1 Trade agreements

1.1 Which bilateral, regional and multilateral trade agreements have effect in your jurisdiction?

Vietnam is a member of the World Trade Organization (WTO). Vietnam's Protocol on Accession to the WTO was signed in November 2006 and the country officially became a member of the WTO on11 January 2007.

Vietnam is currently a signatory to 16 free trade agreements (FTAs). Of these:

  • four were signed bilaterally between Vietnam and a single FTA partner (Chile, Japan, the Republic of Korea and the United Kingdom);
  • two were with partners as economic blocs (the Eurasian Economic Union and the European Union); and
  • 10 were under the umbrella of Association of Southeast Asian Nations-plus (ASEAN) agreements.

The FTAs to which Vietnam is a signatory are as follows:

  • the Global System of Trade Preferences;
  • the ASEAN Free Trade Area (including the ASEAN Trade in Goods Agreement; the ASEAN Framework Agreement on Services (to be replaced by the ASEAN Trade in Services Agreement); and the ASEAN Comprehensive Investment Agreement);
  • the ASEAN-Australia and New Zealand Free Trade Agreement;
  • the ASEAN-Hong Kong-China Free Trade Agreement;
  • the ASEAN-India Comprehensive Economic Cooperation Agreement;
  • the ASEAN-Japan Comprehensive Economic Partnership;
  • the ASEAN-People's Republic of China Comprehensive Economic Cooperation Agreement;
  • the ASEAN-Republic of Korea Comprehensive Economic Cooperation Agreement;
  • the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP);
  • the Japan-Vietnam Economic Partnership Agreement;
  • the Regional Comprehensive Economic Partnership (RCEP);
  • the Republic of Korea-Vietnam Free Trade Agreement;
  • the Vietnam-Chile Free Trade Agreement;
  • the Vietnam-Eurasian Economic Union Free Trade Agreement;
  • the Vietnam-European Union Free Trade Agreement; and
  • the Vietnam-United Kingdom Free Trade Agreement.

1.2 Which authorities are responsible for the negotiation of trade agreements? What does this process typically involve and how long does it take?

The Ministry of Industry and Trade (MoIT) has overall responsibility for the negotiation of trade agreements. According to Decree No 98/2017/ND-CP of 18 August 2017, the MoIT has the authority, among other things, to:

Formulate plans, study and propose negotiation, conclude or enter into international or regional bilateral or multilateral treaties on commerce within the scope of its management in accordance with the law regulations; negotiate free trade agreements; negotiate international cooperation agreements and market expansion agreements between Vietnam and countries, associations of nations or territories (Article 2.22(b)).

Except for FTAs with a large number of signatories, and therefore of considerable scope and complexity (eg, the RCEP or CPTPP), most of Vietnam's FTAs were concluded following one to three years of negotiations and were ratified within two years of signing. The negotiations on the EU-Vietnam FTA took three years to conclude, but the legal review was not completed until 2018. The negotiations on the RCEP and the CPTPP took around eight years each.

1.3 Do interim provisions apply while new trade agreements are under negotiation?

It is possible to have side agreements or early harvest agreements while new trade agreements are under negotiation. For example, the Agreement on Market Access was signed between the European Union and Vietnam in 2004. Under the agreement, the European Union agreed to suspend quotas on Vietnamese clothing exports to the European Union. In exchange, Vietnam committed to reduce tariffs on some goods and increase market access for EU service providers.

2 Customs and imports

2.1 What laws and regulations govern customs in your jurisdiction?

  • Law No 54/2014/QH13 dated 15 June 2014 on customs (‘Law on Customs');
  • Decree No 102/2021/ND-CP dated 16, November 2021 on amendments to some articles of decrees on:
    • penalties for administrative violations against regulations on tax and invoicing;
    • customs;
    • insurance business and lottery business;
    • management and use of public property;
    • thrift practice and combatting wastefulness;
    • the national reserve; and
    • the state treasury;
  • Decree No 128/2020/ND-CP dated 19 October 2020 on penalties for administrative customs offences;
  • Decree No 67/2020/ND-CP dated 15 June 2020 on amending Decree No 68/2016/ND-CP on requirements for:
    • trading of duty-free goods;
    • storage facilities;
    • locations for customs clearance procedures;
    • commodity gathering; and
    • customs inspection and supervision;
  • Decree No 46/2020/ND-CP dated 9 April 2020 prescribing customs procedures, customs supervision and inspection of goods in transit through the Association of Southeast Asian Nations (ASEAN) Customs Transit System for implementation of Protocol 7 on the Customs Transit System;
  • Decree No 59/2018/ND-CP dated 20 April 2018 on amendments to Decree No 08/2015/ND-CP providing specific provisions and guidance on enforcement of provisions of the Law on Customs on customs procedures, inspection, supervision and control procedures;
  • Decree No 12/2018/ND-CP dated 23 January 2018 on amendments to Decree No 01/2015/ND-CP specifying customs areas and responsibility for collaboration in preventing and controlling smuggling and the illegal transportation of goods across borders;
  • Decree No 68/2016/ND-CP dated 1 July 2016 on the conditions for:
    • duty-free business;
    • warehouses;
    • sites for customs clearance; and
    • customs inspection and supervision;
  • Decree No 08/2015/ND-CP dated 21 January 2015 setting out specific provisions and guidance on enforcement of provisions of the Law on Customs on customs procedures, examination, supervision and control procedures;
  • Decree No 01/2015/ND-CP dated 2 January 2015 specifying customs areas and responsibility for collaboration in preventing and controlling smuggling and illegal transportation of commodities across borders;
  • Circular No 14/2021/TT-BTC dated 18 February 2021 on prescribing customs fees and charges for goods and vehicles in transit, and the collection, transfer, management and use thereof;
  • Circular No 90/2020/TT-BTC dated 11 November 2020 on prescribing forms used for the imposition of penalties for administrative customs offences;
  • Circular No 42/2020/TT-BTC dated 22 May 2020 on information fields and forms for adoption of procedures for transiting goods according to Decree No 46/2020/ND-CP on customs procedures and customs examination, and the supervision of goods in transit via the ASEAN customs transit system for the implementation of Protocol 7 on the customs transit system;
  • Circular No 13/2020/TT-BTC dated 6 March 2020 on amendments to Circular No 13/2015/TT-BTC on:
    • the inspection, supervision and suspension of customs procedures for imports and exports that are the subject of IP rights; and
    • the control of counterfeit goods and goods infringing IP rights;
  • Circular No 81/2019/TT-BTC dated 15 November 2019 on risk management in customs operations;
  • Circular No 80/2019/TT-BTC dated 15 November 2019 on customs procedures, tax administration, fees and charges with respect to the export and import of goods according to Decree No 14/2018/ND-CP on border trade activities;
  • Circular No 60/2019/TT-BTC dated 30 August 2019 amending Circular No 39/2015/TT-BTC on the customs value of exported goods and imported goods;
  • Circular No 56/2019/TT-BTC dated 23 August 2019 on amendments to Circular No 49/2015/TT-BTC on customs procedures applicable to mail, packages and parcels of goods exported or imported through postal services provided by authorised enterprises and Circular No 191/2015/TT-BTC on customs procedures for exported, imported goods and goods in transit;
  • Circular No 07/2019/TT-BTC dated 28 January 2019 on amendments to Circular No 72/2015/TT-BTC on the application of priority policies to customs procedures, customs supervision and the inspection of imports and exports;
  • Circular No 39/2018/TT-BTC dated 20 April 2018 on amendments to Circular No 38/2015/TT-BTC on:
    • customs procedures;
    • customs supervision and inspection;
    • export tax;
    • import tax; and
    • tax administration of exported and imported goods;
  • Circular No 194/2016/TT-BTC of 8 November 2016 on the rate, collection and submission of customs fees and charges on the arrival and departure of foreign flights at and from Vietnamese airports;
  • Circular No 106/2016/TT-BTC dated 29 June 2016 on customs procedures for the export and import of oil and gas, blend stocks, oil and gas blending and conversion at petroleum bonded warehouses;
  • Circular No 69/2016/TT-BTC dated 6 May 2016 on customs procedures for:
    • the import, export, temporary import for re-export and transit of petrol and oil chemicals and gases;
    • the import of raw materials for the production and preparation or outward processing of petroleum and gas;
    • the import and export of crude oil; and
    • other petroleum-related imports and exports;
  • Circular No 191/2015/TT-BTC dated 24 November 2015 on customs procedures for goods that are imported or transited through international express delivery service;
  • Circular No 143/2015/TT-BTC dated 11 September 2015 on the procedure for customs clearance and management of motor vehicles and motorcycles of entities granted permission for their import or temporary import for non-commercial purposes;
  • Circular No 72/2015/TT-BTC dated 12 May 2015 on the application of the priority policy in customs procedures, customs inspections and supervision of exported and imported goods of enterprises;
  • Circular No 49/2015/TT-BTC dated 14 April 2015 on the customs procedure for mail, packages or parcels of goods exported or imported through postal services provided by authorised enterprises;
  • Circular No 38/2015/TT-BTC dated 25 March 2015, on customs procedures, customs supervision and inspection, export tax, import tax, and tax administration applied to exported and imported goods;
  • Circular No 39/2015/TT-BTC dated 25 March 2015 on the customs value of imported goods and exported goods; and
  • Circular No 13/2015/TT-BTC dated 30 January 2015 on the inspection, supervision and suspension of customs procedures for imports and exports that are the subject of IP rights, and the control of counterfeit goods and goods infringing IP rights;

