Vietnam’s involvement with the MTS

1. Key indicators
- Land area (Sq.km): 330,972 (2015)
- Population (millions): 91.71 (2015)
- GDP (US $ billions): 186.0 (2014)
- GDP per capita (US $): 2,053 (2014)
- Inflation (%): 0.6 (2015)
- Global competitiveness Index (out of 144): 56 (2015-2016)
2. Overview of country’s trade regime
 Relevant government agencies
- National Committee for International Economic Cooperation (NCIEC), Interdisciplinary Steering
Committee for international economic integration,
 was establish in 1998 to strengthen inter-sectoral coordination in policy formulation and
economic cooperation.
 includes participation by all ministries and selected agencies at the level of Vice Minister
 chaired by the Deputy Prime Minister.
 NCIEC is attached to the Prime Minister, but located in the Ministry of Industry and
Trade, and funded from the Ministry's budget
- Ministry of Industry and Trade (MOIT) http://www.moit.gov.vn/en/Pages/News.aspx?IDNews=45
 Position and tasks: The Ministry of Industry and Trade is a governmental agency
performing state management on industry and trade
 Regarding international trade-economic integration: to conduct studies for
recommendation on negotiation or accession to multilateral, regional, or bilateral treaties
on trade; to negotiate free trade agreements; to negotiate trade-economic cooperation
agreements and market expansion agreements between Vietnam and other countries
 The Minister of MOIT is Head of the Government's delegation for international
economic/trade negotiations
 To propose plans on, and organize the performance of Vietnam's rights and obligations
at WTO; ASEAN; APEC Forum; ASEM and other international economic organizations and
forums
- Ministry of Finance (MOF)
http://mof.gov.vn/webcenter/portal/mof/r/m/trangchu?_afrLoop=22329015149372789#!%40%4
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 The Ministry of Finance is a Government agency which has the function of implementing
the State management in finance; customs; accounting; independent auditing;
insurance; prices; securities; conducting the ownership rights to the State’s investment
capital in enterprises according to regulations of the Law
 Organization structure: Minister supporting apparatus, Professional Specialized Units:
General Department of Taxation, General Department of Customs, State Treasury, State
Securities Commission, Subordinate units: University of Finance and Marketing, Vietnam
Financial Times
 main tasks and duties
  Manage the collection of tax, fees and other revenues under the State budget
 Manage customs activities
 Manage banks and non-banking financial institutions regarding issues; financial
services
 Tariff profile
Viet Nam's tariff structure, 2007 and 2013

MFN applied Final

2007 2013 bound
Bound tariff lines (% of all tariff lines) 100.0 100.0 100.0
Simple average rate 18.5 10.4 13.4
Agricultural products (HS01-24) 29.4 17.4 21.7
Industrial products (HS25-97) 17.0 9 12.3
WTO agricultural products 27.0 17.4 20.9
WTO non-agricultural products 17.4 9.3 12.4
Duty-free tariff lines (% of all tariff lines) 28.8 32.9 14.5
Simple average rate of dutiable lines only 26.0 15.6 15.8
Tariff quotas (% of all tariff lines) 0.0 0.0 0.0
Non-ad valorem tariffs (% of all tariff lines) 0.0 0.9 0.1
Domestic tariff "peaks" (% of all tariff lines) 3.1 4.1 3.6
International tariff "peaks" (% of all tariff lines) 41.7 25.6 31.3
Overall standard deviation of tariff rates 22.4 12.5 14.3
Coefficient of variation of tariff rates 1.2 1.2 1.1
Nuisance applied rates (% of all tariff lines) 1.8 0.6 0.8
Total number of tariff lines 10,689 9,558 10,689
Ad valorem rates 7,611 6,337 8,924
Duty free 3,078 3,142 1,545
Alternate rates 0 0 12
Other 0 87 0
Source: WTO Secretariat calculations, based on data provided by the authorities of Viet Nam, and Ministry of
Finance, Circular No. 193/2012/TT-BTC.

- Viet Nam bound all its tariff lines at ad valorem rates.

- The simple average applied MFN rate in 2013 for all goods is 10.4% (Table 3.1);
17.4% for agricultural goods and 9.3% for non-agricultural products. Among the
agricultural product categories attracting the highest MFN rates of import duty are
alcoholic beverages and tobacco, coffee and tea, fruit and nuts, and cereals and
preparations. Industrial goods with above-average MFN tariff protection include
transport equipment, clothing, fish and fishery products, and footwear.
- The difference between bound and currently applied MFN rates leaves some scope for
flexibility in Viet Nam's tariff policy. The difference between the initial bound and
applied MFN rate was 5 percentage points or more, for some 2,600 tariff lines in 2007.
 Dispute cases involving Viet Nam (pg 34 VTR)
Viet Nam has been involved in 3 cases under the WTO Dispute Settlement Mechanism, in
all 3 cases as a complainant.
 The US – Anti-dumping measures on certain shrimp from Viet Nam (DS404)
 The US – Anti-dumping measures on certain frozen warm water shrimp from Viet
Nam (DS429)
 Indonesia — Safeguard on Certain Iron or Steel Products
 There were also 22 Dispute cases involving Viet Nam as a third party.
 as as as
complainant respondent third party
Viet Nam 3 case(s): 0 case(s): 22 case(s):
DS404, DS429 DS343, DS360,DS375, DS376, DS377,DS399, DS402,DS405, DS
,DS496 414,DS422, DS430,DS431, DS432,DS433, DS437,DS449, DS4
64,DS471, DS474, DS484,DS490, DS496

 Vietnam’s FTAs and their status

Name Status
1. ASEAN Free Trade Agreement (AFTA) Effective
2. ASEAN-China Free Trade Agreement (ACFTA) Effective
3. ASEAN-Korea Free Trade Agreement (AKFTA) Effective
4. ASEAN-Japan Comprehensive Economic Effective
Partnership (AJCEP)
5. ASEAN – Australia – New Zealand Free Trade Effective
Agreement (AANZFTA)
6. ASEAN-India Free Trade Agreement (AIFTA) Effective
7. Vietnam – Japan Economic Partnership Agreement Effective
8. Vietnam – Chile FTA Effective
9. Vietnam – Laos Trade Agreement Signed 3 March 2015,
pending ratification
10. Vietnam – Korea FTA Signed 5 May 2015, pending
ratification
11. Vietnam - Eurasian Economic Union FTA Signed 29 May 2015,
pending ratification
12. Vietnam – EU FTA Negotiation concluded 4
August 2015, pending
signing
13. Trans-Pacific Strategic Economic Partnership Negotiation concluded 5
(TPP) October 2015, pending
signing

3 Accession to the WTO

- applied for accession to the WTO in January 1995
- Viet Nam became the WTO's 150th member on 11 January 2007
- Viet Nam recognized the important role and significance of the WTO in the development of the
global economy as well as the economic growth of individual countries. Viet Nam had decided to
apply for WTO membership with a view to expanding its economic, trade and investment ties
with other Members to continue the process of integration of Viet Nam's economy into the world
trading system.
- In the process of economic restructuring and comprehensive international integration, the
Vietnamese Government is strongly committed to the multilateral trading system and considers it
the main focus of Viet Nam's economic integration policies.
Benefit of being a WTO member as well as involving in the MTS are optimistic:
 nearly 40 countries had recognized Viet Nam's market economy status, including the
members of ASEAN, China, Japan, Korea, Australia, EFTA member States, Argentina, and
South Africa.
