam is a
contracting party, to be promulgated by the MOIT for each period (import licence);
− Goods subject to the grant of automatic import licences: the MOIT shall publish a list of goods to which
the grant of automatic import licences applies for each period and organize the grant of such permits
under current regulations on grant of licences (automatic import licence);
− Goods subject to tariff quotas: (a) salt; (b) material tobacco; (c) poultry eggs; and (d) refined sugar,
crude sugar (import licence);
− Chemicals and products containing chemicals (complying with the Law on Chemicals and guiding
Decrees);
− Schedule 2 and 3 chemicals provided in Annex to Decree No. 38/2014/ND-CP (on the management of
chemicals under control of the Convention on the Prohibition of the Development, Production,
Stockpiling and Use of Chemical Weapons and on their Destruction), issued on 6 May 2014 (complying
with Decree No. 38/2014/ND-CP);
− Pre-substances used in industries (import licence);
− Explosive pre-substances, industrial explosives (setting out conditions and import licence); and
− Tobacco materials, tobacco products, cigarette rolling papers; machines and equipment exclusively used
for cigarette production and spare parts (complying with the Government's regulations on cigarette
production and trading).
Under the Ministry of Transport
− Signal fires for navigational safety (import licence).
Under the Ministry of Agriculture and Rural Development
− Veterinary drugs and materials for production thereof registered for first-time importation into Viet Nam
(test permit);
− Biological and microbiological preparations, chemicals used in veterinary medicine registered for first-
time importation into Viet Nam (test permit);
− Plant protection products not included in the list of plant protection products permitted to be used in
Viet Nam for temporary importation or temporary import to manufacture in Viet Nam for further export
under contract signed with foreign party (import licence);
− Plant protection products for sterilization containing active ingredient methyl bromide and active
ingredients with acute toxicity under Category I or II based on Harmonized System of Classification and
Labelling of Chemicals (GHS) (import licence);
Viet Nam for testing for the purpose of registration (import licence);
Viet Nam for testing, research; used in foreign projects in Viet Nam; plant protection products used as
sample goods, goods in exhibition, trade fairs and in certain special circumstances under decision of the
MARD (import licence);
− Medicines under list of plant protection products banned from use in Viet Nam but being imported as
reference materials (import licence);
− Livestock breeds outside the list of those permitted for production and trading in Viet Nam; assorted
insects not existing in Viet Nam; sperms, embryos of livestock breeds imported for the first time into
Viet Nam (import licence or test permit, clearly prescribing conditions and procedures for grant of
licences);
− Plant varieties, live organisms in the field of plant protection and other articles on the list of articles
subject to plant quarantine for pest-risk analysis before being imported into Viet Nam (import licence,
clearly prescribing conditions and procedures for grant of licences);
− Plant varieties outside the list of plant varieties permitted for production and trading in Viet Nam, which
are imported for research, test, trial production or imported for international cooperation, as samples
for display at exhibitions and gifts or implementing investment programmes, projects (import licence or
test permit, clearly prescribing conditions and procedures for grant of licences in accordance with the
Ordinance on Plant Varieties and the Ordinance on Livestock Breeds);
− Livestock feeds and materials for production thereof; aquatic feeds and materials for production
thereof, outside the list of feeds permitted for circulation in Viet Nam (import licence or test permit,
clearly prescribing conditions and procedures for grant of licences);
− Fertilizers not permitted for circulation in Viet Nam: (a) fertilizers intended for testing; (b) fertilizers
intended for sports grounds, amusement parks; (c) fertilizers intended for foreign-invested enterprises
to serve business of enterprises, intended for foreign projects in Viet Nam; (d) fertilizers as donations;
sample goods; (e) fertilizers in trade fairs, exhibitions; (f) fertilizers imported for manufacturing
exported fertilizers; (g) fertilizers intended for scientific research; (h) fertilizers as materials for
manufacture of other fertilizers (import licence);
− Gene sources of plants, domestic animals, microorganisms for research, scientific and technical
exchange (import licence, clearly prescribing conditions and procedures for grant of licences);
− Samples of precious and rare, endangered, wild animals and plants from natural resources under
Appendix I to CITES for non-commercial purpose (based on the provisions of the CITES, prescribing
conditions and guiding procedures for import);
- 171 -
− Samples of endangered and wild animals and plants from natural resources under Appendix II or III to
CITES, and samples of endangered and wild animals and plants under Appendix II or III to CITES from
breeding, rearing, artificial tree planting (based on the provisions of the CITES, prescribing conditions
and guiding procedures for import);
− Materials for production of biological and microbiological preparations, chemicals and substances used
in aquaculture to improve environment (regulations on the management of quality of imported
materials);
− Finished products on the list of products permitted for circulation in Viet Nam or on the list of products
subject to conditional import (promulgating the list of products permitted for circulation in Viet Nam
(the list of products which may be normally imported) and the list of products subject to conditional
import);
− Finished products neither on the list of products permitted for circulation in Viet Nam or the list of
products subject to conditional import (import licence, clearly prescribing conditions, volumes and
procedures for grant of licences);
− Aquatic species which may be normally imported (promulgating the list of aquatic species which may be
normally imported);
− Aquatic species subject to conditional import (promulgating the list of aquatic species subject to
conditional import);
− Aquatic species outside the list of products permitted for normal import which are imported for the first
time into Viet Nam (import licence, clearly prescribing conditions, volumes and procedures for grant of
licences);
− Live aquatic animals used as food on the list of normal imports (promulgating the list of live aquatic
animals used as food, which may be normally imported); and
− Live aquatic animals used as food outside the list of live aquatic species imported to be used as food in
Viet Nam (regulations on risk assessment, grant of licences).
Under the Ministry of Natural Resources and Environment
− Scraps (prescribing import conditions or standards).
Under the Ministry of Information and Communication
− Publications (books, newspapers, magazines, paintings, photos, calendars) (complying with the laws on
publication and press);
− Prepress system of printing industry (complying with the law on printing activities);
− Printing machines of all kinds (offset, flexo, gravure, letterpress, silk-screen printing machine; colour
photocopiers, printers with colour photocopying function) (complying with the law on printing
activities); and
− Cybersecurity products, including: (a) inspection and evaluation of cybersecurity; (b) surveillance of
cybersecurity; (c) anti-hacking products (import licence).
Under the Ministry of Culture, Sports and Tourism
− Cinematographic works, works of performing arts and other audio-visual products, recorded on any
material (approving contents of imported products);
− Works of fine arts, photographic works (approving contents of imported products);
− Electronic game machines installed with video game programmes; electronic game machines installed
with prize-awarding programmes and casino-related equipment (written confirmation of list of imported
goods); and
− Children's toys (stipulating technical conditions).
Under the Ministry of Health
− Medicines granted marketing authorization, other than medicines put under special control (to be
imported as needed; certification of packing lists of imports is not required);
− Medicinal materials being active ingredients granted marketing authorization in Viet Nam (to be
− Medicinal materials being active ingredients for manufacture of medicines according to the application
for registration granted marketing authorization in Viet Nam (to be imported as needed; certification of
packing lists of imports is not required);
− Medical equipment granted marketing authorization (to be imported as needed; certification of packing
lists of imports is not required);
− Chemicals and preparations for killing insects and bacteria for domestic and medical uses granted
marketing authorization (to be imported as needed; certification of packing lists of imports is not
required);
− Drugs put under special control (import licence);
− Medicinal materials put under special control (import licence);
− Medicines not granted marketing authorization in Viet Nam (import licence);
− Medicinal materials not granted marketing authorization in Viet Nam, other than medicinal materials put
under special control (import licence);
− Reference materials, packages in physical contact with medicinal products (import licence);
− Imported food under management of the MOH as prescribed in laws and regulations on food safety
(declaration of conformity, declaration of conformity with food safety and state inspection);
− Medical equipment not granted marketing authorization for scientific research or testing or instructions
for use (import licence);
− Medical equipment not granted marketing authorization for purpose of aid (import licence);
− Medical equipment not granted import marketing authorization for individual therapy (import licence);
- 172 -
− Chemicals, preparations imported for research (import licence);
− Preparations imported for purpose of aid or other purposes (import licence); and
− Cosmetics (announcing standards).
Under the State Bank of Viet Nam
− Raw gold (import licence).
Source: Decree No. 69/2018/ND-CP, issued on 15 May 2018.