2.2 Which authority is responsible for enforcing the customs regulations? What powers does it have?

Article 100 of the Law on Customs states that the Ministry of Finance (MoF) is responsible for the management of customs matters. Specifically, Article 2.16 of Decree No 87/2017/NĐ-CP dated 26 July 2017 on the functions, tasks, powers and organisational structure of the MoF states as follows:

Article 2.16. On customs matters:

a) Formulate and submit to the Government and the Prime Minister for the promulgation of specific regulations on customs procedures, customs inspection, and supervision; preventing and combating smuggling and illegal cross-border transportation of goods;

b) Promulgate, according to its competence, the documents guiding and directing the implementation of customs inspection and supervision; organize the implementation of the tax law on imported and exported goods; anti-smuggling and customs statistics according to the provisions of law;

c) Organize, guide, direct, inspect and take responsibility for the performance of duties of the customs offices according to the provisions of the Customs Law and other provisions of law; examine and handle according to its competence violations of the law on customs.

The General Department of Customs (GDC) is in charge of customs matters at the borders. According to Article 14 of the Law on Customs, the organisational structure of this body is as follows:

  • the GDC (at the central level);
  • customs departments at the provincial level; and
  • customs divisions, customs control teams and equivalent units (collectively ‘customs offices').

The functions and responsibilities of the customs offices are set out in Article 12 of the Law on Customs, as follows:

Article 12. Responsibilities of Customs

Vietnam Customs shall inspect and supervise goods and transportation vehicle; tackle smuggling and illegal cross-border trafficking of goods; implement laws on taxation applied to imported and exported goods; collect statistics on imported and exported goods in conformity with this Law and other corresponding laws; propose policies and administrative measures for customs applicable to import, export, exit, entry and transit operation and tax policies applicable to imported and exported goods.

2.3 What is the authority's general approach to enforcing the customs regulations? How vigorously are the rules enforced?

Article 3 of the Law on Customs (customs policies) reads as follows:

1. The State of Vietnam shall facilitate customs formalities applied to import, export, exit, entry, and transit in the Vietnamese territory.

2. Developing Vietnam Customs into a clean, strong, professional, and modern agency with transparent and efficient operation.

Article 5 of the Law on Customs (application of international treaties, customs and practices on customs) reads as follows:

1. If a treaty to which the Socialist Republic of Vietnam is a party provides for provisions different from those of this Law, the provisions of such treaty shall be applied.

2. If there are cases that have not been provided for by this Law, other legal documents of Vietnam and international treaties to which the Socialist Republic of Vietnam becomes a party, international customs and practices on customs may be applied, provided that the application of such customs and practices does not contravene the primary rules of Vietnamese law.

As noted in question 1.1, Vietnam is a member of the World Trade Organization (WTO) and, by extension, a signatory to the WTO Trade Facilitation Agreement. Vietnam is also a signatory to 16 free trade agreements (FTA), most of which have provisions on customs procedures and trade facilitation. As such, Vietnam will prioritise the application of all customs and trade facilitation provisions in the aforementioned agreements.

2.4 What customs import tariffs and duties apply in your jurisdiction? How are they levied?

Law No 107/2016/QH13 dated 6 April 2016 on export and import duties governs the following:

  • taxed goods;
  • taxpayers;
  • the basis for tax calculation;
  • the time of tax calculation;
  • tariff schedules;
  • anti-dumping duties;
  • countervailing duties;
  • safeguard duties imposed on exports and imports;
  • tax exemptions;
  • tax reductions; and
  • the refund of export and import duties.

According to Article 2 of Law No 107/2016/QH13, taxed goods included the following categories:

1. Goods exported and imported through Vietnam's border and border checkpoints.

2. Goods exported from the domestic market into free trade zones; goods imported from free trade zones into the domestic market.

3. Goods indirectly exported-imported; goods exported and imported by enterprises exercising their right to export, import, or distribute.

