International trade policy: the law or principles many countries have to apply, set by the world

trade organization.
WTO - the biggest organization. WTO members have to follow.
FTA: Free trade agreement. Vietnam has 16 FTA.
MOIT- Ministrate of industry trade - Bo cong thuong
WTO center.vn
chính sách của quốc gia đối với 1 sản phẩm của VN xuất khẩu ra thị trường đó

Macmap,
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factbook
market profile
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fitch solution
trade policy review
 CHAPTER 1: OVERVIEW OF TRADE AND INTERNATIONAL TRADE POLICY
PART 1: OVERVIEW OF INTERNATIONAL TRADE
- Trade is the act or business of exchanging goods or services for money (buying and
selling). → profitable activity.
- Objects: money or profit.
- International trade: Exchange of goods and services across borders, such as: territorial
borders, custom borders (custom control… there are many custom control, when it
crosses the borders, it is categorized as international trade. Vượt qua biên giới hải
quan, ở VN thì tồn tại rất nhiều biên giới hải quan… hàng hoá đi qua, làm thủ tục hải
quan, có nhiều control liên quan đến tiền tệ, hàng hoá..)
- International trade policy: Rules and regulations applied to parties that take part in
international trade. Objectives: Economic development.
- Nature and development trends of international trade: Tham khảo world economic
situation and prospects - wesp, IMF world economic outlook, Unctad trade and
development report, trong đó có Regional Economic outlook luôn, hoặc có thể
google từ khoá Global economy 2023/ international trade 2024 (UN WESP, IMF
WEO, UNCTAD Trade and Development report, UNCTAD Handbook of Statistics)
- Multilateralism: chủ nghĩa đa biên nhấn mạnh việc hợp tác giữa các chính phủ trong
thực thi các mục tiêu chung, cần sự hợp tác của nhiều nước trong 1 cơ chế đa biên để
thực hiện SDG, mang tính chất bắt buộc khi mình tiến vào các agreement đó.
- Kinds of trade:
+ Scope → Domestic trade and foreign trade (or national trade and international
trade)
+ Field → Trade in goods and trade in services (this class focuses on trade in
goods).
+ Domestic trade → Trade done within the country, also called Home trade or
National trade.
+ Foreign trade: trade between the host country and the rest of the world, also
called international trade, including importation and exportation of goods and
services. It also has other activities. → ACROSS THE BOUNDARY? → It’s
custom boundary → If the government sets the custom boundary, it is. Economic
boundary is one that sets the borders between economic regions..
+ Which is across the boundary? → goods (tangible), for services we
emphasize on the flow of currency for foreign exchange.
- Object of study: InTP and analysis of issues related to InTP such as international trade
theory, WTO agreements, import-export policy...
- Scope of study: InTP of Vietnam in comparison with InTP of some typical countries in
aspects of some selected fields/industries.
- Content:
+ Trade in Goods
+ Trade in services.
 Additionally:
+ Trade -related intellectual properties.
+ Trade - related investment,
- Main characteristics of international trade:
+ High growth (much higher than GDP growth). This is true only for developing
countries, open economies… Some developed countries do not imply this.
+ Terribly affected in the context of the unstable world economy
+ Imbalanced growth among nations, areas and industries
+ Strongly emerging services recently
- Tendency of international trade:
+ Outbreak of scientific, technical and IT development
+ Tendency of internationalization of the world economic lifestyle: Hallyu.
+ Liberalization and protectionism. They used to be opposite. But now, they
combine two trends at the same time.
+ Competition and cooperation
+ Strong growth of service sector
+ Imbalance in growth and income distribution/ location. VD hưởng lương cao hơn,
nhưng đó chỉ là một phần nhỏ trong miếng bánh to hơn
+ Instability and unpredictability of the world economic environment.

PART II: OVERVIEW OF INTERNATIONAL TRADE POLICIES

1. Overview of trade policies:
- Policy: is the method by which an institution is administered → a system of official
administration or management.
- Trade policy : any government action that affects trade → Affect the availability price of
any traded goods or services → Many types/ kinds of actions by the government. In
Common law countries, like the US, Trade policy can be verbal action. But in civil Law
countries, like Vietnam, it must be stated in legislation: ITP is considered as a set of
conceptions, principles. Guidelines, plans, directions by the gov to administer INT
activities to develop compliance with the directions on national development strategy as
stated by the government. (Mọi thứ cần phải thông qua ban hành văn bản thì mới có
hiệu lực).
- InTP: Actions by governments which have the potential to impact a foreign product or
service or business differently than domestic producers of like or similar products or
services, whether intentionally or not. → Be able to increase or decrease the competition.
- In VN, International trade policy is considered as a set of conceptions, principles,
guidelines, plans and directions by the government to administer international trade
activities to develop in complaint with the directions or the national development strategy
as stated by the government

2. Overall of WTO:
- The biggest intergovernmental organization.
- Reasons: multilateral trading system → common principles applicable to all members.
 - Based on GATT 1947 (General Agreement on Tariff and Trade on 23.10.1947). They
tried to find a solution to maintain and keep peace after WWII. The US was the leading
country.
- Born in 1.1.1995, according to Marrakesh Agreement (mOROCCO, 15/4/1994). →
Renegotiate the old rules, policy → a newer version of GATT 1947, we have GAT 1994,
before the WTO was officially launched.
- 164 members that account for more than 95% world trade (July 2016).

WTO's main principles:

- Most Favored Nation (MFN) -The most favored nation (MFN) principle is based on the
idea that countries should treat all their trade partners equally—that no one country
should be “more favored. VD hàng trung quốc tệ, nhưng mình cũng không thể có cái luật
riêng cho nó được, chỉ dùng MFM, bình đẳng giữa các quốc gia tại biên giới.
- National Treatment (NT). Non discrimination behind the border. No discrimination
between imported goods and locally produced goods.
- Reciprocity: Mutual understanding, if the partners offer us better products, we need to
give them something good in return.
- Freer trade: WTO supports freer trade. Freer than MFM, including tariff and non tariff
measures. FTA is higher than MFM, not including investment. EPA includes international
trades and international investment.
- Predictability and Transparency: Prepare every 3 years for VN.
- Promoting fair competition: The government can take action against unfair
competition. EX: activities, measures… of the exporting countries that may affect the
importing countries. They can take against that. → Dumping: Selling at much lower
prices. Why? Want to enter the market, increase the market share… → Allow imposition:
anti dumping to balance and to fix the situation. Each country has different tools to
calculate the anti dumping percentage. (trade remedy: anti subsidy measure,
safeguard measure and anti dumping
+ Anti subsidy: receive money from the government to export goods.
+ Safeguard measures are temporary border measures imposed on imports of a
product to prevent or remedy serious injury caused by increased imports of that
product and to facilitate adjustment.
+ Anti dumping: designed to discourage the importation and sale of foreign goods
at prices well below domestic prices.
- Special and differential treatment (S&D). Most of their members are developing and
less developed countries, but they have to follow the same rules, compete directly with
companies from developed countries. The WTO agreements contain special provisions
which give developing countries special rights and allow other members to treat them
more favorably.
- Non discrimination has two element:
+ MFN applying to border measures: Each member must grant treatment to all
other members as favorable as it extends to any individual member country.
 + National Treatment (NT) applying to behind-the-border measures: Foreign goods
within a country should be treated no less favorably than domestic goods with
regard to tax policies and other regulations.

- Agreement establishing WTO

 - Trong đó:
+ Umbrella agreement: involves any agreement in its.
+ Multilateral agreement: Hiệp định đa biên. Bắt buộc áp dụng với mọi thành viên WTO và
đạt được sự đồng ý trong phiên họp.
+ Plurilateral agreement: Hiệp định đa phương. Ai ký thì bắt buộc, ai không ký thì thôi. VN
không ký plurilateral agreement nào cả.
Các ngành ảnh hưởng bởi các agreement này:
- Agriculture: Các nước đã phát triển thì chi phí nông nghiệp cao, nên họ đưa ra hiệp
định, trợ cấp để bảo hộ ngành nông nghiệp. Developing countries thì có lợi thế về tự
nhiên, chi phí rẻ nên không cần bảo hộ quá nhiều sản phẩm
- Sanitary and Phytosanitary Measure: Vệ sinh dịch tễ. Áp dụng cho các mặt hàng
nông nghiệp và sản phẩm chế biến từ nông nghiệp. Các nước không áp dụng chung 1
cái quy định. Nhưng, VN sẽ không nâng chuẩn vệ sinh dịch tễ, bởi vì theo National
treatment, thì hàng trong nước cũng phải áp dụng mấy cái này trước khi tiêu thụ, khó,
giá thành cao hơn gây khó khăn.
- Textiles and clothing note (terminated on 1 Juan 2005).
- Technical barrier to trade.
- Trade related investment measures (TIRMS).
- Anti dumping.
- Customs valuation
- Pre Shipment inspection
- Rules of origin.
- Import licensing
- Subsidies and countervailing measures.
- Safeguards
- Trade facilitation.

- The degree of economic integration:

- Economic integration: is an agreement among countries (normally in a geographic

region) to reduce and ultimately remove, tariff and non tariff barriers to the free flow of
goods or services and factors of the production among each other; any type of
agreement in which countries agree to coordinate their trade, fiscal and/or monetary
policies.

- 5 levels of economic integration

+ Free trade: Reduction of tariffs between members. EX: NAFTA, ASEAN (partial)
+ Custom union: many countries sign the agreement and agree with shared
common policy. Only 1 union has the common custom policy, it's the EU.
+ Common market: Free movement of capital, and services. It emphasized free
movement of products, trade and services, but still retained different national
regulations.
+ Economic union: leads to harmonization, governmental cooperation in many
aspects. Some even use the same currency. No barriers for internal trade, free
movement of labors, harmonized tax rates, common monetary and fiscal policy.
 + Political union: Aims to establish a common government for countries in the
union. So far, no countries have reached this level, they have to maintain their
sovereignty, they are willing to cooperate but not political union.
- Higher level will contain the lower level.
- 3 main production factors: capital, technology and labor. Sometimes, they don’t use the
word common market, we say economic community → economic community does not
include the common tariff policy (without common policy). But for other union, they may
include common policy,
- 4.5 (between 4 and 5): EU for example.

3. Vietnam's FTA
a) FTA
Currently, Vietnam has joined 16 FTAs:
- AFTA: Asean
- ACFTA: Asean, China.
- AKFTA: Asean, Korea.
- AJCEP: Asean, Japan. With Japan: AJCEP - could not expect to import a lot, they
expect to invest more – Economic agreement (trade + investment) .
- VJEPA: Vietnam, Japan.
- AIFTA: Asean, India,
- AANZFTA: Asean, Australia, New Zealand.
- VCFTA: Vietnam, Chile,
- VKFTA: Vietnam, Korea,
- VN - EAEU FTA: Vietnam, Belarus, Armenia, Kazakhstan, kyrgyzstan
- CPTPP: VN, Canada, Mexico, Peru, Mexico, Chile, New Zealand, Australia, Japan,
Singapore, Brunei, Malaysia, Great Britain.
- AHKFTA: Asean, Hongkong. China excludes Hong Kong from the scope of agreement,
so if we signed the contract and do business with HK, we need to sign with HK. HK is
not allowed to join the same agreement with China.
- EVFTA: Vietnam, EU
- UKVFTA: Vietnam, UK,
- RCEP: Asean, China, Korea, Japan, Australia, New Zealand.
- VIFTA: VN, Israel.
- We have six partners in Asia (outside Asean): Japan, South Korea, China,... nhung chir
co 5 nuoc tham gia ICP → India và Hongkong không tham gia (hK k được phép tham
gia cùng hiệp định với trung quốc).

- There are two types of FTA:

+ Bilateral: thì VN ký dưới tư cách 1 nước. Sẽ không có FTA giữa VN với TQ. bởi vì biển
đảo, biên giới không đồng thuận dc nên TQ không hợp tác, mà chỉ kí chung dưới dạng
multilateral, nhưng bilateral thì không.
+ Multilateral: Kí kết giữa nhiều bên tham gia.
- Lưu ý:
 + Hiệp định CPTPP không kí với tư cách asian. Ban đầu có ký với mỹ, nhưng sau
đó mỹ rút. Đây là hiệp định được lập ra để cô lập trung quốc. Giờ thì có 12 nước.
UK là nước mới nhất.
+ Có 2 cái đáng lưu ý: trong số các hiệp định FTA mà VN kí, Hiệp định ICP là hiệp
định mang tính tổng hợp, nhưng vẫn ở mức độ FTA thông thường. Trong nhóm
hđ MÀ VN ký không thuộc asian thì mình nó 2 hđ là new generation FTA. New
generation FTA có điểm khác biệt, có mấy cái mà traditional FTA không có như
CPTPP, EVFTA. có nhiều điều khoản, terms, conditions… nằm trong điều khoản
plural agreement. VD: điều khoản mua sắm chính phủ, tranh chấp công tư (nước
chủ nhà, doanh nghiệp nước đó), vi VN ký tpp và evfta, cũng nhiều nước rồi đó.
wto có điều khoản tự chọn, tự nguyện, cái gì tự chọn tự nguyện VN k có kí,
+ Cái mới nhất là VN - Israel, mới ký, chứ chưa làm, nhưng mặt thực thi thì chưa
có được ban hành quy định cụ thể.

b) Vietnam and WTO:

- 4.1.1995: apply to WTO.
- 7.1.2006: WTO approval for membership.
- 11.1.2007: become 150th member of WTO.
Vietnam’s commitment:
- Tariff binding: 10600 tariff lines (the whole tariff table - products in 8 digits codes) are not
allowed to trade more than this tariff.
- Tariff reduction: 23% in comparison to the current average tariff (MFN) from 17,4% to
13,4% during 5-6 years.
Read reports, publications, statistical data about world economic outlook, global trade
outlook, Vietnam economic and trade outlook

1. WTO GLOBAL TRADE OUTLOOK:

- World merchandise trade volume is projected to grow 1.7% (0.8% in October report) in
2023 before picking up to 3.2% (3.3% in October version) in 2024. The exact causes of
the slowdown are not clear, but inflation, high interest rates, US dollar appreciation, and
geopolitical tensions are all contributing elements
- Commodity prices spiked following the start of the war in Ukraine, as the possibility of
supply disruptions set off a scramble to secure access to energy products. The global
average price of crude oil in August 2023 was still up 38% compared to the average of
2019, while natural gas prices in Europe were up 133%
- Risks to the forecast are tilted to the downside, including geopolitical tensions, food
insecurity, potential financial instability stemming from monetary policy tightening, and
increasing levels of debt.
- Trade volume growth in 2022 was slower than expected at 2.7% following a fourth
quarter slump, but still stronger than worst case scenarios considered at the start of the
war in Ukraine.
- The value of world merchandise trade rose 12%to US$ 25.3 trillion in 2022, inflated in
part by high global commodity prices.
- The value of world commercial services trade increased 15% in 2022 to US$ 6.8 trillion.
Digitally delivered services exports were worth US$ 3.82 trillion in the same year.

