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BUSINESS ENVIRONMENT IN VIETNAM 1. Economic Reforms
Following the reunification of the country in 1976, Vietnam opted for centrally-planned mechanisms and five-year plans for its economic development, with priority for heavy industry. However, after a decade of macroeconomic instability, stagnation, soaring inflation, chronic trade deficits, and isolation from the world economy, the 6th Congress of the Vietnam Communist Party held in December 1986, adopted a policy of economic renovation, or "Doi Moi" that has become the lodestar of economic and political life in the country. The "Doi Moi" policy accelerated the country's economic growth, with GDP growth during the period 1991 to 1997 averaging 8.5%. However on account of the July 1997 regional economic crisis, Vietnam's economic growth slowed down as in the entire ASEAN area. GDP growth in 1998 was only 5.8%, and it further declined to 4.8% in 1999. Since then, Vietnam's economy witnessed a revival, with a growth of 6.7%, in 2000. According to a report by the Central Economic Management Research Institute of Vietnam, Vietnam's GDP growth in 2001 was 6.8%, as against the target of 7.5% set by the National Assembly. The country's 5-year plan for 2001-2005 envisages a 7.5% growth. According to a World Bank's forecast, Vietnam's economy will record an average growth of 7% during the 2001-2005 period. Share of agriculture, forestry and fisheries in the GDP has dropped from 27.76% in 1996 to 23.3% in 2001, that of industry and construction went up to from 29.73% in 1996 to 37.75% in 2001, and that of services went down from 42.51% in 1996 to 38.95% in 2001. Inflation dropped from three digits in the 1980's to 1.2% in 2001 (0.8% according to a new weightage).
Registered foreign direct investment in Vietnam during the period 1988-2001 was valued at approximately US$ 40 billion in 3,000 projects. Of this, approximately US$ 20 billion has been realised. Of the FDI committed so far, Singapore is at the top with committed capital of US$ 6.88 billion, followed by Taiwan with US$ 4.88 billion and Japan with US$ 4.06 billion. In terms of realised FDI, Japan topped with up to US$ 3.03 billion (75% of its registered capital), followed by Taiwan with US$ 2.6 billion (54% of registered capital) and Singapore with US$ 2.2 billion. In 2001, registered FDI was worth US$ 3.02 bn. an increase of 25.8% over 2000 (US$ 2.1 bn.). Total realised FDI was US$ 2.3 bn. in 2001, an increase of 3% over 2000.
During the period 1993-2001, ODA committed by donor countries and agencies to Vietnam was US$ 19.7 billion, of which US$ 9.2 billion was disbursed. Disbursement in 2001 was estimated at US$ 1.7 billion. The biggest donors are Japan, World Bank, and ADB, accounting for 75% of the total. ODA pledged for 2002 is US$ 2.4 bn.
Exports grew at an average of nearly 20% annually during 1999-2000. In 2001 exports grew by 3.8% to US$ 15 bn., as against the 24% growth rate achieved in 2000. Imports increased by 3.4% in 2001 to reach US$ 16.2 bn., as against the 34.5% growth rate achieved in 2000. From a food importer, Vietnam has become world's third biggest rice exporter and second biggest coffee exporter.
In the area of foreign trade, import & export restrictions have been reduced significantly, gradually moving away from state monopoly. Vietnam is now a member of ASEAN Free Trade Area, APEC and is currently negotiating for its accession to WTO. Last year, Vietnam signed a Bilateral Trade Agreement with USA which came into effect 11th December 2001. Tariff and non-tariff barriers on trade have been gradually brought down/eliminated. Import duties have been substantially reduced.
The tax system has been reformed with the broadening of the tax base and the introduction of new taxes such as VAT and corporate income tax to replace turnover tax and profit tax respectively.
The number of products subject to export or import prohibition or restriction has been reduced. Prices and domestic trade have been liberalised and most subsidies have been removed. The requirement of government approval of contracts and prices for lot shipments has been abolished.
Multiple exchange rates have been replaced with a single rate reflecting market forces. A tight monetary policy has been adopted to check inflation. The banking system was also reformed into a two-tier system; a central bank and commercial banks. Private sector has been allowed into the banking sector.
