Membership date: 11/01/2007

Contribution to initiatives:

Joint initiatives related to micro, small, and medium-sized enterprises (“MSMEs”):

– Vietnam has participated in the Informal Working Group on MSMEs, which aims to explore how the WTO can better address the needs and challenges of MSMEs in international trade.

– Vietnam has launched a Vietnamese version of the e-Ping platform, an online alert system that helps companies follow new developments on standards and regulations for traded goods.

Contributions to Ministerial conference (“MC”)

Despite Vietnam not having hosted Ministerial conferences, Vietnam has made positive contributions to these conferences:

The 7th WTO MC (2009):

As a new member of the WTO, Vietnam engaged in several bilateral and plurilateral talks with other members.

The 8th WTO MC (2011):

Vietnam attended the 8th WTO Ministerial Conference to support the multilateral trading system and the Doha Development Agenda. Vietnam also participated in several side events and consultations with other country members on trade facilitation, services, e-commerce and agriculture.

The 9th WTO MC (2013):

Along with WTO members, Vietnam adopted Bali Package – a historic agreement that played a role in breaking the deadlock in WTO negotiations.

The 10th WTO MC (2015):

Vietnam expressed the support for the Nairobi Package and urged participants to continue working to reach the Doha Round’s conclusion. Vietnam also co-sponsored a joint proposal, along with 12 other members to enhance transparency in regional trade agreements.

Theo 11th WTO MC (2017):

Vietnam also participated in initiatives and coalitions with other members on problems such as e-commerce, investment facilitation, MSMEs, and domestic service regulation.

The 12th WTO MC (2022) :

Vietnam affirmed the support of the multilateral trade system and also the effort to collaborate with WTO members in addressing the challenges that the global economy is currently facing. Vietnam believed that it is time for WTO to proceed with the fundamental reformations for the purpose of prompt adapting to the profound changes and new demands of the era.

The 13th WTO MC (2024):

Vietnam appreciated the role of the WTO in leading and promoting the trade liberalization process effectively and expressed its support for the WTO’s new reform initiatives and efforts to improve the dispute settlement mechanism and the overall effectiveness of the organization. While remaining committed to implementing the outcomes of the 12^th MC, Vietnam also reaffirmed its dedication to collaborating closely with Cairns Group members group of agricultural exporting countries)to achieve concrete results and supporting agricultural trade liberalization. Finally, Vietnam suggested conducting studies on industrial policies taking into account the needs of developing and least developed countries and recommended addressing special and differential treatment to balance rights and obligations of all members.Trade Policy Reviews:

Pursuant to regulations, Vietnam is required to proceed with trade policy reviews every 7 years. As of now, Vietnam has conducted 2 trade policy reviews.

The first review of the trade policies

Vietnam underwent the first trade policy review in 2013, covering its economic integration and trade policy changes from 2007 to 2012. The review attracted attention and praise from WTO members, regional and international organizations for Vietnam’s efforts and commitment to fulfilling WTO obligations, enhancing the business environment, reducing poverty, and promoting sustainable development.

The second review of the trade policies

Vietnam’s trade policies were reviewed from 27-29/4/2021. The review showed Vietnam’s impressive economic achievements from 2013 to 2020, such as a fivefold increase in total trade value compared to the time when Vietnam officially joined the WTO in 2007. Vietnam received many questions and praises from other WTO members, including major trading partners, on various aspects of its trade and investment policies.

The third review of the trade policies

Vietnam’s third review of trade policies is expected to be held in 2026, five years after the second review, instead of the standard seven-year interval. This earlier schedule is a result of Vietnam’s advancement to the position of one of the top 20 member countries with the highest commercial ratio in the WTO.

Vietnam has yet to join the Agreement on Government Procurement. Vietnam has been an observer of this Agreement since 12/2012 and is currently considering becoming an official member. With regard to the WTO Agreement on Trade in Civil Aircraft, Vietnam is currently neither a member nor an observer. Vietnam’s accession to these agreements is often tied to internal economic conditions, legal frameworks, and strategic interests.

Informal Working Group on MSMEs

Vietnam is one of the 98 WTO members participating in the Informal Working Group on MSMEs. Vietnam joined this initiative in December 2017 and has been actively involved in discussions and initiatives related to MSMEs, such as access to information, trade facilitation, services, … In 12/2020, Vietnam along with other country members in the Informal Working Group on MSMEs endorsed a package of six recommendations and declarations aimed at addressing challenges smaller businesses face when they trade internationally.

Doha Round

The Doha Round is the latest round of trade negotiations among the WTO members since 2001 with the aim of achieving major reform of the international trading system through lower trade barriers and revised trade rules. Vietnam joined in 2007 and has participated in various bilateral and plurilateral meetings with other members on key topics of the Doha Round.