- 173 -
Table A3.5 Anti-dumping and safeguard measures initiated between 2013 and 2019
Anti-dumping measures
Product under Year of
Case code HS code Status
investigation initiation
AD01 Cold-rolled stainless 7219.32.00, 7219.33.00, 2013 In effect
steel imported from 7219.34.00, 7219.35.00,
China, Indonesia, 7219.90.00, 7220.20.90,
Malaysia, and Chinese 7220.90.10, 7220.90.90,
Taipei 7220.20.10
AD02 Galvanized steel 7210.41.11, 7210.41.12, 2016 In effect
imported from China and 7210.41.19, 7210.49.11,
the Republic of Korea 7210.49.12, 7210.49.13,
7210.49.19, 7210.50.00,
7210.61.11, 7210.61.12,
7210.61.19, 7210.69.11,
7210.69.12, 7210.69.19,
7210.90.10, 7210.90.90,
7212.30.11, 7212.30.12,
7212.30.13, 7212.30.14,
7212.30.19, 7212.30.90,
7212.50.13, 7212.50.14,
7212.50.19, 7212.50.23,
7212.50.24, 7212.50.29,
7212.50.93, 7212.50.94,
7212.50.99, 7212.60.11,
7212.60.12, 7212.60.19,
7212.60.91, 7212.60.99,
7225.92.90, 7226.99.11,
7226.99.91
AD03 H-beam imported from 7216.33.11, 7216.33.19, 2016 In effect
China 7216.33.90, 7228.70.10,
7228.70.90
AD04 Certain alloy steel or 7210.70.11, 7210.70.19, 2018 In effect
non-alloy steel products, 7210.70.91, 7210.70.99,
rolled flat, painted or 7212.40.11, 7212.40.12,
varnished or covered 7212.40.19, 7212.40.91,
with plastic or other 7212.40.92, 7212.40.99,
imported from China and 7225.99.90, 7226.99.19,
the Republic of Korea 7226.99.99
AD05 Some articles of 7604.10.10, 7604.10.90, 2019 In effect
aluminium, alloy or non- 7604.21.90, 7604.29.10,
alloy, in rods, rods and 7604.29.90
profiles imported from
China
AD06 Certain wood fibre 4411.12.00, 4411.13.00, 2019 Investigation
products or of other 4411.14.00, 4411.92.00, ongoing
materials of wood quality 4411.93.00, 4411.94.00
imported from Thailand
and Malaysia
AD07 Some plastics and plastic 3920.20.10, 3920.20.91 2019 Investigation
products made from ongoing
polymers imported from
China, Malaysia, and
Thailand
AD08 Some cold-rolled (cold- 7209.16.10, 7209.16.90, 2019 Investigation
pressed) steel products 7209.17.10, 7209.17.90, ongoing
in rolls or sheets 7209.18.91, 7209.18.99,
imported from China 7209.26.10, 7209.26.90,
7209.27.10, 7209.27.90,
7209.28.10, 7209.28.90,
7209.90.90, 7211.23.20,
7211.23.30, 7211.23.90,
7211.29.20, 7211.29.30
AD09 Monosodium glutamate 2922.42.20 2019 Investigation
imported from China and ongoing
Indonesia
- 174 -
Safeguard measures
Product under Year of
Case code HS code Status
investigation initiation
SG03 Monosodium glutamate 2922.42.20 2015 In effect
SG04 Steel billet, long steel 7207.11.00, 2015 In effect
7207.19.00,
7207.20.29,
7207.20.99,
7224.90.00,
7213.10.00,
7213.91.20,
7214.20.31,
7214.20.41,
7227.90.00,
7228.30.10,
9811.00.00
SG05 Ton mau 7210.70.10, 2016 In effect
7210.70.90,
7212.40.20,
7212.40.90,
7225.99.90,
7226.99.19,
7226.99.99
SG06 Fertilizer 3105.10.90, 2017 In effect
3105.30.00,
3105.40.00,
3105.51.00,
3105.59.00,
3105.90.00

