 
RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/SPEC/VNM/3/Rev.1 
30 October 2003 
 (03-5768) 
Working Party on the 
Accession of Viet Nam Original:  
 
 
 
ACCESSION OF VIET NAM 
 
Domestic Support and Export Subsidies in Agriculture  
 
Revision  
  The Government of the Socialist Republic of Viet Nam has submitted the following revised information on Domestic Support and Export Subsidies in Agriculture, with the request that it be circulated to the members of the Working Party. 
 
 
_______________ 
 
    WT/ACC/SPEC/VNM/3/Rev.1
 Page 3Supporting Table DS:1 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Measures exempt from the reduction commitment - "Green Box" 
 
Monetary value of measure in year in question  
(billion Dong) Measure type Name and description of measure with reference to 
criteria in Annex 2 of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5)/3 7 
(a) General services       
(i) Research1 Budgetary allocations for the operation of agricultural 
research institutions and agencies. 243.98 367.83 292.10 301.30 MOSTE; MARD; 
MOF; Prov 
(ii) Training services2 Expenditures to set up, maintain and develop agricultural 
training institutions and centers.  198.44 242.01 534.31 324.92 MARD; MOF; Prov 
(iii) Extension and advisory 
services3 Budgetary allocations to establish and maintain a 
nationwide network of ag ricultural extension and 
advisory services from centr al to district level, and 
projects funded by national or local budget to develop 
plant varieties and animal breeds under national 
programs. 163.01 1,499.85 1,590.61 1,089.49 MARD (AFESD); 
Prov 
                                                      
1 Agricultural research : There are 19 specialised agricultural research institutes (i ncluding the National Agricultural Research Institute, the Instit ute of Veterinary 
Quarantine, the Institute of Plant Protecti on, etc.). Research projects conducted by these institutes and some other national i nstitutions, universities on plant varieties and animal 
breeds, farming techniques and methods, agricultural technologies and practices, soil science, agro-chemistry, genetics, plant and animal health protec tion, agronomy, etc. are 
funded by the State budget.  The expenses for facilities of plan t seeds and animal breeds production units, agricultural resear ch institutes, laboratory facilities, and agricultural 
training institutes are also covered by the State budget. 
2 Training services : The agricultural training system consists of some universities (including the University of Agriculture, the University of Wa ter Resources and the 
University of Forestation), 30 high schools and vocational training schools majoring in various fields such as horticulture, an imal breeding, veterinary, plant protection, agro-
mechanics, forestation, food processing, agricultural accountancy , etc.  Expenditures for these institutions to train agricultu ral technicians, agronomists, specialists and 
agricultural workers are covered by the State budget. 
3 Extension and advisory services : A nationwide network of agricultural extension and advisory serv ices provided by State-employed staff was established pursuan t to 
the Government Decree No.13/CP dated 2 March 1993 on extension activities. The operation and development of this network is cov ered by the State budget. The main function 
of this network is to provide farmers and/or agricultural producers with free advisory services relating to farming methods, pe st prevention,  preservation and processing of 
agricultural products, post-harvest  technolog ies, presentation of sample models, etc. 
 Budget are allocated to assist the produc tion of original animal breeds and to implement the National Animal Breeds Program. T he cost for producing original animal 
breeds are normally very high in order to  meet strict technical requ irements. Farmers with their limited technical and financia l resources are hardly able to afford such animal 
breeds. Therefore, the Government provides annual financial support directly to establishments producing animal breeds to lower  the prices of breeds sold to farmers. 
Pursuant to the Prime Minister’s Decision No. 225/1999/QD-TTg dated 10th December 1999, the State budget is allocated w ith priority given to activities relating to the 
research, production, development and protection of plant varieties, animal breeds and genetic sources, maintenance of original   seeds and breeds, and importation of new plant  WT/ACC/SPEC/VNM/3/Rev.1 
Page 4 Monetary value of measure in year in question  
(billion Dong) Measure type Name and description of measure with reference to 
criteria in Annex 2 of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5)/3 7 
(iv) Infrastructure services4 Budgetary allocations to construct and upgrade farm 
irrigation systems, dam and dyke systems; Budget expenses in the form of local contribution in ODA 
projects which invest in agricultural irrigation and 
infrastructure development. 5,491.10 6,787.14 4,863.00 5,713.75 GDS; MARD; Prov 
(v)  Pest and disease 
control, inspection 
services5 Budgetary expenditures on plant and animal health 
protection (e.g., epidemic alert, pest and disease 
surveillance, prevention and eradication), border and 
cross-region control, and development of relevant legal instruments. 247.76 277.25 264.02 263.01 MARD (DPP, 
DVQ); Prov 
(b)  Public stockholding for 
food security purposes6 Budgetary expenditures on activities related to 
stockholding rice and some plan t varieties/seeds of rice, 
maize, vegetables etc., for food security purposes. The 
stockholding of rice and paddy is under the management 
responsibility of the State Reserve Department. The 
stockholding of other plant seeds, insecticides, veterinary medicines, vaccines, etc is under the management 
responsibility of MARD.  686.90 578.40 2,271.40 1,178.90 MARD; Prov 
(c)  Domestic food aid7 Budgetary outlays in activities related to food aid 
distribution to deprived people in remote, mountainous and other disadvantaged areas for hunger relief purpose. 92.50 85.44 197.07 125.00 MARD; Prov 
                                                                                                                                                                                                                                                                    