In the past 5 years, Vietnam has engaged in the following disputes:

As complainant:

No.	Date of consultation requested	Title
1.	22/02/2018	DS540 United States — Certain Measures Concerning Pangasius Seafood Products from Vietnam
2.	08/01/2018	DS536 United States – Anti-Dumping Measures on Fish Fillets from Vietnam

As a third party:

No.	Date of consultation requested	Title	Complainant
1.	26/03/2024	DS623 United States — Certain Tax Credits Under the Inflation Reduction Act	China
2.	18/02/2022	DS611 China — Enforcement of Intellectual Property Rights	European Union
3.	27/01/2022	DS610 China — Measures Concerning Trade in Goods	European Union
4.	24/6/2021	DS603 Australia — Anti-Dumping and Countervailing Duty Measures on Certain Products from China	China
5.	22/6/2021	DS602 China — Anti-Dumping and Countervailing Duty Measures on Wine from Australia	Australia
6.	11/6/2021	DS601 China — Anti-Dumping measures on stainless steel products from Japan	Japan
7.	09/9/2019	DS589 China — Measures Concerning the Importation of Canola Seed from Canada	Canada

At the 12th Session of Ministerial Conference, Minister of Industry and Trade delivered a statement on WTO Reforms: “The WTO has been the backbone of the multilateral trading system for many years, but it needs major reforms to address its flaws and adapt to the changing world. We face many urgent issues such as health, environment, food security and supply-chain disruption. As many new bilateral and regional mechanisms emerge, the WTO is still an effective multilateral cooperation mechanism to foster sustainable economic growth at a global scale. Therefore, the WTO also needs to balance the rights and obligations of its members according to their development and implementation capacity”.

After the 13^th Ministerial Conference, Minister Nguyen Hong Dien also delivered a statement expressing Vietnam’s dedication to supporting efforts and initiatives to reform the WTO:  “I propose that WTO Members promote the outcomes of the 2023 Senior Official Meeting (SOM), focusing on matters that have made substantial progresses to narrow the gap and to reach consensus among Members, in which the reform of WTO’s dispute settlement mechanism plays a highly crucial role. For its part, Viet Nam has been fully implementing the results achieved at MC12. Like many other responsible Members, Viet Nam is committed to supporting efforts and initiatives to reform the WTO to improve the effectiveness of this Organization’s operation.”

Most recently, at the Conference of Commercial Counselors in the European region held in Italy on July 18, 2024, Commercial Counselor, Deputy Head of the Vietnam Mission to the WTO, Mr. Lê Đình Bá, shared insights on the reform trends related to the WTO, including the Dispute Settlement System and the Appellate Body, as well as the promotion of the WTO’s Negotiation function.

Firstly, restoring the Dispute Settlement Mechanism to full operation: Currently, due to the U.S. veto, the WTO’s Appellate Body (AB) lacks judges to operate, resulting in 24 cases being appealed into the void over the past three years. In other words, some Members have exploited this situation to nullify Panel rulings that were unfavorable to them. If the Dispute Settlement Mechanism remains paralyzed, in cases where Vietnam receives a favorable ruling at the Panel level, it may face the risk of the decision being appealed to the void by the counterpart, rendering it ineffective and harming the interests of Vietnamese businesses.

Secondly, promoting the Negotiation function of the WTO: As highlighted, the WTO needs to negotiate and establish frameworks to address emerging challenges. At the same time, the WTO maintains the principle of Consensus (voting is possible but no Member has dared to initiate it, not even the U.S. or the EU), meaning that all Members must agree for a result to be reached. This principle could be exploited by one or several Members to block negotiations on new topics or prevent negotiations from reaching a conclusion.

No.	FTA	Validity	Member
1.	AFTA	In effect from 1993	ASEAN
2.	ACFTA	In effect from 2003	ASEAN, China
3.	AKFTA	In effect from 2007	ASEAN, Republic of Korea
4.	AJCEP	In effect from 2008	ASEAN, Japan
5.	VJEPA	In effect from 2009	Vietnam, Japan
6.	AIFTA	In effect from 2010	ASEAN, India
7.	AANZFTA	In effect from 2010	ASEAN, Australia, New Zealand
8.	VCFTA	In effect from 2014	Vietnam, Chile
9.	VKFTA	In effect from 2015	Vietnam, Republic of Korea
10.	VN – EAEU FTA	In effect from 2016	Vietnam, Russia, Belarus, Amenia, Kazakhstan, Kyrgyzstan
11.	CPTPP (Predecessor to the TPP)	In effect in Vietnam from 14/01/2019	Vietnam, Canada, Mexico, Peru, Chile, New Zealand, Australia, Japan, Singapore, Brunei, Malaysia, United Kingdom (signed the protocol on the accession on 16 July 2023)
12.	AHKFTA	In effect in Vietnam from 11/6/2019	ASEAN, Hong Kong (China)
13.	EVFTA	In effect from 01/8/2020	Vietnam, EU (27 members)
14.	UKVFTA	In effect as of 01/5/2021	Vietnam, United Kingdom
15.	RCEP	In effect from 01/01/2022	ASEAN, China, Republic of Korea, Japan, Australia, New Zealand
16.	VIFTA	Officially signed on 25 July 2023.  On October 15, 2022, the Vietnam’s Government issued Decree No. 131/2024/ND-CP on Vietnam’s special preferential import tariff schedule to implement the Free Trade Agreement between the Government of the Socialist Republic of Vietnam and the Government of the State of Israel (VIFTA Agreement) for the period 2024-2027.	Israel

Update in August 2023, Vietnam’s ongoing or signed but not yet entered into force FTAs are:

No.	FTA	Status	Foreign party	Vietnam’s expected validity
2.	Vietnam – EFTA FTA	Negotiations commenced in May 2012	EFTA	2024
3.	ASEAN – Canada FTA	Negotiations commenced in November 2021	Other ASEAN’s members, Canada	2024
4.	Vietnam – UAE FTA	Negotiations have basically concluded.	UAE	2024
5.	Vietnam –Mercosur FTA	Preparing to start negotiations	Vietnam, members of Mercosur (Argentina, Brazil, Paraguay and Uruguay)

Upcoming FTA negotiations and agreements will center on import and export terms, which are vital for Vietnam’s economic growth and trade expansion.