- 175 -
Table A3.6 Export taxes, 1 January 2020

Committed
Applied
rate in WTO
HS Code Description rate
(from 2012)
(%)
(%)
03.01 Live fish 0-10
03.02 Fish, fresh or chilled, excluding fish fillets and other fish flesh of 0-10
heading 03.04 provided in the Directory of Viet Nam's Imports
and Exports
03.03 Fish, frozen, excluding fish fillets and other fish flesh of heading 0-10
03.04 provided in the Directory of Viet Nam's Imports and
Exports
03.04 Fish fillets and other fish flesh (whether or not minced), fresh, 0-10
chilled or frozen
03.05 Fish, dried, salted or in brine; smoked fish, whether or not 0-10
cooked before or during the smoking process; flours, meals and
pellets of fish, fit for human consumption
0801.31.00 Cashew nuts in shell 0a
1211.90.14, Agarwood 15
1211.90.19,
1211.90.98,
1211.90.99
2502-2516, Minerals 5-30
2518-2522,
2524, 2526,
2528-2530
2601-2617 Metal ores and concentrates 10-40
2621 Other slag and ash, including seaweed ash (kelp); ash and 0-7
residues from the incineration of municipal waste
2701-2704 Coal 10-20
2709 Petroleum oils and oils obtained from bituminous minerals, 0-10
crude
2709.00.10 Crude petroleum oil 10
28.04 Hydrogen, rare gases and other non-metals 0-5
28.17 Zinc oxide; zinc peroxide 0-5
28.18 Artificial corundum, whether or not chemically defined; 0
aluminium oxide; aluminium hydroxide
40.01, 40.02, Rubber 0-5
40.05
4101 Raw hides and skins of bovine (including buffalo) or equine 10
animals (fresh, or salted, dried, limed, pickled or otherwise
preserved, but not tanned, parchment-dressed or further
prepared), whether or not de-haired or split
4102 Raw skins of sheep or lambs (fresh, or salted, dried, limed, 5
pickled or otherwise preserved, but not tanned, parchment-
dressed or further prepared), whether or not with wool on or
split, other than those excluded by Note 1(c) to this Chapter
4103 Other raw hides and skins (fresh, or salted, dried, limed, 0-10
pickled or otherwise preserved, but not tanned, parchment-
dressed or further prepared), whether or not de-haired or split,
other than those excluded by Note 1(b) or Note 1(c) to this
Chapter
4401 Fuel wood, in logs, in billets, in twigs, in faggots or in similar 0-5
forms; wood in chips or particles; sawdust and wood waste and
scrap, whether or not agglomerated in logs, briquettes, pellets
or similar forms
4402 Wood charcoal (including shell and nut charcoal), whether or 0-10
not agglomerated
4403 Trees' roots and bush of natural wood 10
4404 Hoopwood; split poles; piles, pickets and stakes of wood, 5
pointed but not sawn lengthwise; wooden sticks, roughly
trimmed but not turned, bent or otherwise worked, suitable for
the manufacture of walking-sticks, umbrellas, tool handles or
the like; chip wood and the like of natural wood
4406 Railway or tramway sleepers (cross-ties) of natural wood 20
4407 Wood sawn or chipped lengthwise, sliced or peeled, whether or 5-20
not planed, sanded or end-jointed, of a thickness exceeding
6 mm of natural wood
- 176 -
Committed
Applied
rate in WTO
(from 2012)
(%)
(%)
4408 Sheets for veneering and laminated wood (whether or not 5a
assembled), other wood, sawn lengthwise, sliced or peeled,
whether or not planed, sanded, spliced or end-jointed, of a
thickness not exceeding 6 mm of natural wood
4409 Wood (including strips and friezes for parquet flooring, not 5a
assembled) continuously shaped (tongued, grooved, rebated,
chamfered, V-jointed, beaded, moulded, rounded or the like)
along any of its edges, ends or faces, whether or not planed,
sanded or end of natural wood
7102 Diamonds, whether or not worked, but not mounted or set 5-15
7103 Precious stones (other than diamonds) and semi-precious
stones, whether or not worked or graded but not strung,
mounted or set; ungraded precious stones (other than
diamonds) and semi-precious stones, temporarily strung for
convenience of transport:
7103.10.00 - Un-worked or simply sawn or roughly shaped 15
- Otherwise worked:
7103.91.00 -- Rubies, sapphires and emeralds 5
7103.99.00 -- Other 5
7104 Synthetic or reconstructed precious or semi-precious stones, 5-10
whether or not worked or graded but not strung, mounted or
set; ungraded synthetic or reconstructed precious or semi-
precious stones, temporarily strung for convenience of
transport
7105.90.00 Dust and powder of precious stones of 7103 3
7106 Silver (including silver plated with gold or platinum), unwrought 5
or in semi-manufactured forms, or in powder form
7108 Gold (including gold plated with platinum) unwrought or in 0-10
semi-manufactured forms, or in powder form
7113 Articles of jewellery and parts thereof, of precious metal or of 0-10
metal clad with precious metal
7114 Articles of goldsmiths' or silversmiths' wares and parts thereof, 0-10
of precious metal or of metal clad with precious metal
7115 Other articles of precious metal or of metal clad with precious 0-10
metal
7204 Iron and steel wastes (excluding turnings, shavings, milling 15-17 17
waste, sawdust, filings, trimmings, and stampings of steel,
whether or not in bundles)
7401 Copper mattes; cement copper (precipitated copper) 15-20
7403 Refined copper and copper alloys, unwrought 10-20
7404 Copper waste and scrap 22 22
7405 Master alloys of copper 15
7406.10.00 Powders of non-lamellar structure 15
7406.20.00 Powders of lamellar structure; flakes 15
7407 Copper bars, rods and profiles 10
7501 Nickel mattes, nickel oxide sinters and other intermediate 0-5
products of nickel metallurgy
7502 Unwrought nickel 5
7503.00.00 Nickel waste and scrap (excluding turnings, shavings, milling 22 22
waste, sawdust, filings, trimmings and stampings of nickel,
7504.00.00 Nickel powders and flakes 5
7505.11.00 Nickel, not alloyed, in bars, rods and profiles 5
7505.12.00 Alloyed nickel bars, rods and profiles 5
7601 Unwrought aluminium 15
7602.00.00 Aluminium waste and scrap (excluding turnings, shavings, 22 22
milling waste, sawdust, filings, trimmings and stampings of
aluminium, whether or not in bundles)
7603 Aluminium powders and flakes 10
7801 Unwrought lead 15
7802.00.00 Lead waste and scrap (excluding turnings, shavings, milling 22 22
waste, sawdust, filings, trimmings and stampings of lead,
7804.20.00 Lead powders and flakes 5
7806 Other articles of lead 5
7901 Unwrought zinc 10
- 177 -
Committed
Applied
rate in WTO
(from 2012)
(%)
(%)
7902.00.00 Zinc waste and scrap (excluding turnings, shavings, milling 22 22
waste, sawdust, filings, trimmings and stampings of zinc,
7903.10.00 Zinc powder 5
7903.90.00 Zinc powder and flakes 5
7904 Zinc bars, rods, profiles 5
8001 Unwrought tin 10
8002.00.00 Tin waste and scrap (excluding turnings, shavings, milling 22 22
waste, sawdust, filings, trimmings and stampings of tin,
8003.00.10 Tin bars, rods 5
8003.00.90 Tin profiles 5
8007 Aluminium powder and flakes 5
8101 to 8113 Waste and scraps of metal and metallic ceramics and their 22 22
products (excluding turnings, shavings, milling waste, sawdust,
filings, trimmings and stampings, whether or not in bundles)
8101 to 8113 Semi-products of metal and metallic ceramics and products of 5
metal and metallic ceramics
8104 Magnesium and articles thereof, including waste and scrap 15
a These items were not subject to export duty in 2012.

