Thegovernment of Vietnam has many programs under which inputs such as seed,fertilizer, and irrigation water are subsidized. At the provincial level, seeds are provided to farmers atsubsidized rates. Similarly,fertilizer manufacturers and importers have access to low-interest credit. Approximately half of the cultivatedland in Vietnam is irrigated. Farmers pay a subsidized fee for using water forirrigation. The irrigation fee isset by each province under the guidelines of the Ministry of Water Resources. Half of the irrigation maintenance andoperation costs are subsidized.
Vietnambecame the 150th member of the WTO on January 11, 2007 and committedto substantial reductions in tariffs, a ceiling on agricultural subsidies, anda phase-out period for quota elimination.
á VietnamÕs tariff oncorn is 5%. It applies apreferential lower tariff on corn from ASEAN countries and China.
á Vietnam has aguaranteed purchase price for seed cotton, currently about $0.38/kg ($0.52/lblint equivalent).
á Cotton fiber has noimport tariff, but cotton waste has a tariff of 10%, cotton yarn a tariff rateof 20%, and cotton fabric a tariff of 40%.
á The Vietnamesegovernment sets a minimum purchase price on paddy rice, currently VND1,500/kg(about $4.30/cwt).
á Selected farmersproduce certified seed, provided by government rice institutes, which is thendistributed to farmers at subsidized prices for commercial rice production.
á Almost all riceexporters are state owned companies.
á Rice is subject to a 5%value added tax (VAT), and exporters are refunded VAT based on the purchaseprice in Vietnam. More than $50 million in VAT was rebated for rice exported in2005.
á The Vietnamese TradePromotion Fund is used to assist Vietnamese enterprises to carry out tradeactivities.
á Rice export companiesreceive credit subsidies.
á The Vietnam Ministry ofTrade provides incentive rewards for companies whose total export valueincreases. The total incentive reward for rice exporters in 2005 was about $6million ($104 million for all exported goods).
á Vietnam has an importduty rate of 5% for countries with Most Favored Nation (MFN) Treatystatus.
á The duty rate is 0% forsoybeans imported from ASEAN countries.
á No wheat production orcontrols.