treaties and agreement between philippines and vietnam

7/29/2019 TREATIES AND AGREEMENT BETWEEN PHILIPPINES AND VIETNAM

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TREATIES AND AGREEMENT BETWEENPHILIPPINES AND VIETNAM

AGREEMENT BETWEEN THE GOVERNMENTOF THE REPUBLIC OF THEPHILIPPINES AND THE GOVERNMENT OF

THE SOCIALIST REPUBLIC OFVIETNAM FOR THE AVOIDANCE OFDOUBLE TAXATIONAND THE PREVENTIONOF FISCAL EVASION WITH RESPECT TOTAXES ON INCOME

The Government of the Republic of thePhilippines and the Government of the SocialistRepublic of Vietnam,

Desiring to conclude an Agreement for theavoidance of double taxation and theprevention of fiscal evasion with respect totaxes on income,

Have agreed as follows:

ARTICLE 1PERSONAL SCOPE

This Agreement shall apply to persons who areresidents of one or both of the ContractingStates.

ARTICLE 2TAXES COVERED

1. This Agreement shall apply to taxes onincome imposed on behalf of a ContractingState, its political subdivision or of its localauthorities, irrespective of the manner in whichthey are levied.

2. There shall be regarded as taxes on incomeall taxes imposed on total income, or onelements of income, including taxes on gainsfrom the alienation of movable or immovableproperty, taxes on the total amounts of wagesor salaries paid by enterprises.

3. The existing taxes to which the Agreementshall apply are:

a) in the Philippines:

the income tax imposed under Title II andSection 127(A) of the National InternalRevenue Code of 1997 of the Republic of the

Philippines,

(hereinafter referred to as "Philippine tax");

b) in Vietnam:

(i) the personal income tax;

(ii) the business income tax; and

(iii) the income remittance tax;

(hereinafter referred to as "Vietnamese tax"),

4. The Agreement shall also apply to anyidentical or substantially similar taxes whichare imposed after the date of signature of thisAgreement in addition to, or in place of, theexisting taxes. The competent authorities ofthe Contracting States shall notify each otherof important and substantial changes which

have been made in their respective taxationlaws.

ARTICLE 3GENERAL DEFINITIONS

1. For the purposes of this Agreement, unlessthe context otherwise requires:

a) the term "Philippines" means the Republic ofthe Philippines;

b) the term "Vietnam" means the SocialistRepublic of Vietnam;

c) the terms "a Contracting State" and "theother Contracting State" mean the Philippines

or Vietnam as the context requires;

d) the term "person" includes an individual, anestate, a trust, a company and any other bodyof persons;

e) the term "company" means any bodycorporate or any entity which is treated as abody corporate for tax purposes;

f) the terms "enterprise of a Contracting State"and "enterprise of the other Contracting State"mean respectively an enterprise carried on bya resident of a Contracting State and anenterprise carried on by a resident of the otherContracting State;

g) the term "nationals" means:

(i) all individuals possessing the nationality of aContracting State;

(ii) all legal persons, partnerships andassociations deriving their status as such fromthe laws in force in a Contracting State;

h) the term "international traffic" means anytransport by a ship or aircraft operated by anenterprise of a Contracting State, except whenthe ship or aircraft is operated solely betweenplaces in the other Contracting State; and

i) the term "competent authority" means:(i) in the case of the Philippines, the Secretaryof Finance or his authorized representative;and

(ii) in the case of Vietnam, the Minister ofFinance or his authorized representative.

2. As regards the application of the Agreementby a Contracting State any term not definedtherein shall, unless the context otherwise


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requires or the competent authorities agree toa common definition pursuant to the provisionsof Article 25 (Mutual Agreement Procedure),have the meaning which it has under the law ofthat State concerning me taxes to which theAgreement applies.

ARTICLE 4RESIDENT

1. For the purposes of this Agreement, theterm "resident of a Contracting State" meansany person who, under the laws of that State,is liable to tax therein by reason of hisdomicile, residence, place of management,place of registration or any other criterion of asimilar nature. But this term does not includeany person who is liable to tax in that State inrespect only of income from sources in thatState.

2. Where by reason of the provisions ofparagraph 1 an individual is a resident of both

Contracting States, then his status shall bedetermined as follows:

a) he shall be deemed to be a resident of theState in which he has a permanent homeavailable to him; if he has a permanent homeavailable to him in both States, he shall bedeemed to be a resident of the State withwhich his personal and economic relations arecloser (centre of vital interests);

b) if the State in which he has his centre ofvital interests cannot be determined, or if hedoes not have a permanent home available tohim in either State, he shall be deemed to be a

resident of the State in which he has anhabitual abode;

c) if he has an habitual abode in both States orin neither of them, he shall be deemed to be aresident of the State of which he is a national;

d) if he is a national of both States or of neitherof them, the competent authorities of theContracting States shall settle the question bymutual agreement.

3. Where by reason of the provisions ofparagraph 1 a person other than an individualis a resident of both Contracting States, then itshall be deemed to be a resident of the State in

which its place of incorporation is situated.ARTICLE 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, theterm "permanent establishment" means a fixedplace of business through which the businessof the enterprise is wholly or partly carried on.

2. The term "permanent establishment"includes especially:

a) a place of management;

b) a branch;

c) an office;

d) a factory;

e) a workshop;

f) a mine, an oil or gas well, a quarry or anyother place of extraction or exploration ofnatural resources including any installationstructure used or operation of heavyequipment of a permanent nature inconnection therein;

g) a commercial warehouse;

h) a building site, construction, assembly orinstallation project or supervisory activities inconnection therewith, but only where such site,project or activities continue for a period ofmore than three months;

i) the furnishing of services, includingconsultancy services, by an enterprise throughemployees or other personnel engaged by theenterprise for such purpose, but only whereactivities of that nature continue (for the sameor a connected project) within the country for aperiod or periods aggregating more than sixmonths within any 12-month period.

3. Notwithstanding the preceding provisions ofthis Article, the term "permanentestablishment" shall be deemed not to include:

a) the use of facilities solely for the purpose ofstorage or display of goods or merchandisebelonging to the enterprise;

b) the maintenance of a stock of goods ormerchandise belonging to the enterprise solelyfor the purpose of storage or display;

c) the maintenance of a stock of goods ormerchandise belonging to the enterprise solelyfor the purpose of processing by anotherenterprise;

d) the maintenance of a fixed place of businesssolely for the purpose of purchasing goods ormerchandise or of collecting information forthe enterprise;

e) the maintenance of a fixed place of business

solely for the purpose of advertising, for thesupply of information or for scientific researchor for similar activities which have apreparatory or auxiliary character, for theenterprise, except where these activities areundertaken as a part of the business of theenterprise.

4. Notwithstanding the provisions ofparagraphs 1 and 2, where a person - otherthan an agent of an independent status to


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whom paragraph 6 applies - is acting in aContracting State on behalf of an enterprise ofthe other Contracting State, that enterpriseshall be deemed to have a permanentestablishment in the first-mentionedContracting State in respect of any activitywhich that person undertakes for the

enterprise, if such a person:a) has and habitually exercises in that State anauthority to conclude contracts in the name ofthe enterprise, unless the activities of suchperson are limited to those mentioned inparagraph 3 which, if exercised through a fixedplace of business, would not make this fixedplace of business a permanent establishmentunder the provisions of that paragraph; or

b) has no such authority, but habituallymaintains in the first-mentioned State a stockof goods or merchandise from which heregularly delivers goods or merchandise onbehalf of the enterprise.

5. Notwithstanding the preceding provisions ofthis Article, an insurance enterprise of aContracting State shall, except in regard to re-insurance, be deemed to have a permanentestablishment in the other Contracting State ifit collects premiums in the territory of thatother State or insures risks situated thereinthrough a person other than an agent of anindependent status to whom paragraph 6applies.

6. An enterprise shall not be deemed to have apermanent establishment in a ContractingState merely because it carries on business in

that State through a broker, generalcommission agent or any other agent ofindependent status, provided that: suchpersons are acting in the ordinary course oftheir business. However, when the activities ofsuch an agent are devoted wholly or almostwholly on behalf of that enterprise, he will notbe considered an agent of an independentstatus within the meaning of this paragraph.

7. The fact that a company which is a residentof a Contracting State controls or is controlledby a company which is a resident of the otherContracting State, or which carries on businessin that other State (whether through a

permanent establishment or otherwise), shallnot of itself constitute either company apermanent establishment of the other.

ARTICLE 6INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of aContracting State from immovable property(including income from agriculture or forestry)

situated in the other Contracting State may betaxed in that other State.

2. The term "immovable property" shall havethe meaning which it has under the law of theContracting State in which the property inquestion is situated. The term shall in any caseinclude property accessory to immovableproperty, livestock and equipment used inagriculture and forestry, rights to which theprovisions of general law respecting landedproperty apply, usufruct of immovable propertyand rights to variable or fixed payments asconsideration for the working of, or the right towork, mineral deposits, sources and othernatural resources; ships, boats and aircraftshall not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply toincome derived from the direct use, letting, oruse in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall

also apply to the income from immovableproperty of an enterprise and to income fromimmovable property used for the performanceof independent personal services.

