Vietnam eliminated many nontariff barriers under the 2001 United StatesVietnam Bilateral Trade Agreement (BTA) and through its accession to the WTO, including quantitative restrictions on imports, quotas, bans, permit requirements, prior authorization requirements, licensing requirements, and other restrictions having the same effect, which appeared to be inconsistent with its WTO commitments. Nonetheless, many other nontariff barriers remain in place. The U.S. Mission to Vietnam is currently addressing trade issues in numerous sectors, including defense, transportation, energy, information and communication technology (ICT), and healthcare. Firms are encouraged to contact the U.S. Commercial Service in Vietnam with questions and concerns related to nontariff barriers.
IMPACTS OF NON-TAX BARRIERS ON VIETNAM'S EXPORT ACTIVITIES Trường Đại học Ngoại thương, Hà Nội, Việt Nam Vũ Huyền Phương Giảng viên Viện Kinh tế Kinh doanh quốc tế Trường Đại học Ngoại thương, Hà Nội, Việt Nam A Introduction The urgency of the subject Vietnam eliminated many non-tariff barriers under the 2001 United StatesVietnam Bilateral Trade Agreement (BTA) and through its accession to the WTO, including quantitative restrictions on imports, quotas, bans, permit requirements, prior authorization requirements, licensing requirements, and other restrictions having the same effect, which appeared to be inconsistent with its WTO commitments Nonetheless, many other non-tariff barriers remain in place The U.S Mission to Vietnam is currently addressing trade issues in numerous sectors, including defense, transportation, energy, information and communication technology (ICT), and healthcare Firms are encouraged to contact the U.S Commercial Service in Vietnam with questions and concerns related to non-tariff barriers Today, the trend of globalization and internationalization is taking place very strongly It creates for Vietnam great opportunities as well as challenges unprecedented in history Vietnam with the motto: "Want to make friends with all countries in the world", so the trend of alliance and association is a necessary and inevitable job The fact that Vietnam's continuous and relentless efforts to participate in negotiations to become a member of the World Trade Organization (WTO) is an authentic proof of this Trade liberalization and international economic integration is a problem not only for Vietnam but also for all countries in the world, regardless of whether it is a developed or a developing country Rule is capitalist or socialist, regardless of race, religion or color… WTO Director-General, Supachai Panitchpakdi, has repeatedly said: “Trade is the best tool to combat poverty " Indeed, since our country opened the market, import and export is an important activity and has made great contributions to the country's economic growth as well as to the State budget However, trade liberalization is a long-term process closely tied to the negotiating process to reduce tariffs and non-tariff barriers For industrialized countries, on the one hand, they are always at the forefront of negotiations to open the market, on the other hand, they always take more sophisticated measures to protect domestic production, in order to achieve their definite goals So what is the problem for developing countries? How to both integrate the economy and ensure that the fledgling industry in the country is not on the verge of bankruptcy The answer will lie in the development strategy and goals of each country In other words, there is no specific solution to this conundrum It is each country that will have to find its own answer based on the conditions and advantages of its country and Vietnam is also on the way to find that solution Study overview - How Vietnamese businesses overcome barriers in international trade policy? - How to both integrate the economy and ensure the fledgling industry in the country is not on the verge of bankruptcy? Objectives of the study - Overview of theoretical issues on non-tariff barriers, the reality of non-tariff barriers of some countries - Solutions to help Vietnamese businesses effectively overcome non-tariff barriers in international trade activities Research subjects Viet Nam has gradually eliminated trade restrictions and cut import taxes as part of most integration agreements Average binding tariffs under the World Trade Organization (WTO) dramatically decreased from 17.4% in 2005 to 14.2% in 2007 and are expected to stay constant at 13.4% until 2023 Additionally, this is Vietnam's highest level of bound tariff rates Under the Association of Southeast Asian Nations (ASEAN) Free Trade Area (AFTA) framework, tariffs decreased most drastically Research scope - Vietnam's export industries Research Methods - Methods of data collection: surveys, questionnaires, reading documents, etc - Information processing methods: quantitative, qualitative, etc Structure A Introduction B Research content Chapter I: Theoretical Basis Chapter II: Situation and causes of the research problem Chapter III: Solution C Conclusions and recommendations Conclusion Suggestions D References E Appendix B Research content Chapter I: Theoretical Basis I The concept and roles of international trade policy Concepts International trade policy is a system of views, objectives, principles and appropriate tools and measures that the State uses to regulate the international trade activities of a country in a given period of time certain period in accordance with the strategic direction and purpose set in the socio-economic development strategy of that country The regulatory function of international trade policy is shown in the following two aspects Firstly, creating favorable conditions for domestic enterprises to expand their markets abroad, strongly participate in the international division of labor and international trade, and fully exploit the comparative advantages of the economy domestic economy Second, protect the domestic market, create conditions for domestic enterprises to be able