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Table A3.7 Goods subject to export prohibition, restriction, 2020

Export prohibition
− Schedule 1 toxic chemicals defined in the Convention on the Prohibition of the Development,
Production, Stockpiling and Use of Chemical Weapons and on their Destruction and Annex to Decree
No. 38/2014/ND-CP dated 6 May 2014 on the management of chemicals under control in the
Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical
Weapons and on their Destruction; and
− Chemicals under the list of banned chemicals prescribed in Appendix III to Decree No. 113/2017/ND-
CP dated 9 October 2017 on guidelines for certain articles of the Law on Chemicals.
− Logs, sawn timber from domestic natural forests;
− Samples of precious, rare and endangered animals and plants under Appendix I to CITES derived from
natural resources; or samples of precious, rare and endangered forest animals and plants under which
need to be placed under Category IA or IB prescribed in Decree No. 32/2006/ND-CP on export for
commercial purpose;
− Samples and processed products of species: white rhinoceros (Ceratotherium simum), black rhinoceros
(Diceros bicornis), African elephants (Loxodonta africana);
− Wild precious, rare and endangered species under Category I;
− Aquatic species under list of aquatic species prohibited from export; and
− Livestock breeds and plant varieties under the list of precious and rare livestock breeds and plant
varieties prohibited from export promulgated by the MARD in conformity with the Ordinance on
Livestock Breeds 2004 and Ordinance on Plant Varieties 2004.
Under the Ministry of National Defence
− Weapons, ammunitions, explosives (excluding industrial explosives), technical military equipment; and
− Encrypted products used for protection of state secrets.
− Relics, antiques and national precious objects in accordance with the law on cultural heritage; and
− Assorted cultural products banned from dissemination and circulation or decided to be suspended from
dissemination and circulation, or subject to revocation, confiscation and destruction in Viet Nam.
Under the Ministry of Information and Communications
− Assorted publications banned from dissemination and circulation in Viet Nam; and
− Postage stamps banned from trading, exchange, display and dissemination in accordance with the Law
on Post.
Export subject to specific control
− Chemicals and products containing chemicals (in accordance with the Law on Chemicals and guiding
Decrees);
− Schedule 2 and 3 chemicals provided in Annex to Decree No. 38/2014/ND-CP, dated 6 May 2014, on
the management of chemicals under control of the Convention on the Prohibition of the Development,
Production, Stockpiling and Use of Chemical Weapons and on their Destruction (in accordance with
Decree No. 38/2014/ND-CP, issued on 6 May 2014);
− Pre-substances used in industries (export licence);
− Minerals (other than mineral as building materials) (promulgation of lists of goods subject to
conditional export, with prescribed conditions or standards);
− Explosive pre-substances, industrial explosives (export licence);
− Goods exported within quotas set by foreign countries (the MOIT is to announce these goods in
conformity with Viet Nam's agreements or international commitments with foreign countries) (export
licence);
− Goods subject to export control in accordance with international treaties to which Viet Nam is a
contracting party, to be promulgated by the MOIT for each period (export licence); and
− Goods subject to the grant of automatic Export licences (the MOIT is to publish a list of goods to which
the grant of automatic export licences applies for each period and organize the grant of such licences
under current regulations on grant of licences) (automatic export licence).
− Samples of precious and rare, endangered, wild animals and plants under Appendix I to the CITES for
non-commercial purpose (based on the provision of the CITES, prescribing export conditions and
guiding procedures);
− Samples of endangered and wild animals and plants from natural resources under Appendix II or III to
the CITES, and samples of endangered and wild animals and plants under Appendix II or III to the
CITES from breeding, rearing, artificial tree planting (based on the provision of the CITES, prescribing
export conditions and guiding procedures);
− Precious and rare, wild animals and plants of groups IIA and IIB specified in the Decree No.
32/2006/ND-CP (prescribing conditions and guiding procedures for export);
− Precious and rare plant varieties and livestock breeds (guiding in details in accordance with the
Ordinance on Plant Varieties and the Ordinance on Livestock Breeds);
− Ornamental, shade and old trees from domestic natural forests (prescribing conditions and dossiers for
export);
- 179 -
− Firewood, charcoal or firewood originating from domestic natural forests (prescribing conditions and
guiding procedures for export);
− Aquatic species subject to conditional export (promulgating the list of aquatic species which may be
normally exported; species and conditions for export of aquatic species subject to conditional export);
− Aquatic species which may be normally exported (promulgating the list of aquatic species which may
be normally exported; species and conditions for export of aquatic species subject to conditional
export); and
− Fish breeds subject to export prohibition and conditional export (promulgating the list of prohibited fish
breeds for export); and prescribing conditions and guiding procedures for export.
Under the Ministry of Information and Communication
− Publications (books, newspapers, magazines, paintings, photos, calendars) (complying with the laws on
publication and press).
− Cinematographic works, works of performing arts and other audio-visual products, recorded on any
material (whose contents are assessed and approved in accordance with current regulations; under
legal ownership, possession and use);
− Works of fine arts, photographic works (whose contents are assessed and approved in accordance with
current regulations; under legal ownership, possession and use); and
− Relics and antiques not under the state ownership or the ownership by political organizations and
socio-political organizations (export licence; complying with regulations on cultural heritage).
Under the Ministry of Health
− Medicines put under special control (export licence);
− Medicinal materials being psychotropic active ingredients, additive active ingredients, drug precursors
(export licence);
− Herbal ingredients under the list of rare, precious and endemic species and categories put under
control (export licence);
− Medicines, medicinal materials, other than herbal ingredients under the list of rare, precious and
endemic species and categories put under control, medicines put under special control, medicinal
materials being psychotropic active ingredients, additive active ingredients, and drug precursors (to be
− Food under management of the Ministry of Health as prescribed in laws and regulations on food safety
referred to in declaration of conformity (to be imported as needed; certification of packing lists of
imports is not required);
− Medical equipment (to be imported as needed; certification of packing lists of imports is not required);
− Chemicals and preparations for killing insects and bacteria for domestic and medical uses (to be
imported as needed; certification of packing lists of imports is not required); and
− Cosmetics (to be imported as needed; certification of packing lists of imports is not required).
Under the State Bank of Viet Nam
− Raw gold (export licence).
Source: Decree No. 69/2018/ND-CP, issued on 15 May 2018.