varieties and animal breeds. Local budget is also used to provide financial support to the production of varieties, breeds of s trict technical requirements, and to the supply of 
good-quality varieties and breeds to farmers at affordable pri ces. Entities of all economic sectors engaging in the production of plant varieties and animal breeds for commercial 
purposes are entitled to access preferential credits. 
4 Infrastructure services : The State allocates budgets for the construction, maintenance,  reclamation and improvement of water supply facilities, irriga tion and drainage 
works, dam and dyke system, and for contribution in ODA projects to develop irrigation and other agricultural infrastructures. 
5 Pest and disease control, inspection services : The system of veterinary and plant protec tion agencies in agriculture sector consists of National Department of Veterinary 
Quarantine, National Department of Plant Protection and their br anches in 61 provinces and cities throughout the country. These  agencies' main functions include pest and 
disease surveillance and monitoring (forecast,  alert, prevention, defense and eradicatio n), regulatory framework development, q uarantine, sanitary and phytosanitary inspection at 
the border gates as well as across national regions/areas, etc (excluding inspection services charged to imports and exports). 
6 Public stockholding for food security purposes : these kind of activities include the stockholding of some plant varieties/seeds such as of rice, maize, vegetables for food 
security purposes. The stockholding of rice and paddy is under the management responsibility of the State Reserve Department; t he stockholding of other plant seeds, 
insecticides, veterinary medicines, vaccines, et c is under the management responsibility of MARD. 
7 Domestic food aid : The Government provides food aid directly  to deprived people in remote, mountaino us and other disadvantaged areas for hunger relief purpose.   WT/ACC/SPEC/VNM/3/Rev.1
 Page 5Monetary value of measure in year in question  
(billion Dong) Measure type Name and description of measure with reference to 
criteria in Annex 2 of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5)/3 7 
(d)  Decoupled income 
support  0.00 0.00 0.00 0.00  
(e)  Income insurance and 
income safety-net 
programmes    0.00 0.00 0.00 0.00  
(f)  Payments for relief 
from natural disasters8  Budgetary outlays related to the provision of food, 
foodstuffs and other basic necessities to farmers in areas hit by natural disasters in order to help stabilize their 
lives and recover production. Relief is provided in forms 
of electricity assistance paym ents to  irrigate drought-
stricken land or to drain flooded land,  financial support 
(cash payments) to suffered farmers to purchase plant 
seeds, veterinary medicines, insecticides, etc.  901.20 2,192.07 1,434.36 1,509.21 MOF; Prov 
(g)  Structural adjustment 
assistance provided 
through producer 
retirement programmes  0.00 0.00 0.00 0.00  
(h)  Structural adjustment 
assistance provided through resource 
retirement programmes  0.00 0.00 0.00 0.00  
(i)  Structural adjustment 
assistance provided through investment 
aids
9 Budgetary allocations to s upport the transformation of 
land from inefficient and unstable rice cultivation into  more efficient cultivation of industrial (i.e., cash) crops 
and aquaculture farming. 187.39 286.72 280.24 251.45 Prov 
                                                      