ARTICLE 7BUSINESS PROFITS

1. The profits of an enterprise of a ContractingState shall be taxable only in that State unlessthe enterprise carries on business in the otherContracting State through a permanentestablishment situated therein. If theenterprise carries on business as aforesaid, dieprofits of die enterprise may be taxed in the

other State but only so much of them as isattributable to:

a) that permanent establishment;

b) sales in that other State of goods ormerchandise of the same or similar kind asthose sold through that permanentestablishment; or

c) other business activities carried on in thatother State of the same or similar kind as thoseeffected through that permanentestablishment.


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2. Subject to the provisions of paragraph 3,where an enterprise of a Contracting Statecarries on business in the other ContractingState through a permanent establishmentsituated therein, there shall in eachContracting State be attributed to thatpermanent establishment the profits which it

might be expected to make if it were a distinctand separate enterprise engaged in the sameor similar activities under the same or similarconditions and dealing wholly independentlywith the enterprise of which it is a permanentestablishment.

3. In determining the profits of a permanentestablishment, there shall be allowed asdeductions expenses which are incurred for thepurposes of the business of the permanentestablishment, including executive and generaladministrative expenses so incurred, whetherin the State in which the permanentestablishment is situated or elsewhere.

However, no such deduction shall be allowed inrespect of amounts, if any, paid (otherwisethan towards reimbursement of actualexpenses) by the permanent establishment tothe head office of the enterprise or any of itsother offices, by way of royalties, fees or othersimilar payments in return for the use ofpatents or other rights, or by way ofcommission, for specific services performed orfor management, or, except in the case of abanking enterprise, by way of interest onmoneys lent to the permanent establishment.Likewise, no account shall be taken, in thedetermination of the profits of a permanentestablishment, for amounts charged (otherwise

than towards reimbursement of actualexpenses), by the permanent establishment tothe head office of the enterprise or any of itsother offices, by way of royalties, fees or othersimilar payments in return for the use ofpatents or other rights, or by way ofcommission for specific services performed orfor management, or, except in the case ofbanking enterprise by way of interest onmoneys lent to the head office of theenterprise or any of its other offices.

4. Nothing in this Article shall affect theapplication of any law of a Contracting Staterelating to the determination of the tax liability

of a person in cases where the informationavailable to the competent authority of thatState is inadequate to determine the profits tobe attributed to a permanent establishment,provided that law shall be applied, so far as theinformation available to the competentauthority permits, consistently with theprinciples of this Article.

5. Insofar as it has been customary in aContracting State to determine the profits to be

attributed to a permanent establishment onthe basis of an apportionment of the totalprofits of the enterprise to its various parts,nothing in paragraph 2 shall preclude suchContracting State from determining the profitsto be taxed by such an apportionment as maybe customary; the method of apportionment

adopted shall, however, be such that the resultshall be in accordance with the principlescontained in this Article.

6. No profits shall be attributed to a permanentestablishment by reason of the mere purchaseby that permanent establishment of goods ormerchandise for the enterprise.

7. For the purposes of the precedingparagraphs, the profits to be attributed to thepermanent establishment shall be determinedby the same method year by year unless thereis good and sufficient reason to the contrary.

8. Where profits include items of income which

are dealt with separately in other Articles ofthis Agreement, then the provisions of thoseArticles shall not be affected by the provisionsof this Article.

ARTICLE 8SHIPPING AND AIR TRANSPORT

1. Profits derived by an enterprise of aContracting State from the operation of ships,boats or aircraft in international traffic shall betaxable in that Contracting State.

2. Notwithstanding the provisions of paragraph1, profits from sources within a ContractingState derived by an enterprise of the other

Contracting State from the operation of shipsor aircraft in international traffic may be taxedin the first-mentioned State but the tax socharged shall not exceed whichever is lesser ofeither:

a) 1 per cent of the gross revenues derivedfrom sources in that State; or

b) the lowest rate of Philippine tax that may beimposed on profits of the same kind derivedunder similar circumstances by a resident of athird State.

3. The provisions of paragraph 1 shall alsoapply to profits from the participation in a pool,

a joint business or an international operatingagency.

ARTICLE 9RELATED ENTERPRISES

Where


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a) an enterprise of a Contracting Stateparticipates directly or indirectly in themanagement, control or capital of anenterprise of the other Contracting State, or

b) the same persons participate directly orindirectly in the management, control orcapital of an enterprise of a Contracting Stateand an enterprise of the other ContractingState,

and in either case conditions are made orimposed between the two enterprises in theircommercial or financial relations which differfrom those which would be made betweenindependent enterprises, then any profitswhich would, but for those conditions, haveaccrued to one of the enterprises, but, by thereason of those conditions, have not soaccrued, may be included in the profits of thatenterprise and taxed accordingly.

ARTICLE 10

DIVIDENDS

1. Dividends paid by a company which is aresident of a Contracting State to a resident ofthe other Contracting State may be taxed inthat other State.

2. However such dividends may also be taxedin the Contracting State of which the companypaying the dividends is a resident andaccording to the laws of that State, but if therecipient is the beneficial owner of thedividends the tax so charged shall not exceed:

a) 10 per cent of the gross amount of thedividends if the beneficial owner is a company

(excluding partnerships) which holds directly atleast 25 per cent of the capital of the payingcompany;

b) 15 per cent of the gross amount of thedividends in all other cases.

The competent authorities of the ContractingStates shall by mutual agreement settle themode of application of this limitation.

This paragraph shall not affect the taxation ofthe company in respect of the profits out ofwhich the dividends are paid.

3. The term "dividends" as used in this Article

means income from shares or other rights notbeing debt-claims, participating in profits, aswell as income from other corporate rightswhich is subjected to the same taxationtreatment as income from shares by the lawsof the State of which the company making thedistribution is a resident.

4. The provisions of paragraphs 1 and 2 shallnot apply if the beneficial owner of thedividends, being a resident of a Contracting

State, carries on business in the otherContracting State of which the company payingthe dividends is a resident through apermanent establishment situated therein, orperforms in that other State independentpersonal services from a fixed base situatedtherein, and the holding in respect of which the

dividends are paid is effectively connected withsuch permanent establishment or fixed base. Insuch case the provisions of Article 7 or Article14, as the case may be, shall apply.

5. Where a company which is a resident of aContracting State derives profits or incomefrom the other Contracting State, that otherState may not impose any tax on the dividendspaid by the company, except insofar as suchdividends are paid to a resident of that otherContracting State or insofar as the holding inrespect of which the dividends are paid iseffectively connected with a permanentestablishment or a fixed base situated in that

other State, nor subject the company'sundistributed profits to a tax on the company'sundistributed profits, even if the dividends paidor the undistributed profits consist wholly orpartly of profits or income arising in such otherState.

6. Nothing In this Article shall prevent eitherContracting State from imposing, apart fromthe corporate income tax, a tax on remittanceof profits by a branch to its head officeprovided that the tax so imposed shall notexceed 10 per cent of the amount remitted.

ARTICLE 11INTEREST

1. Interest arising in a Contracting State andpaid to a resident of the other ContractingState may be taxed in that other State.

2. However, such interest may also be taxed inthe Contracting State in which it arises, andaccording to the laws of that State, but if therecipient is the beneficial owner of the interestthe tax so charged shall not exceed 15 percent of the gross amount of the interest. Thecompetent authorities of the ContractingStates shall by mutual agreement settle themode of application of this limitation.

3. Notwithstanding the provisions of paragraph2, interest paid by a Contracting State to thegovernment of the other State or politicalsubdivision or local authority thereof shall betaxable only in that other State.

4. The term "interest" as used in this Articlemeans income from debt-claims of every kind,whether or not secured by mortgage, andwhether or not carrying a right to participate inthe debtor's profits, and in particular, income


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from government securities and income frombonds or debentures, including premiums andprizes attaching to such securities, bonds ordebentures as well as income assimilated toincome from money lent by the taxation lawsof the State in which the income arises. Penaltycharges for late payment shall not be regarded

as interest for the purpose of this Article.5. The provisions of paragraphs 1, 2 and 3 shallnot apply if the beneficial owner of the interest,being a resident of a Contracting State, carrieson business in the other Contracting State inwhich the interest arises, through a permanentestablishment situated therein, or performs inthat other State independent personal servicesfrom a fixed base situated therein and thedebt-claim in respect of which the interest ispaid is effectively connected with (a) suchpermanent establishment or fixed base, or with(b) business activities referred to under (c) ofparagraph 1 of Article 7. In such case the

provisions of Article 7 or Article 14, as the casemay be, shall apply.

6. Interest shall be deemed to arise in aContracting State when the payer is that Stateitself, a political subdivision, a local authority ora resident of that State. Where, however, theperson paying the interest, whether he is aresident of a Contracting State or not, has in aContracting State a permanent establishmentor a fixed base in connection with which theindebtedness on which the interest is paid wasincurred, and such interest is borne by suchpermanent establishment or fixed base, thensuch interest shall be deemed to arise in the

State in which the permanent establishment orfixed base is situated.

