vietnam _ wto commitment (2)

8/4/2019 Vietnam _ WTO Commitment (2)

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Instructor: Nguyen Kim Thao, MBANT1- K35 UEH

Members:

Nguyn L Phng Linh

Nguyn Th Ngc Minh

Nguyn Th Yn Nhi

Nguyn Ngc Huyn Vy


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Import Tariff

Vietnam: a non-market economy

Textile industries

Non agricultural Subsidies

Agricultural Subsidies

Trading rights

State Owned and State Trading Enterprises

Export Restriction

Trade in service

Intellectual property right

Transparency

Investment

The Government should exercise their rights in thesame manner as other owners of enterprises

The state will speed up the process of transformation

of existing SOEsVietnam has also committed to provide the WTO

Members with annual reports to ensure full transparencyof its ongoing privatization and equitization (c phn

ha) programs

Establishing an officialjournal, website

Publishing draft legal on thewebsite of responsible Ministry Publishing Legal documents inthe Official Gazette (Cng b)


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- Copyright and Related Rights;

- Trademarks;

- Geographical Indications;

- Industrial Designs;

- Patents;

- Layout-Designs (Topographies) of IntegratedCircuits;

- Protection of Undisclosed Information;

- Control of Anti-Competitive Practices inContractual Licenses.


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Definition: a foreign country does notoperate on market principles of cost orpricing structures, so that sales ofmerchandise in such country do not reflect

the fair value of the merchandise

Determined factors Vietnam1.

The currency convertibilityThe currency is not completely

converted

2. Free bargaining of wages

3. Foreign investment

4.

The government

ownership or control of

the mean of production

- The process of transformation of SOEs

is still slow.- SOEs in Vietnam represent a great

share in terms of number and

contributions.

- SOEs have advantages in respect of

production, service supply and

import/export of certain key products

5.

The government control

over the allocation of

resources

-The degree of government intervention

into the economy is still high

- Vietnam dont have the private landownershi


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All persons can become exporters and importers

Viet Nam allows importing and exporting almost alltype of products except for those in prohibited lists.

Restriction to export rice products of foreign individualswill be removed on 1ST January 2011

Viet Nam maintains some commodities in the list of thestate ownedenterprises, such as:tobacco, petroleum,books and newspaper, magazines, disc, aircraft and

its spare parts.
http://../Desktop/thuyet%20trinh%20QHKTQT/thuyet%20trinh%20QHKTQT/State.dochttp://../Desktop/thuyet%20trinh%20QHKTQT/thuyet%20trinh%20QHKTQT/State.doc


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SectorApplied MFN

rates (%)

WTO finalbound rates

(%)

Implementation

period

Averageof

tariff rates 17.4 13.4 5 - 7 years

Agricultural

sector23.5 20.9 5 - 7 years

Industrialsector

16.8 12.6 5 - 7 years

Source: Accession of Viet Nam to the world trade organization.


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CommitmentNumbers

of tariff line

Proportion

(%)

Reduce tariffs 3800 35.5Bind at the level of current

applied tariff rates3700 34.5

Higher than the current

applied tariff rates 3170 30.0

Total 10670 100

Source: Accession of Viet Nam to the world trade organization


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Items of Goods

Applied MFN

Rates (2006)

WTO Final

Bound Rates (%)

1. Agricultural products 23.5 21.02. Fish and its products 29.3 18.0

3. Petroleum 3.6 36.6

4. Wood, papers 15.6 10.5

5. Textile 37.3 13.7

6. Leather, rubber 18.6 14.6

7. Metals 8.1 11.4

8. Chemical 7.1 6.9

9. Transportation equipment 35.3 37.4

10. Mechanical machinery equipment 7.1 7.311. Electrical machinery equipment 12.4 9.5

12. Minerals 14.4 14.1

13. Other manufactured products 14 10.2

Average of tariff rates 17.4 13.4



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Sectoral Initiatives

Numbers

of TariffLine

MFN

rate(%)

Final

Bound(%)

1. Information Technology Agreement

(full participation)330 5.2% 0%

2. Chemical Harmonization Agreement(participating in 81% of its coverage)

1.300/1.600

6.8% 4.4%

3. Civil Aircraft Agreement - (participating

almost fully of its coverage). 89 4.2% 2.6%

4. Textile and Clothing Agreement

(full participation)1.170 37.2% 13.2%

5. Medical Equipment Agreement

(full participation)81 2.6% 0%

Vietnam is partly participating in some other agreements covering

products such as science equipments and construction equipments.



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WTO tariff reduction commitments areobviously expected to

Lead to greater competition betweendomestic industries, especially heavily-protected and SOE sectors, and importedproducts

Reduce effective rate of protection of the

effected sectors


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a. Export duties:Vietnam applied export duties on some minerals and natural

resources exported in raw form.

Non-ferrous(kim loi mu): 35% - 17%

Ferrous(kim loi en): 45% - 22% (5 years)

b. Export restriction and prohibition Maintaining export controls on some products:rice, and some wood products and minerals Applying export restrictions and management

measures in a manner fully consistent with WTOprovisions

Prohibiting the exportation of a limited number ofproducts


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Description

1Weapons, ammunition, explosive materials and military

technical equipment and facilities

2 Antiques

3 Narcotics of all kinds.

4 Toxic chemicals.

5Timber, planks from domestic natural forests; firewood,charcoal made from wood or firewood of domestic

natural forest origin.