8 Payments for relief from natural disasters : The Government provides food, foodstuff and other basic necessities to farmers in areas hit by natural disasters in order to 
help stabilize their lives and recover production. Relief is provid ed in forms of electricity assi stance payments to  irrigate drought-stricken land or to drain flooded land,  financial 
support (cash payments) to suffered farmers to purchase pl ant seeds, veterinary medicines, insecticides, etc. 
9 Structural adjustment assistance provided through investment aids : To implement the Government’s policy to improve  the agricultural and ru ral economic structure, 
many localities provide the budget allocated by the Government to  support the transformation of land from inefficient and unsta ble rice cultivation into efficient cultivation of 
industrial crops and aquaculture.  WT/ACC/SPEC/VNM/3/Rev.1 
Page 6 Monetary value of measure in year in question  
(billion Dong) Measure type Name and description of measure with reference to 
criteria in Annex 2 of the Agreement on Agriculture 1999 2000 2001 Average 
1999-2001 Data sources 
1 2 3 4 5 6 = 
(3+4+5)/3 7 
(j)  Environmental 
programmes  0.00 0.00 0.00 0.00  
(k)  Regional assistance 
programmes10 Budget allocations for the forestation of previously 
barren hills and mountains, establishment and 
development of new economic zones; construction of 
infrastructures (roads, market s, schools, clinics); and 
freight subsidies to transport commodities for 
agricultural production to mountainous, remote regions, 
etc.  959.70 1,329.00 3,309.45 1,866.05 MOF; SB; MARD 
(l)  Other  0.00 0.00 0.00 0.00  
Total   9,171,98 13,645.71 14,292.26 12,369.98  
 
 
                                                      
10 Regional assistance programmes : State allocates parts of its budget for the resettlement of ethnic minorities in order to stabilize their lives, to prevent s lash-and-burn 
activities, to establish new economic zones for the resettlement of  inhabitants from densely-populated regions or land shrunk a s a consequence of natural disasters or soil-blown 
accidents, etc. The main activities include  building new villages/communes, reclaimi ng virgin lands for cultivation and product ion development; constructing infrastructure such 
as roads, clinics, schools, markets, etc.; organising classes to introduce production methods to ethnic minorities; providing t ransport subsidies, 6 months food assistance and 
initial capital grants for those who move to newly-developed econ omic areas to start on productio n. With respect to mountainous  areas, the Government provides  freight 
subsidies to ensure  that peopl e in these areas can access, at the same prices prevailing in plain areas, to food stuff, salt, and agricultural inputs (such as  fertilizer) which normally 
require very high freight costs. . The Government also provides preferential loans to inhabitants in the Mekong delta region to  construct their houses against floods. Since 1999, 
the State has implemented the Programme 135 with priority given to development investments in 1,000 communes under harsh and es pecially disadvantaged conditions in remote 
and distant areas, etc.   WT/ACC/SPEC/VNM/3/Rev.1
 Page 7Supporting Table DS:2 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Measures exempt from the reduction commitment - Special  and Differential Treatment - "Development Programmes" 
 
Monetary value of measure in year in question (bil. Dong) 
Measure type Name and description of measure with 
reference to criteria in Article 6:2 of the 
Agreement on Agriculture 1999 2000 2001 Average  
1999-2001 Data sources 
1 2 3 4 5 6 = (3+4+5)/3 7 
Investment loans with preferential interest 
rate11 524.30 1,137.85 886.78 849.64 MARD; SB; 
DAF; Prov (a)  Investment subsidies generally 
available to agriculture 
Financial incentives to develop economic 
activities of farms12 N/a N/a N/a N/a  
(b)  Input subsidies generally available 
to low-income or resource-poor 
producers Short-term soft loans13 893.85 1,275.17 693.30 954.11 SB; MARD 
(DARNEZ); 
Prov 
(c)  Support to encourage 
diversification from growing illicit 
narcotic crops Provision of plant varieties/seeds, seeds, 
breeds; dissemination of farming techniques, 
and provision of administrative costs to 
assist the diversification from illicit opium 
poppy cultivation to other crop production  9.60 11.10 1.47 7.39 MARD 
(DARNEZ); 
Prov 
Total  1,427.75 2,424.12 1,581.55 1,811.14  
 