The following goods do not incur export and import duties:

a) Goods in transit;

b) Goods that are humanitarian aid or grant aid;

c) Goods exported from a free trade zone to abroad; goods imported from abroad to a free trade zone and used within such free trade zone; goods transported from one free trade zone to another;

d) Amounts of petroleum used as severance tax paid to the State upon its exportation.

Import tariffs and duties can be calculated as ad valorem (percentage), fixed duties or mixed duties. The taxable value is the customs value prescribed by the Law on Customs. According to Article 86 of the Law on Customs, the customs value is identified as follows:

2. Customs value of exported goods means selling prices of such goods when they arrive at border checkpoints of exportation, excluding international insurance costs and freight.

3. Customs value of imported goods means payable actual prices determined when they arrive at the first border checkpoint of importation in compliance with Vietnamese law and treaties to which the Socialist Republic of Vietnam becomes a party.

2.5 What types of preferential tariffs are available in your jurisdiction? What are the criteria for eligibility?

According to Article 5.3 of the Law on Export and Import Duties, import duties include preferential rates, special preferential rates and ordinary rates as follows:

a) Preferential rates apply to imports originating in any country or group of countries or territories that accord Vietnam most-favoured nation treatment; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that accord Vietnam most-favoured nation treatment;

b) Special preferential rates apply to imports originating in any country or group of countries or territories that have an agreement on special preferential import duties with Vietnam; goods that are imported from a free trade zone to the domestic market and originating in a country or group of countries or territories that have an agreement on special preferential import duties with Vietnam;

c) Ordinary rates apply to imports other than those mentioned in Point a and Point b of this Clause. The ordinary rate is 150% of the preferential rate applied to the corresponding article. In case the preferential rate is 0%, the Prime Minister shall decide the application of ordinary rate pursuant to Article 10 of this Law.

Accordingly, the eligibility criteria for preferential tariffs and special preferential rates include the following:

  • Preferential treatment exists (either most favoured nation or a special preferential agreement, such as an FTA); and
  • The rules of origin are met.

2.6 Are tariffs applied to safeguard national security?

The prohibition of exports/imports is a measure prescribed by law to safeguard national security. Article 9 of Law No 05/2017/QH14 dated 12 June 2017 on foreign trade management (‘Law on Foreign Trade Management') stipulates that a prohibition on exports/imports will be imposed on products to be exported/imported that relate to national defence and security where permission has not been obtained from the competent authority for export/import.

2.7 What import controls and restrictions apply in your jurisdiction? What exemptions are available?

The Law on Foreign Trade Management prescribes several measures on import controls and restrictions as follows:

  • Administrative measures include:
    • import prohibition and import suspension;
    • import restrictions (via quotas, appointment of border checkpoints, appointment of exporters and importers);
    • management via licences and conditions for export and import;
    • certifications of origin;
    • certifications of free sale;
    • other measures related to temporary imports, transit, purchasing agent, entrustment of imports, processing of products for foreign traders and outsourcing;
    • measures for the management of foreign trade with neighbouring countries; and
    • management of products of customs-controlled areas.
  • Technical and quarantine measures (eg, sanitary and phytosanitary; technical barriers to trade);
  • Trade remedies (anti-dumping, countervailing, safeguards); and
  • Urgent control measures.

The export and import of restricted products for non-commercial purposes must comply with the relevant regulations of law. The measures for foreign trade management must not be imposed on products that are purchased, sold and transported between customs-controlled areas in the territory of Vietnam, unless otherwise prescribed by the government to prevent commercial fraud and illegal transshipment (Article 58 of the Law on Foreign Trade Management).

2.8 How are customs and import decisions challenged in your jurisdiction? What does this process typically involve and how long does it take?

According to Articles 26 and 36 of the Law on Customs, if customs declarants disagree with the results of classification or the payable tax amounts determined by customs authorities, they have the right to lodge complaints. The lodging and settlement of complaints must comply with Law No 02/2011/QH13 dated 11 November 2011 on complaints (‘Law on Complaints').

According to Article 81 of the Law on Customs, the general director of customs, the director of the department for post-customs clearance inspection and directors of customs departments are responsible for, among other things, handling complaints and denunciations in accordance with the law.

The statute of limitations for making a complaint is 90 days after receiving an administrative decision or knowing or being informed of an administrative decision or act (Article 9 of the Law on Complaints).

Within 10 days of receiving a complaint under his or her competence, a person competent to settle the complaint must:

  • accept the complaint for settlement; and
  • notify in writing:
    • the complainant;
    • the competent agency;
    • the organisation or person that has forwarded the complaint; and
    • the state inspectorate of the same level.

If he or she refuses to accept the complaint, he or she must clearly state the reason therefor (Article 27 of the Law on Complaints).

The time limit for settling a first-time complaint should not exceed 30 days after acceptance of the complaint. For a complicated case, this timeframe may be extended, but it must not exceed 45 days after acceptance of the complaint. In remote areas with difficult travel conditions, the timeframe for settling a complaint is 45 days after acceptance of the complaint. For a complicated case, this timeframe may be extended, but must not exceed 60 days after acceptance of the complaint (Article 28 of the Law on Complaints).

Within 30 days of the expiry of the complaint settlement timeframe, if a first-time complaint remains unsettled or the complainant disagrees with the settlement decision, the complainant may:

  • make another complaint to a person competent to settle second-time complaints; or
  • institute an administrative lawsuit in court in accordance with the Law on Administrative Procedures (Article 33 of the Law on Complaints).

Within 10 days of receiving a complaint under his or her competence, a person competent to settle second-time complaints must

  • accept the complaint for settlement; and
  • notify in writing:
    • the complainant;
    • the competent agency;
    • the organisation or person that has forwarded the complaint; and
    • the state inspectorate of the same level.

In case of refusal to accept the complaint, he or she must clearly state the reason therefor (Article 36 of the Law on Complaints).

The timeframe for settling a second-time complaint must not exceed 45 days after acceptance of the complaint. For a complicated case, this timeframe may be extended, but must not exceed 60 days after acceptance of the complaint. In remote areas with difficult travel conditions, the timeframe for settling a complaint is 60 days after acceptance of the complaint. For a complicated case, this timeframe may be extended, but must not exceed 70 days after acceptance of the complaint (Article 37 of the Law on Complaints).

2.9 What penalties are imposed for breach of the customs rules?

Breach of the customs rules is subject to penalties, fines and remedial measures prescribed under Decree No 128/2020/ND-CP dated 19 October 2020 on penalties for administrative customs offences. For each administrative customs offence, the main penalty is a warning or a fine. Depending on the nature and severity of the violation, the fine may range from VND 500,000 to VND 100 million. Any organisation or individual that commits multiple administrative offences will face a penalty for each offence, unless otherwise specified by relevant laws (Article 2 of Decree No 102/2021/ND-CP).