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Table A3.8 Principal legislation on technical measuresa

Title Reference Note
Prime Minister's Decision on the No. 46/2017/QD-TTg
Organization and Operation of Viet Nam's
Network of Notifications, Enquiry Points,
and Inter-Agency Committee for Technical
Barriers to Trade
Prime Minister's Decision Approving No. 712/QD-TTg
National Programme on the Improvement
of Products and Goods Productivity and
Quality
Law on Standards and Technical No. 68/2006/QH11 Main legal basis for standards and
Regulations as amended by Law technical regulations.
No. 35/2018/QH14
Law Amending and Supplementing Some No. 35/2018/QH14 Establishes harmonization with
Articles concerning Planning of 37 Laws international standards, according to
international treaties and agreements as
a base for standards development in
Viet Nam.
Decree Detailing the Implementation of a No. 127/2007/ND-CP
Number of Articles of the Law on Standards
and Technical Regulations
Decree Amending a Number of Articles of No. 78/2018/ND-CP Broad consultations for development
the Decree No. 127/2007/ND-CP including enterprises and consumers.
Alignment on national standards and
technical regulations to international
agreements signed by Viet Nam.
Law on Products and Goods Quality No. 05/2007/QH12 Goods in Group 1 are controlled on the
basis of standards announced by
producers, and goods in Group 2 are
controlled on the basis of technical
regulations established by the
competent government agencies.
Decree on the Implementation of a Number No. 132/2008/ND-CP
of Articles of the Law on Product Goods and
Quality
Decree Amending and Supplementing a No. 74/2018/ND-CP Updates criteria used for classifying
Number of Articles of Decree No. products as capable of causing
132/2008/ND-CP "unsafety".
Provides the declaration form and
relevant documents for imported goods
belonging to Group 2.
Stipulates exemptions from quality
inspection and quality control for
imported Group 2 goods, and specifies
custom clearance delays for goods
subject to post-inspection.
Decree Providing Conditions for Conformity No. 107/2016/ND-CP Provides the business conditions for
Assessment Services conformity services and accreditation
organizations in Viet Nam, and for the
organization of conformity evaluation
regarding applicable standards and
technical regulations.
Decree Amending, Supplementing and No. 154/2018/ND-CP Amends operation requirements of
Annulling a Number of Regulations on verification, calibration and testing
Investment and Business Conditions in the organizations.
Field of State Management by the MOST Amends operation conditions of
and Some Regulations on Specialized conformity assessment services.
Examination
Law on Protection of Consumers' Rights No. 59/2010/QH10 Provides, inter alia, for compensation to
consumers for goods and services which
do not meet technical standards or
norms and for the recall of defective
goods.
Decree Detailing and Guiding the No. 99/2011/ND-CP
Implementation of a Number of Articles of
the Law on Protection of Consumers' Rights
- 181 -

Decree on Labelling of Goods No. 43/2017/ND-CP Provides details of the required size,
content, and position of labels. Labels
providing compulsory information must
be in Vietnamese.
Law on Measurement No. 04/2011/QH13 Establishes the SI system of units as the
legal units of measurement in Viet Nam.
Decree Detailing and Guiding the No. 86/2012/ND-CP
Implementation of a Number of Articles of
the Law on Measurement
Law on Environmental Protection No. 55/2014/QH13 Establishes the principles and basic
as amended by Law contents of national environmental
No. 35/2018/QH14 standards.
Law on Construction No. 50/2014/QH13 Requires that constructions activities
as amended by Law must comply with construction rules and
No. 35/2018/QH14 standards.
Law on Food Safety No. 55/2010/QH12 Provides for rights and obligations of
as amended by Law individuals and organizations to ensure
No. 28/2018/QH14 food safety and concerning labelling.
Decree Detailing the Implementation of a No. 15/2018/ND-CP Sets out rights and obligations
Number of Articles of the Law on Food associated with food safety in
Safety production, registration, trade,
transport, inspection, labelling,
advertising, traceability, testing, risk
analysis, and state management of food
safety.
a Regulations are available in Vietnamese at the National Database on Legislation. Viewed at:
http://vbpl.vn/pages/portal.aspx. In some cases, an English translation is available on the portal.
- 182 -
Table A3.9 Basic SPS legislation