                                                      
11 The Government compensates commercial banks for the difference between prevailing market interest rate and preferential intere st rate charged by commercial banks 
for mid-term or long-term investment loans under the Government's direction. 
12 Carried out in accordance with the Governme nt’s Resolution No.03/2000/NQ-CP dated 2 February 2000 on economic activities of fa rms and the Circular 
No.82/2000/TT-BTC dated 14 August 2000 of Ministry of Finance. Pursuant to these regulations, the State provides support to dev elop transportation infrastructure, irrigation 
and drainage facilities, water supply system, utilities, telecommunications infrastructures, processing facilities with a view to encouraging individuals and households to develop 
agricultural, forestry and aquaculture production on farms. 
Farms engaging in agricultural production and trading activities in the encouraged fields or sector s are eligible to borrow fro m State-owned commercial banks pursuant 
to the Prime Minister's Decision No.67/1999/QD-TTg dated March 30th 1999 providing guidelines on credit policies of banks for agricultural and rural development.  Pursuant to 
the Government Decree No.178/1999/ND-CP dated 29th December 1999 on the guarantee of loans of credit institutions, farm owners are allowed to use assets sourced by the 
borrowing capital as to guarantee for their loans at credit institutions. 
13 The State establishes a banking network for the poor in order to  allow the poor to get access to  short-term loans at preferent ial interest rate, which is  equivalent to 50% 
of the prevailing commercial market interest rate. With regard to the bad debts of the poor, the State budget may be used to co ver interest differentials, freeze or write off these 
debts.  WT/ACC/SPEC/VNM/3/Rev.1 
Page 8 Supporting Table DS:3 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2000 
 
Measures exempt from the reduction commitment - Direct Payments under  
Production-Limiting Programmes - Exempt Direct Payments 
 
Monetary value of measure in year in question  
(billion Dong) Measure type Name and description of measure 
with reference to criteria in Article 
6:2 of the Agreement on Agriculture 1999 2000 2001 Data sources 
1 2 3 4 5 6 
(a) Payments based on fixed area and 
yields   
(b) Payments based on 85 per cent or 
less of the base level of production   
(c) Livestock payments made on a 
fixed number of head  NIL 
 
   WT/ACC/SPEC/VNM/3/Rev.1
 Page 9Supporting Table DS:4 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Calculation of the Total Aggregate Meas urement of Support (Grand Total AMS) 
 
Value of production (billion Dong) 
Description of 
basic products Product-specific AMS (from 
Supporting Tables  
DS:5 to DS:7 below) 
(billion Dong) Product-specific measurements of 
support (from Supporting Table 
DS:8 below) 
(billion Dong) Value 
(billion Dong) 10% of value 
(billion Dong) Total AMS (aggregate) 
(billion Dong) 
 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 1999 2000 2001 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 
=2+5 15 
=3+6 16 
=4+7 
(1) Rice 27.20 61.94 0.00 0.00 0.00 0.00 76,869.40 63,691.60 63,088.10 7,687.00 6,369.10 6,308.81 0.00 0.00 0.00 
(2) Sugar 4,474.24 2,733.44 2,922.14 0.00 0.00 0.00 6,956.00 6,102.73 6,831.27 695.60 610.27 683.13 4,474.24 2,733.44 2,922.14 
(3) Cotton 2.00 9.57 13.35 0.00 0.00 0.00 122.10 103.40 150.10 12.21 10.34 15.01 0.00 0.00 0.00 
(4) Pork 3.20 0.00 0.00 0.00 0.00 0.00 16,641.24 17,472.14 16.969.47 1,664.12 1,747.2 1,697.00 0.00 0.00 0.00 
Total product-
specific AMS 4,506.64 2,804.95 2,935.49 0.00 0.00 0.00 124,075.3 122,389.3 122,247.7 12,407.5.3 12,238.93 12,224.77 4,506.64 2,804.95 2,935.49 
Total non-
product-specific 
AMS (from 
Supporting 
Table DS:9 
below)             1,111.82 1,152.72 2000.82 
TOTAL:  
Current Total 
AMS             5,618.46 3,957.67 4,936.31 
 
