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International trade in goods and services in Vietnam: overview , Practical Law Country...
© 2019 Thomson Reuters. All rights reserved. 1
International trade in goods and services in Vietnam:
overview
by Nguyen Anh Tuan, ANT Lawyers
Country Q&A | Law stated as at 01-Feb-2019 | Vietnam
A Q&A guide to international trade in goods and services in Vietnam.
This Q&A covers key matters relating to the regulation of international trade in Vietnam, including recent trends, trade
agreements, trade negotiations, rules relating to the supply of services, imports and exports requirements, trade remedies, and
international trade restrictions.
To compare answers across multiple jurisdictions, visit the international trade in goods and services Country Q&A tool.
For more information on sale and storage of goods in Vietnam, visit Sale and storage of goods in Vietnam: overview.
This Q&A is part of the International Trade and Commercial Transactions Global Guide. For a full list of jurisdictional Q&As
visit global.practicallaw.com/internationaltrade-guide.
Recent trends
1. What are the recent trends affecting the regulation of international trade in your jurisdiction?
Negotiations of international trade agreements
In recent years, Vietnam has been active in negotiating and signing free trade agreements (FTAs) with key trading
partners, including the US, the EU and Asian countries. The current Government regards FTAs as extremely
important to stimulate Vietnam's economic growth.
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP was
signed on 8 March 2018 without the US. The CPTPP inherited the full content of the TPP and allows member states
to postpone compliance with a few obligations. The CPTPP covers traditional areas such as tariff reductions, services
market opening, intellectual property, and technical barriers to trade.
EU-Vietnam Free Trade Agreement (EVFTA). The EVFTA is a new generation FTA between Vietnam and
the 28 EU member states. Negotiations were officially concluded on 1 December 2015, and the official full text of
the agreement was published on 1 February 2016. On 26 June 2018, the EVFTA was divided into two agreements
on trade and investment. The legal review of the final text was also formally concluded, and the parties concluded
discussions on the Investment Protection Agreement (IPA). The EVFTA is expected to be ratified in 2019.
International trade in goods and services in Vietnam: overview , Practical Law Country...
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Vietnam-European Free Trade Association (EFTA) FTA. The negotiations of the FTA between Vietnam and
the EFTA states (Norway, Switzerland, Iceland, and Liechtenstein) were officially launched on May 2012 and are
still ongoing.
Pending and recently resolved trade disputes
According to the WTO statistics of dispute settlement cases, at January 2019, Vietnam has been involved in five
cases as complainant, zero case as respondent and 33 cases as third party. Vietnam is a claimant in cases DS496,
DS404, DS429, DS536 and DS540.
Trade agreements
2. Is your jurisdiction a member of the World Trade Organization (WTO)? What are the main
international, regional or bilateral trade agreements to which your country is a party?
Vietnam has been a member of the WTO since 11 January 2007. Vietnam is party to the following WTO trade
agreements:
• Agreement on Agriculture.
• Agreement on the Application of Sanitary and Phytosanitary Measures.
• Agreement on Textiles and Clothing.
• Agreement on Technical Barriers to Trade.
• Agreement on Trade-Related Investment Measures.
• Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994.
• Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994.
• Agreement on Preshipment Inspection.
• Agreement on Rules of Origin.
• Agreement on Import Licensing Procedures.
• Agreement on Subsidies and Countervailing Measures.
• Agreement on Safeguards.
• Trade Facilitation Agreement.
• General Agreement on Trade in Services.
• Agreement on Trade-Related Aspects of Intellectual Property Rights.
• Trade Policy Review Mechanism.
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For Vietnam's WTO member profile, visit: www.wto.org/english/thewto_e/countries_e/vietnam_e.htm.
Vietnam is a party to bilateral FTAs with a number of countries, including Japan, the US, South Korea, Chile, and so
on. These FTAs have allowed Vietnamese businesses to expand their markets, access regional and global markets, as
well as gain more favourable access to the services markets of partner countries. Most trade barriers and restrictions
have been lifted, and reduced tariff barriers (mostly 0% or less than 5%) have brought a significant competitive
advantage to the Vietnamese commodity industry, which has benefited the vast majority of employees of import-
export companies.
Trade negotiations
3. What are the authorities responsible for negotiating trade agreements? How long does it usually
take to conclude a trade deal with your country?
Generally, the Government of Vietnam is responsible for organising the negotiation, conclusion, accession to,
ratification and cancellation of international agreements on behalf of the state, as authorised by the President of
Vietnam.
The other authorities responsible for negotiating trade agreements are:
• The Ministry of Foreign Affairs.
• The Ministry of Industry and Trade (MOIT).
• Experts from relevant ministries, depending on the specific issues involved, who will be appointed to
participate in the research and negotiation of trade agreements.
The length of trade negotiations varies. It may take two to three or more years from the beginning of negotiations
to the signing of a trade agreement.
4. Does your country apply interim rules during trade negotiations?
Vietnam does not currently apply more favourable interim tariff rules or non-tariff restrictions during trade
negotiations.
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Since its accession to the WTO, Vietnam has made efforts to harmonise its local laws and regulations to meet the
WTO general principles and requirements. Vietnam applies WTO rules while trade negotiations are ongoing with
other WTO members.
Supply of services
5. Is your jurisdiction a party to international agreements on cross-border trade in services? Is your
jurisdiction taking part in the negotiations of the Trade in Services Agreement (TiSA)?
Most international, regional and bilateral trade arrangements to which Vietnam is a party cover cross-border trade
in services, including the:
• CPTPP.
• Vietnam-Korea FTA (VKFTA).
• EVFTA.
• Vietnam-Japan Economic Partnership Agreement (VJEPA).
• Vietnam-Eurasian Economic Union FTA.
• Vietnam-Chile FTA (VCFTA).
See also Question 2 for information on trade agreements to which Vietnam is a party.
Vietnam does not currently participate in the negotiations of the TiSA.
6. What domestic legislation and international rules apply to the supply of financial services, legal
services and retail sales in your jurisdiction? What are the main requirements that suppliers must
comply with?
Financial services
Regulatory framework. The main laws and instruments regulating the supply of financial services include the
following:
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• Vietnam WTO Commitments on Services.
• Tax law (such as the Law on Export and Import Duties, Law on Value Added Tax, Law on Enterprise Income
Tax, and so on).
• Law on Credit Institutions.
• Law on the State Bank of Vietnam.
• Law on Securities.
• Law on the State Audit Office of Vietnam.
• Law on Foreign Trade Management.
• Law on Investment.
Main requirements. According to Vietnam's WTO commitments, for a period of one year from its accession to
the WTO, the licensing of financial services suppliers had to be made on a case-by-case basis and the number of
licensed services providers decided by the Ministry of Finance, subject to the needs and development of Vietnam's
market. During the same period, foreign-invested enterprises providing taxation services were only permitted to
supply services to foreign-invested enterprises and foreign funded projects in Vietnam. These conditions ceased to
apply after one year from WTO accession.