Top 5 biggest export partners in 2023

No.	Country	Export turnover (billion USD)
1	The U.S.	96.9
2	China	61.2
3	EU (27)	44.1
4	ASEAN	32.6
5	Korea	23.5

Top 5 biggest import partners in 3

No.	Country	Import turnover (billion USD)
1	China	110.6
2	Korea	52.5
3	ASEAN	40.9
4	Japan	21.628
5	Eu (27)	15

Important goods in the export field

The Ministry of Industry and Trade places a strong emphasis on promoting exports in key sectors such as electronics, textiles, and agriculture, which play a significant role in Vietnam’s external trade relationships. Therefore, important goods in Vietnam’s export field include the following:

Telephones, computers and electronics components

Vietnam exports these items to more than 100 global markets, showcasing its strong presence and adaptability in the international trade landscape. The main export markets of these goods include: the U.S., China, EU, Hong Kong, ASEAN, and Korea.

According to the General Statistics Office, the export turnover of electronics, computers and components is an increasingly large proportion of the total export turnover, the growth of electronics, computers and components has a significant impact on the overall growth of the country’s exports. In 2023, the export of electronics, computers and components will rank first among the 7 groups of goods with a turnover of over 10 billion USD in Vietnam.

For phones and electronics components, Vietnam is currently becoming an important production base for the global electronics manufacturing industry. Apple as an example, since 2019, the company has started assembling and producing AirPods in Vietnam. Then, in 2020, sources said that Apple asked its main assembly plant Foxconn to transfer part of its iPad and MacBook assembly operations to Vietnam.

Textiles and garments

The textile industry holds another significant importance position in Vietnam’s exports, with the length of practice and the recognization in the global trade market.  In terms of markets, in 2023, Vietnam’s textiles and garments were exported to the most 6 markets including the United States, Japan, Korea, EU, China, Canada. In 2023, growth was recorded compared to 2022 in the markets of Russia, Saudi Arabia, Spain, Australia, India, etc. In addition, textile and garment enterprises also penetrated a number of new markets in Africa and the Middle East. This contributed to helping the export turnover of the textile and garment industry not decrease sharply in the context of a sharp decline in purchasing power.

Agricultural products

Over the past 04 decades, agricultural products have propelled Vietnam to international recognition for the high quality, notably to significant markets such as the U.S., EU, China, and Japan. In 2023, in addition to vegetables and rice with impressive contributions, in particular, some other agricultural products also had high growth, such as cashew nuts reaching 3.63 billion USD, coffee reaching 4.18 billion USD, up 3.1%… This result brought the total export turnover of the agricultural sector in 2023 to 26.4 billion USD, an increase of over 17% compared to 2022.

Important goods in the import field

Electronic products and components

Supporting our manufacturing and export sectors, electronic products and components are vital imports for Vietnam. By the end of May 2024, the country’s import value of goods reached 147.66 billion USD, a sharp increase of 17.3%, equivalent to an increase of 21.77 billion USD compared to the first 5 months of 2023. Of which, the strongest increase was in the group of computers, electronic products and components (up 8.56 billion USD); machinery, equipment, tools and spare parts (up 2.4 billion USD); iron and steel of all kinds and products (up 1.56 billion USD); textile and footwear raw materials and accessories (up 1.35 billion USD). For the above 4 groups of goods alone, the import value increased by 13.97 billion USD compared to the first 5 months of 2023, accounting for 64% of the country’s increased import value.

Three most important domestic developments:

Firstly, strengthening legal framework for foreign investment

In recent years, Vietnam’s National Assembly enacted Law on Investment 2020 and the Government issued Decree No. 31/2021/ND-CP (“Decree 31”), which made stronger changes in the advantages of the investment environment. Specifically, Under Decree 31, foreign investors are allowed to invest in sectors that Vietnam has not committed to open for foreign investments in the trade agreements, as long as Vietnam’s law does not have any restrictions for them to do so. Decree 31 also provides detailed regulations for various industries, professions, market access for foreign investors, and investment incentives. In 2024, Decree 31 greatly boosted Vietnam’s investment market. By September 31, 2024, the total registered foreign investment (FDI) capital in Vietnam reached more than 24.78 billion USD, an increase of 11.6% over the same period in 2023, the realized capital of FDI projects is estimated at about 17.3 billion USD, an increase of 8.9%..

