A Comprehensive Guide To Import And Export In Vietnam

Introduction

Vietnam has one of the fastest growing economies in the region, driven by export-oriented manufacturing, foreign direct investment and increasingly strong domestic demand. Thanks to its low labour costs, educated workforce, and growing population, the Southeast Asian nation is widely regarded as a supply-chain alternative to the neighbouring People’s Republic of China. Its growing economy and burgeoning middle-class present significant opportunities for Australian exporters, including coal, LNG, iron ore, wheat and meat.

It is imperative for Australian businesses and individuals to understand the relevant rules and regulations before initiating import and export. This article seeks to serve as a comprehensive guide to import and export in Vietnam.

NOTE: The dynamic landscape of international trade means that certain new regulations may render certain portions of the following guide obsolete. Hence, we advise interested entities to engage freight forwarding companies (like Arc Freights), leveraging on our expertise to enjoy seamless one-stop service.

Preparatory Work

Import & Export Procedures in Vietnam

Prospective investors most commonly start by establishing a trading company, which is an inexpensive option with no minimum capital contribution required. This would not only allow entities to engage in import and/or export activities, but also the domestic distribution of goods. While import and exporting within Vietnam does not require separate licenses, the sale of imported goods do. The acquisition of this trading license typically takes one to three months.

Considering that establishing a trading company also takes around three months, this route can be time-prohibitive for businesses with time constraints or are seeking to test the market. As such, companies are advised to engage an importer of record, like freight forwarders, to facilitate the process.

Prohibited Goods in Vietnam

After classifying the goods, businesses and individuals need to check if said goods are controlled or prohibited for import, export, or transshipment. A non-exhaustive list of the prohibited/controlled imports is provided below:

• Decree No. 187/2013/ND-CP
  • Weaponry, Ammunition, Explosive (excluding industrial explosives)
  • Military Technical Equipment (The Ministry of National Defense shall publish a list of goods with HS codes in the Import and Export Tariffs)
  • Assorted fireworks (excluding signal fires used for navigational safety under the guidance of the Ministry of Transport)
  • Sky Lanterns
  • Assorted devices causing interference to vehicle speedometers
  • Assorted publications banned from dissemination and circulation in Vietnam
  • Postage stamps banned from trading, exchange, display and dissemination in accordance with the Law on Post
  • Radio equipment and radio-wave appliances which do not comply with radio frequency master plans and relevant technical regulations in accordance with the Law on Radio Frequencies
  • Used consumer goods
    • Circular No. 12/2018/TT-BCT of the Ministry of Industry and Trade elaborates detailed list of used consumer goods, medical devices and vehicles prohibited from import and HS codes under the management of the Ministry of Industry and Trade.

Certain goods do require companies to obtain permits from the government. In addition, petroleum oil is banned from exports while goods banned from imports include cigars, tobacco, petroleum oils, newspapers and journals, and aircraft.

Imports and exports must comply with relevant regulations on quarantine, food safety, and quality standards and regulations, and must be inspected by competent and appropriate agencies before customs clearance.

Choosing The Right Freight Forwarder

As your goods navigate the complex landscape of international trade, a reliable freight forwarder can be the linchpin between seamless logistics and costly delays. With numerous players in the market, selecting the right partner is crucial to ensure your imports and exports move efficiently through Vietnam.

In addition to crafting the most optimal logistics solution, freight forwarders can also aid businesses and individuals in handling every aspect of door-to-door sea freight, air freight and more:

• First-Mile Delivery: The transfer of goods from the merchant’s warehouse to the airport or port.
• Export Customs Clearance
• International Freight
• Air Freight
• Sea Freight
• Import Customs Clearance
• Last-Mile Delivery

Methods of Shipping to Vietnam

The rapid subscription to the China Plus One strategy has seen Vietnam emerge as the primary benefactory from the shift in global supply chains. Regardless of whether one is importing to or exporting from Vietnam, the choice of shipping mode can significantly impact your bottom line, delivery timelines, and overall customer satisfaction.

Sea Freight

Stretching along the coast of South-East Asia and down the eastern edge of the Indochinese Peninsula, Vietnam has multiple major ports that facilitates international trade via sea freight.

Air Freight

Air freight is widely viewed as the go-to freight option for businesses that require shorter shipping time. However, apart from the two international airports, Tan Son Nhat and Noi Bai, most other Vietnamese airports have yet to invest in the automation and synchronization of warehousing infrastructure and transportation.