7. Where, by reason of a special relationshipbetween the payer and the beneficial owner orbetween both of them and some other person,the amount of the interest, having regard tothe debt-claim for which it is paid, exceeds theamount which would have been agreed uponby the payer and the beneficial owner in theabsence of such relationship, the provisions ofthis Article shall apply only to the last-mentioned amount. In such case, the excesspart of the payments shall remain taxableaccording to the laws of each Contracting

State, due regard being had to the otherprovisions of this Agreement.

ARTICLE 12ROYALTIES

1. Royalties arising in a Contracting State andpaid to a resident of the other ContractingState may be taxed in that other ContractingState.

2. However, such royalties may also be taxedin the Contracting State in which they arise,and according to the laws of that State, but ifthe recipient is the beneficial owner of theroyalties, the tax so charged shall not exceed15 per cent of the gross amount of suchroyalties. The competent authorities of the

Contracting States shall by mutual agreementsettle the mode of application of this limitation.

3. The term "royalties" as used in this Articlemeans payments of any kind received as aconsideration for the use of, or the right to use,any copyright of literary, artistic or scientificwork including cinematograph films, or films ortapes used for radio or television broadcasting,any patent, trade mark, design or model, plan,secret formula or process, or for the use of, orthe right to use, industrial, commercial orscientific equipment or for informationconcerning industrial, commercial or scientificexperience.

4. The provisions of paragraphs 1 and 2 shallnot apply if the beneficial owner of theroyalties, being a resident of a ContractingState, carries on business in the otherContracting State in which the royalties arise,through a permanent establishment situatedtherein, or performs in that other Stateindependent personal services from a fixedbase situated therein, and the right or propertyin respect of which the royalties are paid iseffectively connected with (a) such permanentestablishment or fixed base or with (b)business activities referred to under (c) ofparagraph 1 of Article 7. In such case the

provisions of Article 7 or Article 14, as the casemay be, shall apply.

5. Royalties shall be deemed to arise in aContracting State when the payer is that Stateitself, a political subdivision, or a local authorityor a resident of that State. Where, however,the person paying the royalties, whether he isa resident of a Contracting State or not, has ina Contracting State a permanent establishmentor fixed base in connection with which theliability to pay the royalties was incurred, andsuch royalties are borne by such permanentestablishment or fixed base, then suchroyalties shall be deemed to arise in the State

in which the permanent establishment or fixedbase is situated.

6. Where, by reason of a special relationshipbetween the payer and the beneficial owner orbetween both of them and some other person,the amount of the royalties, having regard tothe use, right or information for which they arepaid, exceeds the amount which would havebeen agreed upon by the payer and thebeneficial owner in the absence of such


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relationship, the provisions of this Article shallapply only to the last-mentioned amount. Insuch case, the excess part of the paymentsshall remain taxable according to the laws ofeach Contracting State, due regard being hadto the other provisions of this Agreement.

ARTICLE 13GAINS FROM THE ALIENATION OF

PROPERTY

1. Gains from the alienation of immovableproperty, as defined in Article 6, may be taxedin the Contracting State in which such propertyis situated.

2. Gains from the alienation of movableproperty forming part of the business propertyof a permanent establishment which anenterprise of a Contracting State has in theother Contracting State or of movable propertypertaining to a fixed base available to aresident of a Contracting State in the other

Contracting State for the purpose ofperforming independent personal services,including such gains from the alienation ofsuch a permanent establishment (alone or withthe whole enterprise) or of such fixed base,may be taxed in that other State.

3. Gains from the alienation of ships, boats oraircraft operated by an enterprise of aContracting State in international traffic ormovable property pertaining to the operationof such ships, boats or aircraft, shall be taxableonly in that Contracting State.

4. Gains from the alienation of shares of a

company, and interest in a partnership or trustmay be taxed in the Contracting State of whichsuch company, partnership or trust is aresident.

5. Gains from the alienation of any propertyother than that referred to in paragraphs 1, 2,3, and 4 shall be taxable only in theContracting State of which the alienator is aresident.

ARTICLE 14INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of aContracting State in respect of professional

services or other activities of an independentcharacter shall be taxable only in that Stateexcept in the following circumstances, whensuch income may also be taxed in the otherContracting State:

a) If he has a fixed base regularly available tohim in the other Contracting State for thepurpose of performing his activities; in thatcase, only so much of the income as is

attributable to that fixed base may be taxed inmat other Contracting State; or

b) If his stay in the other Contracting State isfor a period or periods amounting to orexceeding in the aggregate 183 days in thefiscal year concerned; in that case, only somuch of the income as is derived from hisactivities performed in that other State may betaxed in that State.

2. The term "professional services" includesespecially independent scientific, literary,artistic, educational or teaching activities aswell as the independent activities ofphysicians, lawyers, engineers, architects,dentists and accountants.

ARTICLE 15DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18,19, 20 and 21, salaries, wages and other

similar remuneration derived by a resident of aContracting State in respect of an employmentshall be taxable only in that State unless theemployment is exercised in the otherContracting State. If the employment is soexercised, such remuneration as is derivedtherefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph1, remuneration derived by a resident of aContracting State in respect of an employmentexercised in the other Contracting State shallbe taxable only in the first-mentioned State if:

a) the recipient is present in the other State fora period or periods not exceeding in the

aggregate 183 days in the fiscal yearconcerned, and

b) the remuneration is paid by, or on behalf of,an employer who is not a resident of the otherState, and

c) the remuneration is not borne by apermanent establishment or a fixed base whichthe employer has in the other State.

3. Notwithstanding the preceding provisions ofthis Article, remuneration derived in respect ofan employment exercised aboard a ship oraircraft operated in international traffic by anenterprise of a Contracting State shall be

taxable only in that State.

ARTICLE 16DIRECTORS' FEES

Directors' fees and other similar paymentsderived by a resident of a Contracting State inhis capacity as a member of the board ofdirectors of a company which is a resident ofthe other Contracting State may be taxed inthat other State.


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ARTICLE 17ENTERTAINERS AND ATHLETES

1. Notwithstanding the provisions of Articles 14and 15, income derived by a resident of aContracting State as an entertainer, such as atheater, motion picture, radio or televisionartiste, or a musician, or as an athlete, from hispersonal activities as such exercised in theother Contracting State, may be taxed in thatother State.

2. Where income in respect of personalactivities exercised by an entertainer or anathlete in his capacity as such accrues not tothe entertainer or athlete himself but toanother person, that income may,notwithstanding the provisions of Articles 7, 14and 15, be taxed in the Contracting State inwhich the activities of the entertainer orathlete are exercised.

3. Notwithstanding the provisions of

paragraphs 1 and 2 of this Article, incomederived in respect of the activities referred toin paragraph 1 of this Article within theframework of cultural or sports exchangeprogramme agreed to by both ContractingStates, substantially supported by public fundsand/or officially recognized and endorsed by aContracting State, shall be exempt fromtaxation in the Contracting State in which theseactivities are exercised.

ARTICLE 18PENSIONS AND SOCIAL SECURITY

PAYMENTS

1. Subject to the provisions of paragraph 2 ofArticle 19, pensions and other similarremuneration paid to a resident of aContracting State in consideration of pastemployment shall be taxable only in that State.

2. Notwithstanding the provisions of paragraph1, pensions and social security payments paidby an instrumentality of a Contracting Stateshall be taxable only in that State.

ARTICLE 19GOVERNMENT SERVICE

1. a) Remuneration, other than a pension, paidby a Contracting State or a political subdivision

or a local authority thereof to an individual inrespect of services rendered to that State orsubdivision or authority shall be taxable only inthat State.

b) However, such remuneration shall betaxable only in the other Contracting State ifthe services are rendered in that State and theindividual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that Statesolely for the purpose of rendering theservices.

2. a) Any pension paid by, or out of fundscreated by, a Contracting State or a politicalsubdivision or a local authority thereof to anindividual in respect of services rendered tothat State or subdivision or authority shall betaxable only in that State.

b) However, such pension shall be taxable onlyin the other Contracting State if the individualis a resident of, and a national of, that otherState.

3. The provisions of Articles 15, 16 and 18 shallapply to remuneration and pensions in respectof services rendered in connection with abusiness carried on by a Contracting State or apolitical subdivision or a local authority thereof.

ARTICLE 20

STUDENTS AND APPRENTICES1. Payments which a student or businessapprentice who is or was immediately beforevisiting a Contracting State a resident of theother Contracting State and who is present inthe first-mentioned State solely for the purposeof his education or training receives for thepurpose of his maintenance, education ortraining shall not be taxed in that State,provided that such payments arise fromsources outside that State.

2. Notwithstanding the provisions of Articles 15and 16, remuneration for services rendered bya student or a business apprentice in a

Contracting State for an aggregate period ofnot more than two years from the date of hisfirst arrival in that Contracting State, shall notbe taxed in that State, provided that suchservices are in connection with his studies ortraining.