Notifications and enquiry point and the WTO
Prime Minister's Decision No. 99/2005/QD-TTg Establishing the enquiry point and
notification authority.
Decision of the Minister of Agriculture No. 1733/QD-BNN-TCCB Organization and operation of the
and Rural Development SPS National Office.
Prime Minister's Decision No. 147/2008/QD-TTg National Action Plan for
Implementation of Commitments
under the SPS Agreement.
Decision of the Minister of Agriculture No. 04/2008/QD-BNN Organization and coordination of
and Rural Development activities between the Notification
Office and the National Inquiry
Point for SPS with a network of
SPS notification and inquiry points
under ministries.
Food safety
Law on Food Safety No. 55/2010/QH12 issued on 17 June 2010
(effective 1 July 2011) and amended by Law
No. 28/2018/QH14
Decree Detailing the Implementation No. 15/2018/ND-CP Sets out rights and obligations
of a Number of Articles of the Law on associated with food safety in
Food Safety production, registration, trade,
transport, inspection, labelling,
advertising, traceability, testing,
risk analysis, and state
management of food safety.
Decree on Organization and Operation No. 122/2014/ND-CP Establishes the Ministry of Health
of the Health Inspectorate (MOH) as the state agency
primarily responsible for
managing food safety of domestic
and imported food products, and
responsibilities of other agencies
MOH Circular on Maximum Residue No. 50/2016/TT-BYT Promulgates the MRLs for
Levels of Pesticide in Food pesticide in domestically produced
and imported food.
MOH Circular Promulgating National No. 02/2011/TT-BYT Regulates limits of fungal toxin
Technical Regulations on Limits of and heavy metal contamination in
Chemical Pollution in Food food.
MOH Circular on Safety and Hygiene No. 35/2015/TT-BYT National technical regulations for
for Food Packaging packaging made of glass,
ceramic, porcelain, and enamel in
direct contact with food.
MOH Circular on Management and Use No. 24/2019/TT-BYT Management of food additives.
of Food Additives
MOH Circular on Radioactive No. 17/2011/TT-BYT Regulates radioactive
Contamination Limit Levels in Food contamination in foodstuffs.
MARD Circular on Foods Allowed to be No. 76/2011/TT-BNNPTNT Publication of a list of foods
Irradiated under the Management of allowed to be irradiated and their
the Ministry of Agriculture and Rural maximum allowable absorbed
Development dose.
MOH Circular on Micro-Biological No. 05/2012/TT-BYT National technical standards for
Contamination in Food microbiological contamination of
food.
MOH Circular on Traceability of Food No. 25/2019/TT-BYT Traceability principles and
Products under Management of implementation for food, tools,
Ministry of Health packaging, and containers in
direct contact with food.
MARD Circular Regulating Food Safety No. 08/2016/TT-BNNPTNT Procedure for food safety
Monitoring of Agricultural, Forestry monitoring of agricultural,
and Fishery Products forestry, and fishery products.
MARD Circular Regulating the No. 48/2013/TT-BNNPTNT amended and Procedure for pre-export
Inspection and Certification of Food supplemented by MARD Circulars inspection and certification of fish
Safety for Exported Fishery Products No. 02/2017/TT-BNNPTNT and No. 16/2018/TT- and fishery products.
BNNPTNT
MARD Circular on Traceability and No. 03/2011/TT-BNNPTNT Principles and procedure for
Recall of Non-Compliant Products in traceability and recall of non-
Fishery Sector compliant fishery products.
MARD Circular on the Monitoring of No. 31/2015/TT-BNNPTNT Procedure for monitoring for
Certain Harmful Substance Residues in certain harmful substance
Aquaculture Fish and Products thereof residues in aquaculture fish and
products thereof.
MARD Circular on Hygiene and Food No. 33/2015/TT-BNNPTNT Procedure for hygiene and food
Monitoring in Harvest of Bivalve safety monitoring in harvest of
Molluscs bivalve molluscs.
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Plant Protection
Law on Plant Protection and No. 41/2013/QH13 issued on 25 November 2013 Regulating the plant protection
Quarantine (effective 1 January 2015) and amended by Law against harmful pests, pathogens
No. 35/2018/QH14 and diseases, plant phytosanitary
conditions, and pesticide
management.
Decree Detailing a Number of Articles No. 116/2014/ND-CP Provides for quarantines and bans
of the Law on Plant Protection and applied to imported and exported
Quarantine plants under the responsibility of
the MARD. It also sets out
procedures for declaration of
pests and their control as well as
funding schemes in case of plant
pest.
Decree on Penalties for Administrative No. 31/2016/ND-CP as amended by Decree Decree on penalties for
Violations No. 35/2019/ND-CP administrative violations on plant
varieties, plant protection, and
quarantine.
Decree on Fertilizer Management No. 84/2019/ND-CP Regulating recognition, testing,
production, trading, export,
import, quality management,
labelling, advertisement, and use
of fertilizers.
Decree Prescribing Administrative No. 55/2018/ND-CP Prescribing competent authorities,
Penalties for Violations Arising in the penalties and corrective measures
Fertilizer Sector to administrative violations.
MARD Circular Promulgating HS Code No. 15/2018/TT-BNNPTNT HS codes of objects for plant
of Goods under the Management quarantine in Viet Nam and
banned imports for plant
protection.
Decision of the Minister of Agriculture No. 48/2007/QD-BNN Plant quarantine and
and Rural Development Regulating phytosanitary certification for
Procedures for Plant Quarantine imports subject to risk
Certificates for Imported Goods assessment.
MARD Circular Promulgating the List of No. 30/2014/TT-BNNPTNT List of goods requiring plant
Articles Subject to Plant Quarantine quarantine and risk assessment
and to Risk Assessment before being imported to
Viet Nam.
MARD Circular Promulgating the List of No. 10/2019/TT-BNNPTNT Provides detailed lists of
Permissible and Banned Agrochemicals permitted and banned active
ingredients in agrochemicals,
including their commercial names.
Animal Health
Law on Animal Health No. 79/2015/QH13 issued on 19 June 2015 Prescribing animal disease
(effective 1 July 2016) and amended by Law prevention and treatment,
No. 21/2017/QH14 quarantine, control of animals and
animal products, sanitary
inspection, and management of
veterinary drugs.
Decree Detailing a Number of Articles No. 35/2016/ND-CP as amended by Decree Establishes the organization of
of the Law on Animal Health No. 123/2018/ND-CP veterinary specialized agencies,
means for prevention of animal
diseases, temporary export and
import bans, and GMP
certification for veterinary drugs.
Decree Sanctioning Administrative No. 64/2018/ND-CP as amended by Decree Prescribing competent authorities,
Violations on Livestock Breeds, Animal No. 42/2019/ND-CP penalties, and corrective
Feeds, and Aquatic Animals measures to administrative
violations.
Decree Sanctioning Administrative No. 90/2017/ND-CP as amended by Decree Prescribing competent authorities,
Violations on Veterinary Drugs No. 04/2020/ND-CP penalties, and corrective
measures to administrative
violations.
MARD Circular Promulgating HS code No. 15/2018/TT-BNNPTNT HS codes of animals and animal
of Goods under the Management of products allowed for production,
the MARD subject to quarantine, allowed for
trade and banned exports and
imports.
MARD Circular on Quarantine of No. 25/2016/TT-BNNPTNT as amended by MARD List of terrestrial animals and
Terrestrial Animals and Animal Circular No. 35/2018/TT-BNNPTNT animal products subject to
Products quarantine and procedures.
Decision on Procedures for Animal No. 15/2006/QD-BNN Procedures for animal quarantine
Quarantine and animal hygiene.
MARD Circular on Quarantine of No. 26/2016/TT-BNNPTNT as amended by MARD List of aquatic animals and
Aquatic Animals and Aquatic Animal Circulars No. 02/2018/TT-BNNPTNT, aquatic animal products subject
Products No. 36/2018/TT-BNNPTNT, and No. 11/2019/TT- to quarantine and procedures for
BNNPTNT quarantine.
- 184 -