Additional penalties might include confiscation of exhibits of violations. Additionally, one or more remedial measures may be enforced, in accordance with Article 5 of Decree No 128/2020/ND-CP.

3 Exports

3.1 What export controls and restrictions apply in your jurisdiction? What exemptions are available?

The Law on Foreign Trade Management prescribes several measures on import controls and restrictions as follows:

  • Administrative measures include:
    • import prohibition and import suspension;
    • import restrictions (via quotas, appointment of border checkpoints, appointment of exporters and importers);
    • management via licences and conditions for export and import;
    • certifications of origin;
    • certifications of free sale;
    • other measures related to temporary imports, transit, purchasing agents, entrustment of imports, processing of products for foreign traders and outsourcing;
    • measures for the management of foreign trade with neighbouring countries; and
    • management of products of customs-controlled areas.
  • Technical and quarantine measures (eg, sanitary and phytosanitary; technical barriers to trade);
  • Trade remedies (anti-dumping, countervailing, safeguards); and
  • Urgent control measures.

The export and import of restricted products for non-commercial purposes must comply with the relevant regulations of law. The measures for foreign trade management must not be imposed on products that are purchased, sold and transported between customs-controlled areas in the territory of Vietnam, unless otherwise prescribed by the government to prevent commercial fraud and illegal transshipment (Article 58 of the Law on Foreign Trade Management).

3.2 Which authority is responsible for enforcing the export controls? What powers does it have?

According to Article 6 of the Law on Foreign Trade Management, the government has the overall responsibility for unifying the state administration of foreign trade.

The Ministry of Industry and Trade (MoIT) acts as the focal point to assist the government in the state administration of foreign trade.

Other ministries and ministerial-level agencies must take charge of, and cooperate in relation to, the following activities, among others:

  • negotiating international treaties, supervising their implementation by partners and removing barriers to export within their power;
  • managing foreign trade and developing foreign trade activities in accordance with the law; and
  • reporting and sharing information relating to foreign trade activities and foreign trade management.

The local government of each province, within its duties and powers, must carry out the task of state administration of foreign trade in that province in accordance with the law and assignments of the government, the prime minister, the ministries and ministerial-level agencies.

The specific authorities and responsibilities of each agency are stipulated in the Law on Foreign Trade Management and guiding documents (eg, Decree No 69/2018/ND-CP date 15 May 2018 on guiding the implementation of the Law on Foreign Trade Management; Circular No 12/2018/TT-BCT date 15 June 2018 elaborating some articles of the Law on Foreign Trade Management; and Decree No 69/2018/ND-CP dated 15 May 2018).

3.3 What is the authority's general approach to enforcing the export controls? How vigorously are the rules enforced?

According to Article 4 of the Law on Foreign Trade Management, the state is bound by the following principles of state administration on foreign trade:

1. The State shall manage the foreign trade in accordance with regulations of Vietnam law and international treaties to which the Socialist Republic of Vietnam is a signatory.

2. Ensure the transparency, equality and simplification of administrative procedures; ensure legal rights and interests of the State and traders in economic sectors; promote the development of domestic production and export associated with import management.

3. Ensure compliance with Most Favoured Nation Treatment (MFN) and National Treatment principles in foreign trade activities in accordance with regulations of Vietnam law and international treaties to which the Socialist Republic of Vietnam is a signatory.

The freedom of Vietnamese traders and foreign-invested business to export and import must be exercised in accordance with the Law on Foreign Trade Management and international treaties to which Vietnam is a signatory (Article 5 of the Law on Foreign Trade Management).

3.4 How are export decisions challenged in your jurisdiction? What does this process typically involve and how long does it take?

Complaints and settlement of complaints against any administrative decisions or acts of state administrative agencies, including those within the area of foreign trade management, are subject to the Law on Complaints. The process and timeframe for filing complaints are similar to those elaborated in question 2.8.

3.5 What penalties are imposed for breach of export controls?

Breach of the rules on export controls is subject to penalties, fines and remedial measures prescribed under Decree No 128/2020/ND-CP dated 19 October 2020 on penalties for administrative customs offences. For each administrative customs offence, the main penalty is a warning or a fine. Depending on the nature and severity of the violation, the fine may range from VND 500,000 to VND 100 million. Any organisation or individual that commits multiple administrative offences will face a penalty for each offence, unless otherwise specified by relevant laws (Article 2 of Decree No 102/2021/ND-CP).

Additional penalties might include confiscation of exhibits of violations. Additionally, one or more remedial measures may be enforced, in accordance with Article 5 of Decree No 128/2020/ND-CP.

4 Trade remedies

4.1 What laws and regulations govern trade remedies in your jurisdiction?

  • Law No 05/2017/QH14 dated 12 June 2017 on foreign trade management (‘Law on Foreign Trade Management');
  • Decree No 10/2018/ND-CP dated 15 January 2018 guiding the implementation of the Law on Foreign Trade Management on trade remedies;
  • Circular No 37/2019/TT-BCT dated 29 November 2019 on trade remedies; and
  • The trade remedies chapters of free trade agreements to which Vietnam is a member.

4.2 Which authority is responsible for enforcing the trade remedy regulations? What powers does it have?

In detailing the provisions set out in Chapter IV on Trade Remedies of the Law on Foreign Trade Management, Decree No 10/2018/ND-CP is the main regulation guiding the implementation of trade remedies in Vietnam. Article 95 of Decree No 10/2018/ND-CP stipulates that the Ministry of Industry and Trade (MoIT) is the main agency responsible for implementing this decree. Within the MoIT, the Trade Remedies Authority of Vietnam (TRAV) is responsible for advising and assisting the MoIT in performing the functions of state management and law enforcement in the field of anti-dumping, anti-subsidy and safeguards.

Other ministries, heads of ministerial-level agencies, heads of other governmental agencies and presidents of people's committees of provinces are responsible for coordination and collaboration in the implementation of this decree. For example, the Ministry of Finance assists with:

  • procedures for the collection and remittance to the state budget of receivables from trade remedies applied to goods imported into Vietnam; and
  • procedures for the refund of trade remedy tax.

The customs authorities, within their powers and functions, must:

  • provide information on goods under consideration imported to Vietnam at the request of the investing authority in a timely and adequate manner; and cooperate with the Investigating Authority (IA) in providing anonymous information about the quantity and quality of imports and exports related to the investigation, imposition and handling of trade remedies at the request of enterprises and trade associations (Article 14 of Decree 10/2018/ND-CP).