The Government’s September 2024 thematic meeting on law-making to review, comment and approve proposals and draft laws (including: Draft Law on Public Investment (amended); Draft Law on amending and supplementing a number of articles of the Law on Planning, Law on Investment, Law on Investment under the form of public-private partnership and Law on Bidding; Draft Law on amending and supplementing a number of articles of the Law on Securities, Law on Accounting, Law on Independent Audit, Law on State Budget, Law on Management and Use of Public Assets, Law on Tax Administration, Law on National Reserves). On August 1, 2024, the new Land Law 2024 took effect, expanding land use rights for Overseas Vietnamese, regulating land policies for Overseas Vietnamese who are Vietnamese citizens the same as Vietnamese citizens currently in Vietnam

Secondly, inflation control success

In 2023, Vietnam’s average inflation increased by 3.25%, achieving the target set by the National Assembly to control inflation at 4.5%. This is the 10th consecutive year that Vietnam has controlled inflation according to the target, while 43% of countries worldwide faced inflation rates exceeding 10%. To maintain this low inflation rate and stabilize the currency, Vietnam made substantial sacrifices, such as keeping the credit growth lower than the actual economic needs, and stringent control over real estate credit causing a slowdown in the property market, contributing to ensuring macroeconomic stability, creating a foundation for sustainable economic growth, strengthening the confidence of people, businesses and foreign investors in the domestic currency and the business environment in Vietnam.

Throughout 2024, Vietnam has prioritized inflation control amid a global landscape marked by high inflation rates influenced by various economic and political factors. Throughout 2023, Vietnam has prioritized inflation control amid a global landscape marked by high inflation rates influenced by various economic and political factors.

Thirdly, enhancing exports

Despite 2023 being a difficult year for the Vietnamese economy due to impacts from both inside and outside. Vietnam’s economy is highly open, so it is strongly affected by the global economic growth slowdown, the decline in aggregate demand, and market fluctuations. In the whole year of 2023, the export turnover of goods is estimated to reach 355.5 billion USD, down 4.4% compared to 2022. Compared to the beginning of 2023 when the export turnover decreased sharply by double digits, this figure shows a spectacular and remarkable recovery of the business community

In the first 8 months of 2024, the export of goods with many positive signals is creating a strong driving force for businesses, associations, and industries to continue to closely follow market developments and boost exports. The total import-export turnover in the last 2 months has exceeded 70 billion USD, in August alone, exports were nearly 38 billion USD. If the current growth momentum is maintained, this year’s import and export will set a new record, far surpassing the 732 billion USD mark achieved in 2022. And it is entirely possible to expect a record of 800 billion USD.

Three most important international developments:

Firstly, Political conflict situation:

Impact: Conflicts such as the Russia-Ukraine conflict, continue to affect global supply chains and energy prices. This crisis has led to increased energy and commodity prices, making it difficult for many countries to control inflation. The wars in Ukraine and Gaza have disrupted shipping routes in the Black and Red Seas.

Secondly, The European Union (EU)’s trade policy may change when the European Union (EU) has election results, which will have a decisive impact on the bloc’s development in the next 5 years, that is the European Parliament (EP) election in June 2024

Impact: The EU will continue to adjust its trade policy to deal with inflation and energy crisis. These changes may affect trade agreements and relations with partner countries.

Thirdly, the establishment of the Comprehensive Strategic Partnership (“CSP”) with France.

Based on the achievements of bilateral cooperation since the establishment of diplomatic relations in 1973, on the basis of similarities in interests and shared common vision on compliance with the United Nations Charter, General Secretary of the Communist Party of Vietnam, President of the Socialist Republic of Vietnam To Lam and President of the French Republic Emmanuel Macron agreed to upgrade bilateral relations to Comprehensive Strategic Partnership, on the occasion of the official visit to the French Republic by General Secretary and President To Lam from October 6 to 7, 2024. It aims to bolster Vietnam’s regional role, diversify supply chains, promote clean energy, and facilitate digital economy growth.

Vietnam has taken various measures to address sustainability issues in international supply chain, covering all three key pillars of sustainability, including:

(1) Environmental performance

Like other countries all over the world, Vietnam faces environmental challenges in its supply chain, including poor waste management, inefficient use of energy, greenhouse gas emissions, and water pollution from various industries and transportation.

To address these matters, Vietnam has enacted the Environmental Protection Law, the Hydrometeorology Law, and a series of related decrees and circulars, all designed to safeguard and enhance environmental health and ecosystem vitality.  These regulations have led to improved compliance among Vietnamese companies, who now treat wastewater, commit to environmental protection, assess environmental impacts, save energy, and manage waste more effectively.

To implement Vietnam’s commitments under the 26^th United Nations Framework Convention on Climate Change (COP26) to achieve net-zero emissions by 2050 and combat climate change, the Prime Minister of Vietnam issued Decision No. 500/QD-TTg dated 15 May 2023, approving the National Power Development Plan for the period 2021-2030, with a vision to 2050 (“PDP VIII”). The plan establishes clear objectives for controlling greenhouse gas emissions from electricity production, aiming for emissions to range from approximately 204 to 254 million tons by 2030, with a further reduction to about 27 to 31 million tons by 2050. It sets a peak emissions target of no more than 170 million tons by 2030, contingent upon the full and effective implementation of commitments under the Just Energy Transition Partnership (JETP) by international partners. Additionally, in 2024, the Prime Minister issued Decision No. 262/QD-TTg dated 01 April 2024, approving the implementation plan for the PDP VIII. This decision includes the study and development of two renewable energy industrial and service centers in Northern Vietnam and South Central-Southern Vietnam by 2030, such as green and low-carbon industrial zones and manufacturing plants for equipment serving the development of renewable energy, port services, and logistics for construction, operation, and maintenance.

Furthermore, Vietnam is promoting eco-friendly practices in the logistics sector, encouraging green transportation, sustainable packaging, environmentally responsible warehousing, and efficient management of green logistics data.