2. WORLD TRADE REPORT 2023:

- A more fragmented and less predictable trade policy environment. A series of shocks in
the space of 15 years — first, the global financial crisis of 2008-09, then the COVID-19
pandemic, and now the war in Ukraine — have led to the sense that rather than making
countries economically stronger, globalization exposes them to excessive risks.
- In other areas, trade and trade policy continue to make progress. COVID, international
trade to convey medicines. Or in the civil war between Russia and Ukraine, it’s
developed to deliver food and basic utilities to people in need.
+ Trade has been resilient from the past shocks (trade war between US and China,
or COVID increase despite high transaction costs…). While supply disruptions
did occur, the trading system has held up throughout past crises and has been
able to adapt flexibly.
+
+ Trade continues to evolve in a more sustainable and inclusive direction
+

- Geopolitical tensions and a series of crises have led to changing narratives surrounding
trade and economic interdependence over the past decade. These tradesceptic
narratives have increasingly been translating into a more challenging global trade policy
landscape, which is illustrated, among other things, by an increase in trade concerns
and trade remedies notified to the WTO.
- The change in trade policies has begun to affect trade flows. The tariff escalation
between the United States and China has led to a slower growth in trade between the
 world’s two largest economies. Moreover, since the onset of the war in Ukraine, data
have been showing first signs of trade reorientation along geopolitical lines.
- At the multi- and plurilateral levels, initiatives such as the WTO Trade Facilitation
Agreement, the WTO Agreement on Fisheries Subsidies, and the joint initiatives on
services domestic regulation, investment facilitation for development, and electronic
commerce are addressing key issues facing international trade.

a) The impacts of security concerns on trade:

- The multilateral trading system is increasingly affected by rising security concerns.
Several crises over a short period of time have raised the awareness about growing
risks related to geopolitics, health and climate change. As a result, concepts of security
encompass many more issues than the traditional understanding limited to conflict. This
has important implications for the multilateral trading system, as evidenced, for example,
by an increase in the number of trade concerns referring to security.
- Trade is critical to economic security as it allows for diversification. Trade was central in
responding to the sharp fluctuations in demand during the COVID-19 crisis and to the
adaptation by food importers to the war in Ukraine. Disruptions did occur in both
instances, but evidence shows that less openness would have worsened the impacts.
While the relationship between trade and conflict is more complex, empirical evidence
suggests that trade plays a conflict-reducing role. The multilateral rules-based system is
key for trade to play this positive role.
- Re-globalization can help trade contribute further to security. Addressing existing barriers
to trade where they are high, such as in agriculture and services, or in economies
outside of global value chains, would significantly facilitate diversification. The WTO
provides a platform for peaceful exchange and dispute resolution and can help to
remove sources of obstacles between economies, for instance by increasing
transparency. Ongoing reform initiatives can greatly enhance the capability of the system
to advance global security.
3. IMF WORLD ECONOMIC OUTLOOK:
- The global recovery from the COVID-19 pandemic and Russia’s invasion of Ukraine
remains slow and uneven.
- Global growth is forecast to slow from 3.5 percent in 2022 to 3.0 percent in 2023 and 2.9
percent in 2024.
- Intensifying geoeconomic fragmentation could constrain the flow of commodities across
markets, causing additional price volatility and complicating the green transition.
Tình hình thế giới:
1. High inflation rate → People tried to tackle inflation rate by various measures:
+ FED has raised its benchmark interest rate 11 times in an effort to cool off red-hot
price increase.
+ ECB - European Central bank has raised interest rates 10 times…
2. Geopolitical tensions pose a threat to the world economics:
- instability in Politics like Russia - Ukraine war, Israel-Palestine…
- The US-China relationship does not get better. Both sides tried to take the leading
position in technology, AI, and green fuel…
3. Crisis of banks and other financial institutions in the US.
- The collapse of Silicon Valley Bank, and people suspect that domino effects may appear,
resulting in the collapse of other banks. Bank-run and selling stocks continuously leads
to the collapse of Signature Bank and First Republic Bank.
4. China’s economic performance disappointed after COVID.
- At the end of 2022, China started to terminate some policy and regulations relating to
COVID and people expected them to raise up again. However, they didn’t live up to
expectations. Domestic demand is weak, demand for imported goods is weak, real
estate crisis, heavy public loans… GDP is 5%/ year after all.
5. The risk of debts:
- Half of 2023, worldwide debts are up to 10 thousand billions USD, accounting for 336%
in GDP.
- High interest rate, slow economic growth leads to a wave of bankruptcies in many
countries like Germany, France, US… In China, there is a real estate crisis.
- For governments, public debts are huge after COVID. WB announced that developing
countries are taking on 443,5 billion USD to pay for debt. The US is going to pay 659
Billion USD for public debt in Sep 2023.
- Due to debt, US and China was depreciated in credit ranking.
6. The strong rise of AI.
- The launch of ChatGPT by Open AI took the world by surprise, surging to 1000 million
users after 2 months.
- Some competitors like Bard AI by Google, Grok of Elon Must, Bing chat by Microsoft…
follow up fiercely.
- There tools are expected to brings about huge changes in many fields in the upcoming
years, yet pose a threat to employability of people.
7. The Gold price reached a new height in 2023.
- Geopolitical tensions, demand for gold of central banks was the reasons behind the
phenomenon.
- Throughout the years, gold prices have increased by 15%, to 2.150 USD/oz in
December 2023.

TRADE IN 2023
In general, International trade declines in 2023. Reasons:
- Export ineffectively in East Asia and decline in demand of developed countries.
- Prices of goods decreased due to high inflation rate and high interest rate in US and EU.
While international trade on services increased by 7%, reached 500 billion USD in 2023.
 - The underperformed economics in China after COVID, domestic demand and demand
for imported goods decreased significantly and the civil wars like Russia-Ukraine,
Palestine - Isreal.
- The ending months of 2023, the volume of traded goods increased slight by 0.8% as
people tried to control inflation rates and Chinese economics improved a bit.
-
VN'S ECONOMY IN 2023
- Vietnam is among the countries with fastest economic growth. GDP in 2023 reached
5.05% and has the tendency to increase with time, like quarter IV is higher than quarter
III (Lower than goals, but higher in Asia-pacific)
- Agriculture is still our mainstay in the economy. The growth in Value Added (VA) reached
3.83% - the highest index. Agriculture still maintained a high and stable growth despite
the dimmed economic weather. Some products displayed a significant increase in the
exported index: like Rice, reached 4,78 billion USD, increased by 38,4%.
- Ecommerce and E-economy of VN is ranked in the top 1 group worldwide (top 10, theo
statistics). The scale of Electronic retailing reached 20,5 billion USD, 7,5% total relating
revenue nationwide.
- Services sector is the leading sector in economic recovery. Thanks to services factors,
our economy can recover quickly from Covid.
- Export value decreased significantly by 12% due to the decreased demand in US, China
and EU.
- Real estate market is negatively affected by Government policy to control inflation rate
and the dimmed worldwide economic weather (due to the collapsed of many banks).
- VinFast electric car company is listed on the US stock exchange
- 2% VAT reduction from July 1
- The State Bank reduced operating interest rates four times
VN TRADE IN 2023
- Export, import turnover reached 683 billion USE, decreased 6,6% compared to 2022.
However, we still have a surplus as the decrease in export is lower than import, trade
surplus: 28 billion.
- Export turnover reaches 355,5 billion USD, decreased by 4.4% compared to 2022.
- Agriculture-related products still account for a bigger part in exporting proportion, 15%,
52,01 billion VND.
- US is the biggest importing country for Vietnam, while China imported most of our
products.
- For services, trade deficit is 9,47 USD.

Main characteristics:
1. High inflation rate and many governments tried to tackle it by raising benchmark interesr rate.
2. Geopolitical tensions harmed the world economy significantly, especially international trade.
3. Crisis of banks and other financial institutions in the US. The collapse of Sillicon Valley Bank,
Signature Bank... hit the headline.
4. China recovery after COVID was dissapointing while US bounced back strongly in terms of
economy.
5. The Gold price reached its new height in 2023, at 2.150 USD/oz.
6. The price of goods decreased due to high inflation rate and high interest rate.
7. Demand for imported goods of China, US decreased significantly due to dimmed economic
weather.
8. Vietnam is among the countries with fastest economic growth. GDP in 2023 reached 5.05%.
Vietnam also maintained trade surplus in 2023, at 28 billion.
 CHAPTER 2: THEORY OF INTERNATIONAL TRADE

Why trade? → more product, better consumption, better satisfaction. It’s efficient in resource
allocation, better production process. It can gained more jobs

What determines trade partners? In the Ricardian model, countries will export goods that their
labor produces relatively efficiently and will import goods that their labor produces relatively
inefficiently. In other words, a country’s production pattern is determined by comparative
advantage.

Case samsung: they’re one of the biggest investors, contributing a big part of the exporting.
They pay tax to the government, the government pay pack to the public. But in reality, they
enjoy the investment-free tax, they actually don;t pay tax, just a destination for their production.
The fast economic growth, but social welfare is not included so much. (unbalance in distribution)

I. Classical trade theories:

1. Mercantilism:
- Regulation to ensure a positive trade balance.
- Mercantilism suggests that it is in a country’s best interest to maintain a trade surplus
—to export more than it imports. Advocates government intervention to achieve a
surplus in the balance of trade
- Mercantilism views trade as a zero-sum game—one in which a gain by one country
results in a loss by another. It's not the correct measurement, because some countries
lose some countries' gains → can’t indicate the growth of international trade.
- Critics: possibly only for a short term, assumes a static world economy.
- Trước Mercantilism thì là đêm trường trung cổ, trước đó thì đi xâm lược các nước khác
để dành nguồn lực, lãnh thổ.
- Mercantilist philosophy makes a crude case for government involvement in promoting
exports and limiting imports.
- Mercantilism only brings benefits to exporters, not importers → zero sum game, as
importers suffer from loss.

2. Absolute advantage
- Adam Smith (1776) argued that a country has an absolute advantage in the production
of a product when it is more efficient than any other country in producing it.
+ Countries should specialize in the production of goods for which they have an
absolute advantage and then trade these goods for goods produced by other
countries.
- Principle of Absolute Advantage:
+ In a two-nation, two-product world, international specialization and trade will be
beneficial when one nation has an absolute cost advantage in one good and the
other nation has an absolute cost advantage in the other good.
+ Absolute cost advantage means using less labor to produce a unit of output.
- Sources of Absolute Advantage
 + Natural advantages: Climate, soil, and mineral wealth. Ex: Vietnamese rice,
Brazilian coffee…
+ Acquired advantages: Special skills and techniques. Ex: Swiss watches,
Danish silver plates…
- EX:

VN JP
Rice 5T 4T
Car 3T 6T

With absolute advantage theory:

VN JP
Rice 10T 0T
Car 0T 12T

- VN has the absolute advantage in producing rice and Jp for cars.

- Specialization: VN uses all resources to produce 10T rice. JP: 12T of cars.
- For the world, before: the world earns 9T in rice, 9 in cars. But after
specialization, 10T and 12T. → positive sum game.
- Reasons: specialization. After that, we have a demand for cars, but we can trade
with VN to get cars.
- Mỗi nước có absolute advantage riêng.
- Mercantilist philosophy makes a crude case for government involvement in
promoting exports and limiting imports.
- Absolute Advantage: The ability of an actor to produce more of a good or service than a
competitor. Comparative Advantage: The ability of an actor to produce a good or service
for a lower opportunity cost than a competitor.

II. Neo- classical trade theory:

Factor-Endowment: VN is electrics products - 20% of total exporting products. We don;t
have the ability to create this, but our country is abundant in labour → Factor endowment
will explain.
III. New trade theories:
1. Factor-Endowment: VN is electrics products - 20% of total exporting products. We don;t
have the ability to create this, but our country is abundant in labour → Factor endowment
will explain.
New trade theories:
- Economies of scale and international trade. Khi mở rộng quy mô sản xuất, gia tăng yếu
tố đầu vào thì đầu ra tăng theo. Higher ratio increase in input, higher ratio increase in
output. Productivity is constant, but according to this theory, productivity is increasing.
 - International Product life cycle
- National Competitive Advantage. What is the advantage? Favorable condition, normal
production factor, better than other things, so that we can produce at a lower cost. Some
companies can utilize that while others may not. Winners can catch up with the change,
keep the flow of the market,

1. New trade theory and porter theory of national competitive advantage justify limited and
selective government intervention to support the development of certain export-oriented
industries. Right now, theo KTH, thì giàu có không phụ thuộc vào có nhiều vàng. VD: Mỹ
vs VN, thì Mỹ giàu mạnh hơn vì mỹ có GDP lớn hơn VN.