The customs authorities must also cooperate with the minister of industry and trade in monitoring and managing the imposition of trade remedy measures (Article 53 of Decree No 10/2018/ND-CP).

4.3 What is the authority's general approach to enforcing the trade remedy regulations? How vigorously are the rules enforced?

Since its accession to the World Trade Organization, Vietnam has been actively engaged in the implementation of trade remedy regulations. As Vietnam expands trade with global markets, the number of trade remedy measures imposed by and upon the country has also been increasing. According to the Trade Remedies Report 2020, published by the TRAV in 2021, Vietnam recorded 39 trade remedy cases initiated against Vietnamese exports in 2020. This is 2.5 times higher than in 2019 and accounts for nearly 20% of all cases since 1995. Vietnam also:

  • initiated five anti-dumping investigations and one anti-subsidy investigation;
  • completed four anti-dumping investigations initiated since 2019; and
  • reviewed four trade remedy measures applied.

4.4 How is a trade remedy action initiated in your jurisdiction and on what grounds? Can the authority initiate an action ex officio?

According to Article 70 of the Law on Foreign Trade Management, an organisation or individual representing a domestic industry may submit a request for the application of trade remedies if it is found that the domestic industry has been injured due to dumping on imports, import subsidies or a surge in imports. Within 45 days of notification of a valid application, the minister of industry and trade must decide whether an investigation should be conducted according to the proposal by the agency responsible for investigating trade remedies, the IA. In special cases, the timeframe for the issuance of a decision may be extended by up to 30 days.

The IA can initiate an action ex officio in the absence of a requesting party. According to Article 33.1 of Decree No 10/2018/ND-CP, if no one requests an investigation but there is clear evidence of the dumping of goods/good subsidies imported to Vietnam which has caused or may cause significant damage to domestic industry, the IA will:

  • prepare an application for the imposition of anti-dumping measures/countervailing measures and submit it to the minister of industry and trade for review; and
  • decide whether to initiate an investigation.

4.5 What does the action typically involve and how long does it take?

According to Article 70 of the Law on Foreign Trade Management, trade remedy investigations involve the following steps:

  • a request for the application of trade remedies;
  • an investigation, including consultation during the investigation;
  • notification of the investigation; and
  • preliminary determination and final determination of the investigation.

An organisation or individual representing a domestic industry may submit a request for the application of trade remedies if it is found that the domestic industry has been injured by dumping on imports, import subsidies or a surge in imports.

Within 45 days of notification of a valid application, and based on a request from the IA, the minister of industry and trade must decide whether an investigation should be conducted. In special cases, the timeframe for the issue of a decision may be extended by up to 30 days.

Within 15 days of the date on which the minister of industry and trade issues a decision on anti-dumping or countervailing investigation, the IA must notify the governments in the countries of relevant producers and exporters and other interested parties.

The timeframe for the investigation is:

  • 12 months (with a possible extension to 18 months) from the date on which the decision to investigate is issued, for anti-dumping and countervailing investigations; or
  • Otherwise, nine months (with a possible extension to 12 months) from the date on which the decision to investigate is issued.

During the investigation, interested parties may send the IA relevant information and opinions related to the cases in writing. Before the final determination of the investigation is disclosed, the IA can organise the public consultation in a manner that allows interested parties to present information and opinions related to the case.

The IA must give public notice of the preliminary determination and final determination of the investigation, the acceptance of price undertakings and the termination of the investigation to interested parties according to the international treaties to which Vietnam is a signatory.

4.6 How can interested parties defend against a trade remedy action in your jurisdiction?

According to Article 9 of Decree No 10/2018/ND-CP, interested parties have the following rights and obligations in a trade remedy case:

1. The requesting party and the requested party shall have the following rights:

a) Access information provided by other relevant parties to the investigating authority, except for confidential information as prescribed in Article 11 hereof;

b) Send opinions on the draft preliminary conclusion, final conclusion, review conclusion and conclusion of investigation against evasion of trade remedies within 07 days since the date on which the investigating authority send the draft for opinions;

c) Recommend the investigating authority to extend the time limit for providing information, the time limit for responding to the questionnaire;

d) Request for the confidentiality of information as prescribed in Article 11 of Decree No 10/2018/ND-CP;

dd) Participate in the public hearing and present viewpoints, provide evidence and documents related to the trade remedy case;

e) Authorize other parties on his/her behalf to participate in the resolution process of the trade remedy case;

g) Request the investing authority to organize a separate hearing as prescribed in Clause 1 Article 13 of Decree No 10/2018/ND-CP;

h) Complaint or file a lawsuit about decisions of the Minister of Industry and Trade according to law provisions on complaints and lawsuits of Vietnam.

2. The requesting party and the requested party shall have the following obligations:

a) Provide sufficiently, truthfully, accurately and promptly the necessary evidence, information and documents relating to his/her request;

b) Provide sufficiently, truthfully, accurately and promptly the necessary evidence, information and documents as requested by the investigating authority;

c) Execute decisions of the Minister of Industry and Trade.

3. Relevant parties other than the requesting party or the requested party shall have the following rights and obligations:

a) Provide truthful information and necessary documents relating to the trade remedy case according to his/her viewpoints or at the request of the investing authority;

b) Request for the confidentiality of information as prescribed in Article 11 of Decree No 10/2018/ND-CP;

c) Access information about the trade remedy case of the investing authority, except for confidential information as prescribed in Article 11 of Decree No 10/2018/ND-CP;

d) Participate in the public hearing and present viewpoints, provide evidence and documents related to the trade remedy case.

4.7 How are trade remedy decisions challenged in your jurisdiction? What does this process typically involve and how long does it take?

According to Article 9.1(h) of Decree No 10/2018/ND-CP, parties that wish to challenge a trade remedy decision should follow the provisions on complaints and civil proceedings. Complaints and settlement of complaints against any administrative decisions or acts of state administrative agencies, including those relating to foreign trade management, are subject to the Law on Complaints. The process and timeframe for filing complaints are similar to those elaborated in question 2.8.

4.8 What strategies should be considered to ensure compliance with a trade remedy decision? What penalties are imposed for non-compliance?

Once a trade remedy decision has been issued, interested parties should comply with its provisions. Interested parties have the right to request a review of the imposition of trade remedies measures in accordance with the provisions of law (Article 82, Article 90 and Article 96 of the Law on Foreign Trade Management, and their guiding provisions for implementation).

Evasion of trade remedies – that is, actions aimed at evading some or all obligations to enforce trade remedies imposed on products which are subject to these measures on being imported to Vietnam – should be avoided. The trade remedies will be expanded if the IA discovers their evasion in accordance with Article 72 of the Law on Foreign Trade Management and its guiding provisions for implementation.

