Government maps out path toward free trade
Ha Noi, May 22 (VNA) -- The Ministry of Trade (MoT) has issued for the first time a long-term decision setting out its trade policies for 2001-05, making it easier for both enterprises and State agencies to formulate their inmport and export strategies.
Trade Minister Vu Khoan has said that the decision is a positive step that will help domestic firms prepare for the process of regional and international integration.
He said the decision will also reduce excessive bureaucracy and increase transparency in allocating quotas.
The decision will effectively lift trade restrictions on all commodities except those which have been banned by the Government.
For five commodities - rice, fertiliser, wine, clinker and petroleum, the quota system will be phased out gradually.
The decision also states that the MoT will lift non-tariff barriers for all commodities except petrol and sugar by 2003, when Viet Nam will have to abide by the provisions of the ASEAN Free Trade Area.
While restrictions on some key products will remain, including a ban on some dangerous items, the decision has lifted the trading ban on finished wooden products, except sawn timber and logs.
The desicion states that the State will encourage exports of processed timber products where checks have been carried out on the origin of wood at the areas of exploitation. The Finance Ministry is formulating a policy of tax incentives to boost domestic production of finished wooden products.
Export restrictions will remain on garments because of quotas inposed by importing nations. Negotiations are underway to have the quotas removed, based on the volume of annual production and multilateral and bilateral agreements signed by the Government on garment and textiles.
The ratio of garment and textiles quotas granted through tenders will increase every year, gradually replacing the system of allocating quotas.
The allocation of quotas for enterprises in Ha Noi, Ho Chi Minh City, Hai Phong and Da Nang will done by the municipal People's Committee. Quota allocation for all other firms will remain with the MoT.
From now until 2005, the Government will use internationally recognized trade protection measures including tariff rates, tax ceilings, anti-dumping duties and environmental protection charges.
These tools will allow the country to retain some supervision over imports and exports, while satisfying standards set by international and regional trade bodies, the Minister said.
One major outcome of the decision is that only seven items-petro, glass, iron, vegetable oil, sugar, motorbike and nine-seat motorised vehicles - require a trading license from the ministry.-- VNS/VNA