 
  WT/ACC/SPEC/VNM/3/Rev.1 
Page 10 Supporting Table DS:4 (Appendix) 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Calculation of the Total Aggregate Measurement of Support (Grand Total AMS) - Average 1999-2001  
 
Value of production (billion Dong) 
Description of basic products Product-specific AMS (from 
Supporting Tables DS:5 to 
DS:7 below) 
(billion Dong) Product-specific measurements 
of support (from Supporting 
Table DS:8 below) 
(billion Dong) Total Value De minimis14 
10% of value Total AMS 
(aggregate) 
(billion Dong) 
1 2 3 4 5 6 
(1) Rice 29.71 0.00 67,883.03 6,788.30 29.71 
(2) Sugar 3,376.61 0.00 6,630.00 663.00 3,376.61 
(4) Cotton 8.31 0.00 125.20 12.52 8.31 
(3) Pork 1.07 0.00 17,027.62 1,702.76 1.07 
Total product-specific AMS 3,415.69 0.00 122,904.10 12,290.41 3,415.69 
Total non-product-specific 
AMS (from Supporting Table 
DS:9 below)     1,421.79 
Grand Total AMS 3,415.69 0.00 122,904.10 12,290.41 4.837.5 
 
 
                                                      
14 For the purpose of this table, de minimis  level of 10% of production value is used.   WT/ACC/SPEC/VNM/3/Rev.1
 Page 11Supporting Table DS:5 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Product-Specific Aggregate Measuremen ts of Support: Market Price Support 
 
Description of 
basic products Calendar 
year Measure type(s) Applied  
administered price  
(1,000 Dong/ton) External  
reference price 
(1,000 Dong/ton) Eligible 
production 
(1,000 ton) Associated 
fees/levies  
(billion Dong) Total market  
price support  
(billion Dong) Data 
sources 
1 2 3 4 5 6 7 8 = ((4-5)*6)-7  
1999 Price support/Export 
quota 3,166.00 3,508.97 20,406.00 0.00 -6,998.65 
2000 Price support/Export 
quota 2,990.00 3,170.87 21,160.10 0.00 -3,827.23 
2001 None    0.0 (1) Rice15 
Average 1999-2001  0.00 
1999 6,975.00 2,259.00 947.30 0.00 4,467.54 
2000 5,049.00 3,112.00 1,208.70 0.00 2,341.11 
2001 Price support/import 
licence  
6,458.00 3,886.00 1,057.80 0.00 2,720.69 MARD 
(2) Sugar16 
Average 1999-2001  3,176.45  
 
                                                      
15 Price support and export quotas for rice was not used in 2001.   
The following data are applied when calculating external  reference price of and eligible production for rice: 
- Conversion rate between paddy rice and processed rice yields: paddy/rice = 0.65 - Average export prices of rice (FOB pri ces, Ho Chi Minh port) are as follows: in 19 99: US$ 262/ton, in 2000: US$ 227/ton, in 2 001: US$ 195 /ton 
16 Price support for sugar has been e ffected via the following measures: 
- Mandatory requirement by the Government on sugar plants to purchase farmers' sugarcanes at a protective price (a minimum purc hase price, e.g. the 
minimum purchase price of sugarcane was determined at 240,000 dong per ton at a time); 
- Import licence;  - Import quota; 
- Designated import enterprises; 
As a result, domestic price of sugar has been higher than world price.  - Eligible production for sugar equals to the total production of all domestic sugar plants. 
- Average import prices of sugar (CIF price at Viet Nam's port) are as follows: in 1999: US$ 261/ton; in 2000: US$ 162/ton; in 2001: US$ 220/ton 
(Source: General Department of Customs)  WT/ACC/SPEC/VNM/3/Rev.1 
Page 12 Supporting Table DS:6 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Product-Specific Aggregate Measurements of Support: Non-Exempt Direct Payments 
 