(2) Social responsibility

Vietnam faces various social issues in its supply chain management, including labor rights violations, poor working conditions, low wages, child labor, and safety concerns, particularly in industries like textiles and electronics manufacturing.

To deal with these issues, Vietnam places emphasis on corporate social responsibility, particularly concerning labour standards and human rights conditions. To address labor standards issues, Vietnam has updated its labor regulations in Law on Labour 2019, aiming at improving working conditions and protecting employees. These revisions involve periodically raising minimum regional wages, establishing a balance between working and rest hours, requiring mandatory insurance for employees, and ensuring a non-discriminatory working environment, among other measures.

In terms of ensuring human rights in supply chain management, Vietnam has taken steps to prevent forced and child labor, implementing the National Program on Prevention and Reduction of Illegal Child Labor since 2022, with goals to reduce child labor rates among 5 to 17-year-olds to below 4.9% by 2025 and below 4.5% by 2030.

(3) Economic contribution

In terms of economic difficulties in Vietnam’s supply chain, key issues include supply chain disruption, job loss, and vulnerability to global market fluctuations.

To address these issues, Vietnam has focused on enhancing the competitiveness of its national supply chain, with a specific emphasis on digital transformation efforts in logistics services, as highlighted in Decision No. 221/QD-TTg dated 22 February 2021 of the Prime Minister.

Additionally, the country has diversified its economic sectors, actively encouraged foreign investments to create more job opportunities for employees. The government has also participated in several international agreements, for example, the recent Indo-Pacific Economic Framework (IPEF) agreement with 13 other member countries to improve supply chains. Furthermore, Vietnam is currently a Comprehensive Strategic Partner with the United States (declared in September 2023), Japan (declared in November 2023), and most recently, on 07 March 2024, Vietnam and Australia announced an upgrade to a Comprehensive Strategic Partnership. This serves as a foundation for Vietnam to expand its cooperation in international supply chains with developed countries.

Vietnam attempts to address sustainability issues in global supply chains in numerous FTAs and international agreements, such as:

(1) United Nations Framework Convention on Climate Change (UNFCC)

Being an active member of UNFCC, during the 26^th to 28^th United Nations Climate Change Conference (COP), Vietnam, alongside with more than 147 countries representing nearly 90 percent of greenhouse gas emissions and over 90 percent of global GDP, has consistently pledged to achieve net-zero emissions by the mid-century.

(2) Alliance for Transformative Action on Climate and Health (ATACH)

On 17 November 2023, the Ministry of Health and the World Health Organization (WHO) in Vietnam announced that Vietnam has joined the ATACH. With the support of WHO, the Ministry of Health has piloted a model for healthcare facilities that are adaptive and resilient to climate change while promoting environmental sustainability, thereby progressing towards the goal of achieving net-zero emissions by the mid-century.(2) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

By entering CPTPP with the Environment Chapter therein, Vietnam commits to promote sustainable development by harmonizing trade and environmental policies, emphasizing environmental protection, wildlife conservation, and transitioning to low-emission economies.

(3) EU-Vietnam FTA (EVFTA)

The EVFTA addresses both labor and environmental issues, requiring Vietnamese companies to comply with labor standards outlined therein and promote trade in products derived from sustainably managed natural resources, emphasizing responsible and ethical practices.

Vietnam is taking some specific measures to promote near-shoring/on-shoring for strategic goods, as follows:

(1) Resolution No. 44/NQ-CP dated 05 April 2024, of the Government and the directives of the Deputy Prime Minister as stated in Notice No. 264/TB-VPCP dated 19 June 2024

The Government and the Deputy Prime Minister have issued two documents to direct the study of regulations on the reduction of registration fees for domestically manufactured and assembled automobiles. The Ministry of Finance is currently coordinating with relevant ministries and sectors to research and submit proposals to the Government and the Prime Minister for the consideration and issuance of regulations on reducing the registration fee for domestically manufactured and assembled automobiles. If the registration fee is reduced by 50% for domestically produced and assembled automobiles for a period of 6 months, it would result in a reduction of approximately VND 5,200 billion in state budget revenue from registration fees.

This is expected to contribute to supporting the domestic automobile manufacturing and assembly industry in recovering production and business operations in the context of an economy facing many difficulties and challenges, as well as stimulating domestic consumption.

(2) Directive No. 29/CT-TTg dated 27 August 2024, of the Prime Minister regarding the stimulation of consumption, support for production and business, and the development of the domestic market.

According to Directive No. 29/CT-TTg, the Prime Minister has assigned the Ministry of Industry and Trade the task of ensuring that e-commerce platforms operating in Vietnam implement programs for the consumption of domestically produced goods and products. This includes launching a movement to promote the consumption of Vietnamese goods and local products through models of Vietnamese stalls and Vietnamese products on e-commerce platforms.

Furthermore, in the Directive, the Prime Minister has also assigned the Ministry of Agriculture and Rural Development the task of connecting and supporting the consumption of agricultural products in concentrated production areas; promoting green and clean production while ensuring food safety. It encourages the opening of the official export market for agricultural products to neighbouring markets such as China and negotiating a reduction in the rates of phytosanitary inspections.

At the same time, the State Bank of Vietnam is directed to enhance the implementation of lending through electronic and online forms; simplify loan procedures for consumer loans, creating favourable conditions for individuals and businesses to access loans to stimulate the consumption of domestically produced goods.

