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) – The latest conference:

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.

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.

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.	18/02/2022	DS611 China — Enforcement of Intellectual Property Rights	European Union
2.	27/01/2022	DS610 China — Measures Concerning Trade in Goods	European Union
3.	24/6/2021	DS603 Australia — Anti-Dumping and Countervailing Duty Measures on Certain Products from China	China
4.	22/6/2021	DS602 China — Anti-Dumping and Countervailing Duty Measures on Wine from Australia	Australia
5.	11/6/2021	DS601 China — Anti-Dumping measures on stainless steel products from Japan	Japan
6.	09/9/2019	DS589 China — Measures Concerning the Importation of Canola Seed from Canada	Canada
7.	14/5/2018	DS546 United States — Safeguard measure on imports of large residential washers; and   DS545 United States — Safeguard measure on imports of crystalline silicon photovoltaic products	Republic of Korea

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 levels.

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

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
1	VIFTA	Negotiations commenced in December 2015, completed in April 2023. Officially signed on 25 July 2023	Israel	2024
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	In the process of initiating negotiations	UAE	2024

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 2022

No.	Country	Export turnover (billion USD)
1	The U.S.	109.388
2	China	57.702
3	Korea	24.293
4	Japan	24.232
5	Hong Kong	10.936

Top 5 biggest import partners in 2022

No.	Country	Import turnover (billion USD)
1	China	117.866
2	Korea	62.088
3	Japan	23.373
4	Taiwan (China)	22.631
5	The U.S.	14.47

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.

Textiles and garments

The textile industry holds another significant importance position in Vietnam’s exports, with the length of practice and the recognisation in the global trade market. The U.S., Japan, Korea, England, Germany, and China serve as the primary destinations for these products.

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.

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. In 2022, these imports nearly reached USD 81.88 billion, marking an 8.4% increase from 2021. Key markets include China at USD 24.06 billion (a 9.6% increase), South Korea at USD 23.2 billion (a 14.3% increase), and Taiwan at USD 11.07 billion (a 15.1% increase) compared to 2021.

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 2022, Decree 31 greatly boosted Vietnam’s investment market. By December 2022, Vietnam attracted $27.72 billion in foreign investment, a 13.7% increase from 2021 and 10% higher than 2019.

Secondly, inflation control success

In 2022, Vietnam achieved a remarkable milestone by successfully keeping inflation below 4% 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 caused a slowdown in the property market.

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 global economic in 2022, Vietnam’s import – export tunrover reached USD 732.5 billion, marking an impressive 9.5% growth compared to the previous year. 36 export items crossed the billion-dollar mark, with the top items: electronics, phones, processing, etc. contributing to 70.1% of the total export turnover. Notably, Vietnam’s seafood industry achieved a historic milestone by surpassing USD 10 billion in export turnover, a testament to the robust value chain. Additionally, 2022 marked a significant achievement as Vietnam’s exports to the U.S., a vital market, exceeded USD 100 billion for the first time.

In the first half of 2023, Vietnam’s exports faced challenges compared to 2022 but remain motivated by the prior year’s success.

Three most important international developments:

Firstly, the conflict between Russia and Ukraine

In 2021, Vietnam’s trade with Russia reached $7.14 billion, marking a 25.9% increase from the previous year. However, the ongoing Russia-Ukraine conflict has disrupted Vietnamese exports, leading to order crash and impacting global food prices. Moreover, the exclusion of Russian banks from the SWIFT system by the U.S. and several European countries may pose challenges to foreign transactions.

Currently, Vietnam adapts to Russia-Ukraine challenges through creativity and flexibility, finding new partners for stable import-export, ensuring economic stability and growth.

Secondly, the increase in FED interest rates

The FED’s recent rapid interest rate hikes have far-reaching effects on Vietnam. Positively, there is an implication that fiscal policy has more room to be utilized effectively in Vietnam’s economic strategy. Negatively, the FED’s contractionary monetary policy aimed at controlling inflation is challenging for emerging economies like Vietnam, where the trade-off between inflation, exchange rate stability, and economic growth is likely to be significant.

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

On September 2023, US President Joe Biden and General Secretary of the Communist Party of Vietnam Nguyen Phu Trong announced the elevation of Vietnam-US relations from a Comprehensive Partnership (established in 2013) to a CSP. This strategic partnership offers valuable prospects for innovative collaborations, allowing Vietnamese products to integrate into global value chains, particularly in sectors like energy, aviation, digital economy, and artificial intelligence. 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.

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.

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 26th United Nations Climate Change Conference, Vietnam, alongside with 147 countries representing nearly 90 percent of greenhouse gas emissions and over 90 percent of global GDP, pledged to achieve 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.

Under the Vietnam’s law, we are aware of no specific domestic measures to promote near-shoring/on-shoring for strategic goods available at this moment.

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 2022, Vietnam conducted 25 Trade Remedies investigations. In which, the most commonly used remedy is anti-dumping duty (used in 13 cases), the most commonly applied jurisdiction is China (applied in 12 cases) and the most commonly applied product is steel (applied in 5 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 2023 November, 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 2023, 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.

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:

a. Conduct the preliminary assessment of political, national defense, security, socio-economic and other impacts of the trade agreement;

b. 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;

c. 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.