Description of 
basic product Calendar 
year Measure type(s) Applied  
administered price 
(1,000 Dong/ton) External  
reference price 
(1,000 Dong/ton) Eligible 
production 
(1,000 ton) Associated 
fees/levies 
(billion Dong) Total direct 
payments  
(billion Dong) Data sources 
1 2 3 4 5 6 7 8 = ((4-5)*6)-7 9 
 
NIL 
 
   WT/ACC/SPEC/VNM/3/Rev.1
 Page 13Supporting Table DS:7 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Product-Specific Aggregate Measurements of Support: Oth er Product-Specific Support and Total Product-Specific AMS 
 
Description of 
basic product Calendar year Measure 
type(s) Other 
product-
specific 
budgetary 
outlays 
(billion Dong) Other product 
specific 
support 
(billion Dong Associated 
fees/levies Total other 
product-
specific 
support 
(billion Dong) Market price 
support 
(Supporting 
Table DS:5) 
(billion Dong) Non-exempt 
direct 
payments 
(Supporting 
Table DS:6) 
(billion Dong) Total AMS Data sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = (7+8+9) 11 
1999 27.20 0.00 0.00 27.20   27.20 MARD 
2000 Interest rate 
support to 
purchase rice 
for stockholding during harvest 
time 61.94 
 0.00 0.00 61.94 
   61.94 
  
2001 None 0.00 0.00 0.00 0.00   0.00  (1) Rice17 
Average 
1999-2001  29.71      29.71  
                                                      
17 The eligible amount of rice was 500,000 MT in 1999 and 1,400,000 MT in 2000.   In 2001, the interest support was not used.  WT/ACC/SPEC/VNM/3/Rev.1 
Page 14 
Description of 
basic product Calendar year Measure 
type(s) Other 
product-
specific 
budgetary 
outlays 
(billion Dong) Other product 
specific 
support 
(billion Dong Associated 
fees/levies Total other 
product-
specific 
support 
(billion Dong) Market price 
support 
(Supporting 
Table DS:5) 
(billion Dong) Non-exempt 
direct 
payments 
(Supporting 
Table DS:6) 
(billion Dong) Total AMS Data sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = (7+8+9) 11 
(2) Sugar 1999 Support to 
import new 
varieties of sugarcane 6.70 0.00 0.00 0.00   6.70 MARD 
 2000 - Interest rate support for 
investment 
loans and support to 
purchase sugar 
for stockholding during harvest 
time. 
- Paying up working capital.  392.33 0.00 0.00 0.00   392.33  
 2001 - Support to develop 
sugarcane 
growing areas; - Support to 
cover losses 
caused by unexpected 
currency 
fluctuations; - Interest rate 
support for 
investment loans. 201.45 0.00 0.00 0.00   201.45  
 Average   200.16      200.16    WT/ACC/SPEC/VNM/3/Rev.1
 Page 15Description of 
basic product Calendar year Measure 
type(s) Other 
product-
specific 
budgetary 
outlays 
(billion Dong) Other product 
specific 
support 
(billion Dong Associated 
fees/levies Total other 
product-
specific 
support 
(billion Dong) Market price 
support 
(Supporting 
Table DS:5) 
(billion Dong) Non-exempt 
direct 
payments 
(Supporting 
Table DS:6) 
(billion Dong) Total AMS Data sources 
1 2 3 4 5 6 7 = (4+5-6) 8 9 10 = (7+8+9) 11 
(3) Cotton18 1999 - Support to 
cover the 
difference between import price of cotton 
seeds and the 
selling price to farmers and 
support to cover 
losses suffered by plants that 
purchase cotton. 2.00   2.00 0.00  2.00 MARD 
           
 2000  9.57   9.57 0.00  9.57  
           
 2001  13.35   9.51 0.00  13.35  
 Average 
1999-2001  8.31      8.31  
(4) Pork19 1999 Interest rate 
support to 
purchase pork 3.20   0.00 0.00  3.20 MARD 
 2000  0.00   0.00 0.00  0.00  
 2001  0.00   0.00 0.00  0.00  
 Average 
1999-2001  1.07      1.07  
 