Vietnam has been implementing a programme of reorganisation of the State-owned enterprises, including reducing and/or doing away with state intervention, subsidies and other privileges, providing greater autonomy, and equitising (privatising). As a result of these measures, the number of state-owned enterprises was reduced from a high of 12,000 to about 5,280. The number will be further reduced to 3,000 in 2003 and 2,000 in 2005. Vietnam has 93 State Corporations with 1,392 financially-independent member enterprises under them. They account for 24% of the state sector's total number, hold 66% of capital and employ 55% our of a total workforce of about 1 million.
TRADING ENVIRONMENT 2. Introduction
The Government encourages all economic sectors to produce goods and export, particularly labour-intensive products including agricultural produce, seafood, textiles and garments, leather goods and footwear, and handicrafts.
As regards imports, Vietnam gives priority to import of materials, equipment, high technology and advanced production processes that are required for industrialisation and modernisation. But it also restricts import of goods that are adequately manufactured and supplied by domestic producers. However, these restrictioins are gradually being phased out in line with the country's process of economic integration into the regional and global economy.
The Trade Law of 1997, and the Decrees No. 57 and 45 issued in July 1998 and September 2000 respectively, govern domestic and foreign trade of Vietnam. Unlike in the past when imports and exports were handled by only State-owned businesses, the Decree No. 57 allowed foreign trade right to the following:
- Vietnamese business entities of all economic sectors (including private firms) established in accordance with the laws have the right to handle export and import business with the scope of their business registration.
- Branches of Vietnamese companies and firms in accordance with the authorisation of the parent companies and within the scope of business registration of the parent companies. - Branches of foreign trading companies in Vietnam to handle export and import business within scope of their business licences.
- The Law on Foreign Investment regulates that companies with foreign capital may sign foreign trade contracts to import their own equipment, machinery and materials or parts needed for the construction and operation of their own projects as well as to export their own products. Recently, as an additional measure to encourage export, the government began allowing companies with foreign capital to export goods not produced by themselves as well.
Those companies who do not have the right to sign foreign trade contracts may authorise companies who have such a right, to do so within the scope of the latter's business registration.
Companies need no longer apply for international trading business licenses from the Ministry of Trade, but just have to register their export and import code with provincial customs authorities. The list of goods that are subject to quota or licenses has been substantially shortened. Now, there are quotas only for products that are controlled by quotas imposed by importing countries.
Vietnamese firms and foreign-invested companies in Vietnam are allowed to open representative offices and/or branches abroad to enhance their trade.
Vietnamese businesses including private firms are allowed to act as sale and/or purchase agents in Vietnam for foreign firms and individuals.
Temporary Entry of goods: Goods, which are exported or imported as samples or for the purpose of advertising, are subject to export or import duty. Exemption from duty is granted to goods, which are permitted to be temporary exports or imports for exhibitions. At the end of the exhibition, they must be re-imported into Vietnam in the case of temporary exports, or re-exported from Vietnam in the case of temporary imports. Documents required for exemption for exhibitions include a notification of or invitation to the exhibition and an export or import license from Ministry of Trade for goods under quota by the government. Vietnam does not recognize the International Carnet.
3. Validity of a Contract
A foreign trade contract is legally valid if: (i) it is signed by the parties that enjoy full legal status; (ii) the contracted goods are legally tradable in the countries of the contracting parties; (iii) it contains the main contents of a sale or purchase contract stipulated in the Trade Law of Vietnam; and (iv) it is made in written form (telegram, telex, e-mail and other electronic communications are also considered written form).
4. Contractable Goods
Goods contracted under a foreign trade contract must be those which are permitted for trade in the countries of the contracting parties. As is done in most countries, in Vietnam also certain items are prohibited from import and/or export, such as firearms and ammunition, narcotics, toxic chemicals, precious or rare plants and animals, pro-war and pro-violence cultural products, firecrackers, antiques of high value, certain types of logs and sawn timber, etc. Apart from these, certain other items may be temporarily controlled by quota or require special import/export licenses from Ministry of Trade or other ministries or may be temporarily banned from import/export for reasons of health, environmental and/or infant industry protection. A list of items which are banned or restricted from import/export may please be seen in the Annexure. 5. Laws Governing Contracts
There are normally three sources of laws governing foreign trade contracts as follows:
International Treaties: Vietnamese Trade Law allows the contracting parties to a foreign trade contract to apply the provisions of an international treaty to which Vietnam is a signatory in case there are differences between the treaty and the Trade Law of Vietnam. Although Vietnam is not yet a signatory to the UN treaty on international sale and purchase of good signed in Vienna in 1980 (CISG - 1980), the provisions of this treaty are allowed to apply if the treaty is referred to, except those which are contrary to the country's basic principles of social and law system.
