Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 1

The notifications of Viet Nam

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 2

Green box measuresMeasure Description Amount (average

1999-2001) billion dông

Research Public expenditures for functioning of research institutions

301.30

Formation services

Expenditures to establish, maintain and develop agricultural training centre

324.92

Extension services

Expenditures for functioning of national network and for plant / animal genetic selection

1,089.49

Infrastruc-ture

Building and improvement of irrigation systems 5,713.75

Pest and diseases

Public expenditure (warning system, border control, inspection service)

263.01

Food security stocks

Expenditure for storage of rice and rice seeds for food security purposes

1,178.90

Domestic food aid

Food aid delivery for poor people in mountain areas or less favoured

125.00

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 3

Green box measures (cont’d)Measure Description Amount (average

1999-2001) billion dông

Subsidies for natural disasters

Food aid or basic goods for farmers in areas submit to natural disaster

1,509.21

Structural adjustment aid (investment support)

To shift from low-competitive rice production to commercial production

251.45

Regional support programme

Re-wood of dry areas; development of new economic areas; Infrastructures; subsidies for food transport to far region s

1,866.05

Support to investment Loans at preferential interest rate 849.64

Support to inputs for poor farmers

Short term loans at preferential conditions 954.11

Assistance to replace illicit crops

Delivery of seeds and livestock; extension of diversification

7.39

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 4

Blue box

• No measures

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 5

Calculation of the AMS

• By product:– Price support:

• (Domestic price – world price) X volume of production

– And all specific measures: support to storage, support to inputs

• General:– Tax rebate, support to inputs…

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 6

Price supportYear Measure Administrat

ed price (1000 d/t)

External reference price

Production

Price support

(Billion d)

Rice 1999 Price support/Export quota

3,166.00 3,508.97 20,406.00 -6,998.65

2000 2,999.00 3,170.87 21,160.10 -3,827.23

2001 No 0.00

Average 0.00

Sugar 1999 Price support /import license

6,975.00 2,259.00 947.30 4,467.54

2000 5,049.00 3,112.00 1,208.70 2,341.11

2001 6,458.00 3,886.00 1,057.80 2,720.69

Average 3,176.45

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 7

General product-specificAMS (billions d)

Measure 1999 2000 2001 Average

Rice Preferential loan rate for storage 27.20 61.94 0.00 29.71

Sugar Import support for new varieties 6.70 200.16

Preferential loan rate for investment and storage

392.33

Support to development of the production; support to financial losses (exchange rate) – preferential loan rates

201.45

Cotton Gap between import seeds price and price to farmers – Losses of cotton industry

2.00 9.57 13.35 8.31

Pork meat

Preferential loan rates for purchasing 3.20 0.00 0.00 1.07

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 8

Non product-specific AMS

1999 2000 2001 Average

Tax rebate: 100 % in very poor areas, 50 % for rice and coffee

n.d. n.d. 700.00 233.33

Support for losses due toelectricity consumption

101.82 147.72 301.82 183.79

Cost of irrigation 1,010.00 1,005.00 999.00 1,004.67

Total 1,111.82 1,152.72 2,000.82 1,421.79

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 9

Total AMS (average 1999-2001) (billions dông)

Product specific AMS

Total value of the production (billions d)

De minimis(10% of the value)

GlobalAMS

Rice 29.71 67,883.03 6,788.30 29.71

Sugar 3,376.61 6,630.00 663.00 3,376.61

Cotton 8.31 125.20 12.52 8.31

Pork meat 1.07 17,027.62 1,702.76 1.07

AMS product 3,415.69 122,904.10 12,290.41 3,415.69

Non-product AMS

1,421.79

Total AMS 4,837.5

Training session - Vietnamese agriculture and WTO - Hanoi - sept. 2005 10

Export subsidies (in billions dông)

1999 2000 2001 Average

Subsidies by product 486.00 600.00 822.77 636.26

Rice 49.70 31.30 31.48 37.49

Pork 203.00 348.60 536.35 362.65

Coffee 12.00 9.90 165.00 62.30

Fruits & Veg 0.00 0.00 10.55 3.52

Export premium, linked to results

750.70 989.60 1,566.16 1,102.02