                                                      
18 The Government provides financial support from the Export Promotion Fund (formerly the Price Stabilization Fund) to lower the selling price of imported hybrid 
cotton seeds to assist farmers who otherwise could not afford to purchase these high-yield varieties/seeds for cultivation due to their high import price.  
Support to cover losses suffered by cotton plants due to purchase the whole quantity of raw cotton produced by farmers at the m inimum determined price under the 
Government’s direction to protect farmers' income (the minimum determined price was 5,000 VND). As a result, cotton plants usua lly suffer losses due to the sharp drop of 
cotton price in the world market that significantly influence on the price of domestically produced cotton (textiles plants wou ld only purchase cotton supplied by the domestic 
cotton plants at respective low price). These losses are covered by financial support from the Export Promotion Fund (formerly the Price Stabilization Fund). 
19 The State provides interest rate support to enable trading enterp rises to purchase pork when the domestic market prices drop s harply causing losses to farmers.  WT/ACC/SPEC/VNM/3/Rev.1 
Page 16 Supporting Table DS:8 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Product-Specific Equivalent Measurements of Support 
 
Description of 
basic product Calendar year Measure 
type(s) Applied 
administered 
price (1,000 
Dong/ton) Production 
eligible to 
receive the 
applied 
administered 
price (1,000 
tons) Market price 
support 
budgetary 
outlays 
(billion Dong) Equivalent 
measurement 
of support 
(EMS) (billion 
Dong) Non-exempt 
direct 
payments 
(billion Dong) Other product-
specific 
support 
(billion Dong) Associated 
fees/levies 
(billion Dong) Total 
monetary 
value of 
equivalent 
commitment 
(billion Dong) Data sources 
1 2 3 4 5 6 7 8 9 10 11=  
(7+8+9-10) 12 
 
NIL 
 
   WT/ACC/SPEC/VNM/3/Rev.1
 Page 17Supporting Table DS:9 
Domestic Support: Viet Nam 
Reporting period: 1999 – 2001 
 
Non-Product-Specific AMS 
 
Measure type(s) Calendar year Non-product-specific 
budgetary outlays 
(billion Dong) Other non-product-
specific support 
(billion Dong) Associated 
fees/levies Total non-product-
specific support 
(billion Dong) Data sources 
1 2 3 4 5 6 = (3+4-5) 7 
1999 N/a   N/a MOF 
2000 N/a   N/a  
20001 700.00   700.00  100% agricultural land use tax 
exemption for extremely 
disadvantaged areas and 50% agricultural land use tax 
reduction for rice and coffee 
growing areas. Average 1999-
2001    233.33  
1999 101.82   101.82  
2000 147.72   147.72  
20001 301.82   301.82  Support to cover losses 
incurred by supplying electricity used in agricultural 
irrigation
20 Average 1999-
2001    183.79  
1999 1,010.00   1,010.00  
2000 1,005.00   1,005.00  
20001 999.00   999.00  Support to write off irrigation 
fee21 
Average 1999-
2001    1,004.67  
1999    1,111.82  
2000    1,152.72  
2001    2,000.82  Total 
Average 1999-
2001    1,421.79  
Supporting Table ES:1 
                                                      
20 The Government decided the price for electricity supply at the average of 572.72 dong/kwh for electricity used in agricultural  irrigation (compared with the average of 
700 dong/kwh for other uses). The price difference was covered by the State’s budget. The amount of electricity consumption in agriculture was 800 million kwh per annum. 
21 Pursuant to Decree No.112 of the Government dated 25 August 1984 on irrigation fees, basic depreciation and major refurbishing  expenses for irrigation works are not 
accounted and these foregone revenues were c onsiderable as agricultural subsidies. Ac cording to this provision, irrigation fee should be 1,500 billion dong per year. In fact, due 
to farmers’ financial difficulties, the total amount received was 490 billion dong, 495 billion dong and 501 billion dong in 19 99, 2000 and 2001 respectively. The Government 
covered unpaid amount of such expenses. If expenses on basic depreciation and major refurbishing of irrigation works are not fo regone, the annual revenue should had been 
3,300 billion VND. According to the Prime Minister’s Decision No . 1116/QD/Ttg dated 22 August 2001, the amount of irrigation fe es which farmers were unable to pay were 
covered by the State’s budget.  WT/ACC/SPEC/VNM/3/Rev.1 
Page 18 Export subsidies: Viet Nam 
Reporting period: 1999 – 2001 
 