2. Comparative Advantages:
- Adam smith emphasizes on the absolute advantages, preferring the products you can
produce better than the others, higher output, higher productivity. Labor was the only
production factor at that time. He can’t explain the big and the small country.Big country
can make every but small country does not → move to comparative advantage.

a) The Law of Comparative Advantage: The less efficient nation should specialize in and
export the good in which it is relatively less inefficient (where its absolute disadvantage
is least). The more efficient nation should specialize in and export that good in which it is
relatively more efficient(where its absolute advantage is greatest).
- Comparative advantage theory provides a strong rationale for encouraging free trade.
Total output íí higher, both countries benefit. → Trade is a positive sum game, here is
why:

VN JP World
Rice 8 12 20
Car 2 6 8

→ JP has absolute advantage in both products, VN is a small country, produces less than JP
and VN has absolute disadvantage.
→ Apply comparative advantage, use relative basic;

output/labor unit VN JP World

Rice 8/12 12/8 20
Car 2/6 6/2 8
Xét ở năng xuất về mặt hàng, JP đều hơn VN về số lượng → JP là nước lớn, VN nhỏ. VN áp
dụng chuyên môn hoá hoàn toàn, vì sản lượng tăng thêm của nước nhỏ, không vượt quá nhu
cầu của 2 nước, Nhật là nước lớn, nếu nhật từ bỏ 100% việc sản xuất gạo, thì nhỏ hơn sản
lượng ban đầu là 20, vì nhật thiếu vốn gạo, do nhu cầu cao, nên nhật phải duy trì sản xuất ở
mức tối thiểu là 4 tấn, JP áp dụng chuyên môn hoá bán phần, Về nguyên tắt, specialization
phải tạo ra sản phẩm giống hoặc nhiều hơn tổng số lượng ban đầu.

Nhật giữ lại ⅓ lực lượng để làm gạo, ⅔ sản xuất xe → tính ra được xe. Duy trì sản xuất của
nước lớn, là thiếu hụt khi nước bé chuyên môn hoá. Ở nhật bản, ngành xe hơi là ngành có lợi
thế, nên các ông ty đầu tư vào đó, gạo nhật bản k có lợi thế so sánh, (dựa trên hao phí lao
động, giờ công lao động), vì NB k có lợi thế, giá gạo của nhật sẽ cao. Vậy, cần có trade policy
để bảo vệ ngành gạo của nhật Ở VN, dù sao cũng k sản xuất xe nữa, nên cần apply free trade
thôi, nước nhỏ thì dễ áp dụng tự do hoá thương mại.

As VN is a small country, Vn can apply complete specialization. In JP, the specialization is

different from VN, when JP stops rice, the world only produces 16 ( but specialization has to
maintain 20 or even more). It means, JP applies incomplete specialization. Finally, we have 20
T rice and 10 cars → Higher volume, trade is a positive sum game.

VN JP World
Rice 16 4 20
Car 0 10 = (6 + 6x2/3) 10

- Biện pháp nữa để xác định comparative advantage là dựa trên opportunity cost,
- Biện pháp ở trên là relative basis, relative comparative. Giờ mình dùng opportunity cost.
- In VN: 8R → 2/8C. Mỗi Tấn gạo bằng 2/8 chiếc xe
- In JP: 12R = 6C → 6/12C.Mỗi tấn gạo bằng 6/12 chiếc xe,
Ở nhật, tạo 1 tấn gạo thì tốn ½ cái xe, chi phí thì càng nhỏ càng tốt, còn sản lượng càng cao
càng tốt. Opp cost của VN sản xuất gạo, có chi phí cơ hội ít hơn nhật, nó sẽ là lợi thế so
sánh. Chú ý thời này để tính theo lao động mà thôi.
- VN là abundant in labor thì nên specialized labor intensive products. Còn NB thì
specialized car, VN xuất gạo và đổi lấy xe của nhật.

- Dư 2 chiếc xe, solve nhtn?

- Việt Nam xuất khẩu gạo lấy xe của nhật, tính giá của 1 tấn gạo là bao nhiêu? vì ở VN tỷ
lệ trao đổi 2 mặt hàng của opportunity cost, VN chấp nhận xuất khẩu đi nước khác khi
(giả định không có chi phí khác), khi giá nó bằng hoặc cao hơn 2/8 chiếc xe hơi. Tương
tự, Nhật sẽ mua khi nào? Khi mà nó nhỏ hơn 6/12 chiếc xe hơi.
- Giá của 1 tấn gạo sẽ chạy từ 0.25 → 0,5 chiếc xe, thì mỗi nước sẽ được hưởng 1 chút
từ khoảng này. Nếu có lệch về 0.25, thì Nhật lời hơn vì mua giá rẻ, còn nếu nó lệch về
0.5 thì Việt Nam lời hơn vì bán được giá cao.
 - Vậy yếu tố nào tác động giá này? nếu nó tăng lên thì nước xuất khẩu sẽ được nhiều
tiền hơn, ngược lại, nước nhập khẩu được cao hơn? Thì giá này bị tác động bởi:
demands thì giá cao, NB hưởng ít lại. Supply của VN mà tăng nhiều, thì giá ở mức bất
lợi cho VN. Theo lý thuyết thì giá nằm ở rank đó đó, thì cả hai đều có lợi, nếu mà giá
văng ra khỏi rank đó, thì nước xuất bị thiệt hại.
- Actual trading prices depend on the interaction of trading partners; demands. Final terms
of trade will be closer to the domestic price ratio of the nation with stronger demand for
the imported goods.
- Applies to nations of equal economic size, which will share gain nearly equality.
- Small nations trading with large ones can receive the bulk of the gains from trade.

→ Cách tính của comparative advantage cũng có thể áp dụng cho cái absolute advantage. Cái
này thay thế được cho lý thuyết trước đó, nên vẫn có vài hạn chế, nhưng nó vẫn là lý thuyết
nền tảng cho đến hôm nay. Mô hình adam smiths, thì ông đơn giản, tối giản nhất mọi thứ, David
R thì cũng chỉ add in, nên người ta nhắc đến David, nhưng 80% là rely on Adam.

b) Assumptions:
- The world consists of two nations, each using a single input to produce two
commodities.
- In each nation, labor is the only input.
- Labor can move freely among industries within a nation but is incapable of moving
between nations.
- The level of technology is fixed.
- Costs don’t vary with the level of production & are proportional to the amount of labor
used.
→ Nhưng có hạn chế trong assumption, mọi người sản xuất như nhau, năng suất như nhau,
lao động có thể di chuyển tự do, nhưng không đc phép di chuyển giữa nước này nước kia, k
xuất khẩu yếu tố sản xuất. Productivity is unchanged. Chi phí sản xuất không biến động theo
quy mô, mà biến động theo số lượng giờ công lao động.

c) Opportunity cost:
- Opportunity cost of making more of one good (how much of one good must be given up
to make more of another)
- A country has a comparative advantage in producing a good if the opportunity cost of
producing that good is lower in the country than it is in other countries.
- A country with a comparative advantage in producing a good uses its resources most
efficiently when it produces that good compared to producing other goods.
- Revealed Comparative Advantage:
d) Summary of Ricardian model (Paul Krugman)
- 1. We examined the Ricardian model, the simplest model that shows how differences
between countries give rise to trade and gains from trade. In this model, labor is the
only factor of production, and countries differ only in the productivity of labor in
different industries.
- 2. In the Ricardian model, countries will export goods that their labor produces relatively
efficiently and will import goods that their labor produces relatively inefficiently. In other
words, a country’s production pattern is determined by comparative advantage.
- 3. We can show that trade benefits a country in either of two ways.
+ First, we can think of trade as an indirect method of production. Instead of
producing a good for itself, a country can produce another good and trade it for the
desired good. The simple model shows that whenever a good is imported, it must be
true that this indirect “production” requires less labor than direct production.
+ Second, we can show that trade enlarges a country’s consumption possibilities,
which implies gains from trade.
- 4. The distribution of the gains from trade depends on the relative prices of the goods
countries produce. To determine these relative prices, it is necessary to look at the
relative world supply and demand for goods. The relative price implies a relative wage
rate as well.
- 5. The proposition that trade is beneficial is unqualified. That is, there is no requirement
that a country be “competitive” or that the trade be “fair. In particular, we can show that
three commonly held beliefs about trade are wrong:
+ First, a country gains from trade even if it has lower productivity than its trading
partner in all industries.
+ Second, trade is beneficial even if foreign industries are competitive only
because of low wages.
+ Third, trade is beneficial even if a country’s exports embody more labor than its
imports.
 - 6. Extending the one-factor, two-good model to a world of many commodities does not
alter these conclusions. The only difference is that it becomes necessary to focus
directly on the relative demand for labor to determine relative wages rather than to work
via relative demand for goods. Also, a many-commodity model can be used to illustrate
the important point that transportation costs can give rise to a situation in which some
goods are non traded.
- 7. While some of the predictions of the Ricardian model are clearly unrealistic, its basic
prediction—that countries will tend to export goods in which they have relatively high
productivity—has been confirmed by a number of studies.

4. Heckscher - Ohlin model - Factor endowments:

a) What is the heckscher - Ohlin Theory:
- While trade is partly explained by differences in labor productivity, it also can be
explained by differences in resources across countries.
- The Heckscher-Ohlin theory argues that international differences in labor, labor skills,
physical capital or land (factors of production) create productive differences that explain
why trade occurs.
+ Countries have a relative abundance of factors of production.
+ Production processes use factors of production with relative intensity.
b) Two Factor Heckscher - Ohlin Model:
- 1. Labor and land are resources important for production.
- 2. The amount of labor and land varies across countries and this variation influences
productivity.
- 3. The supply of labor and land in each country is constant.
- 4. Competition allows factors of production to be paid a “competitive” wage, a function of
their productivities and the price of the goods that is produced, and allows factors to be
used in the industry that pays the highest wage/rate.
- 5.Only two countries are models: domestic and foreign.
- Eli Heckscher (1919) and Bertil Ohlin (1933) - comparative advantage arises
- from differences in national factor endowments. The extent to which a country is
endowed with resources like land, labor, and capital. The more abundant a factor, the
lower its cost.
- Các yếu tố trong sản xuất thì có là Lao động (Labor) và Vốn (Capital - K).
- Có 2 cách phân chia:
+ Factors abundance áp dụng cho country,
+ Factor Intensity → products.
- VD: Lấy population là tượng trưng cho L, K thì là investment, là 1 tỷ lệ % trên GDP,
trung bình 20-30% GDP, Maximum là 100% GDP. K, L của VN thì VN xài, chứ theo
classical thì k được di chuyển giữa các nước. Ở đây, cho K là thu nhật bình quân đầu
người
+ Tính tỷ lệ L/K của Nhật Bản và VN:
+ L/K của VN = 100/370.
+ L/K của JP = 130/4500
- VN là labor abundant country.
+ GDP per capita bình quân của VN là 3200usd. (Lấy GDP/ capita).
+ GDP per capita của Nhật là 320000
- Cost of capital thì NB rẻ hơn VN. cost of capital thì đo bằng interest rate, ở NB thì
interest rate là -0,1% per year, VN cỡ 6%. Nhật dư thừa vốn đến mức lãi suất âm.
- VN sẽ chuyên môn hoá mấy ngành mà đòi hỏi labor nhiều.
- Tính factor intensity cho products. Vd có 2 sản phẩm là car và rice.
+ Rice: 3 Lao động, 1 vốn. → labor intensive product
+ Car: 1 lao động, 2 vốn -> capital intensive
→ VN là abundant in labor thì nên specialized labor intensive products. Còn NB thì
specialized car, VN xuất gạo và đổi lấy xe của nhật.

c) Factor endowment theory:

- Comparative advantage is explained entirely by different national supply conditions,
especially resource endowments.
- Nations export products that use inputs which are relatively abundant (cheap) at home,
and import products which need inputs which are relatively scarce (expensive) at home.
d) Trade in the Heckscher - Ohlin Model:
- The pattern of trade is determined by factor endowments
- Heckscher and Ohlin predict that countries will export goods that make intensive use of
locally abundant factors and import goods that make intensive use of factors that are
locally scarce.
e) Factor endowment theory: Implications:
- Factor price equalization: The shift within each nation towards use of cheaper factors,
and away from expensive ones, leads to more equal factor prices (if factors are mobile).
- Distribution of income: trade changes domestic distribution of income as demand for
different factors changes.
- Tests of factor endowment theory: Emphasize the importance of varieties of different
factors (such as human capital) and accounting for changes in resources endowments.
Other explanations are also important.
- VD:
VN JP Rice Car
L 100 130 3 1
K 370 45000 1 2

- Capital abundant country, will specialize in capital required products.

- If we continue to produce Rice, demand for L increases, K decreases → Cost of Labor
will increase (factor price equalization). It may make us lose the advantage in cheap
labor.