ARTICLE 21TEACHERS, PROFESSORS AND

RESEARCHERS

1. An individual who is, or immediately beforevisiting a Contracting State was, a resident of aContracting State and is present in the first-

mentioned Contracting State for the primarypurpose of teaching, giving lectures orconducting research at a university, college,school or educational institution or scientificresearch institution accredited by theGovernment of the first-mentioned ContractingState shall be exempt from tax in the first-mentioned Contracting State, for a period oftwo years from the date of his first arrival inthe first-mentioned Contracting State, in


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respect of remuneration for such teaching,lectures or research.

2. This Article shall only apply to income fromresearch if such research is undertaken by anindividual for the public interest and notprimarily for the benefit of some other privateperson or persons.

3. For the purposes of paragraph 1 of thisArticle, the term "remuneration" shall includeremittance from sources outside the otherState sent to enable the teacher, professor orresearcher to carry out me purposes referredto in paragraph 1.

ARTICLE 22OTHER INCOME

1. Items of income of a resident of aContracting State, wherever arising, not dealtwith in the foregoing Articles of this Agreementshall be taxable only in that State.

2. The provisions of paragraph 1 shall not applyto the income, other than income fromimmovable property as defined in paragraph 2of Article 6, if the recipient of such income,being a resident of a Contracting State, carrieson business in the other Contracting Statethrough a permanent establishment situatedtherein, or performs in that other Stateindependent personal services from a fixedbase situated therein, and the right or propertyin respect of which the income is paid iseffectively connected with such permanentestablishment or fixed base. In such case theprovisions of Article 7 or Article 14, as the case

may be, shall apply.

3. Notwithstanding the provisions ofparagraphs 1 and 2, items of income of aresident of a Contracting State not dealt with inthe foregoing Articles of this Agreement andarising in the other Contracting State may alsobe taxed in that other State.

ARTICLE 23METHODS FOR ELIMINATION OF DOUBLE

TAXATION

1. In the Philippines in accordance with theprovisions and subject to the limitations of the

laws of the Philippines, as may be amendedfrom time to time without changing the generalprinciples hereof, double taxation shall beavoided in the following manner:

2. In accordance with the principles of thisAgreement, taxes paid or accrued under thelaws of the Socialist Republic of Vietnam,whether directly or by deduction, in respect ofincome from sources within Vietnam shall be

allowed as a credit against Philippine taxsubject to the following limitations:

a) the amount of credit in respect to the taxpaid or accrued to Vietnam shall not exceedthe same proportion of taxes covered by theAgreement against which such credit is taken,which the taxpayer's taxable income fromsources within Vietnam bears to his entiretaxable income for the same taxable year; and

b) the total amount of the credit shall notexceed the same proportion of the taxescovered by the Agreement against which suchcredit is taken, which the taxpayer's taxableincome from sources without the Philippinesbears to his entire taxable income for the sametaxable year.

In the case of a Philippine corporation owningdirectly or indirectly more than 50 per cent ofthe voting stock of a Vietnamese companyfrom which it receives dividends in any taxable

year, the Philippines shall also allow credit forthe appropriate amount of taxes paid oraccrued to Vietnam by a Vietnamese companypaying such dividends with respect to suchprofits out of which such dividends are paid.The deduction shall not, however, exceed thatpart of the Philippine income tax, as computedbefore the deduction is given, which isappropriate to the income which may be taxedin Vietnam.

3. In Vietnam, double taxation shall beeliminated as follows:

Where a resident of Vietnam derived income,

profits or gains which under the law of thePhilippines and in accordance with thisAgreement may be taxed in me Philippines,Vietnam shall allow as a credit against its taxon the income, profits or gains an amountequal to the tax paid in the Philippines. Theamount of credit, however shall not exceed theamount of the Vietnamese tax on that income,profits or gains computed in accordance withthe taxation laws and regulations of Vietnam.

4. For purposes of the preceding paragraphs,taxes paid in the other Contracting State shallbe deemed to include the amount of tax paid inthat other State which would have been paid if

such tax had not been exempted or reduced inaccordance with this Agreement and/or thespecial incentive laws designed to promoteeconomic development therein, effective onthe date of signature of this Agreement, orwhich may be introduced in the future in itstaxation laws in modification of, or in additionto, the existing laws.

ARTICLE 24NON-DISCRIMINATION


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1. Nationals of a Contracting State shall not besubjected in the other Contracting State to any taxationor any requirement connected therewith whichis other or more burdensome than the taxationand connected requirements to which nationalsof that other State in the same circumstances

are or may be subjected.2. The taxation on a permanent establishmentwhich an enterprise of a Contracting State hasin the other Contracting State shall not be lessfavourably levied in that other State than thetaxation levied on enterprises of that otherState carrying on the same activities. Thisprovision shall not be construed as obliging aContracting State to grant to residents of theother Contracting State any personalallowances, reliefs and reductions for taxationpurposes on account of civil status or familyresponsibilities which it grants to its ownresidents.

3. Enterprises of a Contracting State, thecapital of which is wholly or partly owned orcontrolled, directly or indirectly by one or moreresidents of the other Contracting State, shallnot be subjected in the first-mentioned State toany taxation or any requirement connectedtherewith which is other or more burdensomethan the taxation and connected requirementsto which other similar enterprises of the first-mentioned State are or may be subjected.

4. Except where the provisions of Article 9,paragraph 7 of Article 11, paragraph 6 ofArticle 12 apply, interest, royalties, and otherdisbursements paid by an enterprise of aContracting State to a resident of the otherContracting State, shall, for the purpose ofdetermining the taxable profits of suchenterprise, be deductible under the sameconditions as if they had been paid to aresident of the first-mentioned State.

5. The provisions of paragraphs 2 and 3 of thisArticle shall not apply to the Vietnameseincome remittance tax which, in any case shallnot exceed ten per cent of the gross amount ofthe income remitted, and the Vietnamesetaxation in respect of agricultural productionactivities.

6. Notwithstanding the provisions of thisArticle, for so long as either Contracting Statecontinues to grant to investors licenses underthe Law on Foreign Investment in that State,which specify the taxation to which theinvestor shall be subjected, the imposition ofsuch taxation shall not be regarded asbreaching the terms of paragraphs 2 and 3,ofthis Article.

7. The provisions of this Article shall apply tothe taxes which are the subject of thisAgreement.

ARTICLE 25MUTUAL AGREEMENT PROCEDURE

1. Where a person who is a resident of a

Contracting State considers that the actions ofthe competent authority of one or both of theContracting States result or will result for himin taxation not in accordance with theprovisions of this Agreement, he may,irrespective of the remedies provided by thedomestic law of those States, present his caseto the competent authority of the ContractingState of which that person is a resident or if hiscase comes under paragraph 1 of Article 24 tothat Contracting State of which he is a national.The case must be presented within two yearsfrom the first notification of the action resultingin taxation not in accordance with theprovisions of the Agreement.

2. The competent authority shall endeavour, ifthe objection appears to it to be justified and ifit is not itself able to arrive at a satisfactorysolution, to resolve the case by mutualagreement with the competent authority of theother Contracting State, with a view to theavoidance of taxation which is not inaccordance with this Agreement. Anyagreement reached shall be implementednotwithstanding any time limits in the domesticlaw of the Contracting States.

3. A Contracting State shall not, after threeyears from the end of the taxable period in

which the income concerned has accrued,increase the tax base of a resident of either ofthe Contracting States by including thereinitems of income which have also been chargedto tax in the other Contracting State. Thisparagraph shall not apply in the case of fraud,willful default or neglect.

4. The competent authorities of the ContractingStates shall jointly endeavour to resolve anydifficulties or doubts arising as to theapplication of the Agreement. They may alsoconsult together for the elimination of doubletaxation in cases not provided for in theAgreement.

5. The competent authorities of the ContractingStates may communicate with each otherdirectly for the purpose of reaching anagreement in the sense of the precedingparagraphs. The competent authorities,through consultations, shall developappropriate bilateral procedures, conditions,methods and techniques for theimplementation of the mutual agreementprocedure provided for in this Article.


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ARTICLE 26EXCHANGE OF INFORMATION

1. The competent authorities of the ContractingStates shall exchange such information as isnecessary for carrying out the provisions of thisAgreement or of the domestic laws of theContracting States concerning taxes coveredby the Agreement insofar as the taxationthereunder is not contrary to the Agreement, inparticular for the prevention of fraud or evasionof such taxes. Any information received by aContracting State shall be treated as secret inthe same manner as information obtainedunder the domestic laws of that State and shallbe disclosed only to persons or authorities(including courts and administrative bodies)involved in the assessment or collection of, theenforcement or prosecution in respect of, orthe determination of appeals in relation to, thetaxes covered by the Agreement. Such persons

or authorities shall use the information only forsuch purposes. They may disclose theinformation in public court proceedings or injudicial decisions. The competent authoritiesshall, through consultation, developappropriate conditions, methods andtechniques concerning the matters in respectof which such exchanges of information shallbe made, including, where appropriate,exchanges of information regarding taxavoidance.

