I. GENERAL PROVISIONS:

- To reward export textile and garment quotas to enterprises, which export textile and garment products made of home-made fabrics to EU market in the year 2000.

- To reward export textile and garment quotas to enterprises, which already exported textile and garment products to non-quota markets in 1999.

- The reward quotas shall be deducted from the total export textile and garment quotas in 2000. The concrete number shall be mentioned in the subsequent parts of this Circular.

II. QUOTA REWARDS TO ENTERPRISES WHICH EXPORT TEXTILE AND GARMENT PRODUCTS MADE OF HOME-MADE FABRICS TO EU MARKET IN THE YEAR 2000:

The reward to enterprises which export textile and garment products made of home-made fabrics is stipulated as follows:

a) Subjects entitled to rewards: Enterprises which export textile and garment products made of home-made fabrics to EU market in the year 2000. Enterprises export one category shall enjoy preferences only for such category and each enterprise shall be given preference only once for each category.

b) Reward quotas shall be as follows:

1. T-shirt (cat. 4): 680,000 pieces

2. Woolen sweater (cat. 5): 50,000 pieces

3. Trousers (cat. 6): 250,000 pieces

4. Women’s shirt (cat. 7): 70,000 pieces

5. Men’s shirt (cat. 8): 400,000 pieces

6. Ladies’ dress (cat. 26): 30,000 pieces

7. Ladies’ suit (cat. 29): 17,500 suits

8. Sport suit (cat. 73): 20,000 suits

9. Assorted garment (cat. 78): 20.0 tons

c) The maximum reward level enjoyed by enterprises which export textile and garment products made of home-made fabrics to EU market in the year 2000 shall be:

1. Cat. 4: 40,000 pieces for enterprises which exported less than 200,000 pieces in 1999.

60,000 pieces for enterprises which exported 200,000 pieces or more in 1999.

2. Cat. 5, 6: 5,000 pieces.

3. Cat. 7, 26: 10,000 pieces.

4. Cat. 8: 50,000 pieces.

5. Cat. 29, 73: 5,000 suits.

6. Cat. 78: 2.0 tons.

Notes:

- Cat. 4 shall be preferentially rewarded only to enterprises which are equipped with machines for manufacture of knitwear fabrics.

- Cat. 6 shall be preferentially rewarded only to trouser-producing enterprises.

For contracts with volumes lower than the prescribed level, the volumes inscribed in such contracts shall be allocated; for contracts with higher volumes, the maximum prescribed level shall be allocated.

d) Dossiers for reward consideration include: export contracts, home-made fabrics sale and purchase contracts, home-made fabrics purchase receipts. The dossiers shall be sent to the Ministry of Trade (Export/Import Department) by September 30, 2000 at the latest.

III. QUOTA REWARDS TO ENTERPRISES WHICH EXPORTED TEXTILE AND GARMENT PRODUCTS TO NON-QUOTA MARKETS IN 1999:

a) Subjects entitled to rewards: Enterprises located in Hanoi, Ho Chi Minh City, which exported their textile and garment products to non-quota markets with the F.O.B value having reached 2.0 million US dollars or more and enterprises located in other localities which gained 1.5 million US dollars or more shall all be rewarded with quotas.

b) Reward quotas shall be as follows:

1. T-shirt (cat. 4): 300,000 pieces

2. Woolen sweater (cat. 5): 112,500 pieces

3. Women’s shirt (cat. 7): 67,500 pieces

4. Men’s shirt (cat. 8): 250,000 pieces

5. Ladies’ coat (cat. 15): 23,750 pieces

6. Ladies’ dress (cat. 26): 27,500 pieces

7. Sport suit (cat. 73): 30,000 suits

8. Assorted garment (cat. 78): 40.0 tons

9. Assorted garment (cat. 83): 20.0 tons

c) Reward criteria: Each exportation to non-quota markets in 1999 with a value of 1,000 US dollars shall be rewarded a quota equivalent to 2 men’s shirts (cat. 8) or other categories converted according to the corresponding rate.

The categories (Cat.) of reward quotas shall be allocated in accordance with the production and export capacity of enterprises, with priority considered for specialized enterprises, which export goofs at high prices, to new markets and new customers... In cases where products of the required categories are unavailable, enterprises may receive quotas of other categories at the corresponding convertible rate already prescribed in the Agreement between Vietnam and EU, more concretely as in Appendix I enclosed with this Circular.

d) Dossiers for reward consideration:

Enterprises that wish to enjoy reward quotas of textile and garment products to be exported to EU market shall send official dispatch to the Ministry of Trade before June 15, 2000.

In order to make the reward consideration commensurate to production and business demands, enterprises shall list the goods categories (Cat.) they need in priority order (1, 2, 3...).

VI. IMPLEMENTATION PROVISIONS:

1. Enterprises rewarded with quotas, if failing to fulfill such quotas, shall have to notify in writing the return of such quotas, so that they shall be allocated to other enterprises, and have report on implementation situation at the end of the year.

2. The Ministry of Trade, the Ministry of Planning and Investment and the Ministry of Industry request the ministries, the ministerial-level agencies, the agencies attached to the Government, the People’s Committees of the provinces and centrally-run cities and mass organizations to notify the contents of this Circular to the enterprises under their respective management, so that they can know and implement it; and at the same time, to report to the three Ministries the problems arising in the course of implementation for promptly and appropriate adjustments.

This Circular takes effect 15 days after its signing.

For the Minister of Trade
Vice Minister
LUONG VAN TU

For the Minister of Planning and Investment
Vice Minister
LAI QUANG THUC

For the Minister of Industry
Vice Minister
LE HUY CON

Appendix I

TABLE OF RATE OF CONVERSION BETWEEN CAT. 8 AND OTHER CATS.