5 Trade barriers

5.1 What laws and regulations govern trade barriers in your jurisdiction?

Trade barriers include tariff and non-tariff barriers. Tariff measures are mainly regulated under the Law on Export and Import Duties, with procedural rules following the Law of Customs, and their respective guiding documents (see question 1).

Non-tariff measures in Vietnam are generally listed in the export and import controls measures (see questions 2.7 and 3.1). These measures are governed by the Law on Foreign Trade Management and its guiding documents, including the following:

  • Decree No 10/2018/ND-CP dated 15 January 2018 on guidelines for the law on foreign trade management on trade remedies;
  • Circular No 37/2019/TT-BTC dated 29 November 2019 on providing detailed regulations on trade remedies;
  • Decree No 09/2018/ND-CP dated 15 January 2018 on guidelines for 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;
  • Decree No 14/2018/ND-CP dated 23 January 2018 on border trade;
  • Decree No 31/2018/ND-CP dated 8 March 2018 on guidelines for the Law on Foreign Trade Management in terms of the origin of goods;
  • Circular No 05/2018/TT-BCT dated 3 April 2018 on the origin of goods;
  • Decree No 69/2018/ND-CP dated 15 May 2018 on guidelines for the Law on Foreign Trade Management; and
  • Circular No 12/2018/TT-BCT dated 15 June 2018 elaborating on the Law on Foreign Trade Management and Government Decree No 69/2018/ND-CP elaborating on the Law on Foreign Trade Management (including the list of goods subject to a prohibition on imports; suspension of temporary import and re-export; transit of goods; and quotas).

5.2 Which authority is responsible for enforcing the trade barrier regulations? What powers does it have?

The Ministry of Industry and Trade has overall responsibility for the management and monitoring of trade, including trade barrier regulations. Additionally, several competent government agencies are tasked with managing trade barrier regulations within their sectoral purview.

Other ministries and ministerial-level agencies must take charge and cooperate in the following activities, among others:

  • negotiating international treaties, supervising their implementation by partners and removing barriers to export within their power;
  • managing foreign trade and developing foreign trade activities in accordance with the law; and
  • reporting and sharing information relating to foreign trade activities and foreign trade management.

The local government of each province, within its duties and powers, must carry out the task of state administration of foreign trade in that province in accordance with the law and the assignment of the government, the prime minister, the ministries and ministerial-level agencies.

More specifically, Decree No 69/2018/ND-CP includes as an annex a list of goods that are subject to different export and import control measures (see question 3.1) and the competent government agencies that oversee imports and exports of the listed products. For example:

  • the Ministry of National Defence is responsible for trade-related measures applicable to the trade of armaments;
  • the Ministry of Culture, Sports and Tourism for publications and cultural products; and
  • the Ministry of Agriculture and Rural Development for agricultural products (including forestry and fisheries).

5.3 What is the authority's general approach to enforcing the trade barrier regulations? How vigorously are the rules enforced?

According to Article 4 of the Law on Foreign Trade Management, the state is bound by the following principles of state administration related to foreign trade:

1. The State shall manage the foreign trade in accordance with regulations of Vietnam law and international treaties to which the Socialist Republic of Vietnam is a signatory.

2. Ensure the transparency, equality, and simplification of administrative procedures; ensure legal rights and interests of the State and traders in economic sectors; promote the development of domestic production and export associated with import management.

3. Ensure compliance with Most Favoured Nation Treatment (MFN) and National Treatment principles in foreign trade activities in accordance with regulations of Vietnam law and international treaties to which the Socialist Republic of Vietnam is a signatory.

5.4 How is a trade barrier action initiated in your jurisdiction and on what grounds?

The imposition of trade barriers must follow the relevant provisions outlined in the Law on Foreign Trade Management and its guiding documents, depending on the characteristics of the goods.

For example, for goods that are subject to licence-based management and condition management measures under Section 2, Chapter II or the Law on Foreign Trade Management, the government must issue:

  • a list of exported and imported goods that require licences or are subject to certain conditions;
  • the measures for and scope of the management by competent ministers and ministerial-level authorities related to the products included in the list; and
  • the procedures for the issuance of export and import licences.

This information is provided under Appendix III of Decree No 69/2018/ND-CP. Ministries and ministerial-level authorities must publish:

  • a list of exports or imports requiring licences or subject to certain conditions; and
  • the conditions for the export and import of products included on the list.

5.5 What does the action typically involve and how long does it take?

Measures affecting trade are included in Vietnamese laws and regulations. These legislative documents are specified in Article 4 of Law No 80/2015/QH13 dated 22 June 2015 on the promulgation of legislative documents (‘Law on the Promulgation of Legislative Documents') to include:

  • orders and decisions of the president;
  • government decrees;
  • decisions of the prime minister; and
  • circulars of ministers or heads of ministerial-level agencies.

Depending on the types of legislative documents, businesses might have the opportunity to provide opinions on their formulation and drafting.

There is no prescribed timeline for the formulation and promulgation of legislative documents – only the procedures for the formulation and promulgation thereof. The timeline will largely depend on the complexity and urgency of the matter. With regard to the timeline for the effective date of legislative documents since the signing date, Article 1.48 of Law No 63/2020/QH14 dated 18 June 2020 amending the Law on the Promulgation of Legislative Documents (‘Amended Law on Promulgation of Legislative Documents') stipulates that the effective date of the whole or part of a legislative document must not be sooner than:

  • 45 days from the date on which it is ratified or signed if it is promulgated by a central regulatory agency;
  • 10 days from the date on which it is signed if it is promulgated by the people's council or the people's committee of a province; or
  • seven days from the day on which it is signed if it is promulgated by the people's council or the people's committee of a district or commune.

A legislative document promulgated under simplified procedures may come into force on the date it is ratified or signed; and must be immediately published on the web portal of the promulgating agency and in the Official Gazette at the central or provincial level, depending on the issuing agency.

5.6 What measures can the authority take against a foreign trade barrier?

Upon detecting foreign trade policy measures adopted by foreign governments which will likely prejudice the rights and interests of Vietnam in accordance with treaties on the adoption of foreign trade policy measures, or upon the request of traders or industrial associations, the government entities empowered to execute the government's powers on foreign trade policy will propose and process requests for consultations on those foreign policy measures.

According to Article 68 of Decree No 69/2018/ND-CP, during consultations with foreign governments, the responsible agency must report on the status and results of the consultations to its superior body and the designated contact point for further actions. If considered suitable, the responsible agency may enter into negotiations and mediation with the foreign government, according to the plan approved by its superior body.

If the foreign trade barrier is found to be against multilateral or bilateral trade rules (under World Trade Organization agreements or free trade agreements), the Vietnam government can refer it to the consultation and dispute settlement procedures as set forth in the relevant trade agreements.