To provide financial services in Vietnam, a supplier must obtain a licence and/or register with the relevant
authorities. For example, a foreign securities business organisation that wishes to establish a commercial presence
in Vietnam (such as a representative office, subsidiary or branch) must apply to the Vietnam State Securities
Commission for a licence of establishment and operation (Article 72, Decree No. 58/2012/ND-CP). A foreign credit
institution wishing to set up a commercial presence in Vietnam must obtain a licence from the State Bank of Vietnam.
Licensing and registration requirements are governed by various laws and regulations (see above). Generally, most
financial services providers must meet the following general requirements:
• Be a legal entity (for example, a corporation).
• Have a sufficient corporate governance system.
• Have officers or employees with relevant qualifications and experience.
• Have a minimum share capital, the amount of which varies depending on the type of services provided.
• Have a minimum level of net assets.
Legal services
Regulatory framework. The Law on Lawyers governs the provision of legal services in Vietnam. There are no
agreements on the mutual recognition of professional qualifications or standards. However, foreign lawyers that
satisfy certain mandatory conditions (see below) must be granted a licence to practise law in Vietnam, which will
allow them to:
• Provide advice on foreign law and international law.
• Provide other legal services relating to foreign law.
• Provide advice on Vietnam law if they have a bachelor's degree in Vietnamese law and satisfy the
requirements applicable to Vietnamese lawyers.
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(Article 74, Law on Lawyers.)
Main requirements. To practise as a licensed lawyer in Vietnam, a person must:
• Be a Vietnamese citizen who is loyal to the Fatherland.
• Comply with the Constitution and the law.
• Have good moral qualities.
• Have a bachelor of law degree.
• Have trained in a legal practice.
• Have a law practising certificate.
• Join a bar association
(Articles 10 and 11, Law on Lawyers.)
To practise law in Vietnam, a foreign lawyer must:
• Have a valid lawyer practising certificate issued by a foreign competent agency.
• Have experience in providing advice on foreign law and international law.
• Commit to comply with the Constitution and law of Vietnam, the Code of Conduct and Ethics for Vietnamese
lawyers.
• Be appointed by a foreign law firm to practise in Vietnam, or employed by a branch of a foreign law firm in
Vietnam or a Vietnamese law firm.
Retail sales
Regulatory framework. The main domestic laws governing retail sales are the:
• Law on Commerce.
• Law on Foreign Trade Management.
• Decree No. 09/2018/ND-CP on guidelines on the Law on Commerce and the Law on Foreign Trade
Management regarding the sale of goods and other activities directly related to the sale of goods of foreign
investors and foreign-invested business entities in Vietnam.
Main requirements. The establishment of more than one retail outlet by foreign retailers must be authorised
on the basis of an economic needs test (ENT) (Article 22.2, Decree No. 09/2018/ND-CP). To open a first retail
establishment, a foreign company must apply for a retail establishment licence. The conditions for obtaining a licence
include meeting financial conditions, tax obligations, and so on. The establishment of additional retail stores must
meet the ENT, except for stores that are less than 500 square metres. The ENT is based on the following criteria:
• Market size.
• Number of stores operating in the market.
• Impact on the market and environment.
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• Impact on social and economic conditions.
The Department of Industry and Trade of the relevant province is responsible for issuing, reissuing, modifying,
renewing or revoking retail establishment licences (Article 8.2, Decree 09/2018/ND-CP). The People's Committees
in each province must set up ENT councils (Article 24.1, Decree 09/2018/ND-CP). ENT councils are responsible for
assessing the eligibility to set up additional retail outlets in accordance with the ENT.
7. Are there restrictions on market access for specific services sectors?
According to Vietnam WTO Commitments on Services, restrictions on market access vary depending on the services
sectors, for example:
• Legal services. Foreign law firms can establish a commercial presence in Vietnam in any of the following
forms (see also Question 6, Legal services):
• branch of a foreign law firm;
• subsidiary of a foreign law firm; or
• partnership with a Vietnam law partnership.
• Financial services (see Question 6, Financial services).
• Advertising services. Foreign services suppliers can enter into joint ventures or business co-operation
agreements with Vietnamese partners that are legally authorised to provide advertising services. On
accession, foreign capital contributions could not exceed 51% of the legal capital of the joint venture. From 1
January 2009, there are no longer limitations on foreign capital contributions in joint ventures.
• Franchising services. There are currently no restrictions on the establishment of franchises.
• Educational services. Vietnam has only committed to grant market access in the fields of technical,
natural sciences and technology, business administration and business studies, economics, accounting,
international law and language training. For higher education services, adult education, and other education
services, the education content must be approved by Vietnam's Ministry of Education and Training.
• Audiovisual services. All films must have their content censored by Vietnam's competent authorities.
For motion picture production (excluding video tapes), motion picture distribution (excluding video tapes),
and motion picture projection services, foreign investors must enter into a business co-operation contract
or joint venture with Vietnamese partners who are authorised to provide these services in Vietnam. Foreign
capital contributions cannot exceed 51% of the legal capital of the joint venture. Vietnam's cultural venues,
film projection venues, public cinemas, and mobile projection teams cannot enter into business co-operation
contracts or joint ventures with foreign suppliers.
• Environmental services. Imports of refuse are forbidden by law. The treatment and disposal of
hazardous waste is strictly regulated by law. Foreign-invested enterprises are prohibited from collecting
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refuse directly from households. They are only permitted to provide services at refuse collection points as
specified by local municipal and provincial authorities.
• Basic telecommunication services:
• non-facilities-based services: on accession, joint ventures with telecommunications services suppliers
duly licensed in Vietnam are allowed (foreign capital contributions must not exceed 51% of the legal
capital of the joint venture); three years after accession, joint ventures are allowed without limitation
on the choice of partner (foreign capital contributions must not exceed 65% of the legal capital of the
joint venture); and
• facilities-based services: on accession, joint ventures with telecommunications services suppliers duly
licensed in Vietnam are allowed (foreign capital contributions must not exceed 49% of the legal capital
of the joint venture).
For more information, see: www.wto.org/english/tratop_e/serv_e/serv_commitments_e.htm#commit_exempt.
Imports
Customs authority
8. What is the authority responsible for enforcing customs laws and regulations?
The General Department of Vietnam Customs is the authority responsible for enforcing Vietnamese customs laws
and regulations. Under the Law on Customs and guiding instruments, Vietnam Customs can:
• Request information from importers, exporters, and their agents or transporters.
• Inspect goods to be imported or exported, accounting books, and any other related documents of importers
and exporters.
• Confiscate or keep imported goods for continued inspection or other purposes, if necessary.
Violations of customs regulations are subject to administrative and criminal penalties. Vietnam Customs can decide
on the imposition of administrative penalties only (Decree No. 127/2013/ND/CP).
