Import Tariff to be Cut by 30%

WTO entry is going to be in sight for Viet Nam.

Upon arrival at the Noi Bai Airport Sunday from the thirteenth multilateral negotiations in Geneva, Switzerland, Trade Minister Truong Dinh Tuyen informed the media that all negotiations had been settled for Viet Nam’s entry into the WTO.

The minister pointed out that the WTO’s Working Group will forward Viet Nam’s proposals October 16 to the involved countries, allowing them one week to review and approve the documents before reconvening October 26.

At the upcoming session, Viet Nam’s accession documents, which include their commitment to services and goods as well as the final report from the working group, will be perfected.

Predicted Inaugural Date of November 7

 

Mr. Tuyen said the WTO’s administrative department will hold an inauguration for Viet Nam on November 7 to officially admit the country into the world’s largest trade organization.

In regards to the proposals’ endorsement at home, Viet Nam’s WTO documents will be submitted to the National Assembly (NA).

Trade Minister Truong Dinh Tuyen

According to Mr. Tuyen, the negotiations’ new objective is to speedily compile reports to submit no later than November 10 so that the NA can ratify them before the session closes on the fifth of December.

"All negotiations have been completed and the Ministry of Trade is eligible make the documents public. However, it is in everyone’s best interest that the documents be released after the session on October 26 to avoid any complications in case adjustments to some of their contents are necessary in obtaining final approval," he said.

Import tariffs to be cut by 30% 

Although details of Viet Nam’s commitments for entering the WTO have yet to be published, the country’s import duties will definitely be reduced by an average 30% during its first five years of participation, revealed Mr. Nguyen Van Long, Chief of the Office of the National Committee for International Economic Cooperation.

Some industries’ reductions will in fact be greater, pointed out Mr. Long. For instance, duties on imported textiles and garments will be reduced by as much as 63%, while fish products drop 38%, and the timber and paper industry will see a reduction of 33%. Even the duties attached to electronics and electrical machinery will come down by 24%.

Regarding Viet Nam’s service industries, the WTO divided the country into 150 different types of services, of which 113 have been approved by the country.

"This figure shows that many service operations in the local market will be greatly affected, especially the transport, banking, postal communication, telecommunication and distribution industries," said Mr. Long.

On October 16 the President of the US-Viet Nam Trade Council, Virginia Foote, proclaimed her hopes that the US Congress will approve PNTR status for Viet Nam before November.

Ms. Foote said a majority of the large US enterprises and corporations have been granted permission to establish in Viet Nam and are receiving strong support from both the Democratic and Republican parties at home.

Speaking at a press conference in Ha Noi, she confirmed that in case Viet Nam joins the WTO before receiving the PNTR (Permanent Normal Trade Relations) status, the bilateral trade relations between Viet Nam and the US will be newly and completely defined by the country’s WTO commitments.

                                                                                                    (Source: SGGP)

By D.L – Translated by Trong Khuong

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