2. In no case shall the provisions of paragraph1 be construed so as to impose on aContracting State the obligation:

a) to carry out administrative measures atvariance with the laws and administrativepractice of that or of the other ContractingState;

b) to supply information which is not obtainableunder the laws or in the normal course of theadministration of that or of the otherContracting State;

c) to supply information which would discloseany trade, business, industrial, commercial orprofessional secret or trade process, orinformation, the disclosure of which would becontrary to public policy.

ARTICLE 27DIPLOMATIC AGENTS AND CONSULAR

OFFICERS

Nothing in this Agreement shall affect the fiscalprivileges of diplomatic agents or consularofficers under the general rules of internationallaw or under the provisions of specialassignments.

ARTICLE 28MISCELLANEOUS RULES

1. Nothing in this Agreement shall beconstrued as preventing a Contracting Statefrom taxing its nationals who may be residingin the other Contracting State, in accordancewith its domestic laws. However, the otherContracting State shall not be bound to givecredit for the tax paid in the first-mentionedState in pursuance thereto.

2. The competent authorities of the ContractingStates, upon their mutual agreement underArticle 25, may deny the benefits of thisAgreement to any person, or with respect toany transaction, if in their opinion the grantingof those benefits, under the circumstances,would constitute an abuse of the Agreementaccording to its purpose.

ARTICLE 29

ENTRY INTO FORCE

1. Each of the Contracting States shall notify tothe other in writing through the diplomaticchannel the completion of the proceduresrequired by its legislation for the entry intoforce of this Agreement. This Agreement shallenter into force on the date of the later ofthese notifications.

2. The Agreement shall have effect in respectof taxes covered by this Agreement, includingtaxes withheld at source on income paid tonon-resident, for any taxable period beginningon or after the first day of January next

following that year in which the Agreemententers into force.

ARTICLE 30TERMINATION

This Agreement shall remain in force untilterminated by one of the Contracting States.Either Contracting State may, on or before June30 in any calendar year after the fifth yearfollowing the entry into force of thisAgreement, terminate the Agreement by givingnotice of termination to the other ContractingState and in such event the Agreement shallcease to have effect in respect of taxescovered by this Agreement, including taxes

withheld at source on income paid to non-residents, for taxable periods after the first ofJanuary following mat in which the notice oftermination is given.

IN WITNESS WHEREOF the undersigned, beingduly authorized thereto by their respectiveGovernments, have signed this Agreement.

DONE in duplicate at Manila, Philippines this14th day of November of the year 2001 in the


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English and Vietnamese languages, both textsbeing equally authentic.

FOR THE GOVERNMENTOF

FOR THEGOVERNMENT OF

THE REPUBLIC OFTHE SOCIALIST

REPUBLIC OFTHE PHILIPPINES VIETNAM

(Sgd.)JOSE ISIDRO N.CAMACHO

(Sgd.) LE THI BANGTAM

Secretary of FinanceVice-Minister of

Finance


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MEMORANDUM OF UNDERSTANDING ONCOOPERATION IN AGRICULTURE AND

RELATED FIELDS BETWEEN THE REPUBLICOF THE PHILIPPINES AND THE SOCIALIST

REPUBLIC OF VIETNAM

THE REPUBLIC OF THE PHILIPPINES,REPRESENTED HEREIN BY THEHONORABLE EDGARDO J. ANGARA,SECRETARY OF THE DEPARTMENT OFAGRICULTURE, HEREAFTER REFERRED TOAS THE "PHILIPPINES";

ANDTHE SOCIALIST REPUBLIC OF VIETNAM,REPRESENTED HEREIN BY THEHONORABLE LE HUY NGO, MINISTER OFAGRICULTURE AND RURAL DEVELOPMENT,HEREAFTER REFERRED TO AS "VIETNAM".WHEREAS, the Philippines and Vietnam (the"Contracting Parties1') desire to furtherenhance the existing friendly relations betweenthem through the continuation anddevelopment of cooperation in agriculture,agribusiness and related fields as agreed in thesigned Memorandum of Understanding by theSecretary of the Philippines Department ofAgriculture and the Vietnamese Minister ofAgriculture and Food Industry on 31 March1992 in Hanoi;WHEREAS, the Contracting Parties desire tofurther promote agricultural trade andagribusiness investments;WHEREAS, the Contracting Parties recognizethe need to create favorable conditions for

enhanced business cooperation between them;NOW, HERETOFORE, THE PARTIES HEREBYAGREE AS FOLLOWS:

ARTICLE IGeneral Provision

The Contracting Parties shall pursuecooperative programs and exchanges in thefield of agriculture and related fields, and in thepromotion of agricultural trade andagribusiness investments in both countries, inaccordance with the relevant laws andregulations of their respective countries.

ARTICLE IIAreas of Cooperation

1. vestment ventures, inter alia, and shallinclude the following:

1.1 Exchange of professionals, scientists,experts and technicians for study, forobservation missions, and training;

1.2 Exchange of scientific, technical andmarket information on agriculture and relatedfields and its products, in the English language;

1.3 Collaborative studies on mutually agreedspecific areas of cooperation;

1.4 Exchange of experiences on national foodsecurity policies;

1.5 Organization of workshops, symposia,

training courses and exhibitions on subjects ofmutual interests;

1.6 Conduct of market facilitation activitiesincluding agricultural products trade fairs andspecial exhibitions;

1.7 Implementation of joint venture projects inagribusiness; and

1.8 Exchange of genetic resources of plants,animals and micro-germplasms, in accordancewith the national policies of both ContractingParties.

2. The Contracting Parties shall encourage theinvolvement of concerned agencies, theacademe, scientific and business communities,both in the public and private sectors of bothcountries to generate broad interest andincreased activities.

3. To promote agricultural trade, theContracting Parties shall endeavor to createfavorable conditions for import and export ofimportant products, especially rice andfertilizers, including counter-tradearrangements, without prejudice to theirrespective commitments under existingbilateral and multilateral arrangements.

4. The Contracting Parties shall endeavor toadvocate a favorable agribusiness conditionand goodwill to their respective businesspeoples, in order to encourage and facilitatedirect contacts between their respectiveprivate sectors and/or business communities.

ARTICLE IIIImplementing Arrangement

The Contracting Parties agree to implementthis Memorandum in accordance with theframework of the World Trade Organization(WTO). Any discrepancy in the quality ofproducts traded or to be traded shall be settledin accordance with applicable standards,including sanitary and phytosanitary standards(SPS), and dispute settlement procedures incompliance with international conventions andpractices.

ARTICLE IVExpenses and Other Forms of Assistance

1. Exchange of visit delegation: Thesending country shall be, in principle,


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responsible for all costs related to the wholevisit program unless the receiving countryoffers to provide some logistics like localtransport, food, accommodation, and guideservices to the members of the visitingdelegation for the duration of the officialmission.

2. Exchange of materials anddocuments: The requesting Party shallshoulder the costs of postage and freight ofmaterials/documents being requested unlessthe sending country agrees to cover suchcosts.

3. The Contracting Parties shall each endeavorto provide the necessary assistance toprofessionals, scientists, experts, technicians,trainees and businessmen sent by the otherContracting Party under this Memorandum toaccomplish their mission. The laws andregulations in force in the host country shall bestrictly observed by visiting missions from the

sending party.4. The foregoing provision shall not limit theright of either of the Contracting Parties toadopt or execute measures necessary touphold public health, morals, public order orsecurity.

ARTICLE VJoint Committee

1. To ensure the implementation of thisMemorandum and to facilitate cooperation, theContracting Parties shall establish a JointCommittee composed of an equal number ofrepresentatives from both sides as may be

agreed upon through diplomatic channels. Thelead coordinating agencies shall be, as follows:

For the Republic of the Philippines: theDepartment of Agriculture; and

For the Socialist Republic of Vietnam: theMinistry of Agriculture and Rural andDevelopment; an

2. The Joint Committee shall formulate andsubmit policy recommendations with a view ofpromoting the development of agriculture andrelated fields of both countries. It shall also beresponsible for planning, implementing,

monitoring and evaluating projects identifiedunder this Memorandum;

3. As may be necessary, the Joint Committeemay create "Working Group(s)" for specificareas. For this purpose, the Joint Committeeshall determine the procedure and otherguidelines to be followed by the "WorkingGroup(s)" to ensure efficiency.

4. A liaison secretary from both sides shall bedesignated in order to coordinate with

concerned agencies and deal with daily androutine work of the Joint Committee and anyWorking Group thus established.

5. The Joint Committee shall meet every twoyears alternately in the Philippines andVietnam, with a representative from the hostcountry as chairman of the meeting. Whenevernecessary, an interim meeting may be heldsubject to agreement between the Parties,through diplomatic channels.

6. The agenda of the meeting will include thedrafting of the working plans and a review ofthe progress of the implementation of projectsundertaken under this Memorandum.

ARTICLE VIConfidentiality

The Parties shall ensure that the scientific andtechnical data and information mutuallyprovided, including the results of joint research

carried out under this Memorandum, are nottransferred or supplied to a third party withoutprior written consent. Matters pertaining tointellectual property rights that may arise froman activity undertaken under thisMemorandum shall be determined and agreedupon by the Contracting Parties prior to theactivity's implementation.

