Ian Comandao
Business Consulting Manager at InCorp Vietnam
Ian is a sales and marketing professional who has worked over 15 years in key accounts management.
Since the economic reforms in the 1990s Vietnam has taken massive steps to open up many opportunities in terms of international trade, import-export activities, and investment. Over the years, the country has also become of member of the ASEAN Free Trade Area and WTO. In fact, in 2020 Vietnam’s exports rose by 7% to US$282.66 billion. As more investors set up their trading businesses in the country, each function of the supply chain needs to get familiar with Vietnam import-export regulations and procedures.
Investing in Vietnam’s Import and Export Industry? Let us simplify your business processes:
Licensing Procedures for Import and Export in Vietnam
A trading company in Vietnam doesn’t need to get an import or export license for the company incorporation. Nonetheless, a trading company in Vietnam is obliged to register with the Department of Planning and Investment (DPI) and acquire an investment certificate before it can perform any import or export activities.
All procedures on the investment certificate must be strictly followed for the export or import activities to happen.
Import and Export Restrictions
Under the Trading Law in Vietnam, certain goods are banned from export or import:
- Goods banned from export: Arms, Antiquities, wood logs, etc
- Goods banned from import: Weaponry, drugs, toxic chemicals, fireworks, cigarettes, etc
Some goods require the trading company to get the government’s import and export permits:
- Goods under export control according to international treaties contracted by Vietnam
- Goods under export quota implemented by other countries
- Goods under import control according to the international treaties contracted by Vietnam
- Industrial explosives, explosive pre-substances, and chemicals
Trading companies must meet the food safety, quarantine, and quality standards and regulations of their goods before clearing customs. Customs declaration is also mandatory for importers and can be done online.
Import and Export Duties in Vietnam
Most exported and imported goods in Vietnam are subject to import and export duties. There are some exceptions:
- Goods in transit
- Goods imported into non-tariff areas in Vietnam from other countries for use in non-tariff areas only
- Goods exported from non-tariff areas in Vietnam to other countries
- Goods passed from one non-tariff area to another non-tariff zone
Export duties are imposed mainly on natural resources in Vietnam and can range from 0 to 45% in Vietnam based on the free-on-board (FOB) price.
As for import duties, consumer goods, especially luxury goods, have higher rates of duties; and production equipment, machinery, and materials have lower rates or zero rates of duties.
Applicable Import Taxes
Almost every category of imported products is subject to import tax. Applicable import tax rates in Vietnam vary depending on the category of product as well.
Imported goods’ tax rates comprise preferential tax rates, ordinary tax rates, and special preferential tax rates.
Applicable Export Taxes
Only certain products are subject to export taxes in Vietnam, ranging from 0 to 45%. Export taxes range from 0 to 45 percent and are specified based on the type of item under the Export Tariff. The current VAT for exported products is 0%.
Goods with Tax Exemptions
Certain goods of import and export are exempted from taxes in Vietnam under specific conditions. For more information, please refer to the latest import/export regulation or contact one of our consultants.
About Us
InCorp Vietnam is a leading provider of global market entry services. We are part of InCorp group, a regional leader in corporate solutions, that encompasses 8 countries in Asia-Pacific, headquartered in Singapore. With over 1,100 legal experts serving over 15,000 Corporate Clients across the region, our expertise speaks for itself. We provide transparent legal consulting, setup, and advice based on local requirements to make your business perfectly fit into the market with healthy growth.
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