Transshipment

Another method of shipping from Australia to Vietnam (and vice versa) involves tapping on the advantages that Singapore provides as a free port. The world class maritime and transshipment hub boasts connectivity to 130 countries; with its provision of port dues concessions, including discounts for container ships and incentives for green initiatives, enhancing competitiveness and attracting shipping traffic.

Further Reading: A Comprehensive Guide To Import And Export In Singapore

Customs Procedures in Vietnam

Understanding and preparing the necessary documentation is critical to ensuring a smooth and efficient customs clearance process. Vietnam has strict customs regulations and compliance with these requirements is critical to avoid delays and issues.

Necessary Documents for Customs Clearance

Businesses seeking to import or export in Vietnam are required to submit the relevant documents to customs authorities. This includes the company’s business registration certificate and import/export business code registration certificate, among others. Customs authorities may also request the following additional documents:

Import

• Import Goods Declaration Form
• Import Permit
  • For Restricted Goods
• Cargo Release Order
• Customs Import Declaration Form
• Inspection Report
• Delivery Order
  • For Goods Imported via Sea Freight
• Terminal Handling Receipts

Export

• Electronic Export Customs Declaration (E-Form HQ/2015/XK)
• Contract
• Customs Export Declaration Form
• Export Permit

Both

• Bill of Lading
• Certificate of Origin
• Commercial Invoice
• Packing List
• Technical standard/health certificate

The customs clearance process for export shipments can be completed on the same day. However, it will take around one to three days to complete the process for Full Container Loads (FCL) and Less Than Container Load (LCL) import shipments.

NOTE: Vietnamese Customs allows companies that frequently export and import the same goods to use a single customs declaration form for related customs procedures, provided the goods are covered under the same purchase and sales contract and delivered within the specified time.

Import and Export Tax

Vietnam’s customs tariff consists of two components: an import duty and import tariffs like the value-added tax (VAT). The import duty is a flat rate applied to all imported goods, while the VAT is a percentage-based tax applied to certain government-regulated goods.  The tax rates are dependent on the type of product. Generally, higher tax rates are applied to luxury imports, while machinery and non-domestic consumer goods are pegged to lower import tariffs.

Import Duty Rates

• Preferential tariff rates for goods from countries with Most-Favoured-Nation (MFN) status.
• Special preferential tariff rates for goods from countries with a Free Trade Agreement (FTA) with Vietnam. E.g. ASEAN nations like Singapore, Philippines, Thailand, etc.
• Ordinary tariff rates for products that do not qualify for MFN treatment.

Import Tariffs

• Value-Added Tax (VAT): The importer must pay taxes on the added value in the supply chain. VAT rates are 0%, 5%, or 10%, with certain goods, like essential items that cannot be produced locally, being exempt.
• Special Consumption Tax (SCT): Luxury consumer goods are subject to SCT, which is also applied alongside VAT.
• Environmental Protection Tax (EPT): Goods that may harm the environment are subject to EPT, with rates varying by commodity (e.g., VND500/kg for restricted chemicals, VND50,000/kg for plastic bags).

Import duties and taxes in Vietnam must be paid prior to customs clearance. Foreign companies importing into Vietnam can register, declare, and pay taxes through the web portal set up by the General Department of Taxation (GDT).

Export Tax

In Vietnam, most exported goods and services are exempt from taxes. However, export duties (ranging from 0% to 45% based on the free-on-board (FOB) price) apply to certain items, primarily natural resources like minerals, forest products, and scrap metal.

NOTE: Export duties must be declared when registering customs declarations, but the payment can be made within 30 days of registration.

Tax Exempt Goods

The following imported and/or exported goods are exempt from tax:

• Products imported for re-export
• Materials and equipment used in the production of export goods
• Raw materials and components that cannot be produced domestically
• Equipment and machinery that are part of a company’s fixed assets and qualify for incentives

Optimise Your Shipping Experience

Successfully navigating the complexities of international trade requires more than just knowledge of regulations and documentation—it also hinges on the efficiency and reliability of your logistics and freight forwarding processes. If you’re looking to optimise your shipping experience, consider working with a trusted freight forwarding partner like Arc Freights. Our expertise and global network ensure that your shipments are handled professionally from start to finish, with tailored solutions that cater specifically to your needs. Let us be your trusted partner in Vietnam’s dynamic trade environment!

Arc Freights is Australia’s leading Freight Forwarder offering QUALITY & RELIABLE logistics services in more than 140 countries. Having plied our expertise in ASEAN for nearly two decades, we are the trusted partner for logistics between Australia and Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam. With expert knowledge, advanced technology, and a commitment to reliability, we provide seamless logistics management that helps you focus on what matters most—growing your business.