ARTICLE VIIDispute Settlement

Any dispute arising out of the interpretation,application or implementation of thisMemorandum shall be settled amicably byconsultation or negotiation, through diplomatic

channels, between the Contracting Parties.

ARTICLE VIIIEntry into Force

This Memorandum shall enter into force on thedate of the later written notification by theContracting Parties, through diplomaticchannels, indicating compliance with theirrespective internal requirements for its entryinto force.

ARTICLE IXAmendment

The Contracting Parties may request in writing,

through diplomatic channels, a revision oramendment of this Memorandum. Any revisionor amendment agreed upon by the ContractingParties shall become effective in accordancewith the foregoing Article.

ARTICLE XValidity/Termination

This Memorandum shall be valid for a period offive (5) years and shall be automatically be


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renewed for similar period(s) unless terminatedby written notice from either of the ContractingParties through diplomatic channels, six (6)months prior to the intended date oftermination. The termination of thisMemorandum is without prejudice to thecompletion of on-going projects.

DONE in Manila on this 30 th day ofOctober 1999 in the English language.


THESOCIALIST REPUBLIC

OF VIETNAM


THEREPUBLIC OF THE

PHILIPPINES(Sgd.) HON. LE HUY

NGOMinister of Agriculture

and Rural Development

(Sgd.) HON.EDGARDO J. ANGARASecretary of Agriculture


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MEMORANDUM OF UNDERSTANDINGBETWEEN THE GOVERNMENT OF THE

REPUBLIC OF THE PHILIPPINES AND THEGOVERNMENT OF THE SOCIALIST

REPUBLIC OF VIETNAM RELATING TO THEJOINT OCEANOGRAPHIC AND MARINE

SCIENTIFIC RESEARCH EXPEDITION IN THESOUTH CHINA SEA (JOMSRE-SCS II)

THE GOVERNMENT OF THE REPUBLIC OFTHE PHILIPPINES AND THE GOVERNMENTOF THE SOCIALIST REPUBLIC OF VIETNAM,HEREINAFTER REFERRED TO AS THE"CONTRACTING PARTIES",

CONVINCED that the South China Sea (SCS) isan important area of marine biodiversity andthat oceanographic and marine scienceresearch plays a critical role in ensuringsustainable development of marine resourcesin the SCS;

CONVINCED FURTHER that marine scientificresearch enhances the opportunities forcooperative endeavors as a confidence buildingmeasure for the peaceful resolution of theclaims in the area;

DESIRING to cooperate in Joint Oceanographicand Marine Scientific Researches in the SouthChina Sea (JOMSRE SCS) as a statement ofgoodwill and to further enhance the productiveand beneficial relations of both countries;

CONCERNED with the sustainability ofresources in the SCS;

COGNIZANT of the fact that they will mutually

benefit from a collaborative arrangement inoceanographic and marine scientific research;

RECOGNIZING their respective capabilities inconducting oceanographic and marinescientific research in the SCS;

NOTING the Contracting Parties interest toconduct various joint oceanographic andmarine researches and exchanges as anexpression of their determination to cooperatein marine science;

NOTING FURTHER that the JOMSRE-SCS Isuccessfully demonstrated the mutual benefitsand positive developments for their

cooperation in the region;HAVE AGREED AS FOLLOWS:

ARTICLE IGENERAL PROVISION

The Contracting, Parties, consistent with theexisting laws, rules and regulations prevailingin their respective jurisdictions, shall undertaketo implement the JOMSRE-SCS.II.

ARTICLE IIOBJECTIVES

1.To foster goodwill between the leaders of thetwo countries through enhanced cooperation inmarine scientific research in the SCS;

2.To increase the knowledge about the naturalprocesses of the marine environment andresources of the SCS, particularly the Spratlysarea; and

3.To consider the knowledge and learningsgained from the JOMSRE-SCS series for thebetter understanding and wise utilization ofresources in the SCS.

ARTICLE IIIIMPLEMENTING ARRANGEMENT

1. DURATION:

For the pre-cruise

preparation:

from the provisional

entry into force of thisMOUuntil 23 May 2000

For the scientific cruiseproper:

10 to 15 days from 24May 2000

(On board the researchvessel)

For the post-cruiseactivities:

10. months from theend of the scientificcruise proper

(including workshop)

2. CRUISE TRACKAND STATIONS:

The cruise track and stations will start in NhaTrang and will end in Manila, as specified onthe attached map marked as Annex "A".

Data and samples will be obtained andobservations made at 23 three-hour stationsand 3 to 4 twenty-four hour stations.3. TERMS AND CONDITIONS

A. Scientific components:

1.Physical Oceanography;

2.Chemical oceanography;

3.Biological oceanography;

4.Geological oceanography; and

5.Coral reef ecology.

B. Contributions:

1.Scientific Personnel:


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1.1. The Philippines and Vietnam will each havetwelve to fifteen scientific personnel for thecruise. The scientific personnel shall have theexpertise to undertake the required activities.

1.2. The Philippines and Vietnam shalldesignate their respective Chief Scientists forJOMSRE-SCS II and a Senior Scientist for eachcomponent.

1.3. The scientists from the Philippines areexpected to arrive in Nha Trang, Vietnam notlater than 23 May 2000. Upon arrival of theFilipino scientists and prior to thecommencement of the cruise, all theparticipating scientists led by their respectiveChief Scientists and the crew of the researchvessel shall finalize the activities for JOMSRE-SCS II.

1.4. The Philippines shall assume the costs ofthe airline tickets to Nha Trang, allowances forfood and lodging prior to the cruise, and per

diems on board the research vessel of itsparticipating scientists.

1.5. The Philippines shall facilitate the entry ofthe participating scientists from Vietnamincluding equipment and the research vesseland crew.

1.6. Vietnam shall likewise facilitate the entryand exit of the participating scientists from thePhilippines.

1.7. Vietnam shall assume the costs of the perdiems on board the research vessel and airlinetickets (Vietnam to Manila) of its scientists.

2. Research Vessel2.1. Vietnam shall provide the research vesseland crew, and the operating expenses for thevessel (e.g. diesel fuel, lubricating oil, water,etc.)

2.2. The Philippines shall assume the costs ofharbor services when the research vesselenters the Philippines.

3. Equipment and Supplies

3.1 Vietnam shall provide the major equipmentand supplies for the scientific cruise proper.

3.2. The Philippines shall provide additional

equipment and supplies, as required.

3.3. Vietnam shall facilitate the entry intoVietnam of this additional equipment from thePhilippines.

4.Insurance - The Contracting Parties shallprovide insurance coverage for their respectivepersonnel and equipment.

5.Data and sample analysis: The ContractingParties shall assume their respective cost for

the analysis of the data and samples gatheredfrom the scientific cruise proper and relatedresearches.

ARTICLE IVEXPECTED OUTPUT

1.Report by the participating scientists

submitted to their respective authorities; and

2.Final Technical Report includingrecommendations at the end of the 10-monthperiod.

ARTICLE VINFORMATION EXCHANGE

The Contracting Parties agree to equally sharedata, information and samples derived fromJOMSRE-SCS. They shall ensure that thetechnical data, samples and informationmutually provided, including the results of theresearch carried out under this Memorandumof Understanding, are not transferred or

supplied to a Third-Party without prior writtenconsent. Matters pertaining to intellectualproperty rights that may arise from an activityundertaken under this Memorandum shall bedetermined and agreed upon by theContracting Parties, through diplomaticchannels.

The publication of the results of the JOMSRE-SCS II shall only be undertaken with theconsent of the Contracting States.

ARTICLE VIDISPUTE SETTLEMENT

Any dispute arising out of the interpretation,

application, or implementation of thisMemorandum of Understanding shall be settledamicably by consultation or negotiation,through diplomatic channels, between theContracting Parties.

ARTICLE VIIENTRY INTO FORCE

This Memorandum of Understanding shall enterinto force on the date of the latter writtennotification by the Contracting Parties, throughdiplomatic channels, indicating compliancewith their respective internal requirements forits entry into force. The Contracting Parties

agree to accord provisional effect to thisMemorandum pending its formal entry intoforce.

The terms and conditions of the MOU arewithout prejudice to the eventual peacefulresolution of sovereignty in the SCS.

DONE in the city of Hanoi, SocialistRepublic of Vietnam, on this 22th day of


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2000 in two original texts, both in theEnglish language.FOR THE GOVERNMENT

OF THEFOR THE GOVERNMENT

OF THEREPUBLIC OF THE

PHILIPPINESSOCIALIST REPUBLIC OF

VIETNAM

(Sgd.) (Sgd.)