Import duties, tariffs and rates
9. What are the main customs import tariffs and duties?
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General tariffs and rates
Imported goods are generally subject to import tariffs and duties based on the Vietnam Customs' Tariff Schedule and
their country of origin (www.customs.gov.vn/SitePages/Tariff.aspx (in Vietnamese) and www.customs.gov.vn/
SitePages/Tariff-Search.aspx?language=en-US (in English)). The Tariff Schedule provides for several tax rates for
each foreign country or region, including a general tax rate, a tax rate based on WTO agreements, and a tax rate
based on specific economic partnership agreements, the lowest of which is applied as the effective tax rate to specific
imported goods.
Under Decision No. 45/2017/QD-TTg dated 1 September 2016 on the application of ordinary import duties, the main
import duty rate is 5%. Ordinary duties on imports that are not subject to Decision No. 45/2017/QD-TTg and are
not eligible for preferential duties are equal to 150% of the preferential duty rates on corresponding articles specified
in Appendix II to Decree No. 125/2017/ND-CP.
Preferential tariffs
A list (descriptions and eight-digit codes) of articles subject to 0% import duty is included in Sections I and II of
Appendix II to Government's Decree No. 125/2017/ND-CP.
Preferential tariffs also apply to some countries that have signed FTAs or other bilateral or multilateral treaties with
Vietnam.
Non-tariff barriers to imports
10. Are there non-tariff barriers to imports into your jurisdiction?
Vietnam applies the following non-tariff barriers to imported goods:
• Licensing controls. An import licence is required for explosive pre-substances, industrial explosives,
certain medical devices, certain reference materials, drugs, medicinal materials, pre-substances used in
industry, certain cybersecurity products, and so on (Appendix III, Decree 69/2018/ND-CP).
• Quotas. Import quotas apply to refined sugar, crude sugar, raw tobacco and poultry eggs (Circular
No.12/2018/TT– BTC) (see also Question 15). Quotas are issued every year. Traders that have import
licences subject to duty quotas or are notified in writing by the MOIT of the use of import tax quotas must
benefit from the duty quotas import tax rates. The allowed quantity of goods is indicated in the import
licence or the MOIT notice. The goods imported outside the tariff quotas are subject to the general import
tax rates.
• Import prohibitions. Import prohibitions apply to weapons, ammunitions, explosives (excluding
industrial explosives), military technical equipment, goods used in information technology products, some
used supplies and vehicles, waste and scraps, refrigerating equipment using chlorofluorocarbons (CFC), and
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so on (Law on Foreign Trade Management; Appendix I, Decree 69/2018/ND-CP). Additionally, import
prohibitions will be imposed if one of the following conditions is satisfied:
• the products are related to national defence and security and have not obtained import permission
from the competent authority;
• the products endanger the health and safety of customers;
• the products affect social order and safety, social morality, or good customs and habits;
• the products damage the environment and biodiversity, pose a high risk of pests entering the country,
threaten food security or Vietnam's production and exports, or infringe intellectual property rights; or
• the prohibition is imposed by international treaties to which Vietnam is a party.
11. Can customs decisions and import restrictions be challenged?
Customs decisions and import restrictions can be challenged. Under the Customs Law, importers and exporters can
lodge complaints and denunciations against the unlawful acts of customs offices and officers. Unresolved complaints
will be litigated before the courts. Complainants can claim damages for losses caused by the customs offices or
officers under the Law on Compensation Liability of the State.
Trade remedies
Regulatory framework
12. What are the main regulations on trade remedies? What are the authorities responsible for
investigating and deciding on trade remedies?
Regulatory framework
Trade remedies investigations are carried out in accordance with the:
• Law on Foreign Trade Management.
• Law on Customs.
• Law on Export and Import Duties.
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• Law on Handling Administrative Violations.
• Guiding instruments for these laws (for example, Decree No. 10/2018/ND-CP and Circular No. 06/2018/TT-
BCT).
These laws are consistent with the WTO Anti-Dumping Agreement and Agreement on Subsidy and Countervailing
Measures.
Regulatory authority
Trade remedies investigations are conducted by the following authorities:
• Ministry of Finance.
• MOIT.
• General Department of Vietnam Customs.
• Trade Remedies Authority of Vietnam (TRAV).
• Other relevant agencies.
Investigations and enforcement
13. What are the requirements and procedure to start trade remedies investigations?
The requirements and procedure to start trade remedies investigations are governed by the Law on Foreign Trade
Management.
Trade remedies investigations
An organisation or individual representing a domestic industry can submit an application for the imposition of trade
remedies if it is found that the domestic industry suffers injury caused by dumping on imports, import subsidies
or a surge in imports.
The MOIT must decide whether an investigation will be conducted by the TRAV within 45 days from notification of
the application. In special cases, this time limit can be extended by up to 30 days.
The time limits for the completion of investigations are as follows:
• Anti-dumping and countervailing investigations must be completed within 12 months from the day on
which the decision on investigation is issued. In special cases, the MOIT can extend this time limit, but
investigations cannot last more than 18 months.
• Safeguards investigations must be completed within nine months from the day on which the decision on
investigation is issued. In special cases, the MOIT can extend this time limit, but investigations cannot last
more than 12 months.
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Consultations are carried out as follows:
• During an investigation, interested parties can send the TRAV written information and opinions related to
the case.
• The TRAV must give an opportunity to interested parties to submit such information and opinions.
• Before the final determination is disclosed, the TRAV can organise a public consultation so that interested
parties can present information and opinions related to the case.
The following notification obligations apply:
• Within 15 days from the day on which the MOIT decides on the conduct of anti-dumping or countervailing
investigations, the TRAV must notify the governments of the relevant countries and other interested parties
of the investigation.
• The TRAV must give notice to interested parties of the preliminary determination and final determination,
acceptance of price undertakings and termination of the investigation.
• The TRAV must comply with other notification obligations under international treaties to which Vietnam is a
party.
Imposition of trade remedies
Trade remedies can only be imposed within a reasonable scope and level for a limited time to protect a domestic
industry, or prevent or limit an injury to it. Trade remedies can only be imposed after an investigation is carried out
transparently and fairly in accordance with the law and based on determinations of the investigation. Decisions on
the investigation and the imposition of trade remedies must be published.
If the duty rate of a final trade remedy is higher than that of a provisional trade remedy, the difference of duty will not
be collected. If the duty rate of a final trade remedy is lower than that of a provisional trade remedy, the difference
of duty will be returned. If the Minister of Industry and Trade does not impose a final trade remedy, any provisional
trade remedy duty that has been collected, or any amount collected to ensure payment of temporary trade remedy
duties, must be returned.
Appeals
14. Is there a right of appeal against the authority's decision? What is the applicable procedure?
Decisions issued by the state authorities in implementing their state administrative duties and powers can be the
object of administrative lawsuits before the administrative courts of first instance under the Law on Administrative
Procedure 2015.
A first instance court's judgment or ruling that has not yet taken legal effect can be appealed before an appellate
court (Article 203, Law on Administrative Procedure). The parties to the case and their lawful representatives have
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the right to appeal against judgments or decisions of the first instance court to request the appellate court to conduct
a retrial of the case (Article 204, Law on Administrative Procedures).