6Various kinds of wild animals, and natural rare precious

fauna and flora.7

Various types of special encryption devices and

encryption software used for protecting State secrets.

Source: Decision 46/2001/QD-TTg dated 4 April 2001 of the Prime Minister


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The internal taxation must not be appliedto protect domestic production.

The domestic taxation system must becompatible with WTO rules.

The WTO incompatible provisions: rawcotton, and semi-processed agriculturalproducts, tobacco leaves, automobiles,distilled spirits and beers. Related to: the Excise Tax Law; the VAT

Law


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Prohibiting quantitative import restrictions,

prohibitions, quotas and the use of importrestrictive licensing.a. Specific import restrictions:

Establishing a non-discriminatory and transparentsystem for the import of large motorcycles

Abolishing the import prohibition on cigarettes andother tobacco products

Eliminating the prohibition on the importation ofused vehicles ( 5 years)
http://../Desktop/thuyet%20trinh%20QHKTQT/thuyet%20trinh%20QHKTQT/Items%20prohibited%20from%20being%20imported.dochttp://../Desktop/thuyet%20trinh%20QHKTQT/thuyet%20trinh%20QHKTQT/Items%20prohibited%20from%20being%20imported.doc


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b.Quantitative restrictionItems Initial

quantity

Tariff rate (%) Remark

In-quota rate Out of quota rate

1. Eggs (except for

hatching)

30.000

dozens40 80

5% annual increase

of quantity

2. Sugar55.000

tons

5% annual increase

of quantity.

Raw sugar 25 85From 30% down to

25% by 2009

Refined sugar60

(beat sugar 50%)85

3. Tobacco leaves31.000

tons

30 80-905% annual increase

of quantity4. Salt

150.000

tons

5% annual increase

of quantity

Table salt 30 60

Industrial salt 15 50Sources: Accession of Viet Nam to the world trade organization.


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Vietnam China

Commodity

coverage

4 commodities:Sugar, salt, tobacco

leaves and eggs

9 commodities:

Rice, wheat, maize, soybean oil,

palm oil, colza oil, sugar, wool and

cotton

Annual growth of quota 5%/ year

Different growth rate product by

product: wheat 7%, rice 16%,maize 11%, ...

Time for

phasing out TRQNo

4 years

(except soybean oil 5 years)

Quota allocation

for private sector No

A certain amount of quota to be

allocated for private sector

In-quota tariff rate

reductionNo No

Out-off quota tariff rate

reduction

No Yes


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No export subsidies to any agricultural products

Permitted some special and differentialtreatments to developing countries in this area.

An unlimited level of so-called green boxand development box

Maintaining a domestic support level notexceeding 10% of total production value.


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Eliminating prohibited subsidies that itprovides to its industries.

Effecting many industries

Certain export subsidies in the form of

investment incentives granted before WTOaccession are allowed to be phased out in 5years (except for the textile industry);


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COMMITMENTS OF

VIETNAM FOR WTOENTRANCE IN SERVICE


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11

sectors

155 sub-sectors

11

Se

rvices

Sect

ors

Business

Communication

Construction and related engineering

Distribution

Educational

Environmental

Financial

Heath related and social

Tourism and travel related

Recreational, cultural and sporting

Transport


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11/11

110/155

Major sectors

Sub-sectors


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HORIZONTAL

COMMITMENTS

SECTOR-SPECIFIC

COMMITMENTS
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Business

Communication

Construction and related engineering

Distribution

Educational

Environmental

Financial

Heath related and social

Tourism and travel related

Recreational, cultural and sporting

Transport

11 Services Sectors

covering 26 sub-sectors(out of the total of 46). including professionalservices, computer,

research and developmentand other business support

Sectors and Sub-sectors Market Access Limitations onLegal Entity and Equity

Advertising

BCC or JVC win 51% foreignowned equity from accessionand no limit on foreign

equity in JVC from Jan 1st2009

Market ResearchJVC with 51% foreign ownedequity from accession and100% FOC from Jan 1st, 2009

Management consultingNo restriction. Brandingpermitted from Jan, 2010

JVC with 49% foreignownership from accession.No limit on foreign equity inJVC from Jan 1st 2008,

100% FOC from Jan 1st,2009

Transportation services are by far thelargest sector in world services trade.Vietnam has undertaken-though limited-

liberalization commitments for all sub-sectors of transportation, including maritimeand auxiliary services, internal waterwaystransport, auxiliary air transport and rail androad transport services.


Insurance

100% FOC allowed fromaccession, although 100%FOC may not engage in

statutory insurance businessuntil Jan 1st,2008. Branchingallowed from Jan, 2012

BankingBranches, JVC and 100% FOCallowed

Finance leasing JVC or 100% FOC

JVC and 100% FOC from Jan 1, 2009


Telecommunications (ValueAdded Services)

BCC and JVC with 51%foreign equity limit fromaccession, rising to 65% from

Jan,2010 (for non-facilities-based services). Forfacilities-based services,foreign equity ownershipcapped at 50%)

Telecommunications (Basic

Services)

Non facilities-based: BCCand JVC with 51% foreignowned equity limit fromaccession, rising 65% from

Jan,2010.

Health care: BCC, JVC or 100% FOC


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vietnam _ wto commitment (2)

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