to stand firm and raise capital in international business activities, to meet the requirements of national benefits Role International trade policy is a part of the State's socio-economic policy It has a close relationship and serves the socio-economic development of the country It has a strong impact on the reproduction process transforming the economic structure of the country, to the size and mode of participation of each country's economy in the international division of labor and international trade International trade policy has a great role to play in fully exploiting the comparative advantage of the economy in the roof, developing manufacturing and service industries to the optimal scale, accelerating economic growth and improve the efficiency of economic activities International trade policy can create positive effects when it has a scientific and practical basis, that is, it comes from the objective contexts of the world economy, paying attention to the characteristics and the development level of the domestic economy, following important objective laws, the movement of international economic relations and regularly being supplemented and completed in accordance with the changes in the economy International trade policy can create positive effects when it has a scientific and practical basis, that is, it comes from the objective contexts of the world economy, paying attention to the characteristics and the development level of the domestic economy, obeying important objective laws, the movement of international economic relations, and is regularly supplemented and completed in accordance with the rapid changes of reality II Contents of international trade policy The international trade policy of a country consists of many different and organically related parts That is: ● Item policy: This includes a list of items that are focused on import and export, in accordance with the level of development and characteristics of the country's economy as well as those that need to be restricted or banned from import and export for a certain period of time, due to the objective requirements of the socio-economic development strategy and the requirements of ensuring social security and safety ● Market policy: Includes orientation and measures to expand markets, penetrate new markets, build key markets, and measures of reciprocity between countries of a bilateral or multilateral nature Participating in important regional or global trade and tax agreements in order to facilitate the development of international trade activities to serve the strategic goals of socio-economic development ● Supportive policies: include economic policies and measures aimed at indirectly affecting international trade, such as trade policy, credit policy, price policy and exchange rate, as well as policies to use economic levers These policies can promote or regulate the development of international trade activities III Tools of international trade policy Each country uses many different tools and measures to achieve the goals of international trade policy Below will mention the content and form of some tools that are commonly applied in practice Tariffs A tariff is a tax levied on each unit of goods exported or imported by a country Tariffs include export tariffs and import tariffs An import tariff is a tax levied on each unit of imported goods, under which the domestic buyer must pay for the imported goods a greater amount than the foreign exporter accepts An export tax is a tax levied on each unit of exported goods Import duties and export taxes both have an impact on the prices of the goods concerned But export tax differs from import tax in two basic ways: First, it applies to exports, not imports Second, it causes the international price of the taxed good to exceed the domestic price, but not vice versa), in other words, it lowers the relative domestic price of the good can be exported below international prices (this is consistent with the commercial practice of small caps) Tariffs can be calculated in many different forms: Calculated according to a physical unit of goods, or calculated according to the value of goods A mixed tariff is a tariff that is both calculated on a percentage basis compared with the value of the medium plus a provincial tax per physical unit of the good Tariffs are one of the oldest tools of international trade policy and a means of increasing revenue for the State budget Not only that, tariffs also play an important role in protecting nascent industries that can become competitive in the world market Quota As a popular tool in non-tariff barriers It is understood as the State's regulation on the highest quantity of an item or group of goods allowed to be exported or imported from a market in a certain period of time, through the form of a license Import quotas are the more common form, while export quotas are less commonly used and are equivalent to voluntary export restrictions Import quotas lead to a restriction on the quantity of imports, and at the same time affect the domestic price of goods, the effect of which is relatively similar to import tariffs Import quotas have different effects from import tariffs in two ways: One is that it provides government revenue and does not support other taxes However, quotas can bring huge profits to businesses that apply for import permits under quotas (leading to a negative phenomenon when applying for import quotas) Second, it can turn a business into a monopolist It is also the reason that quotas more harm than tariffs But this can be solved by auctioning import licenses under quota In short, import quotas are more secure than import taxes, so some domestic producers prefer it, consumers are more disadvantaged, and the biggest beneficiary is the importer not the state Usually, people only set import quotas for certain types of special products or for products with special markets Export quotas are specified by item, by country and by certain period of time Voluntary export restraints