In the context of rapidly developing e-commerce in Vietnam, encouraging e-commerce platforms to consume Vietnamese products is essential.

Vietnam does not have specific legal regime governing trade sanctions. Therefore, it has not evolved in responding to ongoing geopolitical developments, such as the ongoing crisis in Ukraine. Instead, Vietnam has adopted a neutral position, abstaining from explicit condemnation or endorsement of Russia’s actions.

Yes, under the Law on Foreign Trade Management 2017, Vietnam’s trade remedies include the following: anti-dumping duty, countervailing duty, and safeguard (“Trade Remedies”).

Regarding the use of the Trade Remedies, as of June 2024, Vietnam conducted 28 Trade Remedies investigations. In which, the most commonly used remedy is anti-dumping duty (used in 18 cases), the most commonly applied jurisdiction is China (applied in 16 cases) and the most commonly applied product is steel (applied in 6 cases).

Key applicable legislation relating to Trade Remedies:

The Law on Foreign Trade Management 2017;

Decree No. 10/2018/ND-CP;

Circular No. 37/2019/TT-BCT.

Trade Remedies investigation authority: Trade remedy investigation authority (“Investigation Agency”) under the Ministry of Industry and Trade (“MOIT“)

Trade Remedies application decision authority: Minister of MOIT.

The process for a domestic business and/or industry (“Domestic Representative”) to seek Trade Remedy:

To seek Trade Remedy, a Domestic Representative must submit a request and supporting documents to the Investigation Authority. In general, depending on the Trade Remedy, the request and supporting documents will be varied. However, in general, the request form and supporting documents shall include the following information:

(i) Information about the Domestic Representative.

(ii) Information, data, and evidence to identify Domestic Representative, including domestic organization and individual producing similar goods, quantity, amount of these similar goods

(iii) Relevant information about organizations or individuals producing similar goods that support or oppose the investigation

(iv) Imported goods description subject to the investigation

(v) Similar domestic goods description

(vi) Information related to trade action

(vii) Information, data, and evidence regarding significant damage or threats to cause significant damage to the domestic industry

(viii) Information, data, and evidence demonstrating the cause-effect relationship between the imported goods and the significant damage or threats to cause significant damage

(ix) Specific requests regarding the application of trade remedy measures

In the Trade Remedies investigation process, foreign producers have the following rights:

Access information that other relevant parties provide to the Investigation Authority, except for confidential information;

Submit opinions on conclusions of the Investigation Authority;

Proposing the Investigation Agency to extend the time limit for providing information or responding to investigation questionnaires;

Request to keep information confidential;

Participate in consultation sessions and present opinions, provide related evidence and documents;

Authorize another party to participate during the investigation process;

Request for separate consultation;

Complain and sue decisions of the Minister of MOIT.

Yes, regulations and procedures regarding investigation of evasion of trade remedies are provided in the following legislation:

Law On Foreign Trade Management

Decree 10/2018/NĐ-CP

Consequences of evasion of Trade Remedies

The consequences of evasion of Trade Remedies are that the existing Trade Remedies in effect will be extended to apply to each manufacturer and exporter of goods found to engage in Evasion of Trade Remedies.

Substantive legal tests for the application of remedies:

Under the Vietnam’s law, we are aware of no specific term for substantive legal tests for the application of Trade Remedies. However, before the application of Trade Remedies, the Investigation Authority must conduct a thorough and transparent investigation procedures. The investigation involves collecting and verifying information, determining damages and causation, and calculating dumping margins or subsidy amounts, etc.

Application of a lesser duty rule in anti-dumping investigations:

YES.

According to Article 81.3(c) Law on Foreign Trade Management 2017, the anti-dumping duty must not exceed the dumping margin in the final investigation conclusion. At the same time, under Article 12.1 of the Law on Import – Export Duties 2016, Vietnam requires that anti-dumping duty shall be applied to a necessary and reasonable extent to prevent or limit substantial injury to the domestic industry.

Public interest test in anti-dumping investigations:

YES.

According to Article 80.4 of the Law on Foreign Trade Management 2017, one of the aspects of the anti-dumping investigation includes the determination of the impact of the anti-dumping measures on the socio-economic status.

Notable features of your jurisdiction’s trade remedy regime:

In the context that Vietnam is integrating deeply and widely into the regional and global economy, to protect domestic production, the Vietnamese trade remedies regime has been continuously improved, enhancing its ability to protect domestic production. However, although trade remedies regime is being improved, Vietnam’s application of trade defense measures still ensures full compliance with international treaties to which Vietnam is a member.

YES.

When there are grounds to believe that an administrative decision or administrative act is illegal and directly infringes upon one’s legitimate rights and interests, the affected party is entitled to file a complaint against the competent authority responsible for such unlawful administrative decision or act (“Responsible Authority”). Alternatively, the affected party may initiate an administrative lawsuit against the said authority according to the Law on Administrative Procedures.

Complaint procedure

Step 1: Submit the first complaint:

The complainant may file a written complaint or make direct complaint at the Responsible Authority.

Step 2: Process the first complaint:

Within 10 days from the date of receiving the complaint, the Responsible Authority must handle and resolve it. If they refuse to do so, they must provide explicit and justified reasons for their decision.

Step 3: Deliver the complaint resolution decision

Within 3 days from the issuance date of the decision on resolving the first complaint, the Responsible Authority shall deliver the said decision to the complainant, and relevant entity and authorities.

