Concluding remarks by the Chairperson

This second Trade Policy Review of Viet Nam has provided an excellent opportunity for the Trade Policy Review Body to deepen our understanding of the main developments in Viet Nam's economic, trade and investment policies since 2013. I would like to thank the delegation of Viet Nam, headed by H.E. Mr. Tran Quoc Khanh, Deputy Minister of Industry and Trade, for its participation in this Review, which has taken place under unusual and challenging circumstances due to the COVID-19 pandemic. I also wish to thank our discussant H.E. Ambassador Monique Van Daalen for her insightful remarks, the 31 Members who submitted written questions and the 42 delegations that took the floor during this meeting. The large number of questions and the active participation during the meeting reflect Members' substantive interest in Viet Nam's trade and investment policies and practices.

Members appreciated Viet Nam's economic and trade performance during the review period and the progress made in poverty reduction through sustained export-led growth, which is a continuation to the structural reform initiated 35 years ago. Members commended Viet Nam for its increased participation in global value chains and were keen to learn about its experience on how to facilitate an enabling business environment in this regard. Members noted that Viet Nam recently moved to the group of 20 largest traders among WTO Members. They expressed the hope that Viet Nam will keep the momentum of its reform agenda, maintain its active engagement in the multilateral system, and make its trade inclusive for all.

Viet Nam's economic resilience to the impact of COVID-19 pandemic, as exemplified by the 2.9% GDP growth in 2020, was also recognized. Delegations expressed interest in learning Viet Nam's policies to foster women's participation in the economy; this information was considered to be useful for Members to develop best practices. Members were also interested in Viet Nam's support for small- and medium-sized enterprises.

Members appreciated Viet Nam's contribution to the multilateral trading system and welcomed its ratification of the Trade Facilitation Agreement in 2015 and of the amendment to the TRIPS Agreement in 2017. Some Members invited Viet Nam to make substantive commitments in the ongoing fishery subsidies negotiations and the MC12 deliverables. Viet Nam is a party of the Joint Statement Initiative on micro, small and medium-sized enterprises (MSMEs). Members invited Viet Nam to explore the possibility of joining other initiatives, such as on investment facilitation for development, e-commerce, and domestic regulation on services.

Several delegations noted that some notifications from Viet Nam are missing or not up-to-date in the areas of, inter alia, agriculture domestic support and export subsidies, and customs procedures and valuation. Members looked forward to improvements in this regard.

Members noticed improvements in the business environment since the last Review. Some Members expressed concern that the structural reform is not yet complete and urged Viet Nam to further reduce red tape, adopt more predictable tax policies, increase transparency in administrative procedures, and simplify appraisal procedures for investment projects.

A robust manufacturing sector has become the main driver of Viet Nam's trade competitiveness in recent years. Members highlighted that the services sector may also be a source for sustained productivity and economic growth. For instance, the expanding trade in ICT apparatus and equipment was coupled with a rapid development of the telecommunications market. Furthermore, the Government announced its interest in promoting and developing a thriving market for ICT-related services. Despite these positive developments, Members raised concerns about potential restrictions in draft legislation, including personal data protection, data localization, and local presence requirements, which might limit the market access for foreign service providers. Regarding ICT products, Viet Nam was urged to join the expanded ITA.

Acknowledging that state-owned enterprises still have a predominant role in key sectors, such as banking, telecommunications, and transport, Members welcomed the recently enacted framework for public-private partnerships (PPP), notably for the development of transport infrastructure. Members called for further relaxation of foreign equity caps in restricted sectors to fully exploit their potentials while offering new opportunities for foreign investors.

Members appraised the adoption of modern regimes for public procurement and intellectual property during the review period. Taking note of Viet Nam's commitments made under recent regional trade agreements, delegations encouraged Viet Nam to consider becoming a party to the Government Procurement Agreement (GPA). Recent efforts to promote IP awareness and use in Viet Nam were recognized, while delegations encouraged it to step up actions to combat IP infringement, particularly given the rise of the digital economy.

The development of e-government initiatives in Viet Nam, the modernization of customs administration through the national single-window, and the electronic customs clearance, were also praised by Members. Nonetheless, Members perceived that further simplifying and streamlining the implementation of some border measures, such as tariff rate quotas on specific products, reference pricing, and customs valuation methods, still require further attention by the authorities.

Viet Nam's commitment towards harmonization of its national standards with international ones was welcomed. In this regard, Members suggested Viet Nam to continue increasing the harmonization of its standards, in particular for pharmaceuticals products, as well as to reconsider the implementation of standards and regulations which may become obstacles to trade.

Prior to the meeting, Viet Nam received more than 850 written questions and answered most of these questions. Viet Nam's responses were much appreciated and its replies to any late submissions and follow-up questions are expected in a month, at which time the second Trade Policy Review of Viet Nam will successfully conclude. I trust that the Vietnamese authorities will take into account the many constructive comments and specific issues raised in this Review, as they continue to adapt their trade and investment policies in light of their policy objective of becoming a developed and high-income country by 2045.