National Laws: The contracting parties may agree to apply Vietnamese laws or foreign laws to their foreign trade contract provided that foreign laws are not inconsistent with Vietnamese laws or where an international treaty to which Vietnam is signatory provides for the application of such foreign laws.
If a foreign trade contract does not refer to a particular governing law, Vietnamese laws governing foreign trade (including the Trade Law and other relevant laws such as the Civil Code, the Ordinance on Economic Contracts etc.) shall apply in case the dispute is settled by a Vietnamese Court.
International Commercial Practices: The contracting parties may agree to apply international commercial practices if they are not inconsistent with Vientmaese laws. As Vietnamese Trade Law and other relevant laws governing trade had not been in place until recently and because of their simplicity and incompletion, the Incoterms published by the International Chamber of Commerce is widely and frequently applied in foreign trade contracts to which Vientamese companies are parties.
6. Special Import/Export Requirements and Certifications:
Certain goods to be exported or imported must be inspected before being cleared at Customs stations. The inspection covers quality, specifications, quantity and volume. The inspection is based on Vietnamese standards and should be carried out by an independent Vietnamese or foreign inspection organization. Imported goods subject to inspection include petroleum products, fertilizers, electronic and electrical products, food and drinks, machinery and equipment, steel and pharmaceuticals. This list may be altered from time to time. Imported pharmaceuticals, for example, must go through random lab tests on sample batches performed by Vietnamese officials. Since January 1998, all imported drugs must have instructions on product use, dosage, and expiration dates printed in Vietnamese and inserted in packages.
7. Quality Examination
Whether or not mentioned in the contract, by law, prior to delivery, the seller must examine the quality of goods at his own expense and provide certificates of quality in accordance with the conditions agreed with the buyer. In the absence of specific agreement on the examination, the seller must examine the quality of goods in accordance with the terms normally applicable to that type of goods.
Where it is agreed in a contract that the buyer or its representative may participate in the quality examination prior to delivery, the seller must ensure that the buyer or its representative can do so and remain responsible for the quality of the goods despite the buyer or its representative's participation in the quality examination. Where the buyer or its representative fails, despite having been advised by the seller of the need to attend the examination as agreed in the contract, the seller is entitled to deliver the goods in accordance with the contract. The buyer has the right to examine the delivered goods at the destination. By law, pre-shipment inspection of goods by an independent inspection organization is not obligatory.
8. Labelling requirements
Vietnam's regulation concerning labeling requirements for domestically circulated and import-export products is issued by the Prime Minister. The regulation entitled Decision No. 178/1999/QD-TTg dated 30 August 1999, and amended by Decision No. 95/2000/QD-TTg dated August 15, 2000, was effective starting January 1, 2001. According to this regulation, new labels must be affixed displaying the name of the product, name and address of the manufacturer or trader liable for the product, quantity, detailed composition, master quality inspection, and manufacturing and expiration date. New labels must also display usage and storage instructions and country of origin of the imported or exported products. With the exception of the trademark, labels of domestically distributed products must be in Vietnamese.
To avoid confusion, dates should follow the Vietnamese pattern: day/month/year. The relevant authorities should be alerted to any changes in the product's packaging or labeling. Because of the rampant problem posed by imitation and thus poor quality goods, inspectors may see the change in packaging as a potential contraband and prolong customs clearance.
9. Standards
Vietnamese standards system consists of over 5,000 standards. Specific information by product or by standard may be provided by the importing organization. Otherwise it may be sought from the relevant ministry or the government's management body with overall standards responsibility, the Directorate for Standards and Quality (STAMEQ) of Ministry of Science, Technology, and Environment (MOSTE). Vietnam is currently adopting over 1,000 international standards to become national standards. Vietnam's weight and measurement standard is based on the metric system. The electric current is AC 50 cycles, 220/380. The electric utility system of Vietnam is being standardized at 3 phase, 220/330 volts, 4 wires.
10. Warranty and Non-Warranty Repair
Goods that are imported as replacement parts, even under warranty, are subject to import duties. Duties imposed depend on the goods imported, country of origin, etc. Equipment brought in for the purpose of repairing other products, and then re-exported, is exempt from import duties by law, but it is a very complicated and long process.