The time limits for bringing an appeal are as follows:
• 15 days from the date of pronouncement of the judgment or from the date the judgment is handed over or
published (for parties that were absent from the court hearing).
• Seven days from:
• the date the court's ruling on suspension or termination of settlement of a case is notified to the person
having a right to appeal; or
• the date such ruling is publicly posted at the head office of the People's Committee of the locality where
the appellant resides or is based, if the person having the right to appeal is an agency or organisation.
If the appeal petition is sent by post, the appeal date is the date marked on the envelope by the post service provider.
If the appellant is detained or held in custody, the appeal date is the date of filing of the appeal petition, as certified
by the competent person of the detention or custody facility.
Exports
Regulatory framework
15. What are the main requirements to export goods from your jurisdiction? What are the authorities
responsible for enforcing export regulations and controls?
Generally, the Vietnamese Government promotes the principle of free trade and only imposes minimum export
controls that are necessary to maintain national and international peace and security.
The following main laws and regulations govern export requirements:
• Foreign Exchange Ordinance and its guiding instruments.
• Law on Foreign Trade Management and its guiding instruments.
• Law on Customs and its guiding instruments.
• Law on Import and Export Taxes and its guiding instruments.
• Decree No. 69/2018/ND-CP.
• Circular No. 34/2013/TT-BCT publicising roadmaps for goods trading and directly related activities of
foreign-invested enterprises in Vietnam.
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The Law on Foreign Trade Management and Law on Customs provide for an export control system, under which
certain goods may be subject to either export licensing or export approval. For example, raw gold, pre-substances
used in industries, explosive pre-substances, and industrial explosives require export licences. Generally, the process
is more onerous to obtain an export licence than export approval.
Additionally, export and imports quotas can be imposed if one of the following conditions is satisfied:
• Quotas are imposed by international treaties to which Vietnam is a party.
• Products are used to ensure the balance and growth of the economy for a certain period.
• A country imposes import quotas on Vietnamese exports.
The imposition of export or import quotas must ensure the transparency of the production and value of the products.
Measures allocating export and import quotas must be transparent and objective.
The MOIT must co-operate with the relevant ministries, ministerial authorities, other organisations and individuals
in deciding on the imposition of export and import quotas. The MOIT must publish a list of products that are subject
to export or import quotas (Article 19, Law on Foreign Trade Management).
16. Are certain categories of goods subject to specific export quotas, restraints or other controls?
See Question 15.
Export prohibitions are imposed if one of the following conditions is satisfied:
• The products to be exported are related to national defence and security and have not obtained the export
permission of the competent authority.
• The prohibition aims to protect relics, antiques and national precious objects in accordance with the Law on
Cultural Heritage.
• The prohibition implements international treaties to which Vietnam is a party.
Penalties
17. What are the consequences of non-compliance with export regulations?
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Non-compliance with export regulations may result in administrative penalties, including warnings and fines. The
goods may also be confiscated. Additionally, the following measures can be imposed:
• Removal or re-export of goods or vehicles from Vietnam.
• Transport of goods in transit to the correct border checkpoint or route.
• Removal of unlawful packages or labels.
• Destruction of indecent materials and goods that are harmful to human, animal and plant health and the
environment.
• Removal or destruction of goods that fail to meet technical standards or are not covered by a licence (if
required).
• A fine equal to the value of the illegal goods, if they no longer exist.
International trade restrictions
Trade sanctions
18. Are there specific restrictions on trade with certain jurisdictions?
There are currently no specific restrictions on trade with certain jurisdictions.
19. What is the authority responsible for imposing trade restrictions?
The MOIT and the Ministry of Finance are responsible for investigating and imposing trade restrictions.
20. What are the consequences of non-compliance with trade restrictions?
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Non-compliance with trade restrictions may be subject to administrative sanctions, including the following:
• A warning.
• Fines.
• Suspension of permits or professional practice certificates, or suspension of operations for a limited period.
• Confiscation of materials used to commit violations.
Additionally, criminal penalties can be imposed on legal entities, including fines and bans from operating in certain
fields or raising capital for a specific time.
21. Are businesses subject to specific compliance requirements? What practical steps should a business
take to ensure compliance with trade restrictions?
Businesses in Vietnam are not currently subject to specific compliance requirements. Businesses must take full
responsibility for compliance with import/export control regulations. For example, an exporter is responsible for
checking and/or consulting with lawyers, legal advisers or state management authorities whether their goods are
subject to trade restrictions or economic sanctions.
Foreign trade barriers
22. What is the procedure for local exporters to complain against foreign trade barriers contrary to
the WTO or other trade agreements?
The MOIT is the authority responsible for assisting the government in dealing with unfair trade barriers imposed by
foreign countries or regions. Any individual or company that has a complaint against unfair foreign trade barriers
can enquire or request to consult with the MOIT to petition the government to file a complaint with the WTO.
The specialised department of the MOIT will carry out a legal review of the case and consult with other relevant
departments and agencies before resorting to the WTO dispute settlement procedure.
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Developments and reform
23. Are there impending developments or proposals for reform affecting international trade in goods
and services?
The Law on Foreign Trade Management entered into force on 1 January 2018, amending various provisions of the
Law on Commerce. For example, the Law on Foreign Trade Management amended the main rules relating to the
following:
• Competence to supervise temporary import, re-export, temporary export and re-import activities.
• Competence to issue export and import lists.
• Competence to regulate the transfer of goods.
• Application of urgent, administrative and technical measures.
• Certificates of origin and rules of origin.
• Trade remedies.
• Disputes related to the imposition of measures for foreign trade management.
The regulatory authorities
Ministry of Industry and Trade (MOIT)
W www.moit.gov.vn
Principal responsibilities. The MOIT is responsible for dealing with industrial and trade matters
generally.
Online resources
National law database (legal normative documents)
W http://vbpl.vn/TW/Pages/vbpqen.aspx (English)
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Description. This official website is operated by the Vietnamese Government and provides access to
all Vietnamese laws and rules, as well as English translations of the main laws.
Contributor profile
Nguyen Anh Tuan, Managing Partner
ANT Lawyers
T +8428 730 86 529
E tuan.nguyen@antlawyers.vn
W www.antlawyers.vn
Professional qualifications. Vietnam, Law Practising Certificate
Areas of practice. Foreign investment; shipping and maritime; infrastructure, energy and projects;
mergers and acquisitions; intellectual property; corporate governance; international trade and anti-
dumping; dispute resolution; mediation.
Non-professional qualifications. MBA, Warwick Business School, UK, 2010; LLB, Vietnam
National University, Hanoi School of Law, 2002; BA, Foreign Trade University, Vietnam, 2000; CEDR
Accredited Mediator, 2018
Recent transactions
• Advising Expeditors on trade, customs practices, and doing business in Vietnam.
• Advising Furuno on potential international trade disputes regarding sales of goods in Vietnam.
International trade in goods and services in Vietnam: overview , Practical Law Country...
© 2019 Thomson Reuters. All rights reserved. 19
• Advising ABC Maritime on international arbitration and enforcement of arbitral awards in
Vietnam.