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COOPERATION AGREEMENT BETWEEN THEGOVERNMENT OF THE REPUBLIC OF THEPHILIPPINES AND THE GOVERNMENT OF

THE SOCIALIST REPUBLIC OF VIETNAM ONTHE PREVENTION AND FIGHT AGAINST

CRIMINAL ACTIVITIES

The Government of the Republic of thePhilippines and the Government of the SocialistRepublic of Vietnam, hereinafter referred as"The Parties";

Proceeding from the aspiration to furtherstrengthen friendly relations and multi-facetedcooperation between the Republic of thePhilippines and the Socialist Republic ofVietnam and to contribute to the promotion ofpeace, stability, cooperation and developmentin the region and in the world;

Cognizant of the principle of respect for theindependence, sovereignty, integrity and non-

interference in internal affairs; and

Recognizing the significance and mutualbenefit of the two States in the establishmentof co-operative relations on prevention andfight against criminal activities;


ARTICLE 1

On the basis of the laws and regulations inforce in the Republic of the Philippines and theSocialist Republic of Vietnam, the Parties shallcooperate with each other to prevent and fightagainst the following criminal activities:

1. Illicit trading and trafficking of weapons,military technical equipment, explosives, toxicchemicals, inflammable substances andradioactive materials;

2. Illicit manufacturing and trafficking ofnarcotic drugs, psychotropic substances,precursors and essential chemicals;

3. Kidnapping or trafficking of women andchildren;

4. Terrorism;

5. International smuggling;

6. Money laundering;7. Making and circulating of counterfeit moneyand documents;

8. Illegal migration; and

9. Such other criminal activities as may bejointly decided by both Parties from time totime.

ARTICLE 2

In order to implement Article 1 of thisAgreement, the Parties shall carry out thecooperation with the following modes:

1. Exchange of information, documents andexpertise on the activities provided in Article 1.The Parties commit themselves to theconfidentiality of the contents of classifiedinformation and documents exchanged.

The exchanged information and documentsshall not be transferred to a third Party withoutthe consent in writing of the supplying Party.

2. The Parties shall always coordinate inplanning and carrying out the measures toprevent and fight against criminal activitiesprovided in Article 1.

ARTICLE 3

Each Party shall ensure that its territory will notbe utilized by any individual or organization for

carrying out activities which are detrimental tonational security, social order and safety of theother Party.

ARTICLE 4

The Parties shall carry out cooperation in suchareas as: research, personnel training,exchange of studies, and in the organization ofand participation in international seminars andworkshops.

ARTICLE 5

The Parties shall send delegations to visit eachother and exchange expertise about operations

on prevention and fight against criminalactivities and to discuss the implementation ofthis Agreement.

ARTICLE 6

The expenses on international travel ofdelegations for working visits, study tours,exchange of experiences, studies, participationin conferences, seminars, etc. under thisAgreement shall be borne by the sendingParty. Expenses for accommodation, food andinternal transport for the visiting delegationsshall be borne by the receiving Party.

ARTICLE 7

For the purposes of the implementation of thisAgreement there shall be designated anImplementing Agency. The ImplementingAgency for the Republic of the Philippines shallbe the Department of Interior and LocalGovernment and for the Socialist Republic ofVietnam shall be the Ministry of Public Security.

ARTICLE 8


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Any dispute between the Parties arising out ofthe interpretation or implementation of thisAgreement shall be settled by consultations ornegotiations.

ARTICLE 9

This Agreement shall enter into force on the

date of the later written notification by theParties, through diplomatic channels, indicatingthat the domestic requirements for its entryinto force have been complied with.

ARTICLE 10

Any amendment or revision to the text of thisAgreement shall be done by mutual consent ofthe Parties. This amendment or revision shallenter into force in accordance with Article 9 ofthis Agreement.

ARTICLE 11

This Agreement shall remain in full force and

effect unless one Party officially notifies theother Party, through diplomatic channels, of itsdesire to suspend or terminate this Agreement.

In such a case, the Agreement shall remainvalid until thirty (30) days after the date onwhich one Party receives an official notificationfrom the other Party expressing the desire ofthe latter to suspend or terminate the validityof this Agreement.

In witness whereof, the duly authorizedrepresentatives of the Parties have affixedtheir signatures thereto.

Done at Hanoi, on 17th day of December 1998in four original texts, two each in theVietnamese and English languages, all textsbeing equally authentic. In case of divergencebetween any of the texts of this Agreement,the English text shall prevail.

For the Government ofthe

Republic of thePhilippines:

(Sgd.) DOMINGO L.

SIAZON, JR.Secretary of Foreign

Affairs

For the Government ofthe

Socialist Republic ofVietnam:

(Sgd.) LE MINH

HOUNGMinister of Public

Security


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MULTILATERALEstablishment of the Southeast Asian

Fisheries Development Center

Agreement establishing the Center done atBangkok 28 December 1967;

Entered into force 28 December 1967, and inrespect of the Philippines 16 January 1968.

AGREEMENT BETWEEN THE GOVERNMENTOF MALAYSIA, THE GOVERNMENT OF THE

REPUBLIC OF THE PHILIPPINES, THEGOVERNMENT OF THE REPUBLIC OF

SINGAPORE, THE GOVERNMENT OF THEKINGDOM OF THAILAND AND THE

GOVERNMENT OF THE REPUBLIC OFVIETNAM ESTABLISHING THE SOUTHEASTASIAN FISHERIES DEVELOPMENT CENTER.

DONE AT BANGKOK, ON 28 DECEMBER1967.

The Contracting Governments,

Recognizing the vital importance of promotingthe fisheries development in Southeast Asia inthe light of the urgent need of increasing thefood supply and of improving the nutritionalstandard, especially of increasing the supply ofanimal protein, in this region;

Realizing that, in order to promote the fisheriesdevelopment in this region, further effortsshould be made in the fields of training offisheries technicians, research on fisheriestechniques and investigation of fisheriesresources and in other relevant fields; and

Convinced that regional co-operation is highlyeffective in such fields;

Have agreed to establish hereby the SoutheastAsian Fisheries Development Center,hereinafter called the "Center", which shalloperate in accordance with the followingprovisions:

CHAPTER IPURPOSE AND FUNCTIONS

ARTICLE 1PURPOSE

The purpose of the Center is to contribute to

the promotion of the fisheries development inSoutheast Asia by mutual co-operation amongthe member governments of the Center,hereinafter called the "Members", and throughcollaboration with international organizationsand governments external to the Center.

ARTICLE 2FUNCTIONS

To fulfill its purpose, the Center shall have thefollowing functions:

(i) to train fisheries technicians of theSoutheast Asian countries;

(ii) to study such fisheries techniques as aresuited to the fisheries in Southeast Asia;

(iii) to develop fishing grounds and to conductinvestigation, of fisheries resources andresearch in fisheries oceanography inSoutheast Asia;

(iv) to collect and analyse information relatedto the fisheries in Southeast Asia;

(v) to provide the Members with the result ofstudies and researches by the Center and otherinformation; and

(vi) to handle the other matters related to thefunctions referred to in (i) to (v) of this Article. .

CHAPTER IIMEMBERSHIP

ARTICLE 3MEMBERSHIP

1. Membership in the Center shall be open tothe governments of the Southeast Asiancountries and Japan. For the purpose of thisAgreement, the term "Southeast Asiancountries" shall refer to the Union of Burma,the Kingdom of Cambodia, the Republic ofIndonesia, the Kingdom of Laos, Malaysia, andthe Republic of the Philippines, the Republic ofSingapore, the Kingdom of Thailand and theRepublic of Viet-Nam.

2. Governments eligible for membership under

paragraph 1 of this Article which do not signwithin the period specified in Article 14 of thisAgreement may be admitted to membership inthe Center by a two-thirds majority vote of thetotal number of Directors of the Council.

CHAPTER IIIORGANIZATION

ARTICLE 4ORGANS OF CENTER

The Center shall have a Council, a Secretariatand such Departments as may be decidedupon by the Council.

ARTICLE 5

COMPOSITION OF COUNCIL

1. Each Member shall be represented on theCouncil by one Director. Directors shall holdoffice until their successors shall be appointed.

2. Each Member may appoint an AlternateDirector who shall exercise all the powers of itsDirector in his absence.


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3. Each Member shall pay due regard to thedesirability of appointing as its Director a highlevel official who has sufficient knowledge andexperience in the field of fisheriesdevelopment.

4. At its annual meeting, the Council shalldesignate one of the Directors as Chairman,who shall hold office until the election of thenext Chairman at the next annual meeting ofthe Council.

ARTICLE 6POWERS OF COUNCIL

1. The Council shall be the supreme organ ofthe Center, and all the powers of the Centershall be vested in the Council.

2. The Council may delegate to the Secretary-General any or all of its powers, except thepowers:

(i)to decide on the Plan of Operation and the

Working Programme concerning theestablishment and the operation of theDepartments of the Center;

(ii) to adopt the annual programme and theannual budget of revenues and expenditures ofthe Center;

(iii) to approve the annual report on theoperation of the Center;

(iv) to admit new Members;

(v) to appoint the Secretary-General and theDeputy Secretary-General;

(vi) to appoint the Department-Chiefs and theDeputy Department-Chiefs;

(vii) to approve agreements or arrangementsreferred to in Article 12 of this Agreement;

(viii) to decide to receive assistance referred toin Article 13 of this Agreement;

(ix) to adopt amendments of this Agreement inaccordance with the provisions of Article 18;and

(x) to decide on the manner in which theproperty and assets of the Center shall bedisposed of in case of the abolishment of anydepartment.