11. Bonded Warehouses
The operation of customs warehouses was approved in 1994, and has been replaced by new regulations issued in conjunction with Decision 212 from the Prime Minister dated 2 November 1998. The location and number of bonded warehouses are HCMC (3), Vung Tau (1), Hai Phong (4), Quang Ninh (2) and Da Nang (2). Entities permitted to lease customs bonded warehouses include foreign enterprises, individuals and organizations, Vietnamese import-export license companies, and foreign invested enterprises licensed to carry on import-export activities. Most goods pending import and domestic goods pending export can be deposited in bonded warehouse under the supervision of the provincial customs office. The exceptions are goods prohibited from import or export, Vietnamese-made goods with fraudulent trademarks or labels, goods of unknown origin, and goods dangerous or harmful to the public or environment. The lease contract must be registered with the customs bond unit at least twenty-four hours prior to the arrival of the goods at the port. Documents required are a notarized copy of authorization of the holder to receive the goods, a notarized copy of the warehouse lease contract, the bill of lading, a certificate of origin, a packing list, and customs declaration forms. Owners of the goods pay import or export tax when the goods are removed from the bonded warehouse.
A customs warehouse keeper can provide transportation services and act as a distributor for the goods deposited. Additional services relating to customs declaration, appraisal, insurance, re-processing or packaging require the approval of the provincial customs office. In practice, the level of service needs improvement. The time involved for clearance and delivery is often lengthy and unreliable.
12. Ports:
Vietnam has eight national seaports and about 20 provincial seaports along its 3,260 km. of coastline and many inland river ports. The three important ports are:
Saigon Port, located in the center of Ho Chi Minh City (the country's economic and commercial hub), is the most important port of Vietnam in general, and in the southern part of the country in particular. It has around 500,000 sq.m. of warehouse capacity and can accommodate vessels upto 25,000 DWT. Its handling capacity is around 24 mn. tons a year.
Haiphong Port is another important port located in the north, 100 km. from Hanoi. It has about 432,000 sq.m. of warehouse capacity, can accommodate vessels upto 10,000 DWT and can handle 8,250,000 tons of cargo a year.
Danang Port serves as the gateway to the central area of Vietnam as well as to Laos. It can accommodate vessels upto 30,000 DWT, has 186,225 sq.m. of warehouse capacity, and can handle 3,800,000 tons of cargo a year.
13. Foreign Exchange Controls
Generally, the inflow of foreign currency into Vietnam is welcomed with minimum restrictions while the transfer of foreign currency out of the country is still controlled. Foreign currency income generated in Vietnam from exports, services and any other sources must be deposited at or sold to licensed banks in the country, except in special cases which have the approval of the State Bank. Vietnamese companies, foreign invested eneterprises, parties to business cooperation contracts, foreign contractors and foreign branches must sell upon the receipt, at least 50% of their current foreign currency earnings. Normally, banks give priority in sale of foreign currency to the companies who need foreign exchange for import of materials and supplies for production of export goods.
14. Banking
The Vietnamese banking system was reorganised in 1990, separating the State Bank (central bank) from commercial banks and paving the way for the entry of the private sector. Currently, there are five state-owned banks, more than 50 private joint-stock banks, 5 foreign joint venture banks and more than 20 totally foreign owned bank branches operating in the country. Payment by irrevocable letter of credit through banks is the most popular method of payment applied in foreign trade contracts signed with Vietnamese partners. While most of the above-mentioned banks are engaged in foreign trade payment business, the state-owned Bank for Foreign Trade of Vietnam (Vietcombank) dominates the service.
15. Insurance
The most popular terms of delivery applied in foreign trade contracts signed with Vietnamese partners include CIF, CIP, C&F and FOB. Vietnamese companies usually secure insurance service from Vietnamese insurers operating in Vietnam, unless otherwise agreed in the contract.
Under the new Insurance Law which came into effect on 1 April 2001, apart from Vietnamese state-owned and private joint-stock insurance companies, foreign joint venture insurance firms and subsidiary branches wholly owned by foreign insurance companies are also allowed in Vietnam. Currently, there are seven Vietnamese state-owned and joint stock insurers and around ten foreign joint venture insurance firms and 100% foreign owned insurance branches operating in the country. However, the state-owned Vietnam Insurance Company (BaoViet) dominates the insurance market in Vietnam.