- Tính mức độ thâm dụng yếu tố sản xuất, VN sẽ chuyên môn hoá gạo, vì có mức thâm
dụng lao động cao. Nhu cầu capital của mình sẽ giảm, nhưng demand cho labor cao
hơn nhiều. Khi đó giá lao động tăng, lãi suất cho capital sẽ giảm, khi nào hai cái đó
bằng nhau (factor price equalization), thì ta mất đi lợi thế về labor.
- Distribution of income: Nếu demand cho L cao thì giá tăng. Như vậy thì người sở hữu
cái đó, thì tăng lợi nhuận, ngược lại người nào có lợi thế về các yếu tố khác, thì không
được hưởng lợi từ thương mại quốc tế. ngành nào mà phải cạnh tranh với hàng nhập
khẩu, thì lợi nhuận ít. Còn cái ngành nào mà cạnh tranh, xuất khẩu được thì thường lợi
thế sẽ cao.
f) Does the Heckscher - Ohlin Theory Hold?
- Wassily Leontief (1953) theorized that since the U.S. was relatively abundant in capital
compared to other nations
→ The U.S. would be an exporter of capital intensive goods and an importer of labor-
intensive goods. However, he found that U.S. exports were less capital
intensive than U.S. imports.
- Since this result was at variance with the predictions of trade theory, it became known as
the Leontief Paradox.
g) Summary of H-O model (Paul Krugman):
- 1/ To understand the role of resources in trade, we develop a model in which two goods
are produced using two factors of production.
+ The two goods differ in their factor intensity, that is, at any given wage-rental
ratio, production of one of the goods will use a higher ratio of capital to labor than
production of the other.
- 2/ As long as a country produces both goods, there is a one-to-one relationship between
the relative prices of goods and the relative prices of factors used to produce the goods.
A rise in the relative price of the labor-intensive goods will shift the distribution of income
in favor of labor, and will do so very strongly: The real wage of labor will rise in terms of
both goods, while the real income of capital owners will fall in terms of both goods.
- 3/An increase in the supply of one factor of production expands production possibilities,
but in a strongly biased way: At unchanged relative goods prices, the output of the good
intensive in that factor rises while the output of the other good actually falls.
- 4/ A country that has a large supply of one resource relative to its supply of other
resources is abundant in that resource. A country will tend to produce relatively more
goods that use its abundant resources intensively. The result is the basic Heckscher-
Ohlin theory of trade: Countries tend to export goods that are intensive in the factors with
which they are abundantly supplied.
- 5/ Because changes in relative prices of goods have very strong effects on the relative
earnings of resources, and because trade changes relative prices, international trade
has strong income distribution effects. The owners of a country’s abundant factors gain
from trade, but the owners of scarce factors lose. In theory, however, there are still gains
from trade, in the limited sense that the winners could compensate the losers, and
everyone would be better off.
- 6/ In an idealized model, international trade would actually lead to equalization of the
prices of factors such as labor and capital between countries. In reality, complete factor-
price equalization is not observed because of wide differences in resources, barriers to
trade, and international differences in technology.
- 7/ Empirical evidence is mixed on the Heckscher-Ohlin model, but most researchers do
not believe that differences in resources alone can explain the pattern of world trade or
world factor prices. Instead, it seems to be necessary to allow for substantial
 international differences in technology. Nonetheless, the Heckscher-Ohlin model does a
good job of predicting the pattern of trade between developed and developing countries
h) Theory of reciprocal Demand (Stuart Mill)
- Actual trading prices depend on the interaction of trading partners’ demands.
- Final terms of trade will be closer to the domestic price ratio of the nation with stronger
demand for the imported goods.
- Applies to nations of equal economic size, which will share gains nearly equally.
- Small nations trading with large ones can receive the bulk of gains from trade.
FOOD FOR THOUGHT:

1. Is it true that a capital - abundant country always exports capital-intensive

products? Why or why not? → No, JP still exports many labor-intensive
products. 1. Vì còn nhiều yếu tố khác, chứ không chỉ là labor và capital. Khi xuất
khẩu thì hàng hoá có giá đắt, vì quality khác nhau, mà mô hình này k consider
nè, và không có brand name. Trade policy cũng có 1 yếu tố, EU, JP, các ngành
thâm dụng lao động, nông nghiệp, là ngành họ k có lợi thế so sánh. Họ áp dụng
incomplete specialization, khi đó chính phủ offer protection, thì họ sẽ giảm cung
sản phẩm đó trên thị trường, đưa chương trình xuất khẩu hàng đi ra ngoài, cầu
trong nước giảm, thì giá giảm, trợ cấp, xây dựng thương hiệu,
2. What kind of industries should VN specialize and export to the world? →
VN thì có phát triển nhiều ngành labor industry. Ngành công nghệ cao của Vn
xuất khẩu thì cũng chỉ là labor intensive. hiện tại thì chỉ đang thực hiện chiến
lược đổi mới và nâng cao năng lực. labor có 2 khía cạnh, labor theo HO, chỉ dồi
giàu về mặt số lượng. VD như VN thì là về số lượng, JP là về trình độ. VN muốn
xuất khẩu hàng CNC, thì phải nâng cao skill của worker.
5. New Trade theory:
- New trade theory suggests that the ability of firms to gain economies of scale (unit cost
reductions associated with a large scale of output) can have important implications for
international trade.
- Countries may specialize in the production and export of particular products because in
certain industries, the world market can only support a limited number of firms.
- New trade theory emerged in the 1980s.
- Paul Krugman won the Nobel prize for his work in 2008.
a) Economies of scale:
- When defining comparative advantage, the Ricardian model and the H-O model both
assume constant returns to scale. If all factors of production are doubled then output will
also double,
- But, a firm or industry may have increasing returns to scale or economies of scale:
+ If all factors of production are doubled, then output will more than double.
+ Larger is more efficient: the cost per unit of output falls as a firm or industry
increases output.
- Economies of scale could mean either that larger firms or that a larger industry (e.g., one
made of more firms) is more efficient.
+ External economies of scale: occur when cost per unit of output depends on the
size of the industry.
+ Internal economies of scale: occur when the cost per unit of output depends on
the size of a firm.
- External economies of scale may result if a larger industry allows for more efficient
provision of services or equipment to firms in the industry.
+ Many small firms that are competitive may comprise a large industry and benefit
from services or equipment efficiently provided to the large group of firms.
- Internal economies of scale result when large firms have a cost advantage over small
firms, which leads to an imperfectly competitive market.
- Through its impact on economies of scale, trade can increase the variety of goods
available to consumers and decrease the average cost of those goods.
+ Without trade, nations might not be able to produce those products where
economies of scale are important.
+ Without trade, markets are large enough to support the production necessary to
achieve economies of scale. So, trade is mutually beneficial because it allows for
the specialization of production, the realization of scale economies, and the
production of a greater variety of products at lower prices.
- Economies of scale provide incentives for specialization, since per unit costs go down as
production increases.
- Trade provides a larger potential market for products, making higher production levels
possible.
- Nations may benefit from trade even when they do not differ in resource endowments or
Technology a country may dominate in the export of a good simply because it was lucky
enough to have one or more firms among the first to produce that good Governments
should consider strategic trade policies that nurture and protect firms and industries.
- Ông Paul nói, larger is more efficient, vì năng suất sẽ thay đổi theo quy mô, tập trung
sản xuất vào sản phẩm mình có lợi thế thì mức đồ ra cũng lớn hơn.(tính KT theo quy
mô)
+ Internal Economies of scale: dựa trên company. Là một công ty mở rộng quy sản
xuất thì năng suất tăng lên, định phí chia bình quân thì chi phí tính trên một đơn
vị sẽ giảm.
+ External Economies of scale: dựa trên cái market. Ngành đó đủ lớn trên thị
trường thế giới thì sẽ xuất khẩu thuận lợi. 1 công ty không đơn lẻ, mà sẽ đi theo
1 hiệp hội → External EOS.
- First mover advantage: When a company goes worldwide, there are many challenges.
But if that company can overcome difficulties, companies can achieve the advantage
because they’re the only supplier in that market.
- Later mover advantage: bị competition rất là lớn, phức tạp, khó. Dù đi trước đi sau gì
thì cũng có bất lợi và lợi thế.
- Quốc gia không cần ưu đãi về nguồn lực gì, mà cần 1 vài công ty đủ lớn, dominate
được ngành đó thì cả nước vẫn sẽ hưởng lợi từ international trade. how: nếu chính
phủ có chính sách phù hợp để phát triển, nuôi dưỡng, bảo vệ ngành hàng đó, thì quốc
gia sẽ được hưởng lợi từ thương mại quốc tế.
● Summary of Economies of Scale (Paul Krugman):
- 1/ Trade need not be the result of comparative advantage. Instead, it can result from
increasing returns or economies of scale, that is from a tendency of unit costs to be
lower with larger output.
+ Economies of scale give countries an incentive to specialize and trade even in
the absence of differences in resources or technology between countries.
+ Economies of scale can be internal (depending on the size of the firm) or external
(depending on the size of the industry).
- 2/ Economies of scale can lead to a breakdown of perfect competition, unless they take
the form of external economies, which occur at the level of the industry instead of the
firm, which occur at the level of the industry instead of the firm.
- 3/ External economies give an important role to history and accident in determining the
pattern of international trade:
+ When external economies are important, a country starting with a large
advantage may retain that advantage even if another country could potentially
produce the same goods more cheaply.
+ When external economies are important, countries can conceivably lose from
trade.
b) International product life-cycle Theory:
- The product life-cycle theory - as products mature both the location of sales and the
optimal production location will change affecting the flow and direction of trade.
- This theory was proposed by Ray Vernon in the mid - 1960s. At this time, most of the
world’s new products were developed by US firms and sold first in the US.
According to the product life-cycle theory:
- The size and wealth of the US market gave US firms a strong incentive to develop new
products.
- Initially, the product would be produced and sold in the US.
- As the demand grew in other developed countries, US firms would begin to export.
Demand for the new product would grow in other advanced countries over time making it
worthwhile for foreign producers to begin producing for their home markets.
- US firms might set up production facilities in advanced countries with growing demand,
limiting exports from the US.
- As the market in the US and other advanced nations matured, the product would
become more standardized, and price would be the main competitive weapon.
- Producers based in advanced countries where labor costs were lower than the
United States might now be able to export to the United States.
- If cost pressures were intense, developing countries would acquire a production
advantage over advanced countries. Production would become concentrated in
lower-cost foreign locations, and the US become an importer of the product.

VNese:
 - Một sản phẩm mới, thì nước mua là developed country, Nó chạm tới maturity của
growth, khi mà nước khác bắt đầu sản xuất được mặt hàng, công nghệ có tính lan tỏa,
ai cũng sẽ tìm cách sản xuất thì họ cắt giảm nhu cầu nhập khẩu, tịnh tiến, k nhập nữa
trở thành nước xuất khẩu. Inventing countries có thể là bất cứ nước nào. giai đoạn
maturing product stage kết thúc khi họ k xuất nữa, mà họ tiến hành nhập, vì chi phí sản
xuất của họ cao. Khi đó developing và least developed country thì tham gia nhập khẩu
được. Sau đó, họ move production process sang các nước kém phát triển hơn, họ đầu
tư vào thay vì tự sản xuất. Specialization thì ngta tận dụng resource sẵn có ở các nước
đang phát triển, giups cho 1 sp giảm giá thành.
- Nước sáng chế ra, thì được bảo vệ bởi quyền sáng chế, được trả tiền bởi các follower.

d) Porter's Diamond Of Competitive Advantage:

- Michael Porter Diamond of Competitive Advantage:

+ Micheal Porter (1990) tried to explain why a nation achieves international
success in a particular industry.
- Micheal Porter identified four attributes that promote or impede the creation of
competitive advantage.
+ Factor conditions - a nation’s position in factors of production necessary to
compete in a given industry. It can lead to competitive advantage. It can be either
 basic (natural resources, climate, location) or advanced (skilled labor,
infrastructure, technological know-how).
+ Demand conditions - the nature of home demand for the industry’s product or
service. It influences the development of capabilities. Also, sophisticated and
demanding customers pressure firms to be competitive. → chỉ nên được phát
triển vừa đủ cầu, bao gồm cả cầu trong nước và quốc tế. FC, DC → dynamic
factors 0→ tạo ra sự khác biệt
+ Related and supporting industries - the presence or absence of supplier
industries and related industries that are internationally competitive. It can spill
over and contribute to other industries. Successful industries tend to be grouped
in clusters in countries. → Supporting industry là lĩnh vực cần được chú trọng (vd
như là làm cái linh kiện cho cái điện thoại).
+ Firm strategy, structure, and rivalry - the conditions governing how companies
are created, organized and managed, and the nature of domestic rivalry. Different
management ideologies affect the development of national competitive
advantage. Vigorous domestic rivalry creates pressures to innovate, to improve
quality, to reduce costs, and to invest in upgrading advanced features. → Firm
strategy và structure tốt để có thể phát triển và tạo ra lợi thế để cạnh tranh.
+ Chance: Cơ hội là yếu tố cuối cùng. Cơ hội 1 nhân tố mang tính tích cực, phát
sinh ở 1 thời điểm, Cơ hội thay đổi rất nhanh chóng.
+ Government: support, thiếu chỗ nào thì support chỗ đó.

- Dynamic factors: tạo nên sự khác biệt.

> Business chỉ thành công khi 4 yếu tố này liên kết chặt chẽ với nhau. Đầu tiên là về chính
phủ, sẽ tác động tới môi trường kinh doanh, có cách quản lý, chính sách phù hợp, tạo ra lợi thế
cạnh tranh vững chắc. Chỉ cần 1 khâu yếu thì có thể sụp đổ.

*INTRA INDUSTRY:
- Intra Industry: 1 nước vừa nhập vừa xuất 1 mặt hàng. Thì gọi đó là thương mại nội
ngành, mua bán cùng 1 ngành. Tuy nhiên, ví dụ, Interindustry trong lĩnh vực máy bay là
tuyệt đối, nhập máy bay dù k xuất. → Either imports or export in a given sector of the
economy. SourceL Comparative advantage.
- Horizontal intra industry (both/and/same): nhập cùng 1 công đoạn, nhập hạt gạo, xuất
nhập hạt. do sự khác biệt về sản phẩm, về nhu cầu sử dụng. thường thì 1 tỷ lệ nhỏ thôi.
→ Both imports and exports in a given sector of the economy at the same stage of
processing. Source: Product differentiation. (
- Vertical intra-industry: (Both/and/ different): Thương mại nội ngành theo hàng dọc,
certival, chiếm đa số. nhập từng linh kiện, xuất ra 1 đơn vị sản phẩm hoàn chỉnh, gắn
liền với hđ gia công xuất khẩu, sản xuất hàng xuất khẩu. → Both imports and exports in
a given sector of the economy at different stages of processing. Source: Fragmentation
(Comparative advantage in some instances). (chiếm tỷ lệ cao)

Hệ số thương mại nội ngành: IIT = 1 thì chỉ có nội nhành, k có liên ngành.
IIT = 0 chỉ có liên ngành, k có nội ngành, tức là chỉ xuất hoặc chỉ nhật mặt hàng đó. VD máy
bay thì IIT = 0 vì chỉ nhập thôi chứ không xuất.