• Advising AkzoNobel on a dispute relating to sale of goods contracts before a Vietnamese court.
Languages. Vietnamese, English
Professional associations/memberships. Vietnam Bar Federation; Hanoi Bar Association;
International Bar Association; Legal Secretary Committee Member of EuroCham.
END OF DOCUMENT

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International Trade in Goods and Services in Vietnam

  • 1. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 1 International trade in goods and services in Vietnam: overview by Nguyen Anh Tuan, ANT Lawyers Country Q&A | Law stated as at 01-Feb-2019 | Vietnam A Q&A guide to international trade in goods and services in Vietnam. This Q&A covers key matters relating to the regulation of international trade in Vietnam, including recent trends, trade agreements, trade negotiations, rules relating to the supply of services, imports and exports requirements, trade remedies, and international trade restrictions. To compare answers across multiple jurisdictions, visit the international trade in goods and services Country Q&A tool. For more information on sale and storage of goods in Vietnam, visit Sale and storage of goods in Vietnam: overview. This Q&A is part of the International Trade and Commercial Transactions Global Guide. For a full list of jurisdictional Q&As visit global.practicallaw.com/internationaltrade-guide. Recent trends 1. What are the recent trends affecting the regulation of international trade in your jurisdiction? Negotiations of international trade agreements In recent years, Vietnam has been active in negotiating and signing free trade agreements (FTAs) with key trading partners, including the US, the EU and Asian countries. The current Government regards FTAs as extremely important to stimulate Vietnam's economic growth. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP was signed on 8 March 2018 without the US. The CPTPP inherited the full content of the TPP and allows member states to postpone compliance with a few obligations. The CPTPP covers traditional areas such as tariff reductions, services market opening, intellectual property, and technical barriers to trade. EU-Vietnam Free Trade Agreement (EVFTA). The EVFTA is a new generation FTA between Vietnam and the 28 EU member states. Negotiations were officially concluded on 1 December 2015, and the official full text of the agreement was published on 1 February 2016. On 26 June 2018, the EVFTA was divided into two agreements on trade and investment. The legal review of the final text was also formally concluded, and the parties concluded discussions on the Investment Protection Agreement (IPA). The EVFTA is expected to be ratified in 2019.
  • 2. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 2 Vietnam-European Free Trade Association (EFTA) FTA. The negotiations of the FTA between Vietnam and the EFTA states (Norway, Switzerland, Iceland, and Liechtenstein) were officially launched on May 2012 and are still ongoing. Pending and recently resolved trade disputes According to the WTO statistics of dispute settlement cases, at January 2019, Vietnam has been involved in five cases as complainant, zero case as respondent and 33 cases as third party. Vietnam is a claimant in cases DS496, DS404, DS429, DS536 and DS540. Trade agreements 2. Is your jurisdiction a member of the World Trade Organization (WTO)? What are the main international, regional or bilateral trade agreements to which your country is a party? Vietnam has been a member of the WTO since 11 January 2007. Vietnam is party to the following WTO trade agreements: • Agreement on Agriculture. • Agreement on the Application of Sanitary and Phytosanitary Measures. • Agreement on Textiles and Clothing. • Agreement on Technical Barriers to Trade. • Agreement on Trade-Related Investment Measures. • Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994. • Agreement on Implementation of Article VII of the General Agreement on Tariffs and Trade 1994. • Agreement on Preshipment Inspection. • Agreement on Rules of Origin. • Agreement on Import Licensing Procedures. • Agreement on Subsidies and Countervailing Measures. • Agreement on Safeguards. • Trade Facilitation Agreement. • General Agreement on Trade in Services. • Agreement on Trade-Related Aspects of Intellectual Property Rights. • Trade Policy Review Mechanism.
  • 3. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 3 For Vietnam's WTO member profile, visit: www.wto.org/english/thewto_e/countries_e/vietnam_e.htm. Vietnam is a party to bilateral FTAs with a number of countries, including Japan, the US, South Korea, Chile, and so on. These FTAs have allowed Vietnamese businesses to expand their markets, access regional and global markets, as well as gain more favourable access to the services markets of partner countries. Most trade barriers and restrictions have been lifted, and reduced tariff barriers (mostly 0% or less than 5%) have brought a significant competitive advantage to the Vietnamese commodity industry, which has benefited the vast majority of employees of import- export companies. Trade negotiations 3. What are the authorities responsible for negotiating trade agreements? How long does it usually take to conclude a trade deal with your country? Generally, the Government of Vietnam is responsible for organising the negotiation, conclusion, accession to, ratification and cancellation of international agreements on behalf of the state, as authorised by the President of Vietnam. The other authorities responsible for negotiating trade agreements are: • The Ministry of Foreign Affairs. • The Ministry of Industry and Trade (MOIT). • Experts from relevant ministries, depending on the specific issues involved, who will be appointed to participate in the research and negotiation of trade agreements. The length of trade negotiations varies. It may take two to three or more years from the beginning of negotiations to the signing of a trade agreement. 4. Does your country apply interim rules during trade negotiations? Vietnam does not currently apply more favourable interim tariff rules or non-tariff restrictions during trade negotiations.
  • 4. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 4 Since its accession to the WTO, Vietnam has made efforts to harmonise its local laws and regulations to meet the WTO general principles and requirements. Vietnam applies WTO rules while trade negotiations are ongoing with other WTO members. Supply of services 5. Is your jurisdiction a party to international agreements on cross-border trade in services? Is your jurisdiction taking part in the negotiations of the Trade in Services Agreement (TiSA)? Most international, regional and bilateral trade arrangements to which Vietnam is a party cover cross-border trade in services, including the: • CPTPP. • Vietnam-Korea FTA (VKFTA). • EVFTA. • Vietnam-Japan Economic Partnership Agreement (VJEPA). • Vietnam-Eurasian Economic Union FTA. • Vietnam-Chile FTA (VCFTA). See also Question 2 for information on trade agreements to which Vietnam is a party. Vietnam does not currently participate in the negotiations of the TiSA. 6. What domestic legislation and international rules apply to the supply of financial services, legal services and retail sales in your jurisdiction? What are the main requirements that suppliers must comply with? Financial services Regulatory framework. The main laws and instruments regulating the supply of financial services include the following:
  • 5. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 5 • Vietnam WTO Commitments on Services. • Tax law (such as the Law on Export and Import Duties, Law on Value Added Tax, Law on Enterprise Income Tax, and so on). • Law on Credit Institutions. • Law on the State Bank of Vietnam. • Law on Securities. • Law on the State Audit Office of Vietnam. • Law on Foreign Trade Management. • Law on Investment. Main requirements. According to Vietnam's WTO commitments, for a period of one year from its accession to the WTO, the licensing of financial services suppliers had to be made on a case-by-case basis and the number of licensed services providers decided by the Ministry of Finance, subject to the needs and development of Vietnam's market. During the same period, foreign-invested enterprises providing taxation services were only permitted to supply services to foreign-invested enterprises and foreign funded projects in Vietnam. These conditions ceased to apply after one year from WTO accession. To provide financial services in Vietnam, a supplier must obtain a licence and/or register with the relevant authorities. For example, a foreign securities business organisation that wishes to establish a commercial presence in Vietnam (such as a representative office, subsidiary or branch) must apply to the Vietnam State Securities Commission for a licence of establishment and operation (Article 72, Decree No. 58/2012/ND-CP). A foreign credit institution wishing to set up a commercial presence in Vietnam must obtain a licence from the State Bank of Vietnam. Licensing and registration requirements are governed by various laws and regulations (see above). Generally, most financial services providers must meet the following general requirements: • Be a legal entity (for example, a corporation). • Have a sufficient corporate governance system. • Have officers or employees with relevant qualifications and experience. • Have a minimum share capital, the amount of which varies depending on the type of services provided. • Have a minimum level of net assets. Legal services Regulatory framework. The Law on Lawyers governs the provision of legal services in Vietnam. There are no agreements on the mutual recognition of professional qualifications or standards. However, foreign lawyers that satisfy certain mandatory conditions (see below) must be granted a licence to practise law in Vietnam, which will allow them to: • Provide advice on foreign law and international law. • Provide other legal services relating to foreign law. • Provide advice on Vietnam law if they have a bachelor's degree in Vietnamese law and satisfy the requirements applicable to Vietnamese lawyers.
