PART V. INVESTMENT COSTS IN VIETNAMToll fees: (North Thang Long – Noi Bai Airport <strong>and</strong> Chuong Duong Bridge) VND per vehicle:Car <strong>and</strong> van < 12 seats: 12,000Bus >12 seats <strong>and</strong> truck < 4T 20,000Truck 4-10T 24,000Lorry > 10T 36,000Rates of Major HotelsIn Hanoi (approximate minimum rates):In Ho Chi Minh City:Sofitel Metropole US$186Park HyattUS$180SedonaUS$140SheratonUS$167Hilton OperaUS$122SedonaUS$163DaewooUS$117CaravelleUS$158SheratonUS$109Sofitel PlazaUS$122HorisonUS$97RenaissanceUS$102Sofitel PlazaUS$90LegendUS$101NikkoUS$96New WorldUS$90MeliaUS$87MajesticUS$8656 <strong>Viet</strong> <strong>Nam</strong> - A <strong>Guide</strong> <strong>for</strong> <strong>Business</strong> <strong>and</strong> <strong>Investment</strong>
APPENDIX ISummary of WTO commitmentsThe package of <strong>Viet</strong>nam’s accession documents consists of:• <strong>Viet</strong>nam’s commitments ongoods – the 560-page list <strong>for</strong>“schedule of tariffs, quotas <strong>and</strong>ceilings on agricultural subsidies,<strong>and</strong> in some cases thetimetable <strong>for</strong> phasing in thecuts• <strong>Viet</strong>nam’s commitments onservices – the 60-page document(also a “schedule”) describingin which services itis giving access to <strong>for</strong>eignservice providers <strong>and</strong> any additionalconditions, includinglimits on <strong>for</strong>eign ownership• The working party’s 260-pagereport – describing <strong>Viet</strong>nam’slegal <strong>and</strong> institutional set up<strong>for</strong> trade, along with commitmentsit has made in many ofthese areas.These are some highlights:GOODS: Schedule of Concessions<strong>and</strong> Commitments onGoods For the majority of agricultural<strong>and</strong> non-agricultural goods,<strong>Viet</strong>nam is promising ceilings (or“bound” rates) on duties rangingbetween zero <strong>and</strong> 35%. Some ofthese invoice reductions phasedover periods up to 2014, the preciseend date varying from productto product.Among products with higher ceilingsare: alcoholic drinks, tobaccoproducts, instant coffee <strong>and</strong> somerelated products, new <strong>and</strong> usedmotor vehicles <strong>and</strong> components,<strong>and</strong> roof tiles. Used vehicles lessthan five years old can be chargedadditional flat-rate duties up tospecified limits.These “bound” rates are legal ceilings.The actual duties that <strong>Viet</strong>namcan charge (the “applied” rates)can be lower than the committedrates. Among the details of <strong>Viet</strong>nam’scommitments is a promisenot to charge higher applied rateson rapeseed (also known as cotzaor canola) <strong>and</strong> derived meal, oil<strong>and</strong> other products than the dutiesactually charged on soy products– allowing the oilseed products tocompete with soy.In the separate working party report,<strong>Viet</strong>nam has also reservedthe right to charge applied dutiesin the <strong>for</strong>m of specific duties (e.g.dollars per ton) instead of percentagesof the price (“ad valorem”) solong as the result stays below thecommitted ceilings.A h<strong>and</strong>ful of products are goingto be protected with tariff quotas(higher duties <strong>for</strong> quantities outsidethe quotas, <strong>and</strong> lower duties <strong>for</strong>quantities within the quotas): eggs,tobacco, sugar, <strong>and</strong> salt (which<strong>Viet</strong>nam says is the main incomesource <strong>for</strong> 100,000 poor farmersin coastal areas). But <strong>Viet</strong>nam willexp<strong>and</strong> the quotas until they disappearaccording to agreed timetables.<strong>Viet</strong>nam has also signed the “plurilateral”In<strong>for</strong>mation TechnologyAgreement (“plurilateral” meaningonly some WTO members havesigned). For these products, <strong>Viet</strong>namhas agreed to allow importsin duty-free. In some cases, thezero duty will apply immediately;in others it will be achieved graduallyover periods ending in 2010 to2014.In agriculture, <strong>Viet</strong>nam has promisednot to subsidize exports. It willbe allowed to support its farmersdomestically with trade-distortingsupports (“Amber Box” or “AggregateMeasurement of Support”, i.e.supports that have a direct impacton prices or quantities produced)of up to 3,961.5 billion <strong>Viet</strong>namesedong (currently about US$246million) in addition to the usual allowance<strong>for</strong> developing countries(known as “deminimis”) of up to10% of the value of domestic agriculturalproduction. As with all WTOmembers, <strong>Viet</strong>nam can also spendunlimited amounts on supportsthat do not distort trade (“GreenBox” supports).SERVICES: Schedule of SpecificCommitments on Trade in Services<strong>Viet</strong>nam has made commitmentson a range of services. In somecases <strong>Viet</strong>nam reserves the right tolimit <strong>for</strong>eign ownership of servicecompanies operating in <strong>Viet</strong>nam– <strong>for</strong> example in some telecommunicationsservices the eventuallimits can be 49% or 65%, dependingon the service. In a few cases,permitted <strong>for</strong>eign ownership is im-APPENDIX I<strong>Viet</strong> <strong>Nam</strong> - A <strong>Guide</strong> <strong>for</strong> <strong>Business</strong> <strong>and</strong> <strong>Investment</strong> 57
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