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G/SCM/N/155/VNM 13 March 2013 (13-1378

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G/SCM/N/155/VNM 13 March 2013 (13-1378) Page: 1/58 Committee on Subsidies and Countervailing Measures Original: English SUBSIDIES NEW AND FULL NOTIFICATION PURSUANT TO ARTICLE XVI.1 OF THE GATT 1994 AND ARTICLE 25 OF THE AGREEMENT ON SUBSIDIES AND COUNTERVAILING MEASURES VIET NAM The following communication, dated 4 March 2013, is being circulated at the request of the Delegation of Viet Nam. _______________ The following notification provides details of support programmes for the period 2005-2007. It serves as a full and updated notification for subsidies effective during the notified period, inclusive of both new (if any) and previously notified programmes. This notification may be supplemented, in due time, to incorporate further elements or clarifications. In this notification, Viet Nam has included certain measures which may not constitute "subsidies" under Article 1 of the Agreement on Subsidies and Countervailing measures ("the Agreement" hereinafter) and certain subsidies which may not be "specific" under Article 2 of the Agreement in order to achieve the maximum transparency with respect to the relevant programmes and measures effective within its territory during the notified period. G/SCM/N/155/VNM - 2 - TABLE OF CONTENTS 1 PREFERENTIAL IMPORT TARIFF RATES CONTINGENT UPON LOCALISATION RATIOS WITH RESPECT TO PRODUCTS AND PARTS OF MECHANICAL-ELECTRIC- ELECTRONIC INDUSTRIES (UPDATING PROGRAMME II OF NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................................................... 4 2 SUPPORT FOR THE IMPLEMENTATION OF PROJECTS MANUFACTURING PRIORITY INDUSTRIAL PRODUCTS (UPDATING PROGRAMME III OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ........................................................ 5 3 INVESTMENT INCENTIVES CONTINGENT UPON EXPORT PERFORMANCE FOR DOMESTIC BUSINESSES (UPDATING PROGRAMME IV OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................................................... 6 4 OTHER INVESTMENT INCENTIVES FOR DOMESTIC BUSINESSES (UPDATING G PROGRAMME V ON NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................... 9 5 INVESTMENT INCENTIVES CONTINGENT UPON EXPORT PERFORMANCE FOR FOREIGN-INVESTED ENTERPRISES (UPDATING PROGRAMME VI OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................... 13 6 OTHER INVESTMENT INCENTIVES FOR FOREIGN-INVESTED ENTERPRISES (UPDATING PROGRAM VII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003- 2004) ............................................................................................................................. 15 7 PREFERENTIAL INVESTMENT CREDIT FOR DEVELOPMENT CONTINGENT UPON EXPORT CRITERIA (UPDATING PROGRAMME VIII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) .................................................................................... 18 8 PREFERENTIAL DEVELOPMENT CREDIT FOR INVESTMENT CONTINGENT UPON LOCALISATION RATIOS (UPDATING PROGRAM IX OF THE NOTIFICATION OF SUBSIDIES PERIOD 2003-2004) .................................................................................... 21 9 OTHER PREFERENTIAL INVESTMENT CREDIT FOR DEVELOPMENT (UPDATING PROGRAM X OF NOTIFICATION OF SUBSIDIES PERIOD 2003-2004) ............................. 23 10 EXPORT PROMOTION (UPDATING PROGRAM XII OF THE SCM NOTIFICATION 2003-2004) ........................................................................................... 27 11 TRADE PROMOTION (UPDATING PROGRAM XIII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) .................................................................................... 28 12 SUPPORT FOR MECHANICAL PRODUCTS (UPDATING PROGRAM XIV OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................... 29 13 SUPPORT FOR SHIPBUILDING INDUSTRY (UPDATING PROGRAMME XV OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004)............................................... 30 14 ASSISTANCE FOR COMMERCIAL DEVELOPMENT IN MOUNTAINOUS, ISLAND AND ETHNIC MINORITY AREAS (UPDATING PROGRAMME XVI OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................... 32 15 ASSISTANCE TO ENTERPRISES FACING DIFFICULTIES DUE TO OBJECTIVE REASONS (UPDATING PROGRAMME XVII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) ...................................................................................................... 34 16 INCENTIVES FOR INVESTMENT PROJECTS IN SCIENCE AND TECHNOLOGY (UPDATING PROGRAMME XVIII OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) .................................................................................................................... 35 ANNEX I ......................................................................................................................... 