  • 6. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 6 (Article 74, Law on Lawyers.) Main requirements. To practise as a licensed lawyer in Vietnam, a person must: • Be a Vietnamese citizen who is loyal to the Fatherland. • Comply with the Constitution and the law. • Have good moral qualities. • Have a bachelor of law degree. • Have trained in a legal practice. • Have a law practising certificate. • Join a bar association (Articles 10 and 11, Law on Lawyers.) To practise law in Vietnam, a foreign lawyer must: • Have a valid lawyer practising certificate issued by a foreign competent agency. • Have experience in providing advice on foreign law and international law. • Commit to comply with the Constitution and law of Vietnam, the Code of Conduct and Ethics for Vietnamese lawyers. • Be appointed by a foreign law firm to practise in Vietnam, or employed by a branch of a foreign law firm in Vietnam or a Vietnamese law firm. Retail sales Regulatory framework. The main domestic laws governing retail sales are the: • Law on Commerce. • Law on Foreign Trade Management. • Decree No. 09/2018/ND-CP on guidelines on the Law on Commerce and the Law on Foreign Trade Management regarding the sale of goods and other activities directly related to the sale of goods of foreign investors and foreign-invested business entities in Vietnam. Main requirements. The establishment of more than one retail outlet by foreign retailers must be authorised on the basis of an economic needs test (ENT) (Article 22.2, Decree No. 09/2018/ND-CP). To open a first retail establishment, a foreign company must apply for a retail establishment licence. The conditions for obtaining a licence include meeting financial conditions, tax obligations, and so on. The establishment of additional retail stores must meet the ENT, except for stores that are less than 500 square metres. The ENT is based on the following criteria: • Market size. • Number of stores operating in the market. • Impact on the market and environment.
  • 7. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 7 • Impact on social and economic conditions. The Department of Industry and Trade of the relevant province is responsible for issuing, reissuing, modifying, renewing or revoking retail establishment licences (Article 8.2, Decree 09/2018/ND-CP). The People's Committees in each province must set up ENT councils (Article 24.1, Decree 09/2018/ND-CP). ENT councils are responsible for assessing the eligibility to set up additional retail outlets in accordance with the ENT. 7. Are there restrictions on market access for specific services sectors? According to Vietnam WTO Commitments on Services, restrictions on market access vary depending on the services sectors, for example: • Legal services. Foreign law firms can establish a commercial presence in Vietnam in any of the following forms (see also Question 6, Legal services): • branch of a foreign law firm; • subsidiary of a foreign law firm; or • partnership with a Vietnam law partnership. • Financial services (see Question 6, Financial services). • Advertising services. Foreign services suppliers can enter into joint ventures or business co-operation agreements with Vietnamese partners that are legally authorised to provide advertising services. On accession, foreign capital contributions could not exceed 51% of the legal capital of the joint venture. From 1 January 2009, there are no longer limitations on foreign capital contributions in joint ventures. • Franchising services. There are currently no restrictions on the establishment of franchises. • Educational services. Vietnam has only committed to grant market access in the fields of technical, natural sciences and technology, business administration and business studies, economics, accounting, international law and language training. For higher education services, adult education, and other education services, the education content must be approved by Vietnam's Ministry of Education and Training. • Audiovisual services. All films must have their content censored by Vietnam's competent authorities. For motion picture production (excluding video tapes), motion picture distribution (excluding video tapes), and motion picture projection services, foreign investors must enter into a business co-operation contract or joint venture with Vietnamese partners who are authorised to provide these services in Vietnam. Foreign capital contributions cannot exceed 51% of the legal capital of the joint venture. Vietnam's cultural venues, film projection venues, public cinemas, and mobile projection teams cannot enter into business co-operation contracts or joint ventures with foreign suppliers. • Environmental services. Imports of refuse are forbidden by law. The treatment and disposal of hazardous waste is strictly regulated by law. Foreign-invested enterprises are prohibited from collecting
  • 8. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 8 refuse directly from households. They are only permitted to provide services at refuse collection points as specified by local municipal and provincial authorities. • Basic telecommunication services: • non-facilities-based services: on accession, joint ventures with telecommunications services suppliers duly licensed in Vietnam are allowed (foreign capital contributions must not exceed 51% of the legal capital of the joint venture); three years after accession, joint ventures are allowed without limitation on the choice of partner (foreign capital contributions must not exceed 65% of the legal capital of the joint venture); and • facilities-based services: on accession, joint ventures with telecommunications services suppliers duly licensed in Vietnam are allowed (foreign capital contributions must not exceed 49% of the legal capital of the joint venture). For more information, see: www.wto.org/english/tratop_e/serv_e/serv_commitments_e.htm#commit_exempt. Imports Customs authority 8. What is the authority responsible for enforcing customs laws and regulations? The General Department of Vietnam Customs is the authority responsible for enforcing Vietnamese customs laws and regulations. Under the Law on Customs and guiding instruments, Vietnam Customs can: • Request information from importers, exporters, and their agents or transporters. • Inspect goods to be imported or exported, accounting books, and any other related documents of importers and exporters. • Confiscate or keep imported goods for continued inspection or other purposes, if necessary. Violations of customs regulations are subject to administrative and criminal penalties. Vietnam Customs can decide on the imposition of administrative penalties only (Decree No. 127/2013/ND/CP). Import duties, tariffs and rates 9. What are the main customs import tariffs and duties?