Furthermore, if the first complaint is not resolved in the regulatory time limit or the complainant does not agree with the first complaint resolution decision, the complainant is entitled to file the second complaint with similar procedures as the first complaint or initiate an administrative lawsuit.

If the complainant disagrees with the second resolution decision or when the regulatory time limit for complaint resolution has expired without a resolution, the complainant has the right to initiate an administrative lawsuit.

Administrative lawsuit procedures

Step 1: Filing a petition

The plaintiff files a petition and supporting documents and evidence to the competent Court.

Step 2: Processing the petition

After receiving the petition, the competent Court records in the petition receipt book, sends a notice of receipt of the petition to the plaintiff. The Chief Judge assigns a Judge to review the lawsuit dossier.

After reviewing the petition, the assigned Judge shall make one of the following decisions: acceptance of the case, request to amend or supplement the petition, transfer the petition to the competent Court, or refuse the petition.

Step 3: Pay the advanced court fee

The plaintiff pays the court fee in advance (except in cases where it is exempted or not required to be paid) and submits the reciept to the Court.

Step 4: Notify the acceptance of the case

The Judge issues a written notice and delivers it to the litigant and the same level People’s Procuracy and makes an announcement on the court’s e-portal (if any).

Step 5: Conduct the dialogue procedure

The court conducts dialogues for litigants to reach an agreement regarding a resolution of the case, except for cases resolved by summary procedures.

Step 6: Bring the case to trial in the First Instance Court Hearing:

The Court conducts the trial according to the provisions of the Law on Administrative Procedures and issued a judgment.

Step 7: Appeal against the First Instance Judgment:

The litigants or the litigants’ representative presenting at the trial is entitled to appeal the First Instance Judgment within 15 days from the issuance date of the judgment. For litigants absent from the trial due to legitimate reasons, the appeal time limit starts from the date the litigant received the judgment or from the date the judgment is legally listed.

According to information available on the WTO website, as of 2024 October, the WTO has never challenged any trade remedy measures applied by Vietnam.

The General Department of Customs and its affiliates are the key authorities responsible for enforcing Customs laws and regulations. Their role includes:

(i) perform inspection and supervision of goods and means of transport;

(ii) prevent smuggling and illegal transportation of goods across borders;

(iii) organize the implementation of tax laws on exported and imported goods;

(iv) statisticize on exported and imported goods according to customs laws and other relevant laws;

(v) propose policies and measures for state management of customs for export, import, exit, entry, transit, and tax policies for export and import goods.

Yes, importers are entitled to request customs authorities to pre-determine the following information on import goods:

(i) Harmonised System (HS) codes;

(ii) Origin of goods;

(iii) Customs value of goods.

Customs decisions can be challenged:

Customs decisions can be challenged through reconsideration process, complaint procedure, or administrative procedures.

Regarding pre-determination of import goods, within 60 days from the issuance date of the notice of pre-determination result, if the customs declarant disagrees with the pre-determination result, they can ask the customs authority to reconsider such result. The customs authority is responsible for reviewing and responding to the customs declarant within the statutory timeline.

If customs declarant does not agree with the recosidered decision, they are entitled to initiate the complaint procedure or administrative procedures.

Regarding import tariffs:

Information about Vietnam applicable import tariffs are regulated in the following legal instruments:

– Law on Export and Import Tax 2016;

– Decree No. 134/2016/ND-CP;

– Decree No. 26/2023/ND-CP;

– Decision No. 15/2023/QD-TTg.

Additionally, information about import taxes can be found on the official website of the General Department of Customs at:

https://www.customs.gov.vn/index.jsp?pageId=24&id=NHAP_KHAU&name=Nh%E1%BA%ADp%20kh%E1%BA%A9u&cid=1201

Regarding other customs charges:

Currently, information regarding other customs charges of can be found in Circular No. 14/2021/TT-BTC.

a. Authorised Economic Operator (AEO) or equivalent programme?

YES.

Vietnam jurisdiction does have AEO programme, which is legislated in the Law on Customs 2014. As of 2024 May, Vietnam has 75 firmed certified as AEOs.

b. Mutual recognition arrangements (MRAs) with other jurisdictions in relation to their AEO programmes?

YES.

Vietnam signed its first Mutual Recognition Agreement on Authorised Economic Operator on 14 February 2023 with the Customs of other member countries of the ASEAN.

c. Suspension of duties on any goods imports (for example, for goods for which there is no domestic production)?

YES.

In support of the Covid–19 fight, Vietnamese Government has issued Resolution No.106/NQ-CP to waive import tariffs on goods and products in support of the Covid-19 fight. However, this Resolution expired on 28 October 2023.

d. Allowing goods imports valued below a certain amount to enter duty free (de minimis shipments)?

YES

According to Decree No. 134/2016/ND-CP, imported goods value under the following thresholds will be exempt from duties when entering Vietnam:

(1) Goods imported through postal and express delivery services have a value of VND 1,000,000 or less; or tax payable amount of VND 100,000 or less will be exempt from import duties; and

(2) Goods with a total customs value of VND 500,000 or less, or a total export, import tax amount of VND 50,000 or less for a single import, export transaction will be exempt from export, import duties.