5.7 What non-tariff trade barriers are imposed in your jurisdiction?

Multiple non-tariff trade barriers, or measures on export and import controls other than tariffs, are provided in accordance with the Law on Foreign Trade Management (Chapters II–V), and can be categorised as follows:

  • Administrative measures include:
    • import prohibition and import suspension;
    • import restrictions (via quotas, appointment of border checkpoints, appointment of exporters and importers);
    • management via licences and conditions for export and import;
    • certifications of origin;
    • certifications of free sale;
    • other measures related to temporary imports, transit, purchasing agents, entrustment of imports, processing of products for foreign traders and outsourcing;
    • measures for the management of foreign trade with neighbouring countries; and
    • management of products of customs-controlled areas.
  • Technical and quarantine measures (eg, sanitary and phytosanitary; technical barriers to trade);
  • Trade remedies (anti-dumping, countervailing, safeguards); and
  • Urgent control measures.

The export and import of restricted products for non-commercial purposes must comply with the relevant regulations of law. The measures for foreign trade management must not be imposed on products that are purchased, sold and transported between customs-controlled areas in the territory of Vietnam, unless otherwise prescribed by the government to prevent commercial fraud and illegal transhipment (Article 58 of the Law on Foreign Trade Management).

  • Administrative measures include:
    • import prohibition and import suspension;
    • import restrictions (via quotas, appointment of border checkpoints, appointment of exporters and importers);
    • management via licences and conditions for export and import;
    • certifications of origin;
    • certifications of free sale;
    • other measures related to temporary imports, transit, purchasing agents, entrustment of imports, processing of products for foreign traders and outsourcing;
    • measures for the management of foreign trade with neighbouring countries; and
    • management of products of customs-controlled areas.
  • Technical and quarantine measures (eg, sanitary and phytosanitary (SPS); technical barriers to trade (TBT));
  • Trade remedies (anti-dumping, countervailing, safeguards); and
  • Urgent control measures.

For a list of applicable measures, traders can contact the national SPS/TBT enquiry points of Vietnam. The relevant contact details can be found at www.spsvietnam.gov.vn/ and https://tbt.gov.vn/. For a broad overview of all SPS and TBT measures notified by the country, traders can refer to the WTO SPS and TBT Platform at https://epingalert.org/. For specific products under the competence of different sectoral government agencies (eg, IT products under the purview of the Ministry of Information and Communication; pharmaceuticals under the purview of the Ministry of Health), traders can refer to the information portals of such government agencies. Consultations with experts in the relevant fields are also recommended.

6 Sanctions

6.1 What laws and regulations govern sanctions in your jurisdiction?

As a United Nations member, Vietnam must apply sanctions largely in line with those adopted by the United Nations Security Council. However, currently there is no explicit provisions of law on economic sanctions within the domestic framework. Other laws relevant to sanctioning regimes include:

  • Law No 07/2012/QH13 dated 18 June 2012 on anti-money laundering (‘Law on Anti-Money Laundering') and its guiding regulations;
  • Law No 28/2013/QH13 dated 12 June 2013 on counter-terrorism (‘Law on Counter-terrorism') and its guiding regulations.

6.2 Which authority is responsible for enforcing the sanctions regulations? What powers does it have?

According to Article 36 of the Law on Anti-Money Laundering, the government has unified the state management on the prevention of money laundering by promulgating the necessary legal normative documents according to the competence and strategy for the prevention of money laundering. The prime minister will direct the relevant government agencies to coordinate with the Supreme People's Court and the Supreme People's Procuracy on the prevention of money laundering and terrorist financing. Key ministries are assigned different responsibilities in relation to anti-money laundering activities, including:

  • the State Bank of Vietnam;
  • the Ministry of Public Security;
  • the Ministry of Finance;
  • the Ministry of Construction;
  • the Ministry of Justice;
  • the People's Procuracy;
  • the Supreme People's Court;
  • people's committees at all levels; and
  • other relevant government agencies.

Their corresponding responsibilities are set out in Articles 37-44 of the Law on Anti-Money Laundering.

According to Article 39 of the Law on Counter-terrorism, the Ministry of Public Security has the primary responsibility for coordinating with the Ministry of National Defence and relevant ministries and sectors on the state management of counter-terrorism. The people's committees at all levels will, within their tasks and powers, perform the state management of counter-terrorism in their localities. Their corresponding responsibilities, as well as the responsibilities of other relevant government agencies, are set out in Articles 40-49 of the Law on Counter-terrorism.

6.3 What is the authority's general approach to enforcing the sanctions regulations? How vigorously are the rules enforced?

Article 6 of the Law on Anti-Money Laundering sets out principles for the prevention of money laundering, as follows:

Article 6. State policy on prevention of money laundering.

1. Prevention of money laundering is the responsibility of the State and other state agencies. The State encourages the domestic and foreign organizations and individuals to participate, coordinate and finance the prevention of money laundering.

2. Protecting the legal rights and interests of the organizations and individuals participating in the prevention of money laundering.

3. Promulgating the policies to promote the international cooperation in the prevention of money laundering.

4. The organizations and individuals having the achievements in the prevention of money laundering are rewarded by the State.

Article 5 of the Law on Counter-terrorism states the principles for implementation of the law, as follows:

Article 5. Anti-terrorism policies

1. The State shall condemn and severely punish all acts of terrorism and terrorist financing; use adequately measures to organize anti-terrorism; propagate and mobilize organizations and individuals to participate in anti-terrorism.

2. The State shall adopt policies to mobilize scientific and technological achievements in serve of anti-terrorism activities.

3. The State shall prioritize investment of technical and professional equipment and means and ensure the regimes and policies for forces countering terrorism and terrorist-financing.

4. The State shall apply policies and measures to protect organizations and individuals participating in anti-terrorism. For individuals participating in anti-terrorism who are wounded, suffer health damage or die, they themselves or their relatives will be enjoyed the regimes and policies in accordance with law. Organizations and individuals whose assets are mobilized to serve anti-terrorism and damaged will be paid compensation.

5. Organizations and individuals that record achievements in anti-terrorism are commended in accordance with law on emulation and commendation.

6. The State shall apply leniency policy toward organizations and individuals that proactively abandon their intentions to commit terrorism or finance terrorists; voluntarily terminate their unfinished acts of terrorism or terrorist financing or attempt, before their acts of terrorism or terrorism financing are detected, in preventing, reducing the damage or remedying the consequences, and give themselves up, make honest declarations and reports, actively assist responsible agencies in detecting, preventing, investigating, prosecuting and adjudicating terrorists and terrorist financers.

