WTO entry wipes out favourable rules & regulations
31 Jul '06
1 min read
Vietnam's proposed amalgamation with World Trade Organization (WTO) has seen abolition of many economic policies, which favoured local industries.
In the latest development, Vietnamese Prime Minister, Nguyen Tan Dung has decided to remove the tax regulations, which used to favour the products manufactured with local raw materials.
Higher tax incentive was used to be given to industries, which manufactured goods with a higher local content ratio but from October, 01 they will be done away in accordance with WTO guidelines.
Textile and garment industries are to face the music as well with Decision 55, providing subsidy to the sector been already scrapped.
On the other hand, it has been decided to abolish the export achievement award rule.
Following the WTO regulations, Vietnam has promised to remove all rules which favoured local industries along with the promise to remove subsidy on agricultural and non-agricultural products in a phased manner as per schedule.
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