Types of Trade phase Meaning Source

Inter - Industry Either/or Either imports or Comparative
exports in a given advantage
sector of the
economy
Horizontal Intra- Both/and/same Both imports and Product differentiation
industry exports in a given
sector of the
economy at the same
stage of processing
Vertical intra-industry Both/and/different Both imports and Fragmentation
exports in a given (comparative
sector of the advantage in some
economy at different stages).
stages of processing
1/2 /2024
- One country can bring the consumption beyond the frontier.
- Indirect method of production.
- Specialization, we specialize in the product → increase the production efficiency or the
efficiency of the economy.
- Enlarge production scale, reduce cost per unit → economies of scale.
- When the company has chances to do business with foreign companies → higher
profitability. If you don’t have other chances, the profit is generated in domestic regions.
- The efficiency of the economy improves, the product will have lower price → consumers
can gain benefit.
- We also import things that we export → higher variety of products → increase their
satisfaction.
- International trade can increase faster than economic growth, it generates more job for
the locals → higher income.

International trade in an open-small scale economy:

- Analyze: Demand, supply, and price of the product.
+ Supply/demand: normally, they produce few products and demand for this
product is of small percentage. → they have no effect on the world’s price. The
small economy has to accept the world price, and can't increase or
decrease on their own.
+ Open → free trade policy. It means completely free. It will affect domestic
product’s price in the way that the price of domestic products = the world of
world products. VD: VN sản xuất và xuất khẩu gạo, nhưng vì 1 lý do nào đó,
cung gạo giảm, mà cầu không đổi, thì giá nó sẽ không đổi, vì giá trong nước phải
bằng giá thế giới. Nếu giá tăng thì gạo thế giới sẽ chạy vào cho tới khi nó cân
bằng. Lúc này, số lượng.giá trị hàngg hoá xuất nhập khẩu sẽ thay đổi.
+ Tiêu dùng trong nucows = nhập khẩu - xuất khẩu. → Nó k ảnh hưởng tới giá cả
mà ảnh hưởng tới giá trị hoacjw số lượng. Nhưng không bằng nhau, thì chưa
count transaction cost, bảo hiểm, tiền vận tải, nên giá k thật sự bằng nhau.
- Đo lường tác động, hiệu quả của hđ thương mại:
+ trade performance
+ Trade output
+ Trade effectiveness, phản ảnh tác động tích cực,.. có nhiều chỉ số khác nhau.
Giả sử có bao nhiêu người lao động, thì tạo ra được bao nhiêu kim ngạch xuất
khẩu.
+ Ngoài ra còn có trade outcome indicator của WB. Không tính cho tông ty, chỉ tính
ngành hàng.
- Có 2 khía cạnh đo lường:
+ trade diversion: VD, VN chuyển từ Mỹ sang EU do thuế EU giảm, tập trung xuất
sang thị trường có thuế ưu đãi. Tác động diễn ra trong ngắn hạn khi 2 bên có ưu
đãi cho nhau trong thương mại:
+ Trade creation: do thuận lợi xuất khẩu vào EU, nên EOC để tăng lên, mình tăng
sản lượng và tăng kim ngạch. Đây là đích đến của các quốc gia trong các trade
agreement.
 TRADE POLICY IN JAPAN
1. Trade Agreements and Arrangements:
a) WTO:
- Japan grants at least MFN treatment to all WTO Members with exception to the Russian
Federation and a few other countries and territories. MFN treatment to the Russian
Federation was suspended on 21 April 2022 following the start of the war in Ukraine.9 At
present, other countries or territories to which treatment less favorable than MFN
treatment is applied are Equatorial Guinea, Eritrea, Lebanon, the Democratic People's
Republic of Korea, South Sudan, and Timor-Leste.
- Japan is a signatory to the 1979 Agreement on Trade in Civil Aircraft, and a party to the
plurilateral Agreement on Government Procurement (GPA). It is also a signatory to the
Information Technology Agreement (ITA), and participated in the ITA expansion
negotiations. Japan accepted the 2005 Protocol Amending the TRIPS Agreement and
the Agreement on Trade Facilitation
- Japan is a participant in the Joint Statement Initiatives on e-commerce, investment
facilitation for development, the establishment of a WTO informal working group for
MSMEs, and services domestic regulation. Japan also supported the Buenos Aires Joint
Declaration on Trade and Women's Economic Empowerment.
- Since January 2020, Japan has been involved in two new dispute settlement cases as a
complainant, against the Republic of Korea and against China.

b) Regional trade agreements:

- Expanding trade and growth through economic partnerships remains central to Japan's
overall economic strategy. In particular, Japan considers tapping into the Asia-Pacific
region's growth and large markets by creating a global web of economic partnerships is
essential to the country's economic growth.

c) Unilateral preferences:
- Japan offers preferential tariff treatment to 131 developing economies under its GSP
scheme. Under Japan's regulations, 45 economies receive special treatment as least-
developed countries (LDCs).
- Under the GSP scheme, preferential tariff rates apply to 424 tariff lines at the nine-digit
level in Chapters 1 to 24, and to 3,291 tariff lines in Chapters 25 to 97. The main
exclusions are rice and rice products, meat and meat products, fish, dairy products,
pineapples, cereal products, textiles and clothing, leather and leather products, and
footwear. Preferential margins vary from one product to another. LDCs qualify for more
extensive product coverage (98% of tariff lines) and duty-free and quota-free treatment.
- Imports under Japan's GSP scheme have sharply fallen during the past years, most
notably due to the graduation of important former beneficiaries such as Brazil, China,
Malaysia, Mexico, and Thailand in 2019. Around 0.6% of total imports in 2021 entered
under GSP benefits from developing countries and LDCs. In 2020 and 2021,
Bangladesh, Cambodia, and Myanmar were the main beneficiaries of the Scheme

d) Other arrangements:
- Japan is a member of the Asia-Pacific Economic Cooperation (APEC), which accounted
for 75.3% of its merchandise trade (imports and exports) in 2021. One of APEC's
objectives was to achieve free and open trade and investment by 2020.
2. TRADE POLICIES AND PRACTICES BY MEASURE
a) Custom procedure:
- Any person wishing to import goods must declare them to the Director-General of
Customs, obtain an import permit (after examination by the authorities), and pay
Customs duty and excise tax, if any. Nearly all customs difficulties result from first-time
applications. Japanese customs officials are generally helpful when it comes to
explaining procedures and regulations to overcome these issues. Employing an import
agent or customs broker may be necessary to help facilitate customs entry.
- All importers must file a declaration with Japan Customs. For most goods, the
declaration must be made after the goods have been taken into a bonded customs
(hozei) area or other designated place; items requiring approval by the Director-General
of Customs can be declared before they are taken to the hozei area. The declaration
must include details of the quantity and value of the goods to be imported as well as an
invoice, a packing list, freight account, insurance certificate, and certificate of origin (for,
inter alia, preferential tariff rates), where applicable. Additional documentation may be
required, for example, for goods requiring an import license or health certificate. Once
the documentation is verified by Customs, an import permit is issued.
- Imports are valued according to their c.i.f. (cost, insurance + freight) value, which is
taken to be the transaction value of the imports. Customs duty can be paid through a
multi-payment network system, which connects teller institutions (government
authorities) with financial institutions. No fee is charged by the government for the use of
this system; however, the financial institutions involved may collect variable fees. The
system is managed by the Japan Multi-Payment Network Management Organization
(JAMMO), a non-profit organization established by major financial institutions in Japan.
b) Rules of Origin:

Determination of the country of origin of goods is necessary in application of various customs

and trade policy measures, because the application of such measures may depend on the origin
of a good. The relevant policies include the preferential tariff treatment under GSP (Generalized
System of Preferences) and EPAs (Economic Partnership Agreements), WTO tariff rates, and
anti-dumping duties.
- Japan has notified the WTO that it has non-preferential rules of origin (ROOs).
- Japan also applies preferential ROOs under the Generalized System of Preferences
(GSP) and various RTAs it is party to (Sections 2 and 3.1.4). Japan's GSP scheme,
which was to expire in FY2020, has been extended for 10 years.
- Japan applies MFN tariff rates to imports from eligible countries and regions, whereas
the origin is defined as the country or region in which the goods concerned have been
wholly obtained or have undergone substantial transformation, which is defined as
having a change in the four-digit heading in the Harmonized System, or (in some cases)
subject to specific origin-conferring processing or working. Operations such as packing,
 applying labels or brands, and simple mixing are insufficient working or processing for
conferring origin.
c) Tariffs:
- The Customs and Tariff Bureau of Japan’s Ministry of Finance administers tariffs. The
average applied tariff rate in Japan is one of the lowest in the world. Simple average
applied Most Favored Nation (MFN) tariff for Japan, according to the WTO data, is as
follows:
+ All products — 4.3 percent
+ Agriculture products — 15.5 percent
+ Non-agriculture — 2.5 percent
- Japan: Average industry sector MFN applied duties (selected industries)
+ Non-electrical machinery — 0.0 percent
+ Electrical machinery — 0.2 percent
+ Transport equipment — 0.0 percent
+ Manufactures, n.e.s. — 1.1 percent
+ Clothing — 9.2 percent
+ Chemicals — 2.3 percent
- Harmonized System (HS) codes are used to determine the tariff rate. Japan shares the
same HS trade classification system as the United States. Tariff categories are
organized by six-digit HS code.
- Japan’s tariff schedule has five rate columns:
+ General Rate
+ Temporary Rate
+ WTO Rate
+ GSP Rate - Preferential Rate for designated developing countries
+ LDC, which covers a series of country-specific “EPA” (Economic Partnership
Agreement)
- Two main laws continue to govern the setting of tariffs in Japan: (i) the Customs Tariff
Act23 , which provides for, inter alia, customs duty rates through the appended Tariff
Schedule, customs duty reductions and exemptions, and the application of tariff quotas;
and (ii) the Temporary Tariff Measures Act24, which provides for temporary exemptions
to the Customs Act and the Customs Tariff Act to allow for customs duty adjustments if
needed for the purposes of the sound development of the national economy.
d) MFN applied tariff:
- Most-favored nation (MFN) tariffs are tariff rates a country applies to imports from all
trading partners that are members of the World Trade Organization (WTO), unless the
country has a preferential trade agreement, like NAFTA, that stipulates different (lower)
duties on imports from specific countries.
- The tariff schedule based on HS22 continues to have three distinct sets of rates:
statutory rates (including both general and temporary rates), WTO bound rates, and
preferential rates (under the GSP and RTAs). In the case of statutory rates, the
"temporary" rate, which is reviewed annually, is normally used instead of the higher
general rate; the lower of the statutory and WTO bound rates is applied to WTO
Members on an MFN basis, except when preferential rates are applied. Where the
temporary, general, or preferential rate is higher than the corresponding WTO bound
rate, the latter applies to WTO Members.
 - The tariff schedule based on HS22 continues to have three distinct sets of rates:
statutory rates (including both general and temporary rates), WTO bound rates, and
preferential rates (under the GSP and RTAs). In the case of statutory rates, the
"temporary" rate, which is reviewed annually, is normally used instead of the higher
general rate; the lower of the statutory and WTO bound rates is applied to WTO
Members on an MFN basis, except when preferential rates are applied. Where the
temporary, general, or preferential rate is higher than the corresponding WTO bound
rate, the latter applies to WTO Members.
- In FY2022, Japan's overall simple average MFN applied tariff rate is 6.3%
- In FY2022, simple average MFN applied tariff rates are relatively high for footwear and
headgear, prepared foods, vegetables, live animals, hides and skins, arms and
ammunition, and textiles and clothing
- For FY2022, 186 tariff lines, 132 agricultural tariff lines (WTO definition), and 54 non-
agriculture tariff lines (WTO definition) are subject to MFN tariff quotas, of which 11 are
under state trading
e) Bound tariff: Mức thuế trần:
- Japan has 98.0% of lines (185 are unbound)33; unbound lines relate mainly to fisheries
(fish, crustaceans, and seaweed), petroleum oils, and wood and articles thereof. There
are no instances where MFN applied rates exceed their corresponding bound rates. The
overall gap between the simple averages of MFN applied and bound rates is around 0.1
percentage point (Table 3.1). The highest gap (40 percentage points) concerns beef
jerky.
f) Tariff reductions and exemptions:
- Article 12 of the Customs Tariff Act provides for duty reductions/exemptions in cases
where the prices of imported daily necessities have increased (to prevent price
increases of daily necessities such as food and clothing) with a view to maintaining
stability in people's daily lives. The merchandise goods currently subject to such duty
reductions/exemptions include imported rice, hulled or unhulled; barley; wheat;
foodstuffs; apparel; and other goods that are deemed closely related to people's daily
lives
- Under Article 13 of the Customs Tariff Act, customs duties may be reduced or exempted
on imported raw materials to develop domestic industries manufacturing specific
products or to maintain stability in people's everyday lives…
- In FY2021, forgone tax revenue relating to customs duty reductions and exemptions
amounted to around JPY 232 billion (around 26% of tariffs collected)
g) Preferential tariff:
- Japan offers preferential tariff rates to 126 developing countries and 5 territories under
the GSP; least-developed countries (45 in 2021) receive additional preferences. Japan
also grants preferential access under its RTAs with Association of Southeast Asian
Nations (ASEAN) members
- The percentage of duty-free rates under RTAs was around twice as much as that of the
MFN tariff (40.9% in FY2022)
h) Japan Non-tariff Measure:
- Japan’s average tariff is one of the lowest in the world, at approximately 2.5% for
non agricultural products. A complete tariff schedule can be found on the Japan
Customs website.
‑
- Japan grants Most Favoured Nation (MFN) status or preferential treatment to a country
or territory that meets one or more of the following criteria: It is a member of the WTO; It
is covered by a provision of the Cabinet Order under Article 5 of the Customs Tariff Law;
It has a bilateral treaty with Japan. Japan is a signatory to the WTO Information
Technology Agreement which aims at eliminating tariffs on most information technology
products.
- As well as customs duties, a consumption tax of 10% is levied on a wide range of goods
and services. Additional taxes are levied on imported liquors and tobacco products.
- Though tariffs are generally low, Japan has non tariff barriers that impede imports, such
as rules on technical standards unique to Japan, requirements of prior experience,
regulations favoring locally produced products, formal and informal cartels, and so on.
- Although competition, foreign government pressure and other factors, have lessened the
impact of these impediments, U.S. companies may still encounter non-tariff barriers in
the following areas:
+ Standards unique to Japan (formal, informal, de facto, or otherwise);
+ A requirement in some sectors or projects for companies to demonstrate prior
experience in Japan, effectively shutting out new entrants;
+ Official regulations that favor domestically produced products and discriminate
against foreign products;
+ Licensing powers in the hands of industry associations with limited membership,
strong market influence, and the ability to control information and operate without
oversight;
+ Cross stock holding and interconnection of business interests among Japanese
companies that disadvantage suppliers outside the traditional business group
(though not as widespread as in decades past); and
+ The cultural importance of personal relationships in Japan and the reluctance to
break or modify business relationships.