6.4 What countries are currently subject to sanctions in your jurisdiction?

As per the performance report of the United Nations Security Council for the period 1 July 2020 to 30 June 2021, the following countries feature on the list of notices issued over the same period:

  • Central African Republic;
  • Democratic Republic of Congo;
  • Iraq;
  • Somalia;
  • Yemen;
  • Sudan; and
  • Libya.

Furthermore, according to Article 12 of Decree No 122/2023/ND-CP dated 11 October 2013 on the circulation suspension, freezing, sealing, temporary seizure and disposal of money and assets involved in terrorism or terrorist financing; and the compilation of the list of organisations and individuals involved in terrorism or terrorist financing, if an organisation or individual is found to be involved in terrorism or terrorist financing as specified in UN Security Council resolutions issued according to Chapter VII of the UN Charter, but has not yet been included on a UN Security Council list, the Ministry of Public Security will take the lead and cooperate with the Ministry of Foreign Affairs, the Ministry of Defence, the State Bank of Vietnam and other relevant ministries and branches to inform the Prime Minister of this issue and obtain a decision from the competent authorities of the UN on whether that organisation or individual should be included on a list.

6.5 Are individuals or companies subject to sanctions in your jurisdiction?

Both the Law on Anti-Money Laundering and the Law on Counter-terrorism state that both organisations and individuals, among other parties, fall under the scope of the law. The list of individuals and companies that are subject to sanctions are set out in:

  • the Blacklist, which is a list of organisations and individuals linked to terrorism and terrorist financing compiled by the Ministry of Public Security in accordance with the law; and
  • the Warning List, which is a list of organisations and individuals found to have a high risk of money laundering compiled by the State Bank of Vietnam.

6.6 How are sanction decisions challenged in your jurisdiction? What does this process typically involve and how long does it take?

The Law on Counter-terrorism empowers the Ministry of Public Security to inspect, examine and settle complaints and denunciations relating to anti-terrorism, among other things. There are no guiding provisions on the complaint procedure under this law; as such, the general provisions of the Law on Complaints will apply. The general process and timeline are set out in detail in question 2.8.

6.7 What strategies should be considered to ensure compliance with a sanction decision? What penalties are imposed for non-compliance?

While there are no explicit provisions on economic sanctions within the domestic framework, traders dealing with partners that are included on the UN Security Council or other sanctions lists might experience difficulties in contractual and payment matters. As such, they should remain vigilant and cautious, and conduct sanctions screening of potential partners, their affiliates, beneficial owners and their extended supply chain – particularly in locations that are known to have strong links to sanctioned countries. They should also ensure that they are fully compliant with the Law on Anti-Money Laundering and the Law on Counter-terrorism, including the relevant reporting requirements. The State Bank of Vietnam also recommends that relevant entities be cautious in executing transactions with countries, organisations and individuals on sanctions lists compiled by other jurisdictions, including the United States Office of Foreign Assets Control and the European Union.

7 Trends and predictions

7.1 How would you describe the current legal landscape and prevailing trends affecting international trade in your jurisdiction? Are any new developments anticipated in the next 12 months, including any proposed legislative reforms or the negotiation of new trade agreements?

Vietnam has become increasingly open to trade and investment since:

  • the initiation of economic reforms in 1986;
  • the formal normalisation of US-Vietnam diplomatic relations in 1995; and
  • the country's accession to the World Trade Organization in 2007.

Since then, the country has been actively participating in global and regional trade agreements and initiatives to facilitate cross-border trade. Vietnam is also among the few members of the Association of Southeast Asian Nations (ASEAN) that have been actively expanding their trade networks through bilateral and regional trade agreements. The country is currently a signatory to 16 free trade agreements (FTAs) – including major trade deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership – and is negotiating agreements with several other partners, such as:

  • the Vietnam-European Free Trade Association FTA; and
  • the Vietnam-Israel Free Trade Agreement.

The ASEAN member states, including Vietnam, have just launched negotiations to update the ASEAN Trade in Goods Agreement to deepen intra-ASEAN economic and trade integration.

The current legal landscape governing foreign trade has generally been based on international practices since Vietnam began its economic integration in 1986. Honouring the commitments made under international treaties, including trade agreements, is a basic rule of law in Vietnam. In fact, Article 156.5 of the Law on the Promulgation of Legislative Documents provides that the application of Vietnam's legislative documents must not obstruct the implementation of the international agreements to which Vietnam is a signatory. If any legislative documents – other than the Constitution – and international agreements to which Vietnam is a signatory contain different regulations on the same issue, the provisions under international agreements will prevail.

That said, as Vietnam is a civil law country that is currently expanding its economic partnerships, the legal landscape governing foreign trade is also complex and evolving. For example, upon signing of the CPTPP, the National Assembly issued Resolution No 72/2018/QH14 on ratification of the CPTPP which, among other things, requires that the government, the People's Supreme Court, the People's Supreme Procuracy and relevant organisations review the relevant laws and other legislative documents to propose timely amendments to ensure both the uniformity of the legal system and adherence to CPTPP commitments. The laws that have been or will be amended include:

  • the Labour Code;
  • the Criminal Code;
  • the Law on Intellectual Property;
  • the Law on Insurance Business;
  • the Law on Food Safety; and
  • the Anti-corruption Law.

8 Tips and traps

8.1 What are your top tips for ensuring compliance with the regulatory framework for international trade and what potential sticking points would you highlight?

While the legal landscape governing foreign trade is complex and evolving, there are several reference points which traders can consult for information on how to export to or import from the country. The first is the Vietnam Trade Information Portal (VTIP) at www.vietnamtradeportal.gov.vn/. The VTIP was established to honour Vietnam's commitments under the Association for Southeast Asian Nations and is hosted by the General Department of Vietnam Customs. It serves as an official source of all regulatory information relevant to traders that wish to import goods into Vietnam or export to other countries, including the regulatory and procedural information needed to export, import and transit.

More broadly, the Vietnam National Trade Repository (VNTR), hosted at https://vntr.moit.gov.vn/ by the Ministry of Industry and Trade, is another useful resource that provides free-to-access online information on international trade agreements and commitments. The platform provides nine types of information, including:

  • Vietnamese tariff nomenclature;
  • most-favoured nation tariffs and preferential tariffs;
  • rules of origin;
  • non-tariff measures;
  • legislative documents relating to trade;
  • customs procedures;
  • administrative rulings;
  • best practices for trade facilitation; and
  • a list of authorised economic operators in Vietnam.

Businesses are generally encouraged to learn more about the issues relevant to their specific industry sector well before entering the Vietnamese market. They may also contact their country's relevant trade and commercial office in Vietnam for information and support. Traders are recommended to regularly check the relevant trade information sources for up-to-date information on the relevant issues and seek advice from qualified professionals when dealing with specific situations.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.