16. Legal Environment
Vietnam has the following laws in place: Civil Code, Labour Code, Law on Foreign Investment, Law on Business, Banking Laws, Tax Laws, Law on Encouraging Domestic Investment, the Trade Law, the Law on Cooperatives, the Bankruptcy Law, the Insurance Law, and the Ordinance on Intellectual Property Rights, etc.
In 1990, a rudimentary system of commercial arbitration was created in the country by an Ordinance on Economic Arbitration. This was augmented by a number of non-government arbitration organisatioins. Foreign arbitrator awards have been enforceable in Vietnam since October 1995, when Vietnam joined the New York Convention of 1958. In 1994, Vietnam set up economic courts, which replaced the state economic arbitration system. These courts deal with matters of bankruptcy, fraud and embezzlement. However, contractual disputes still remain largely in the hands of arbitrators.
By law, trade and investment disputes between Vietnamese and foreign parties (to a foreign trade contract or a joint venture enterprise or a business cooperation contract) may be settled either by a Vietnamese economic court at the provincial level, by a Vietnamese or foreign or international arbitration body, or by an arbitration tribunal established by agreement between the parties. However, disputes within foreign invested enerprises or between foreign invested enterprises and Vietnamese economic organisations will be settled only by Vietnamese aribtration organisations or courts under Vietnamese law.
17. Tariff and Non-Tariff Barriers
Vietnam has moved towards a more open trading system since it introduced market-oriented reforms. As a result, imports and exports have expanded rapidly. While the Vietnamese government is eliminating some non-tariff barriers and is reducing tariffs in preparation for meeting its goals under AFTA (ASEAN Free Trade Area), there is still a concern that high trade barriers will be maintained in the next few years to protect certain sectors. At the same time, export-oriented industries are becoming a higher priority in the government's economic development plans. Eventually, these seemingly contradictory development strategies will need to be reconciled. Moreover, formal rules in many areas of the trading system have not been defined; while in others, the measures and their practical interpretation are frequently changing. Companies are advised to seek current and specific information about the issues discussed below in planning their market entry approaches.
(i) Membership in Free Trade Agreements: In July 1995, Vietnam became a member of Association of South East Asian Nations (ASEAN) and subsequently, a member of ASEAN Free Trade Area (AFTA). As part of AFTA, ASEAN members (including Brunei, Philippines, Indonesia, Laos, Myanmar, Malaysia, Singapore, Thailand, and Cambodia) are committed to making this region a competitive trading area. Under the harmonization process called CEPT — the Common Effective Preferential Tariff Scheme — intra-regional tariffs, especially for manufactured goods, would be reduced to a level of between zero to five percent by year 2003. Vietnam has been granted an extension until 2006 to comply with this requirement.
(ii) World Trade Organization (WTO): Vietnam has initiated the application process for membership into the WTO and has engaged in several working group meetings on accession in Geneva and bilateral negotiations with other WTO members.
(iii) Trade Regime Developments: Streamlining the tariff structure is one remaining key trade liberalization issue. However, some of the government's major obstacles stem from pressures to protect domestic industries and the potential loss of significant tax revenues. Nevertheless, Vietnam is committed to reducing or eliminating tariffs and other trade restrictions, since it is a requirement for its membership into AFTA, and if it is to realize its hopes for membership into the WTO. Vietnam signed a Bilateral Trade Agreement with the United States, a prerequisite to Vietnam gaining Normal Trade Relations (NTR) status. This bilateral trade agreement addresses various market access considerations, including both tariff and non-tariff barriers..
18. Tariff Rates
Tariff Code: In late 1998, the National Assembly of Vietnam issued a new Law to amend the Import and Export Tariffs Law. This law was drawn up in accordance with the Harmonized Tariff System (1996 Version) to facilitate the country's global integration. The amended law, effective on 1 January 1999, contains more than 6,400 tariff lines.
Import Tariffs: Under the current law, import taxes are issued by the National Assembly and then detailed by the Ministry of Finance. There are three tariff rates for imported goods: ordinary tariffs, preferential tariffs, and special preferential tariffs. Ordinary tariffs apply to goods originating from countries which have not exchanged Normal Trade Relations (NTR) agreements with Vietnam. The preferential tariffs on the list apply to goods imported from countries or regions, which have NTR status with Vietnam. (India has NTR status with Vietnam and hence imports from India are subject to preferential tariff rates). The special tariffs apply to goods imported from countries that have exchanged special preferential tariffs agreements with Vietnam. For instance, ASEAN members are entitled to such special preferential tariffs. Ordinary tariffs are 50 percent higher than preferential tariffs and can be increased or reduced as long as the margin does not exceed 70 percent of the preferential tariffs.