  • 9. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 9 General tariffs and rates Imported goods are generally subject to import tariffs and duties based on the Vietnam Customs' Tariff Schedule and their country of origin (www.customs.gov.vn/SitePages/Tariff.aspx (in Vietnamese) and www.customs.gov.vn/ SitePages/Tariff-Search.aspx?language=en-US (in English)). The Tariff Schedule provides for several tax rates for each foreign country or region, including a general tax rate, a tax rate based on WTO agreements, and a tax rate based on specific economic partnership agreements, the lowest of which is applied as the effective tax rate to specific imported goods. Under Decision No. 45/2017/QD-TTg dated 1 September 2016 on the application of ordinary import duties, the main import duty rate is 5%. Ordinary duties on imports that are not subject to Decision No. 45/2017/QD-TTg and are not eligible for preferential duties are equal to 150% of the preferential duty rates on corresponding articles specified in Appendix II to Decree No. 125/2017/ND-CP. Preferential tariffs A list (descriptions and eight-digit codes) of articles subject to 0% import duty is included in Sections I and II of Appendix II to Government's Decree No. 125/2017/ND-CP. Preferential tariffs also apply to some countries that have signed FTAs or other bilateral or multilateral treaties with Vietnam. Non-tariff barriers to imports 10. Are there non-tariff barriers to imports into your jurisdiction? Vietnam applies the following non-tariff barriers to imported goods: • Licensing controls. An import licence is required for explosive pre-substances, industrial explosives, certain medical devices, certain reference materials, drugs, medicinal materials, pre-substances used in industry, certain cybersecurity products, and so on (Appendix III, Decree 69/2018/ND-CP). • Quotas. Import quotas apply to refined sugar, crude sugar, raw tobacco and poultry eggs (Circular No.12/2018/TT– BTC) (see also Question 15). Quotas are issued every year. Traders that have import licences subject to duty quotas or are notified in writing by the MOIT of the use of import tax quotas must benefit from the duty quotas import tax rates. The allowed quantity of goods is indicated in the import licence or the MOIT notice. The goods imported outside the tariff quotas are subject to the general import tax rates. • Import prohibitions. Import prohibitions apply to weapons, ammunitions, explosives (excluding industrial explosives), military technical equipment, goods used in information technology products, some used supplies and vehicles, waste and scraps, refrigerating equipment using chlorofluorocarbons (CFC), and
  • 10. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 10 so on (Law on Foreign Trade Management; Appendix I, Decree 69/2018/ND-CP). Additionally, import prohibitions will be imposed if one of the following conditions is satisfied: • the products are related to national defence and security and have not obtained import permission from the competent authority; • the products endanger the health and safety of customers; • the products affect social order and safety, social morality, or good customs and habits; • the products damage the environment and biodiversity, pose a high risk of pests entering the country, threaten food security or Vietnam's production and exports, or infringe intellectual property rights; or • the prohibition is imposed by international treaties to which Vietnam is a party. 11. Can customs decisions and import restrictions be challenged? Customs decisions and import restrictions can be challenged. Under the Customs Law, importers and exporters can lodge complaints and denunciations against the unlawful acts of customs offices and officers. Unresolved complaints will be litigated before the courts. Complainants can claim damages for losses caused by the customs offices or officers under the Law on Compensation Liability of the State. Trade remedies Regulatory framework 12. What are the main regulations on trade remedies? What are the authorities responsible for investigating and deciding on trade remedies? Regulatory framework Trade remedies investigations are carried out in accordance with the: • Law on Foreign Trade Management. • Law on Customs. • Law on Export and Import Duties.
  • 11. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 11 • Law on Handling Administrative Violations. • Guiding instruments for these laws (for example, Decree No. 10/2018/ND-CP and Circular No. 06/2018/TT- BCT). These laws are consistent with the WTO Anti-Dumping Agreement and Agreement on Subsidy and Countervailing Measures. Regulatory authority Trade remedies investigations are conducted by the following authorities: • Ministry of Finance. • MOIT. • General Department of Vietnam Customs. • Trade Remedies Authority of Vietnam (TRAV). • Other relevant agencies. Investigations and enforcement 13. What are the requirements and procedure to start trade remedies investigations? The requirements and procedure to start trade remedies investigations are governed by the Law on Foreign Trade Management. Trade remedies investigations An organisation or individual representing a domestic industry can submit an application for the imposition of trade remedies if it is found that the domestic industry suffers injury caused by dumping on imports, import subsidies or a surge in imports. The MOIT must decide whether an investigation will be conducted by the TRAV within 45 days from notification of the application. In special cases, this time limit can be extended by up to 30 days. The time limits for the completion of investigations are as follows: • Anti-dumping and countervailing investigations must be completed within 12 months from the day on which the decision on investigation is issued. In special cases, the MOIT can extend this time limit, but investigations cannot last more than 18 months. • Safeguards investigations must be completed within nine months from the day on which the decision on investigation is issued. In special cases, the MOIT can extend this time limit, but investigations cannot last more than 12 months.
  • 12. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 12 Consultations are carried out as follows: • During an investigation, interested parties can send the TRAV written information and opinions related to the case. • The TRAV must give an opportunity to interested parties to submit such information and opinions. • Before the final determination is disclosed, the TRAV can organise a public consultation so that interested parties can present information and opinions related to the case. The following notification obligations apply: • Within 15 days from the day on which the MOIT decides on the conduct of anti-dumping or countervailing investigations, the TRAV must notify the governments of the relevant countries and other interested parties of the investigation. • The TRAV must give notice to interested parties of the preliminary determination and final determination, acceptance of price undertakings and termination of the investigation. • The TRAV must comply with other notification obligations under international treaties to which Vietnam is a party. Imposition of trade remedies Trade remedies can only be imposed within a reasonable scope and level for a limited time to protect a domestic industry, or prevent or limit an injury to it. Trade remedies can only be imposed after an investigation is carried out transparently and fairly in accordance with the law and based on determinations of the investigation. Decisions on the investigation and the imposition of trade remedies must be published. If the duty rate of a final trade remedy is higher than that of a provisional trade remedy, the difference of duty will not be collected. If the duty rate of a final trade remedy is lower than that of a provisional trade remedy, the difference of duty will be returned. If the Minister of Industry and Trade does not impose a final trade remedy, any provisional trade remedy duty that has been collected, or any amount collected to ensure payment of temporary trade remedy duties, must be returned. Appeals 14. Is there a right of appeal against the authority's decision? What is the applicable procedure? Decisions issued by the state authorities in implementing their state administrative duties and powers can be the object of administrative lawsuits before the administrative courts of first instance under the Law on Administrative Procedure 2015. A first instance court's judgment or ruling that has not yet taken legal effect can be appealed before an appellate court (Article 203, Law on Administrative Procedure). The parties to the case and their lawful representatives have
  • 13. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 13 the right to appeal against judgments or decisions of the first instance court to request the appellate court to conduct a retrial of the case (Article 204, Law on Administrative Procedures). The time limits for bringing an appeal are as follows: • 15 days from the date of pronouncement of the judgment or from the date the judgment is handed over or published (for parties that were absent from the court hearing). • Seven days from: • the date the court's ruling on suspension or termination of settlement of a case is notified to the person having a right to appeal; or • the date such ruling is publicly posted at the head office of the People's Committee of the locality where the appellant resides or is based, if the person having the right to appeal is an agency or organisation. If the appeal petition is sent by post, the appeal date is the date marked on the envelope by the post service provider. If the appellant is detained or held in custody, the appeal date is the date of filing of the appeal petition, as certified by the competent person of the detention or custody facility. Exports Regulatory framework 15. What are the main requirements to export goods from your jurisdiction? What are the authorities responsible for enforcing export regulations and controls? Generally, the Vietnamese Government promotes the principle of free trade and only imposes minimum export controls that are necessary to maintain national and international peace and security. The following main laws and regulations govern export requirements: • Foreign Exchange Ordinance and its guiding instruments. • Law on Foreign Trade Management and its guiding instruments. • Law on Customs and its guiding instruments. • Law on Import and Export Taxes and its guiding instruments. • Decree No. 69/2018/ND-CP. • Circular No. 34/2013/TT-BCT publicising roadmaps for goods trading and directly related activities of foreign-invested enterprises in Vietnam.