TRADE POLICY REVIEW - SOUTH KOREA

1. Trade Agreements and Arrangement:
a) WTO:
- The authorities state that, as a strong advocate of the WTO's rules-based multilateral
trading system, Korea participates actively in WTO negotiations (in both multilateral and
plurilateral formats) and in the WTO's regular work in councils and committees.
- Korea stated that it strongly supports the WTO's efforts to enhance the trading capacities
of developing countries and LDCs, and makes donations to the Doha Development
Agenda Global Trust Fund:
- Between June 2016 and June 2021, Korea was involved in seven disputes at the WTO:
four as a complainant, and three as a respondent. It also participated as a third party in
30 cases.
b) Regional and preferential agreements:
‑
- Korea actively pursues RTAs with its key trading partners. At the regional level, it signed
the Regional Comprehensive Economic Partnership (RCEP) Agreement in November
2020, which is not yet ratified. In 2018, it signed an RTA with five Central American
countries: Costa Rica, El Salvador, Honduras, Nicaragua, and Panama.39 At the
bilateral level, the RTA between Korea and the United Kingdom was signed in August
2019 and entered into force on 1 January 2021.40 Korea also concluded negotiations for
an RTA with Israel in August 2019, which has not been signed. The RTA between Korea
and Indonesia was signed on 18 December 2020, but has not been ratified. The RTA
with the United States was amended in 2018.41 In 2018 and 2019, Korea notified the
WTO of proposed suspension of concessions and other obligations on some imports
from the United States and the European Union in response to safeguard measures
taken by these Members on certain export items
- The authorities confirmed that in all of Korea's RTAs, agriculture remains partly covered,
and rice excluded.
- Korea also provides preferential tariff treatment to a limited number of imports from
some other developing countries, including those under the Global System of Trade
Preferences (GSTP), and those under the GATT Protocol Relating to Trade Negotiations
Among Developing Countries (TNDC).42 In 2019, annual imports subject to actual
preferential rates under these schemes were USD 11.5 million, or 0.23% of total imports
under the GSTP, and no imports under the TNDC.
c) RCEP:
- On 15 November 2020, the RCEP Agreement was signed by 15 parties (10 ASEAN
Member States and Australia, China, Japan, the Republic of Korea, and New Zealand).
The Agreement covers, inter alia, trade in goods, trade in services, investment, and e-
commerce.
- Korea already has RTAs in force with all RCEP parties except Japan. In most of these
existing RTAs, Korea liberalizes more than under the RCEP Agreement. The authorities
indicate that Korean economic efficiency is expected to increase, as well as bilateral
investment, as a consequence of market liberalization to Japan under the RCEP
Agreement.
- Regarding trade in goods, Korea committed to reduce or eliminate tariffs with a 20-year
transition period (35 years for imports from China). It has one tariff reduction/elimination
schedule for ASEAN, and separate schedules for non-ASEAN Member States. Products
that are excluded from liberalization for Korea include eggs, honey, products of the
milling industry, and vegetables.43 Rice is not covered in Korea's tariff reduction/
elimination schedule.
- Regarding trade in services, Korea follows a negative list approach to schedule its
specific commitments. Unbound sectors include postal and courier services, primary and
secondary education… services. Air services and financial services remain largely
unbound, with broad reservations. reservations. Compared with its commitments under
the GATS, Korea's commitments under the RCEP Agreement are broader,
- The parties also agreed that they will maintain the current practice of not imposing
customs duties on electronic transactions among themselves, which shall not preclude
them from maintaining any internal duties.
d) RTA with five Central american countries:
- The RTA between Korea and the five Central American countries was signed on 21
February 2018.
 - The Agreement contains, inter alia, provisions on national treatment and market access
for goods, rules of origin and origin procedures, customs administration and trade
facilitation,... The end of the implementation period is 2039. The parties are currently
preparing to notify the WTO.
e) RTA with the United Kingdom:
- In January 2021, Korea notified, together with the United Kingdom, the WTO that the two
parties signed an RTA, which entered into force on 1 January 2021. This RTA is based
on the one between Korea and the European Union, to provide continuity and "remove
Brexit uncertainty.
- The bilateral Korea–United Kingdom RTA establishes a free trade area for trade in goods
and for trade in services, technical barriers to trade, sanitary and phytosanitary
measures,
f) Preferential trade arrangements
- Korea has been providing duty-free market access for imports from 46 UN-defined least
developed countries (LDCs). According to UN Comtrade data, in 2020, 0.55% of Korea's
total merchandise imports came from these LDCs.
- Korea is eligible for trade preferences under the GSP scheme of Australia because of its
developing country status.
g) APEC:
- APEC's trade efforts focus on its 21 member economies meeting unilateral targets for
liberalization and for better quality measures in a broad range of areas, covering
customs procedures and standards to subsidies and contingency measures.48 Korea's
latest IAP (Individual Action Plan) on the assessment of achievements of the Bogor
Goals, which is a roadmap containing APEC Members' intended actions in 15 policy
areas to achieve APEC's liberalization goals, was done in 2020
- Korea also plans to make further improvements in standards and conformance, customs
procedures, government procurement, deregulation and regulatory review,
implementation of WTO obligations, and mobility of businesspeople.
h) Asia - Europe Meeting (ASEM)
- The ASEM is an intergovernmental process established in 1996 to foster dialogue and
cooperation between Asia and Europe. The ASEM Summit is a biennial meeting
addressing political, economic, financial, social, cultural, and educational issues of
common interest, among the 53 partners: 30 European and 21 Asian countries, the
European Union, and the ASEAN Secretariat.50
2. Trade policies and practices by measure:
a) Rules of origin:
- Preferential rules of origin apply to imports under preferential trading arrangements and
RTAs/FTAs, and such application increases the complexity of implementing preferential
tariffs.Korea considers that rules should be transparent and promote trade and
investment. For LDCs to receive duty-free access on eligible imports, goods must be
either "wholly produced or obtained" in the exporting country, or manufactured from
originating materials comprising at least 40% of the finished product's f.o.b. price
- Korea applies non-preferential rules of origin to all other imports. Korea's non-
preferential rules of origin are also based on the "wholly obtained goods" and
"substantial transformation" criteria.
b) Tariff:
- Since January 2017, Korea has used the 2017 version of the Harmonized System of
Tariff Classification (HS), at present consisting of 12,242 10-digit lines
- The tariff comprises several rates according to the source of imports. These are the MFN
tariffs from non-preferential sources (termed general rates) and various preferential
tariffs, including for imports from other Members of the APTA (Bangkok Agreement),
RTA/FTAs, and least developed countries. The WTO bound rates are also contained in
the tariff.
c) Applied MFN rate:
- According to varied and substantial levels of protection to selected industries, especially
agriculture, tariffs distort competition by favoring some activities. Reducing high tariffs
(mainly out-of-quota agricultural duties) would improve Korea's resource allocation and
national welfare, a view not shared by the authorities. According to the authorities,
agricultural tariffs, including out-of-quota duties, are maintained in line with
corresponding international and domestic laws, taking market conditions into account.
- Over 99% of tariffs are levied at ad valorem duties, and therefore transparent.
- Non-ad valorem tariffs continue to consist of alternate duties on several tariff items,
mainly manufacturing products such as cinematographic film and diagnostic or
laboratory reagents;
 TRADE POLICIES REVIEW - CHINA
1. Trade and investment regimes:
a) WTO:
- China has been a WTO Member since 11 December 2001. sixth revised market access
offer in the context of its negotiations to join the GPA (Section 3.3.6). China is an
observer to the Plurilateral Agreement on Trade in Civil Aircraft. China is also a
participant in the Information Technology Agreement.
- The authorities state that China attaches great importance to and supports the work
related to e-commerce within the WTO framework; it joined the Friends of e-Commerce
for Development (FED) in September 2017. China also participates in the Joint
Statement Initiatives on electronic commerce; investment facilitation for development;
micro, small, and medium-sized enterprises; and domestic regulation in services.
b) Regional and preferential agreements;
- The authorities state that China is committed to creating a global network of RTAs to
further consolidate economic and trade ties between the country and its trading partners
and reinforce two-way trade and investment; such efforts have accelerated the pace to
open relevant industries and enhanced the competitiveness of their respective
enterprises.
- By the end of February 2021, China had signed 19 RTAs with 26 countries and
territories.On 12 November 2018, the Protocol to Update the Free Trade Agreement
between China and Singapore was signed; it entered into force on 16 October 2019.
- On 15 November 2020, China and 14 other countries signed the Regional
Comprehensive Economic Partnership (RCEP) Agreement. The Agreement has
provisions on trade in goods; rules of origin; customs procedures and trade facilitation…
- On 15 January 2020, China and the United States signed the China-United States
Phase 1 Economic and Trade Agreement.18 It contains provisions related to, inter alia,
intellectual property, technology transfer, trade in food and agricultural products, and
financial services.
c) Other agreements and arrangements:
- China continues to grant unilateral preferences to least developed countries (LDCs).
According to the authorities, since 2015, it has implemented zero tariffs on 97% of
taxable items for LDCs that have established diplomatic relations with China and
completed the exchange of diplomatic notes. As at end-August 2020, 39 LDCs had been
given unilateral preferences.
2. Trade policies and practices by measure:
a) Rules of origin:
- China continues to apply preferential and non-preferential rules of origin.
- Non-preferential rules of origin are used to apply the most-favoured nation (MFN) tariff
rate; ensure the origin of goods subject to anti-dumping, countervailing, and safeguard
measures; ensure that import quotas and tariff quota limits are imposed on specific
countries; and determine the origin of imported goods purchased by the Government.
- Preferential rules of origin apply in accordance with the specifications of the various
preferential agreements signed by China. They are also used to grant preferential
treatment to imports from least developed countries (LDCs).
b) Tariff:
- Applied MFN Tariff:
 + China's applied MFN tariff in 2021 consists of 8,580 lines at the 8-digit level in the
2017 Harmonized System. Most tariff lines (87.4%) carry ad valorem tariffs.One
thousand eighty-one tariff lines (12.6% of all lines) were duty-free. Thirty-four
tariff lines (0.4 % of all lines) carry specific rates.
+ The simple average applied MFN rate in 2021 was 7.1%, compared with 9.3% in
2017, with tariff-rate reductions in nearly all product categories. The tariff was
higher for agricultural products (WTO definition), at 12.7%, showing a notable
decrease compared with 2017 and 2015 (Table 3.2). The average applied tariff
on non-agricultural products fell to 6.2% (from 8.5% in 2017 and 8.6% in 2015).
The percentage of tariffs that exceeded 15% (international tariff peaks) was 4.5%
(significantly lower than the 13.9% in 2017). The percentage of tariffs subject to
domestic tariff peaks was 1.9% (compared with 1.8% in 2017).
+ Over 87% of all tariffs ranged from duty-free to 10%, higher than the 71%
reported in 2017, and in tandem the share of lines with rates higher than 10%
decreased significantly.
- Tariff rate quotas: Wheat (7 tariff lines), corn (5 lines), rice (14 lines), sugar (7 lines),
wool and wool top (9 lines), cotton (2 lines), and chemical fertilizer (3 lines) are subject
to TRQs.
- Bound tariff: Upon its entry into the WTO, China bound 100% of its tariffs at ad
valorem rates. The simple average current bound rate is 9.6% (15.1% for agriculture and
8.8% for non-agricultural goods); final bound rates must be implemented by 2023. While
all tariffs were bound at ad valorem rates, applied MFN tariffs on 37 tariff lines are non-
ad valorem. At the time of China's previous Review, the authorities indicated that ad
valorem equivalents do not exceed the bound tariff rate in practice, as the lower rate is
applied.
- Preferential rates:
+ China applies preferential tariffs under its preferential (PTAs) and regional trade
agreements (RTAs). Hong Kong, China and Macao, China face the lowest
average tariff duties.
+ China also grants preferential tariff treatment to imports from LDCs that have
established diplomatic relations with China, and completed the exchange of
diplomatic notes.
- Tariff exemptions or concession:
+ Duty exemptions and reductions may apply in accordance with the relevant
regulations by the State Council, and on goods imported into designated areas,
for specific enterprises for a specific use. Some imports like: (i) goods in a single
consignment on which the duties are estimated to be less than CNY 50; (ii)
advertising material and samples of no commercial value…
c) Antidumping, countervailing and safeguard measures:
- Antidumping: As at end-December 2020, China was enforcing 113 anti-dumping
definitive measures.Imports from 16 countries or territories (counting the European
Union as one when measures are applied to all EU member States) were affected.
Among all affected trading partners, imports from the United States were subject to the
largest number of anti-dumping measures, followed by Japan, the European Union, and
the Republic of Korea, reflecting the same trend as in previous years. Inflicted on metals
& articles thereof, Chemical products, Resins, plastic & rubber, Paper,paperboard &
articles
- Countervailing measure: The legal framework governing countervailing measures
remains the Foreign Trade Law (last amended in 2016), the Regulations on
Countervailing Measures.
- Safeguard measures:
+ During the review period, China did not initiate any new safeguard investigations.
As indicated in the previous Review, China imposed a safeguard measure on
sugar on 22 May 2017.
+ The laws and regulations governing safeguard measures in China did not change
during the review period.
+ If an investigation involves agricultural goods, the investigation and determination
must be done jointly with the Ministry of Agriculture. Investigation procedures
have not changed since, and are detailed in, China's Trade Policy Review Report
for its previous Review, as are details on safeguard provisions in the RTAs to
which China is signatory.
-
 d)

trade indicators của VN, như BTVN.

