Socialist Republic of Vietnam

Ha Noi, Jan.9 (VNA) -- A senior official from the Finance Ministry said that Viet Nam's financial sector is actively preparing everything for implementing all commitments stated in the Viet Nam-U.S trade agreement (BTA) which took effect on Dec.10 last year.

"These commitments concern taxation, insurance business, accounting and auditing work and other financial matters," said Mrs Le Thi Bang Tam, Deputy Minister of Finance, in a recent interview with Lao Dong newspaper.

As for import tax, she said "Viet Nam has pledged to reduce or keep intact tariff rates for 244 products imported from the U.S. for three to six years. Tariff rates will be reduced from 35 percent to 26 percent for industrial and agricultural products which make up 20 percent and 80 percent of the total, respectively."

"Viet Nam has also committed itself not to issue more taxation policies to discriminate between home-made and imported goods. Viet Nam will also abolish existing discriminatory policies and practices," she said, referring to Viet Nam's taxation policies.

"Viet Nam has pledged not to bar American companies and corporations from establishing joint venture and wholly-invested companies to provide taxation consultancy services," Ms. Tam told the newspaper, adding "However, their operations will be restricted in the first five years after the trade pact came into force."

On opportunities and challenges facing Viet Nam as a result of the trade pact approval, she stressed the pact will give Viet Nam's goods access to the U.S market, increase the competitive edge of Viet Nam's products in this market, and help induce more foreign investment to Viet Nam.

"Viet Nam will face many challenges as it lowers tariff rates under the trade pact," Ms. Tam said, stressing "This will adversely affect Viet Nam's state budget revenue."

However, she said " The finance sector will promulgate policies to support Viet Nam's export, including preferential taxation measures, domestic production protection through taxation instruments as well as financial support to the corporate sector."

"It will expand the financial service market and increase the capacity and managerial efficiency of the sector," Ms. Tam added.--VNA