In addition to the above-mentioned tariff rates, Vietnam also reserves the right to impose surtaxes such as anti-dumping and countervailing duties. No regulations on surtaxes are available at present. Exemptions are granted if the goods fall into the following categories: (i) special goods for the purpose of national security and defense, science, education and training; (ii) specialized equipment, machinery and facilities for investment projects (both domestic and foreign); (iii) non-refundable aid, goods in transit, temporary imports and re-exports for exhibitions. Goods brought in for foreign-invested projects may qualify for exemption if they fall under five general categories: (1) equipment and machinery imported for the formation of the fixed assets of the project and spare parts and components attached thereto; (2) construction materials imported to build the fixed assets of the project that are not produced locally; (3) materials and supplies imported for the local manufacturer of the equipment and machinery included in the technological process of the projects; (4) specialized means of transport included in the technological process of the project or for transportation of groups of employees (with 24 seats or more); and (5) technology transfer that is considered as capital contribution by the foreign partner.
Special Consumption Taxes: Other taxes include the special consumption taxes on goods such as cigarettes, alcohol, spirits and beer, automobiles with twenty-four seats or less, and other miscellaneous items such as gasoline, air conditioners with capacity of 90,000 BTU or less, playing cards, and joss-paper. Special consumption taxes also apply for services such as dancing, massage, karaoke, casino, jackpot machine games, certain betting activities and golf. The special consumption tax is applicable to the import and production of the previously mentioned goods and services. Importers pay the special sales tax upon importation, ranging from 15 percent to 100 percent. The tax is calculated on the basis of applying the applicable tax rate to the CIF value of the goods. Since 1 January, 1999, the Government issued a "luxury tax" on passenger automobiles produced in Vietnam. The luxury tax applies for five seat or less, six-fifteen seat, and sixteen-twenty four seat vehicles at rates of 100 percent, 60 percent, and 30 percent, respectively. Locally produced commercial automobiles such as trucks and vans are exempt from the luxury tax, but subject to Value Added Tax (VAT) of 10 percent, which is not applied to passenger automobiles.
Value Added Tax (VAT): VAT replaced the previous turnover tax, and is levied on a sliding scale from zero percent to 20 percent. There are four rates of VAT: (i.) zero percent for exported goods; (ii.) five percent for the provision of essential goods and services (e.g. clean water, food stuff, medicine); (iii.) standard rate of 10 percent for activities such as power generation, mineral products, postal, and transportation services; and (iv.) 20 percent for activities such as lottery and brokerage.
19. Import Quotas
The Ministry of Trade (MOT), in consultation with the Ministry of Planning and Investment and other relevant ministries and ministerial-level agencies, requested the Government's approval to set formal import quotas on several commodities. As Vietnam is on track to fully implement its international commitments to liberalize trade, the list of import quotas is now limited to certain imports that have great impact on the economy such as petrol. Also, the Government, from time to time, decides to suspend the import of some commodities. In the past, those commodities included automobiles (under twelve seats), some types of steel, paper and other items. Import quotas are often administered through the import licensing system managed by MOT and are mainly granted to state-owned enterprises. Information about the allocation procedures for import quotas and how the process is enforced is not made publicly available. 20. Export Controls:
As of 2001 the Government implemented a new import and export policy under which lists of imports and exports subject to restrictions and licenses will be in effect for a period of five years (2001-2005) rather than just one year as previously provided. This is a positive step to make the country's import and export regulations more stable and predictable to importers and exporters. The list of export/import items banned/restricted are given in Annexure.
Permits and Licenses: Permits and licenses are now required for exports of a certain number of goods under supervision of the Ministry of Trade, the General Department of Post and Telecom and other ministries. They include (i) textiles and garments exported within quotas agreed upon between Vietnam and other countries, (ii) goods subject to export control under international agreements to which Vietnam is a signatory and (iii) postage stamps. Other than these, any enterprise can export goods in accordance with its business license.
Export Duties: Export duties are levied on many natural resources and commodities with a maximum rate of 45 percent. The government has recently increased export duties on many raw materials as part of a strategy to stimulate more value-added processing in the country. Indo-Vietnam Bilateral Trade (in US$ million)
India's Principal exports to Vietnam (in US$ million)
India's share in Vietnam's imports
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