MOF Circular on Customs Procedures, No. 38/2015/TT-BTC as amended by Circular Sets out procedures for customs
Inspection and Supervision, and No. 39/2018/TT-BTC clearance and responsibilities of
Duties and Tax Administration of owners of goods and customs
Imports and Exports departments.
MARD Decision on Animal No. 49/2006/QD-BNN Guidelines for tracking animal
Transportation transportation for imports,
exports, and domestic transport.
MARD Decision on the Regulation on No. 86/2005/QD-BNN Regulation on documentation for
Documentation animal quarantine and animal
hygiene.
MARD Circular on the Control of No. 25/2010/TT-BNNPTNT as amended by MARD Guidelines for the control of
Importing Animal and Animal Products Circular No. 11/2017/TT-BNNPTNT imported animals and animal
products.
MARD Decision on Veterinary Drug No. 10/2006/QD-BNN Registration procedures for
Registration veterinary drug production,
importation, distribution, material
for veterinary drug, bio-products,
micro-organisms, and chemicals
used for veterinary purposes.
Environmental protection
Law on Environment Protection No. 55/2014/QH13 as amended by Law No. Adds provisions on prohibited
35/2018/QH14 acts, implementing environmental
protection planning, the
assessment report, and strategic
environmental assessment.
Assigns the Government to detail
projects subject to environmental
impact assessment.
Specifies environmental
protection in the exploitation and
use of natural resources.
Decree on biosafety for genetically No. 69/2010/ND-CP as amended by Decree No. Provides for risk assessment of
modified organisms, genetic 108/2011/ND-CP GMOs; the basis for biosafety
specimens and products of genetically certificates, and eligibility for use
modified organisms as food or animal feed; conditions
for production, trade, import,
export, transportation, and
storage; and accreditation of
laboratories.
Decree Detailing the Implementation No. 19/2015/ND-CP Implements several articles,
of a Number of Articles of the Law on including environmental
Environmental Protection renovation and restoration,
environmental management
system, environmental impact
assessment, and support to
environmental protection.
Implements deposits for
renovation and restoration for
mineral exploitation; controls
soil environmental pollution;
protects the handicraft village
environment; regulates import
and demolition of used ships; and
implements liability insurance for
environmental damages.

- 185 -
Table A3.10 Main laws, regulations, and guidelines for IPRs

Area Title Effectiveness date
IP in general Civil Code No. 91/2015/QH13 dated 24 November 2015 1 January 2017
Criminal Code No. 100/2015/QH13 dated 27 November 2015, as 1 July 2016
amended and supplemented by Law No. 12/2017/QH14 dated 20 June 1 January 2018
2017
Law on Intellectual Property dated 29 November 2005 (Law 1 July 2006
No. 50/2005/QH11), as amended by Law No. 36/2009/QH12 dated 1 January 2010
19 June 2009 and by Law No. 42/2019/QH14 dated 14 June 2019 14 June 2019
Law on Technology Transfer (Law No. 07/2017/QH14) dated 19 June 1 July 2018
2017
Prime Minister's Decision No. 1068/QD-TTg on approving the Intellectual 22 August 2019
Property Strategy through 2030
Copyright Joint Circular No. 07/2012/TTLT-BTTTT-BVHTTDL dated 19 June 2012 of 6 June 2012
the Ministry of Information and Communications and the Ministry of
Culture, Sports and Tourism stipulating duty of enterprises providing
intermediary service in protection of copyright and related rights in the
Internet and telecommunication networks environment
Decree No. 131/2013/ND-CP dated 16 October 2013 of the Government 16 October 2013
on sanctioning administrative violations of copyright and related rights
Decree No. 21/2015/ND-CP dated 14 February 2015, Regulations on 14 February 2015