  • 14. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 14 The Law on Foreign Trade Management and Law on Customs provide for an export control system, under which certain goods may be subject to either export licensing or export approval. For example, raw gold, pre-substances used in industries, explosive pre-substances, and industrial explosives require export licences. Generally, the process is more onerous to obtain an export licence than export approval. Additionally, export and imports quotas can be imposed if one of the following conditions is satisfied: • Quotas are imposed by international treaties to which Vietnam is a party. • Products are used to ensure the balance and growth of the economy for a certain period. • A country imposes import quotas on Vietnamese exports. The imposition of export or import quotas must ensure the transparency of the production and value of the products. Measures allocating export and import quotas must be transparent and objective. The MOIT must co-operate with the relevant ministries, ministerial authorities, other organisations and individuals in deciding on the imposition of export and import quotas. The MOIT must publish a list of products that are subject to export or import quotas (Article 19, Law on Foreign Trade Management). 16. Are certain categories of goods subject to specific export quotas, restraints or other controls? See Question 15. Export prohibitions are imposed if one of the following conditions is satisfied: • The products to be exported are related to national defence and security and have not obtained the export permission of the competent authority. • The prohibition aims to protect relics, antiques and national precious objects in accordance with the Law on Cultural Heritage. • The prohibition implements international treaties to which Vietnam is a party. Penalties 17. What are the consequences of non-compliance with export regulations?
  • 15. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 15 Non-compliance with export regulations may result in administrative penalties, including warnings and fines. The goods may also be confiscated. Additionally, the following measures can be imposed: • Removal or re-export of goods or vehicles from Vietnam. • Transport of goods in transit to the correct border checkpoint or route. • Removal of unlawful packages or labels. • Destruction of indecent materials and goods that are harmful to human, animal and plant health and the environment. • Removal or destruction of goods that fail to meet technical standards or are not covered by a licence (if required). • A fine equal to the value of the illegal goods, if they no longer exist. International trade restrictions Trade sanctions 18. Are there specific restrictions on trade with certain jurisdictions? There are currently no specific restrictions on trade with certain jurisdictions. 19. What is the authority responsible for imposing trade restrictions? The MOIT and the Ministry of Finance are responsible for investigating and imposing trade restrictions. 20. What are the consequences of non-compliance with trade restrictions?
  • 16. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 16 Non-compliance with trade restrictions may be subject to administrative sanctions, including the following: • A warning. • Fines. • Suspension of permits or professional practice certificates, or suspension of operations for a limited period. • Confiscation of materials used to commit violations. Additionally, criminal penalties can be imposed on legal entities, including fines and bans from operating in certain fields or raising capital for a specific time. 21. Are businesses subject to specific compliance requirements? What practical steps should a business take to ensure compliance with trade restrictions? Businesses in Vietnam are not currently subject to specific compliance requirements. Businesses must take full responsibility for compliance with import/export control regulations. For example, an exporter is responsible for checking and/or consulting with lawyers, legal advisers or state management authorities whether their goods are subject to trade restrictions or economic sanctions. Foreign trade barriers 22. What is the procedure for local exporters to complain against foreign trade barriers contrary to the WTO or other trade agreements? The MOIT is the authority responsible for assisting the government in dealing with unfair trade barriers imposed by foreign countries or regions. Any individual or company that has a complaint against unfair foreign trade barriers can enquire or request to consult with the MOIT to petition the government to file a complaint with the WTO. The specialised department of the MOIT will carry out a legal review of the case and consult with other relevant departments and agencies before resorting to the WTO dispute settlement procedure.
  • 17. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 17 Developments and reform 23. Are there impending developments or proposals for reform affecting international trade in goods and services? The Law on Foreign Trade Management entered into force on 1 January 2018, amending various provisions of the Law on Commerce. For example, the Law on Foreign Trade Management amended the main rules relating to the following: • Competence to supervise temporary import, re-export, temporary export and re-import activities. • Competence to issue export and import lists. • Competence to regulate the transfer of goods. • Application of urgent, administrative and technical measures. • Certificates of origin and rules of origin. • Trade remedies. • Disputes related to the imposition of measures for foreign trade management. The regulatory authorities Ministry of Industry and Trade (MOIT) W www.moit.gov.vn Principal responsibilities. The MOIT is responsible for dealing with industrial and trade matters generally. Online resources National law database (legal normative documents) W http://vbpl.vn/TW/Pages/vbpqen.aspx (English)
  • 18. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 18 Description. This official website is operated by the Vietnamese Government and provides access to all Vietnamese laws and rules, as well as English translations of the main laws. Contributor profile Nguyen Anh Tuan, Managing Partner ANT Lawyers T +8428 730 86 529 E tuan.nguyen@antlawyers.vn W www.antlawyers.vn Professional qualifications. Vietnam, Law Practising Certificate Areas of practice. Foreign investment; shipping and maritime; infrastructure, energy and projects; mergers and acquisitions; intellectual property; corporate governance; international trade and anti- dumping; dispute resolution; mediation. Non-professional qualifications. MBA, Warwick Business School, UK, 2010; LLB, Vietnam National University, Hanoi School of Law, 2002; BA, Foreign Trade University, Vietnam, 2000; CEDR Accredited Mediator, 2018 Recent transactions • Advising Expeditors on trade, customs practices, and doing business in Vietnam. • Advising Furuno on potential international trade disputes regarding sales of goods in Vietnam.
  • 19. International trade in goods and services in Vietnam: overview , Practical Law Country... © 2019 Thomson Reuters. All rights reserved. 19 • Advising ABC Maritime on international arbitration and enforcement of arbitral awards in Vietnam. • Advising AkzoNobel on a dispute relating to sale of goods contracts before a Vietnamese court. Languages. Vietnamese, English Professional associations/memberships. Vietnam Bar Federation; Hanoi Bar Association; International Bar Association; Legal Secretary Committee Member of EuroCham. END OF DOCUMENT