TNAG-2622-FCO40-3813-Visits-by-Alastair-Goodlad--Minister-of-State-for-Foreign-an-1992 — Page 17

CONFIDENTIAL

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VIETNAM'S IMPORT REGIME IS BEING LIBERALISED. THE LATEST ROUND OF LIBERALISATION MEASURES ANNOUNCED IN APRIL 1992 INCLUDED THE REVISION OF THE IMPORT TARIFF SCHEDULE AND THE REPLACEMENT OF IMPORT QUOTAS BY TARIFF RESTRICTIONS. PRODUCTS STILL UNDER IMPORT QUOTA CONTROLS ARE AUTOMOBILES, MOTOR CYCLES, MATERIALS FOR CIGARETTES AND CERTAIN ELECTRONIC PARTS. IMPORTS OF MOST CONSUMER GOODS ARE ALLOWED, THOUGH TARIFFS ON THEM ARE HIGH: 45 PERCENT FOR COLOUR TELEVISIONS: 70 PERCENT FOR SOFT DRINKS: 100 PERCENT FOR BEER: AND 150 PERCENT FOR BRANDY. LUXURY ITEMS, SUCH AS ELECTRIC APPLIANCES AND ELECTRONIC GOODS, ARE SUBJECT TO TARIFF RATES OF 40 TO 60 PERCENT. THOSE SUBJECT TO THE LOWEST RATES (ZERO TO 5 PERCENT) ARE TOYS, MACHINERY, FUELS, RAW MATERIALS, AND CONSTRUCTION MATERIALS.

INVESTMENT

ACCORDING TO DATA PROVIDED BY THE INDUSTRY DEPARTMENT, THERE IS NO VIETNAMESE INVESTMENT IN HONG KONG'S MANUFACTURING INDUSTRIES.

ACCORDING TO A MARKET REPORT PREPARED BY THE HONG KONG TRADE DEVELOPMENT COUNCIL, HONG KONG WAS THE BIGGEST FOREIGN INVESTOR IN VIETNAM IN TERMS OF THE NUMBER OF PROJECTS AT THE END OF 1991, ACCOUNTING FOR 94 PROJECTS WITH A TOTAL APPROVED CAPITAL OF US DOLLARS 384 MILLION. HONG KONG WAS ALSO THE SECOND BIGGEST INVESTOR IN VIETNAM IN CAPITAL TERMS.

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