Định kì khoảng 2-3 năm, thì WTO sẽ review chính sách, cô lấy nước đối tác mình làm tiểu luận,
có thể cho nước khác.
Chỉ dùng tài liệu giấy.
Tự chuẩn bị file excel, lấy số liệu tự in ra. Mã hàng 6 số, lấy trong bài tập về nhà. các danh mục
là các ngành đã làm ở BTVN.

CHAPTER 3 - IMPORT POLICY

- Why Import: We will specialize in the product we have a comparative advantage. The
products that we have comparative disadvantages are, maybe higher price, higher
production cost compared to other countries, and these goods may have low quality,
insufficient.
- How does Vietnam regulate importation? → In reality, no country can produce all
goods and services. If our enterprise enters internationally, they can impose tariff, or non
tariff measures. The government encourages the locals to consume more products or
services in the case of import promotion. Import-promotion policies are measures
intended to increase the volume of a country's imports from a particular trading partner
or group of trading partners.
- Trade policy
- Export policy
+ EX incentives
+ EX management.
- Import policy:
+ IM promotion
+ IM management
- What is the tariff? A tax or duty imposed on the imported goods, exported goods when it
crosses the border.
- Non-tariff measures? Many kinds of import management measures besides tariff. Non-
tariff measures have the potential impact on import. Effect the domestic and international
market, supply and demand. Measures, the government allows to impose, to regulate
- A nontariff barrier is a way to restrict trade using trade barriers in a form other than a
tariff. Barriers → impose and prevent illegal…
- The exporting markets, if they can’t export to the country → due to the barriers. There’re
always disputes over the non-tariff measures and non-tariff barriers.

1. Roles of import:
- Facilitating the national economic structure transfer in the direction of
industrialization and modernization;. Strategy: import substitution
industrialization.
 + What is the economic structure in Vietnam? Our GDP keeps increasing, that's a
good result from international integration. GDP will be demonstrated in 3 sectors'
share → economic structure (distribution of gross domestic product GDP across
economic sectors from 2012 to 2022. Services have the highest profitability → all
governments want to enlarge this sector. Little increase, slight improvement in
our economic structure. In Vietnam, GDP accounts for more than 40% GDP.
Meanwhile, Agriculture decreased in GDP.
+ About employment, services is the most profitable sector but accounts for more
than 37% of employment. Agriculture generates 12% of GDP but accounts for a
big part of employment.

- Making prompt supplement to imbalanced aspects of the national economy in order to

gain a balanced and sustainable economy; → STRATEGY: IMPORT ADDITION/
SUPPLEMENT. Import is part of our international trade → supports sustainable
development.
+ Khi không có comparative advantage, thì mình tập trung export cái nào mình có
comparative advantage. Theo cái đó thì mình có thêm cho đủ nguồn cầu →
additional import. --> Import sth we don't want to produce.
+ In addition, we have import substitution. Import substitution is a strategy under
trade policy that abolishes the import of foreign products and encourages
production in the domestic market → encourages domestic production and
consumption.
+ Vì mình thiếu advance technology, nên cái import substitution thì quan trọng hơn.
This will help to protect domestic industries.
+ nếu import supplement cái gì không produce hiệu quả lắm, không có
comparative adv thì là import supplement, for all nha. Còn substitution is a
choice, muốn cải thiện efficiency thì mình import cái mình không sản xuất được.
+ Additional/supplement import vs import substitutions (export oriented
substitution). Về CNH, HĐH nền KT, giai đoạn đầu thì import substitution, mà bây
giờ thì đang ở giai đoạn cuối rồi chi có export-oriented production, hướng về xuất
khẩu, ký nhiều FTA.

- Promoting exports. When importing the materials, we process and then export other
products. → enhance exports. The government also supports enterprises that import to
make exporting products, otherwise they have high tax. ⇒ Main objectives of import
policy.
- Improving people’s life and incomes;

2. Basic principles and import policies:

- Using the country’s import capital economically, reasonably and efficiently: right now, we
want to use our limited financial resources to import → stabilize the financial situation.
 - Importing advanced and modern machines and equipment suitable with Vietnam’s
conditions; –. This is encouraged. We can use this to produce, make money from that.
VD, hồi trước thì khuyến khích nhập máy móc hiện đại, từng nhập 1 cái máy mổ tim rất
đắt tiền, dù có training này kia ma k dám xài. Sau này thì bổ sung là, nhập mà phải phù
hợp với khả năng sử dụng.
- Protecting and promoting the development of domestic production, boosting
exports.Nếu nhập về hàng hoá mà không tạo ra tác động tới xuất khẩu trong tương lai,
vẫn được nhập mà thuế nó rất cao. VD ô tô đánh thuế cao. quan trọng nhất → điều
hành chính sáhc nhập khẩu mà vẫn bảo vệ sản xuất trong nước.

Quản lý nhập khẩu - TRADE POLICY MEASURE:

- Có hơn 300 biện pháp trên thế giới.

5,6 thì là sở hữu trí tuệ

7 là hành chính
đức khi tham gia wto thì tham gia với tư cách là thành viên eu, không có TPR của đức,
có của EU thôi.
Nếu chính phủ đánh thuế nhập khẩu, 30% làm phí lên bao thì ai chịu thiệt hại, ngườu
tiêu dùng, cá nhân nhìn chung sẽ phải trả các loại chi phí đó. Nếu chính phủ mỹ đi xâm
lược thì người dân cx trả. các doanh nghiệp cũng phải gánh chịu 1 phần.
 - Chính phủ thì hưởng lợi gì? Chính phủ sẽ có ngân sách thuế để thực hiện các
mục tiêu khác. Khi chính phủ nâng cao thuế đẻ bảo vệ ngành trong nước thì,
mặc hàng đó sẽ giảm nhập khẩu (về mặt lý thuyết), nhưng trên thực tế thì đôi khi
không. Vì có thể sẽ dẫn tới gian lận thương mại.

3. Arguments for trade restrictions:

- Job protection
- Protect against cheap foreign labor
- Fairness in trade - level playing field
- Protect domestic standard of living
- Equalization of production costs
- Infant-industry protection: under 10 years of operation.
- Political and social reasons. Chính trị là ưu tiên hàng đầu, chính trị có ổn định thfi mới
nói đến kinh tế.

4. Who pays for the import restriction:

- Domestic consumers face increased costs. Low-income consumers are espcially hurt by
tariffs on low-cost imports.
- Overall net loss for the economy (deadweight loss). (Vif cos nhieu cái impacts k đo
được, như politcal, hay social).
- Export industries face higher costs for inputs.
- Cost of living increases,
- Other nationas may retaliate, further restricting. VD như nước đối tác có thể trả đũa lẫn
nhau,

5. When Should Governments Avoid Using Trade Barriers?

- Beggar-thy-neighbor policies: Có 1 cái bánh mà mình hưởng nhiều hơn, thì nước bạn
bị bần cùng hoá trong nền kinh tế. Vơ vét nguồn tài nguyên của nước bên cạnh, để lại
hậu quả cho nước đó.

FOOD FOR THOUGHT:

- Trong 2 nguyên tắt quan trọng của WTO thì mình có non-discrimination principles: MFN
và NT.
→ MFN là apply tariff, vì mình phải equally treat other countries. It's because it's at the
border → impose import tariff.
→ NT thì apply non-tariff measures.
Nói chung cả 2 cái measures thì đều quan trọng, apply cho cả 2 nma có xíu khác biệt là vị đó.,

● Import: Import Tariff is an indirect tax imposed on commercial and non-commercial

goods eligible to move across the country’s customs border/territory. → Không apply cho
service.
 + Indirect tax: Indirect taxes are common taxes levied on goods on services paid
for by the consumer. They're not charged to an individual or a company.
+ Direct taxes are one type of taxes an individual pays that are paid straight or
directly to the government, such as income tax, poll tax…
→ Import tariff has to pay the tax to the government but the company will transfer the burden to
the consumers. The consumers actually carry the tax burden.
+ commercial and non-commercial goods: Commercial goods → goods for trading,
but non commercial goods are not allowed to trade for production, it's for
personal use only. VD như đi nucows ngoài, apple có iphone thì mình đi qua sing
để mua thì nhiều người đi qua bên mua… thì lúc này không cần để trả thuế cho
sản phẩm đó.
● Import tariff may account for 80% - 90% for tariff revenue, nên là khi mention tariff thì
thường alf import tariff.
- High protective tariff is to protect the domestic producers. VD như xe hơi. Nhập
xe hơi từ Nga thì thuế nhập khẩu = 0%. Ngoài ra còn có ngành với mục đích xã
hội - sugar.
- ở VN thì có 4 mặt hàng subjected to tariff quotas: đường tinh luyện, đường
thô; muối; thuốc lá nguyên liệu và trứng gia cầm, vượt tariff thì thuế rất cao, có
khi lên tới 100%
- Thuốc lá, rượu bia bị đánh thuế xuất cao. không phải muốn bảo hộ ngành trong
nước mà bảo vệ người tiêu dùng. Không gọi là protective tariff - bảo vệ nhà sản
xuất trong nước, mà là bảo vệ sức khỏe người tiêu dùng.
- Theo cách tính thuế thì có 2 loại:
+ Specific tariff: fix monetary per unit of the product.
+ Ad valorem tariff: % of the value product → cái nào phổ biến hơn, vì họ
dùng % of the value, because price of the products can go up and down.
If the price goes up, pay more and vice versa. But the WTO recommend
all the members to apply market economy → prices can fluctuate in the
market. → Specific tariffs go against reality. Đi ngược lại với nguyên tắt
biến động thị trường của WTO.
+ Mặt hàng duy nhất ở VN được áp dụng specific tariffs (thuế tuyệt đối) là
xe hơi chở người đã qua sử dụng, từ 15 chỗ ngồi trở xuống. tất cả mặt
hàng còn lại thì áp dụng ad valorem tariff. 9 chỗ ngồi thuế thì 10000 usd 1
chiếc.
+ Optional tariff: được phép lựa chọn, có nhiều ngành hàng được cho phép
lựa chọn 1 trong 2 cách đóng thuế. Chỉ có xe hơi thôi chứ ngành khác k
có được lựa chọn.
+ Tariff quotas: là đánh thuế cao đối vớ các ngành vượt mức hạn ngạch.
vượt ngoài hạn ngạch thì thuế từ 80 - 100% tuỳ từng loại.

- Tác dụng của thuế:

- Khi tác dụng thuế thì vẫn phải có deadweight loss - Thuế càng cao, deadweight loss
càng cao. Áp dụng thuế cao thì nước ngoài có thể trả đũa. VD trade tension giũaw
China vs US.
VN áp dụng 3 loại thuế xuất:
 - Preferential tax rates (MFN tax rate) - thuế xuất/nhập khẩu ưu đãi, dựa trên nguyên tắt
MFN. Khi VN join WTO thì cam kết biểu thuế là 13,4%. Applied tariff thường alf thấp
hơn, có năm cao năm thấp, nma trung bình là 13.4%. Vì người ta nhập nhiều hàng miễn
thuế, thuế thấp á.
+ “Preferential tax rates (MFN Tax rate): Preferential tax rates are the rates
applicable to imported goods originated from countries or groups of countries
which have reached agreements on most-favored-nation (MFN) treatment in
trade relations with Vietnam. Preferential tax rates are specified for every goods
item in the Preferential Import Tariffs.”
- Specially preferential tax rates (fFTA tax rate): Áp dụng khi mà kí FTA với nươc skhacs
→ cỡ 16 cái tax cho 16 cái FTA. Trung bình biểu thuế FTA là cỡ 5% trở xuống..
- Ordinary tariff/ Non MFN tariff: thuế suất cao nhất trong 3 loại, cao hơn 50% so với thuế
suất MFN ở VN (cỡ 20%), nên importers họ cố gắng để hưởng 2 cái kia. Mặt hàng nào
mà MFN là 0, thì thuế TT cỡ 3-5%.
VN có 1 thoả thuận đặc biệt về thương mại với Lào và Cuba - không gọi là FTA, special trade
agreement. Lào thì mình có biên giới chung, quan hệ tốt nên mình muốn dành cho Lào để
hưởng lợi tốt hơn FTA bình thường.
- Nước nào mà đánh chương biểu thuế lớn 97,97,99 đồ á thì là ngoại lệ của nước đó.
Thuế các chương này thfi có thể cao hơn các chương trước. Chương 98 quy định thuế
suất ngoại lệ - Tuỳ vào các thoãi thuận riêng dành cho mặt hàng đó.
- Việc xác định trị giá tính thuế, chỉ học theo thứ tự 6 cái tên - áp dụng có ý nghĩa pháp lý,
nghĩa là đi theo thứ tự từ trên xuống (valuation method..) Thông thường thì áp dụng số
3 luôn, tại nó là similar thì dễ hơn identical. Nên dừng lại ở 3 phương pháp đầu tiên. 3
phương pháp dưới thì vấn đề hồ sơ nghiệp vụ khó hơn. 4 là lấy giá bán hàng nhập
khẩu, trừu chi phí ohats sinh. 5: trị giá tính toán, ít áp dụng lắm, cộng hết tất cả các yếu
tố cấu thành lên cái giá sản phẩm đó, nma mấy cái này thì khó define lắm, thường chỉ
dùng khi mà họ không dùng được các method khác. 6 là quyền của hải quan rất cao,
quyền doanh nghiệp giảm dần, quay ngược trở lại các pp trên, nma flexible điều chỉnh
trên cơ sở của pháp luật. Xuống pp này thì 3 tháng mới process, nên thông thường
mình dừng lại ở pp số 3.
Main point NTM:
- It helps to promote SDGs.
- Important for economic growth and jobs.
- It accounts for 90% of goba trade, subjected to NMT. increases trade cost 3x compared
to trade cost. Lack of transparency and uncertainty leads to unpredictability.