Regarding the free trade zones:

According to Decision No. 100/2009/QD-TTg dated 30 July 2009, a free trade zone is an area in a non-customs zone within an economic zone or a border-gate economic zone.

Regarding the other facilities available in Vietnam

– Bonded warehouse: means a depot for storing goods for which customs formalities have been completed and which are stored pending their export; goods sent from abroad and stored pending their re-export or their import into Vietnam.

– Tax-suspension warehouse: means a warehouse used to store imported materials and supplies formalities serving production of exported products that have been granted customs clearance but taxes on which have not been paid

– Container freight station: means depots used for carry out activities of collecting, dividing and separating goods from many shippers transporting the same container

The domestic scrutiny and transparency arrangements before and during negotiations for a trade agreement

Before negotiation

Step 1. Proposal for negotiation

The proposal for a trade agreement negotiation shall fall under the authority of the Supreme People’s Court, the Supreme People’s Procuracy, the State Audit Office of Vietnam, Ministries, Ministry-level agencies and Governmental Bodies (“Proposing Agency”). The Proposing Agency shall submit a proposal to:

– the Government: for the Government to submit a proposal to the President for negotiation of the trade agreement representing the State;

– the Prime Minister: for negotiation of the trade agreement representing the Government.

Step 2. Preparation of negotiation

The Proposing Agency will carry out the following duties:

1. Conduct the preliminary assessment of political, national defense, security, socio-economic and other impacts of the trade agreement;
2. Conduct the preliminary review of applicable laws, regulations and treaties to which Vietnam is a party in the same sector, and make comparison with the main contents of the treaty to be proposed for negotiation;
3. Obtain opinions from the Ministry of Foreign Affairs, the Ministry of Justice and relevant entities.

Step 3:  Submission of the dossier regarding the negotiation of the trade agreement

The Proposing Agency or the Prime Minister (“Submitting Agency“) shall submit the dossier regarding negotiating the trade agreement the Prime Minister or the President, respectively. The negotiation dossier shall include:

(1) The written submission, clearly stating: the necessity, requirements, negotiation objectives, and main content of the trade agreement; the results of item (a) and (b) in Step 2; proposals for negotiation and negotiation authorization.

(2) Results of consultation in item (c) of Step 2; explanations of the Proposing Agency after the consultation and its propose solutions.

Step 4: Decision on negotiation

Decision on negotiation or authorization of the trade agreement shall fall under the authority of the President for the trade agreement representing the State or the Prime Minister for the trade agreement representing the Government.

Step 5: Organizing the negotiation

The Proposing Agency presides over and collaborates with relevant agencies and organizations to develop and propose to the Prime Minister a negotiation plan, a draft trade agreement on the Vietnamese side, and the composition of the negotiating team.

During negotiation

– The Proposing Agency presides over consultations with organizations directly affected by the trade agreement during the negotiation.

– The Proposing Agency is responsible for promptly reporting to the Prime Minister on issues arising during the negotiation and proposing solutions to handle them.

Ratification procedures of a trade agreement

Regarding trade agreement must be ratified

(1) Trade agreements must be ratified:

(i) Ratification is required under the trade agreement;

(ii) Trade agreement signed in the name of the State; and

(iii) Trade agreement signed in the name of the Government and contain provisions contrary to laws or resolutions of the National Assembly.

In addition, depending on contents of the trade agreement or the signatory, such trade agreement will be ratified the National Assembly or the President.

(2) Ratification procedures:

(i) Ratification by the President

– The Proposing Agency obtains written opinions from the Ministry of Foreign Affairs, the Ministry of Justice, and relevant agencies or organizations.

– The Proposing Agency submits the ratification dossier to the Government and the Government presents the dossier to the President for ratification.

– The President issues the document ratifying the trade agreement.

(ii) Ratification by the National Assembly

– The Government submits ratification dossier to the President and the President present the dossier to the National Assembly for ratification.

– The National Assembly’s Committee for Foreign Affairs presides over and cooperates with the Council of Ethnic Nationalities and other committees of the National Assembly to examine the trade agreement.

– The National Assembly considers and ratifies the trade agreement at the National Assembly session

Regarding trade agreement must be approved

(1) Trade agreement must be approved:

Except for cases falling under the ratification authority of the National Assembly, the following trade agreements must be approved by the Government:

– The trade agreement signed in the name of the Government and requires the approval or the completion of legal procedures according to each country’s regulations to take effect;

– The trade agreement signed in the name of the Government and contains provisions contrary to provisions in the Government’s legal instruments.

(2) Approval procedures

– The Proposing Agency obtains written opinions from the Ministry of Foreign Affairs, the Ministry of Justice, and relevant agencies or organizations.

– The Proposing Agency submits the trade agreement approval decision to the Government.

– The Government issues the document approving the trade agreement.

Regarding trade agreements that do not require ratification or approval

The act of signing these agreements is considered Vietnam’s acceptance of commitments under the trade agreement.

Regarding exchange of instruments constituting a trade agreement

The exchange of letters, diplomatic notes or otherwise named documents shall constitute a trade agreement and Vietnam’s acceptance of commitments under such trade agreement without ratification or approval.

When Vietnamese traders are imposed measures inconsistent with WTO and/or FTA from other jurisdictions, they can send a written request to the Ministry of Industry and Trade (MOIT) to ask the Government to take action against these measures. Subsequently, MOIT will evaluate and work with other ministries to support local traders.