ARTICLE 7PROCEDURE OF COUNCIL

1. The Council shall hold an annual meetingand such other meeting as may be decided bythe Council or called by the Secretary-General.A meeting of the Council shall be called by theSecretary-General whenever requested by amajority of the Members. The inaugural

meeting of the Council shall be called by theGovernment of Thailand.

2. Each Director shall have one vote and,except as otherwise provided in thisAgreement, all matters before the Council shallbe decided by a majority of the Memberspresent and voting.

3 Notwithstanding paragraph 2 of this Article,the Plan of Operation and the WorkingProgramme referred to in Article 6 paragraph2(i) and the manner of disposal referred to inArticle 6 paragraph 2(x) of this Agreement shallbe decided by a unanimous vote of the totalnumber of the Directors of the Council.

4. A quorum for any meeting of the Councilshall be a majority of the Directors.

5. The Council may, by regulation, establish aprocedure whereby the Chairman of theCouncil may, when the latter deems such

action advisable, obtain a vote of the Directorson a specific question without calling a meetingof the Council.

ARTICLE 8COMPOSITION OF SECRETARIAT

1. The Secretariat shall consist of a Secretary-General, a Deputy Secretary-General andSecretariat staff.

2. The term of office of the Secretary-Generaland the Deputy Secretary-General shall be twoyears -and they may be re-appointed.

3. The Secretary-General and the DeputySecretary-General shall be concurrently the

Chief and the Deputy Chief of one of theDepartments.

4. The Secretariat staff shall be appointed bythe Secretary-General.

5. During the Secretary-Generals absence orinability to act or during any vacancy of theoffice of the Secretary-General, the DeputySecretary-General shall act as Secretary-General.

ARTICLE 9SECRETARY-GENERAL

1. The Secretary-General shall assist the

Council, to which he shall be responsible, and,for this purpose, shall, in addition to thepowers assigned to him expressly by thisAgreement, exercise all the powers delegatedto him by the Council.

2. The Secretary-General shall represent theCenter.

ARTICLE 10DEPARTMENT


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1. Each Department shall consist of aDepartment-Chief, a Deputy Department-Chiefand Department staff,

2. The Department-Chief shall be appointed bythe Council upon the recommendation of thegovernment of the member country in whoseterritory the Department is located and theDeputy Department-Chief shall be appointedby the Council upon the recommendation ofthe Government of Japan.

3. The term of office of the Department-Chiefand the Deputy Department-Chief shall be twoyears and they may be reappointed.

4. The Department staff shall be appointed bythe Department-Chief.

5. The Department-Chief shall conduct thebusiness of the Department in closeconsultation with the Deputy Department-Chief. During the Department-Chief's absence

or inability to act or during any vacancy of theoffice of the Department-Chief, the DeputyDepartment-Chief shall act as Department-Chief.

CHAPTER IVFINANCE

ARTITCLE 11FINANCE

The Members shall provide the Center, inaccordance with their respective national lawsand regulations and within the limits of theirrespective annual budgetary appropriations,with an agreed amount of money, movable andimmovable property and services necessary for

the establishment and the operation of theCenter.

CHAPTER VRELATIONS WITH OTHER ORGANIZATIONS

ARTICLE 12CO-OPERATION WITH OTHER

ORGANIZATIONS

In order to fulfil its purpose, the Center maycooperate with governments and organizationsexternal to the Center as well as otherinternational organizations, and, for thispurpose, may conclude agreements orarrangements with these organizations.

ARTICLE 13ASSISTANCE FROM OTHER

ORGANIZATIONS

The Center may, by a two-thirds majority voteof the total number of the Directors of theCouncil, receive assistance from governmentsand organizations external to the Center aswell as other international organizations,provided that no condition contrary to the

purpose of the Center is attached to suchassistance.

CHAPTER VIFINAL PROVISIONS

ARTICLE 14SIGNATURE

This Agreement shall remain open for signatureby the governments of the countries referredto in Article 3, paragraph 1 of this Agreementon or before 31st December, 1967.

ARTICLE 15ENTRY INTO FORCE

1. This Agreement shall enter into force on thedate on which at least three governments havesigned this Agreement.

2. For governments signing this Agreementsubsequent to the entry into force of thisAgreement, it shall enter into force on the dateof the signature by such governments.

3. For governments which have been admittedto membership in the Center in accordancewith the provisions of Article 3, paragraph 2 ofthis Agreement, it shall enter into force on thedate of the deposit of their instruments ofaccession with the Depositary Government ofthis Agreement.

4. The Depositary Government shall inform thegovernments of the countries referred to inArticle 3, paragraph 1 of this Agreement of theentering into force of this Agreement accordingto the preceding paragraphs of this Article.

ARTICLE 16

WITHDRAWAL

1. Any Member may withdraw from thisAgreement at any time by written notificationgiven to the Secretary-General, who shallimmediately inform the other Members of suchnotification.

2. Withdrawal by a Member shall becomeeffective on the date specified in its notificationbut in no event! less than three months afterthe date on which the notification has beenreceived by the Secretary-General.

ARTICLE 17TERM OF VALIDITY

This Agreement shall remain in force for tenyears and thereafter until all the Membersagree to terminate it.

ARTICLE 18AMENDMENT

Amendments to this Agreements may beproposed to the Council by any Member andshall only be adopted by a unanimous vote of


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the total number of the Directors of theCouncil. Each amendment so adopted shallcome into force for all the Members on thedate on which it is accepted by all theMembers.

ARTICLE 19DEPOSIT

The Original of this Agreement shall bedeposited with the Government of Thailand,who shall send certified copies thereof to thegovernments of the countries referred to inArticle 3, paragraph 1 of this Agreement.

IN WITNESS WHEREOF the undersignedrepresentatives being duly authorized theretoby their respective governments, have signedthe present Agreement.

DONE at Bangkok, in a single copy in theEnglish language, this twenty eighth day ofDecember, one thousand nine hundred and

sixty-seven.

For the Government of the Union of Burma:

For the Government of the Kingdom ofCambodia:

For the Government of the Republic ofIndonesia:

For the Government of Japan,

M SEKI

For the Government of the Kingdom of Laos:

For the Government of Malaysia:

TENGKU NGAH MOHAMED

January 26, 1968

For the Government of the Republic of thePhilippines:

F E MARCOS

January 16, 1968

For the Government of the Republic ofSingapore:

R. H. HO

For the Government of the Kingdom ofThailand:

P. SARASIN

For the Government of the Republic of Viet-Nam:

D. CHINH

January 26, 1968


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MEMORANDUM OF UNDERSTANDING ONNEW GENERATION TRADE AGREEMENTBETWEEN THE GOVERNMENT OF THE

REPUBLIC OF THE PHILIPPINES AND THEGOVERNMENT OF THE SOCIALIST

REPUBLIC OF VIETNAMThe Government of the Republic of thePhilippines and the Government of the SocialistRepublic of Vietnam, hereinafter referred to asthe "Contracting Parties",

Taking note of the existing friendly relationsbetween the Philippines and Vietnam,

Desirous to further expand and strengthentheir existing economic and trade relations onthe basis of equality and mutual benefit,


ARTICLE I

The Contracting Parties, in the interest ofmutual understanding and cooperation shalltake appropriate measures to effectcooperation with a view to consolidate andstrengthen their friendly relations, especially inthe economic and trade fields.

ARTICLE II

Cognizant of the need to further enhanceeconomic and bilateral trade relations, theContracting Parties shall conclude a newgeneration Trade Agreement to amend the1978 Trade Agreement between the twocountries, on terms to be agreed by them.

ARTICLE III

The Contracting Parties agree that the signingof the new Trade Agreement shall be;

a. Undertaken during the meeting of thePhilippines-Vietnam Joint Commission forBilateral Cooperation sometime in 1996.

b. The executing Authorities concerned for thesaid undertaking shall be the Department ofTrade and Industry of the Philippines and theMinistry of Trade of the Socialist Republic ofVietnam.

c. Negotiations shall take place on a datemutually agreed upon before the convening ofthe JCBC.

ARTICLE IV

1. The Contracting Parties shall set up a Sub-Commission on Trade under the umbrella ofthe Philippine-Vietnam Joint Commission forBilateral Cooperation.

2. The Sub-Commission shall meet as the needarises to discuss issues relating to theimplementation of the Trade Agreement and tosuggest relevant actions to be taken by therespective Contracting Parties. The venue of

the meeting shall alternate between the twocountries.

ARTICLE V

The Contracting Parties shall consult eachother subsequently to set the date for theimplementation of this Memorandum ofUnderstanding.

Done in Manila, Philippines during the visit ofPresident Le Due Anh on 29 November - 2December 1995, in two original copies, in theEnglish language, both texts being equallyauthentic and valid.

(Sgd.) (Sgd.)FOR THE GOVERNMENT

OFTHE

REPUBLIC Of THEPHILIPPINES

FOR THE GOVERNMENTOF THE

SOCIALIST REPUBLICOF

VIETNAM

treaties and agreement between philippines and vietnam

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