Some non tariff measures become non tariff barriers. The government has the authority to apply
NTM.
Bất kì biện pháp k phải tariff thì là nontariff, nó ảnh hưởng tmqt, ảnh hưởng số lượng, giá cả
chủng loại của hàng hoá được mua bán, làm tăng chi phí xuất khẩu, đặc biệt là cty vừa và nhỏ,
từ các cty nhỏ sang cty ở developed country có thể lên tới 3 lần. Chính phủ cx có quyền áp
dụng NTM để bảo vệ quyền và lợi ích trong nước, nhưng một số measures trở thành barrier phi
thuế quan, nếu được xem là barriers, thì chính phủ có nghĩa vụ cắt bỏ hạch giảm để support
international trade.
Vậy căn cứ vào cơ sở khoa học để phân oại thành measures và barriers. Barriers là k có cơ sở
khoa học, vượt quá mức cần thiết, vi phạm các qui định, thão thuận… → điều chỉnh, giảm hoặc
loại bỏ.
Trong 8 biện pháp thì có một vài cái k được thực thi vì vi phạm quy định.

TRP, thì WTO chia các trade policies ra thành :

- Measures directly affecting imports:
+ Thủ tục hải quan
+ Rules of origin, để được hưởng benefits từ các TA mà VN kí, thì phải thoã mãn
rules of origin
+ other charges: phí ở đây là phí nhà nước thu thêm, chứ k phải mấy cty dịch vụ
thu… ở VN thì có áp dụng nhưng không đáng kể.
+ Import prohibition, không được tự đặt thêm, mà phải aign với TA đã kí.
Restrictions: hạn chế nhập khẩu. Và để nhập thì phải có licensing.
+ Trade remidies measure: anti-dumping, countervailing và safesguard measure:
có áp dụng đối với hàng nhập khẩu vào VN
+ Others biện pháp.
- Measures directly afftecting exports:
+ Thủ tục hải quan.
+ Tax,
+ các mặt hàng cấm, restrictions, icenssing (ít hơn, dễ hơn hàng nhập).
+ Export support and promotion: những biện pháp được nhà nước support. ít và
đơn giản hơn import.
- Measures affecting production and trade:
+ Incentives: có thể tạo ra bias giữa nước ngày và nước kia.
+ Standards and other technical requirêmnts: yêu cầu kỹ thuật với hàng hoá (TBT)
+ Sanitary: vệ sinh dịch tễ. và Phytosanitary (học nha, vì nó ảnh hưởng RẤT
NHIỀU). Chủ yếu nằm trong các này nè.
+ ngoài ra còn có price contro - state owned enterprise. Do nhà nước quản lí thì
ảnh hưởng tới thị trường.
+ Government procurement: Vn kí 1 cái multilatera về telecommunications. còn cái
procuement thì k có kí với WTO, mà ký trong CPTTP và EVFTA,
 + Interlectual property: có tính lãnh thổ, đăng kí ở đâu bảo hộ ở đó.
Tiếp theo là trade, theo từng sectors của nền KT. Textiles thì k bảo hộ nhiều, motor vehicles thì
bảo hộ nhiều.
rÀNG BUỘC THUẾ QUAN: thuế trần cao nhất được áp dụng cho một mặt hàng.
Ad volerem tariff, tính thuế suất % theo giá. Ngoại trừ 15 dòng tariff lines thì đánh theo specific
tariffs and mixed tariffs - Chỉ áp dụng 1 chủng hàng duy nhất secondhand vehicles.
Appied MFN thuế suất áp dụng thực thế, cái này là theo pp simple average. Tổng cộng là
11.9%, thấp hơn cái applied tariff, In 2022, VN;s applied tariff tăng só với giai đoạn 2013.

Based line là mfm, theo wto. Thấp nhấp, thì những cái preferential tariff là những cái thuế cao
hơn WTO, thuế này đặc biệt, thường là theo các hiệp định FTA. Một số hđ CL Thấp như
Hongkong, asian, CN, chile, thuế vẫn cao, k giảm bao nhiêu so với wto, coverage thấp dưới
50%.

Tariff quotas, VN bảo lưu tariff quotas với 4 nhóm hàng. Trong đây có 2 loại, inquotas tariff rate -
applied MFM, eangf buộc như bình thường, out quotas tariff thì vượt. Thường thì out quotas rất
cao. Tariff quotas là dùng mức cao nhất.

Excise tax: thuế tiêu thụ đặc biệt.

NON TARIFF MEASURE:

- Danh mục các mặt hàng cấp nhập khẩu, chỉ có thể bớt chứ k thể nào tăng lên được. VD
hàng second hand, used consumer goods: trong vấn đề mua bán, có đánh tráo khái
niệm: Ngta sẽ không ghi used, ghi đồ xi đa, đồ xách tay - một cái concept mn không qui
định, không cấm. Thứ 2 là đánh lừa khách hàng, mà chỉ là hàng cũ, lỗi mode, lâu ngày.
Clear từ công ty hoặc kho hàng của ngừoi quản lí.
-
-
- Nhớ học lý thuyết của trade remedies: anti dumping, countervailing, safeguard
measures.
-

slide 43
Non tariff measures:
Some popular NTMs:
- Quantitative restrictions: prohibition, quota, import licensing (non-automatic license:
không tự động được cấp giấy phép, VD máy in tiền).
- Trading rights: cá nhận được quyền xuất nhập khẩu các mặt hàng → nchung là tự do
xuất nhập.
- Para-tariff measures: surcharge, customs valuation: biện pháp tương đương với
thuế..Custom valuation,
- Price control: VN k áp dụng price control. mà áp dụng price factor control (quản lí yếu tố
cấu thành giá) như sản phẩm y tế, thuốc…
- Technical measures (Technical Barriers to Trade – TBT): bao gồm các biện pháp
Technical measures và SPS.
 - Distribution restrictions: VN gần như k hạn chế về distribution. Trừ mặt hàng có liên
quan import licensing.
- Trade-related investment measures: VN k có hạn chế
- Administrative procedures:
- Trade remedies (anti-dumping, countervailing, safeguard measures). VN áp dụng ít, mà
nước ngoài thì áp dụng tới VN nhiều.
→Trends of tariffication: xu hướng thuế hoá các biện pháp phi thuế quan - các biện pháp
phi thuế quan thiếu rõ ràng, minh bạch gây ra tính không chắc chắn. Nên WTO
recommend là chuyển các biện pháp từ non tariff sang tariff measures - Convert of
shifting the non tariff measures to tariff measures.
Slide 44

Trong CPTPP và EVFTA thì có tích hợp cả government procurement.

Hai biện pháp là rào cản lớn nhất trong non tariff measure:
1. Sanitary and Phytosanitary Measures:
- Measures that are applied to protect human or animal life from risks arising from:
additives, contaminants, toxins or disease-causing organisms in food.
- Geographical restrictions on eligibility: Imports of dairy products from countries.
Kiểu nếu qui định chung thì unfair, vì quá tình phát triển của nước chậm phát triển k bằng so với
các nước không phát triển bằng.

2. Technical Barriers to Trade:

- Measures referring to technical regulations, and procedures for assessment of
conformity with technical regulations and standards. Với NT, thì tiêu chuẩn cho hàng
nhập khẩu phải phù hợp với năng lực sản xuất và chất lượng hạng sản xuất nội địa.
- Labeling requirements. Eg: Refrigerators need to carry a label indicating their size,
weight and electricity consumption level.

Bỏ qua import quotas ik.

Voluntary export restain khỏi đọc ik.

TRADE REMEDY MEASURES:

- Anti dumping: phổ biến nhất. means an additional import duty applicable where
- Countervailing measures. subsidy là hành động nước xuất khẩu, nước nhập áp dụng
biện pháp để counter cái subsidy này. Means an additional import duty applicable.
- Safeguard measures. Ít nhất trong 3 nhóm này, khi họ có tổn thất serious. CN serious
loss. Close factory, lay off employments…. dẫn tới bankruptcy đồ.
CHAPTER 4 - EXPORT POLICY

- VN is having a trade surplus right now.

- Creating main source of capital to serve the industrialization and modernization
progress;
- Contributing to the national economic structure transfer and production development;
- Generating positive impacts on job creation and improving people’s life; More jobs for
the local people.
- Making a basis for expanding and promoting the country’s foreign economic relations.
Exportation in general has to facilitate the economic relation between VN and the rest of
the world. Bilateral relations start with trading, → export opens many opportunities for the
two countries like investment, technology transfer.

Depending on:
- Export objectives/goals
- Export missions/tasks
- Export direction and orientation
Mỗi QG đều có export strategy, với các tên gọi khác nhau, mà thường là chiến lược xuất khẩu.

Xem phần measures affecting exports. có customer procedure, valuation, licensing, danh mục
mặt hàng cấm XK. Export support and promotion.

Quan điểm chiến lucoj của vN:

- pHÁT triển ngành sản xuất mà export oriented. Nhằm nâng cao hiệu quả chuyển dịch cơ
cấu kinh tế. Phát triển thị trường, quan hệ đối tác chiến lược, đa dạng hóa thị trường
xuất khẩu.
- Mục tiêu phát triển: VN tăng trưởng xuất khẩu giai đoạn 2021-2030 là 10%. Mục tiêu có
trade surplus 2021 - 2030 mà đã đạt được hiện nay.
Quan điểm định hướng xuất khẩu.
Phát triển xk theo mô hình phát triển bền vững
- Chuyển dịch sang ngành hàng có giá trị cao.
- giảm nhóm hàng nhiên liệu khoáng sản.
- Tăng chậm: nông lâm thuỷ hải sản
- Tăng mạnh: công nghiệp chế tạo chế biến, gia công xuất khẩu.
- Nâng cao chất lược và hiệu quả xk với nền KT.
Export market development.
Về thị trường, đa dạng hóa thị trường xk, TT Chủ lực, Truyền thống, mới… nói chung là cover
up hết. Thị trường trọng điểm thì xúc tiến để đạt partnership. Mà thị trường chủ lực chủ yếu là
Châu á: Trung quốc, ấn độ, asean + đông âu chủ yếu là nước nga. Thị trường mới: america,
khu vựng nam mỹ, trung đông. Vì thực hiện chiến lược đa dạng hoá thị trường nên ta phát triển
qua tất cả thị trường. TT trọng điểm và truyền thống thì có nhiều hiệp định FTA, hiệu quả xuất
khẩu cao, giá tốt. TT truyền thống, có mối quan hệ dài hạn tuy nhiên hiệu quả thì không cao
lắm, do đây là nước đang phát triển, cơ cấu sản xuất tương đối giống vn → hiệu quả xk không
bằng TT trọng điểm. TT mới thì cần thời gian kiểm chứng.
Export pattern improvement:
Về commodity structure: Cải thiện cơ cấu mặt hàng xk:
- Khoáng sản: giảm.
- Nông lâm thuỷ sản: tăng chậm,
- Manufacturing: sản phẩm công nghiệp, chế biến chế tạo. high tech - tăng mạnh trong
thời gian tới.
- Sản phẩm mới: tăng

Export policy measure:

- Export management measures:
+ Tariff and non tariff measure:
+ Tarif: Chính phủ đánh thuế với những mặt hàng để giảm xuất khẩu để phù hợp
với chiến lược. Ccas mặt hàng khuyến khích xuất khẩu thì không đánh thuế.
+ Non tarriff: prohibition mặt hàng cấm xuất khẩu. Và thứ 2 là phần export
licensing, đặc biệt là loại non-automatic licensing. Biện pháp mang tính rào cản
lớn nhất.
+ Customs
 + Standards iso thì k có rào cản
+ Foreign exchange control là biện pháp về quản lý ngoại hối. Chỉ quy định
các doanh nghiệp xuất khẩu khi nhận được ngoại tệ. Convert từ US sang
VND thì không được rút ngoại tệ bằng tiền mặt ra khỏi ngân hàng, mà
phải convert, bán lại nó cho ngân hàng. Nếu NN k kiểm soát thì sẽ k có
đủ nguồn để import.
+ → Rào cản thì chỉ có licensing, nếu cái gì k muốn xuất khẩu, mà không bị
cấm (do WTO quy định), thì mình hạn chế xuất khẩu bằng cái này.
- export development measures:
+ Export oriented production: Đang và đã phát triển đều thường xuyên thực hiện,
đang phát triển nhiều hơn. Tuy nhiên các biện pháp này hơi chậm.
+ Xây dựng mặt hàng xk chủ lực: strategic export commodities. Được ưu
tiên.
+ Export processing: gia công xk.
+ Investment-related (fdi).
+ Free trade zone: khu thương mại tự do. Non tariff zone.

+ Financial support: kịp thời xử lý tình huống, gây nhiều tranh cãi, tác động nhanh và
mạnh. Nhưng nó bị hạn chế trong WTO. Các biện pháp này đều gây tổn hại tới ngân
sách nhà nước, vì điều trực tiếp hoặc gián tiếp liên quan tới chi tiền
+ Export credit.
+ Subsidy
+ Exchange rate - điều hành tỷ giá hối đoái. Tỷ suất cao thì lợi cho doanh nghiệp,
Tuy nhiên gánh nặng nợ sẽ tăng nếu nâng tỷ giá hối đoái. Tuân thủ theo IMF.
+ Tax exemption. Tổn hại tài chính quốc gia

+ Others:
+ Exemption
+ Institutional reforms: thực hiện nhiều.
 Tariff Subsidy Quota VER
Producers ↑ ↑ ↑ ↑
Consumers ↓ ↓ ↓ ↓
Government ↑ ↓ None None

Welfare Decrease for ↓ Decrease for ↓

small nations small nations

Mặt hàng sensitive products như là thuốc lá, xe hơi.

Chuyển non-tariff thành tariff → tarriffication
→ Chơi bẩn: dùng các biện pháp khác, với mục tiêu hạn chế từ các nước đối tác ví dụ như:
SPS và TPT, rào cản kỹ thuật mà các nước khác khó áp dụng được. Có thêm biện pháp mới
như