Export Subsidies: Outlay and Quantity 
 
Total product specific export subsidies 
(billion Dong) Quantity of subsidized exports 
(1,000 tons) 
Description of 
products Direct export 
subsidies Sales of 
stocks 
(billion 
Dong) Produce
r 
financed 
subsidie
s 
(billion 
Dong) Cost 
reductio
n 
measure
s 
(billion 
Dong) Internal 
transpor
t 
subsidie
s 
(billion 
Dong) 1999 2000 2001 Average 
1999-
2001 1999 2000 2001 Average 
1999-
2001 Data 
sources 
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 
Product-specific subsidies      486.00 600.00 822.77 636.26 1, 900 2,500 3,730 2,710 MOF 
(1) Rice      49.70 31.30 31.48 37.49 7. 10 9.50 20.00 12.20 MOF22 
(2)  Pork      203.00 348.60 536.35 362.65 50 198.7 932 393.57 MOF 
(3) Coffee      12.00 9.90 165.00 62.30 15 12.00 N/a 9.00 MOF23 
(4)  Vegetables 
and fruits       0.00 0.00 10.55 3.52     MOF 
(5) Export 
bonus upon 
performance      750.70 989.80 1,566.16 1,102.02      
Grand Total               
 
                                                      
22 Prime Minister's Decision No.933/1999/QD-TTg of 28/10/1999 and No.540/2000/QD-TTg. 
23 Government Official Document No.977/CP-KTTH of  13/9/1999.   WT/ACC/SPEC/VNM/3/Rev.1
 Page 19Note:   The Vietnamese Government provided financial support to:  
 
1. Rice Provision of interest rate support for rice export enterprises; 
Support to cover losses incurred by enterprises th at export rice from temporary storage for export; 
Export bonus: 180 VND for each USD earned from exports (equivalent 1.2%) 
2. Pork Support to cover losses of pork export to Russia and Hong Kong; 
Export bonus: piglet (suckling pig): 280 VND for each USD earned from exports (equivalent 1.87%); 
Pork: 900 VND for each USD earned from exports (equivalent 6%). 
3. Coffee Provision of interest rate support to assist export enterprises to purchase coffee for temporary storage for export;  
Refund of export surcharges;  
Support to cover losses incurred by enterprises that   export coffee from temporary storage for export; 
Export bonus: 220 VND for each USD earned from exports (equivalent 1.46%).  
4. Vegetables and fruits Support to export canned pineapples and canned cucumbers to Russia and the US; 
 Export bonus: 400 - 500 VND for each USD earned from exports (equivalent to 2.6 - 3.3 %). 
  WT/ACC/SPEC/VNM/3/Rev.1 
Page 20  
 
ANNEX
 
 
 1. Exchange rates:
 
 
 The exchange rates used in calculation of all programmes of domestic support and 
export subsidies are as follows: 
  Currency unit: Dong (Vietnamese Dong - VND)  
 1999:  US$ 1 = 13,944 Dong 
 2000:  US$ 1 = 14,146 Dong  2001:  US$ 1 = 14,815 Dong   Data sources: GDS (General Department of Statistics). 
 
2. Explanation of abbreviations for relevant agencies
: 
 
AFESD Agricultural and Forestry Extension Services Department DAF Development Assistance Fund DARNEZ Department of Agricultural Resettlement and New Economic Zone 
DPP Department of Plant Protection 
DVQ Department of Veterinary Quarantine GDS General Department of Statistics MARD Ministry of Agriculture and Rural Development MOF Ministry of Finance 
MOSTE Ministry of Science, Technology and Environment  
(currently the Ministry of Science and Technology)  
MPI Ministry of Planning and Investment SB The State Bank of Viet Nam Prov Provinces 
 
3. Abbreviations: 
  N/a: Data not available.   
__________ 
 
 