37 ANNEX II ....................................................................................................................... 39 ANNEX III ...................................................................................................................... 42 ANNEX IV ....................................................................................................................... 45 ANNEX V ........................................................................................................................ 47 G/SCM/N/155/VNM - 3 - ANNEX VI ....................................................................................................................... 48 ANNEX VII ..................................................................................................................... 49 ANNEX VIII .................................................................................................................... 51 ANNEX IX ....................................................................................................................... 53 ANNEX X ........................................................................................................................ 56 G/SCM/N/155/VNM - 4 - 1 PREFERENTIAL IMPORT TARIFF RATES CONTINGENT UPON LOCALISATION RATIOS WITH RESPECT TO PRODUCTS AND PARTS OF MECHANICAL-ELECTRIC-ELECTRONIC INDUSTRIES (UPDATING PROGRAMME II OF NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 1. Title of the program Preferential import tariff rates contingent upon localization ratios with respect to products and parts of mechanical-electric-electronic industries. 2. Policy objective and/or purposes of the program To encourage domestic production and assembly of products and parts of mechanical-electric- electronic industries. 3. Background and authority for the program a. Background - Inter-Ministerial Circular No.176/1998/TTLT-BTC-BCN-TCHQ dated 25 December 1998 and No.120/2000/TTLT- BTC-BCN-TCHQ dated 25 December 2000 of Ministry of Finance, Ministry Industry and General Department of Customs guiding the implementation of tariff imposition contingent upon localization ratios with respect to products and parts of mechanical-electric- electronic industries; - Decision No.1944/1998/QD-BTC dated 25 December 1998 promulgating the regulation on preferential import tariff rates contingent upon localization ratios with respect to parts of mechanical-electric-electronic industries. - Decision No.43/2006/QD-BTC dated 29 August 2006 abolishing programmes of preferential import tariff rates contingent upon localization ratios with respect to products and parts of mechanical-electric-electronic industries. b. Authority - Ministry of Industry (Ministry of Industry and Trade since 1 August 2007); - Ministry of Finance. 4. Form of the subsidy - From January 2005 to 30 September 2006: preferential import tariff rates contingent upon localization ratios. - From 01 October 2006: Termination of preferential treatment. 5. To whom and how the subsidy is provided As described in Programme I of the document WT/ACC/VNM/13/Add.2. 6. Subsidy per unit Specific statistics data are not available. 7. Duration of the subsidy From 1 January 2005 – 1 October 2006. 8. Statistic data permitting an assessment of the trade effects of the subsidy Unfeasible. G/SCM/N/155/VNM - 5 - 2 SUPPORT FOR THE IMPLEMENTATION OF PROJECTS MANUFACTURING PRIORITY INDUSTRIAL PRODUCTS (UPDATING PROGRAMME III OF THE NOTIFICATION ON SUBSIDIES PERIOD 2003-2004) 1. Title of the program Support for the implementation of projects manufacturing priority industrial products. 2. Policy objective and/or purposes of the program To support the implementation of projects manufacturing priority industrial products. 3. Background and authority for the program a. Background - Decision No.11/2000/QD-CP dated 31 July 2000 of the Government on some measures guiding the socio-economic planning for the last 6 months of 2000; - Decision No.117/2000/QD-TTg dated 10 October 2000 of the Prime Minister on some financial policies and mechanism for shipbuilding projects of the Vietnamese shipbuilding industry; - Decision No. 67/2000/QD-BCN dated 20 November 2000 of the Ministry of Industry on issuing the list of mechanical products entitled to incentives according to the Resolution No.11/2000/NQ-CP dated 31 July 2000 of the Government; - Decision No.37/2000/QD-TTg dated 24 March 2000 and Decision No.19/2001/QD-TTg dated 20 February 2001 of the Prime Minister promulgating the policy of assistance to the development of key industrial products (applicable to ships of 11,500 tons, internal combustion engines under 30 HP and colour TV sets); - Circular No.86/2000/TT-BTC dated 16 August 2000 of the
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