loyalties and rewards for cinematographic, art, theatrical works and
other forms of art performance
Prime Minister's Decision No. 1755/QD-TTg dated 8 September 2016 on 8 September 2016
approving the Development Strategy of Vietnamese Cultural Industry by
2020 and with a Vision to 2030
Decision No. 4244 / QD-BVHTTDL dated 5 December 2016 of the 5 December 2016
Minister of Culture, Sports and Tourism approving the scheme to raise
public awareness and compliance with laws on copyright and related
rights in period 2017-2020
Prime Minister's Decision No. 88/QD-TTg dated 20 January 2017 on 20 January 2017
approving the scheme to improve managerial capability and effective
implementation of law on copyright and related rights by 2020, with an
orientation to 2025
Decree No. 22/2018/ND-CP dated 23 February 2018 on guidelines for 10 April 2018
certain number of articles of the Intellectual Property Law and the Law
on Amendments to the Intellectual Property Law 2009 in terms of the
copyright and related rights
Industrial Decree No. 103/2006/ND-CP dated 22 September 2006 on detailing and 21 October 2006
property guiding the implementation of a number of articles of the Law on
Intellectual Property regarding industrial property
Decree No. 122/2010/ND-CP dated 31 December 2010 on amending and 20 February 2011
supplementing a number of articles of Decree No. 103/ 2006/ND-CP of
22 September 2006
Circular No. 01/2007/TT-BKHCN dated 14 February 2007 of the MOST on 14 February 2007
guiding the implementation of the Law on Intellectual Property regarding 30 July 2010
industrial property, as amended and supplemented by Circular No. 5 September 2011
13/2010/TT-BKHCN dated 30 July 2010, Circular No. 18/2011/TT-BKHCN 6 April 2013
dated 22 July 2011, Circular No. 05/2013/TT-BKHCN dated 20 February 15 January 2018
2013, and Circular No. 16/2016/TT-BKHCN dated 30 June 2016
Decree No. 99/2013/ND-CP dated 29 August 2013 of the Government on 29 August 2013
Sanctioning of Administrative Violations in Industrial Property
Decree No. 88/2010/ND-CP dated 16 August 2010 of the Government on 1 October 2010
detailing and guiding a number of articles of the Law on Intellectual
Property and the Law Amending and Supplementing a Number of Articles
of the Law on Intellectual Property regarding rights to plant varieties
Circular No. 16/2013/TT-BNNPTNT dated 28 February 2013 of the MARD 13 April 2013
on the protection of plant variety rights
__________

WTO TPR Vietnam 2021 by Secretariat

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Trade Policy Review Body

TRADE POLICY REVIEW

REPORT BY THE SECRETARIAT

Document WT/TPR/G/410 contains the policy statement submitted by Viet Nam.

3.3.6.3 Domestic preference and other preference policies .................................................. 100

4.4 Services .................................................................................................................. 135

Table 1.1 GDP, 2013-19 .....................................................................................................13

Table 1.4 Trade in services, 2013-19 ....................................................................................28

Table A2.1 Selected notifications, 2013-20 .......................................................................... 161

1.1 Main Features of the Economy

Table 1.1 GDP, 2013-19

2013 2014 2015 2016 2017 2018 2019

Note: Productivity is measured as GDP per worker.

1.2 Recent Economic Developments

Private final consumption expenditure Gross capital formation

Government final consumption expenditure Net exports of goods & services

Source: Information provided by the authorities.

Table 1.2 Selected macroeconomic indicators, 2013-19

2013 2014 2015 2016 2017 2018 2019

1.2.2 Fiscal policy

Chart 1.3 Tax revenue by source, 2013-19

1,200 Natural resource tax

Environmental protection tax

Import tariff and export duties

Corporate income tax

Source: Information provided by the authorities.

at the border on imported goods.

1.2.3 Monetary policy

1.2.4 Exchange rates and balance of payments

Table 1.3 Balance of payments, 2013-19

1.2.5 Impact of the COVID-19 pandemic

Other measures to promote growth include:

Source: IMF, Policy Responses to COVID-19. Viewed at: https://www.imf.org/en/Topics/imf-and-

1.3 Developments in Trade and Investment

1.3.1 Trends and patterns in merchandise and services trade

1.3.1.1 Merchandise trade

Misc. manufactured Misc. manufactured

Base metals Mineral products

Total: USD 114.5 billion Total: USD 264.6 billion

Machinery & Transport equipment

Vegetable products, Vegetable prod.,

Total: USD 113.8 billion Total: USD 253.4 billion

Source: WTO Secretariat calculations, based on UN Comtrade database.

Chart 1.5 Population

Total: USD 114.5 billion Total: USD 264.6 billion

Other Asia Other Asia

Total: USD 113.8 billion Total: USD 253.4 billion

Source: WTO Secretariat calculations, based on UN Comtrade database.

1.3.1.2 Participation in global value chains

Intermediate goods Intermediate goods

Total: USD 264.6 billion Total: USD 253.4 billion

Source: WTO Secretariat calculations, based on UN Comtrade database.

Consumer goods Intermediate goods

Source: WTO Secretariat calculations, based on UN Comtrade database.

Source: WTO Secretariat calculations, based on UN Comtrade database.

Source: WTO Secretariat calculations, based on UN Comtrade database.

1.3.1.3 Impact of COVID-19 pandemic on global value chains

Source: WTO Secretariat calculations, based on UNSD Comtrade database.

1.3.1.4 Trade in services

Table 1.4 Trade in services, 2013-19

Source: WTO Secretariat calculations, based on data provided by the authorities.

1.3.2 Trends and patterns in FDI