Exporting to Vietnam: your in-depth guide

Since the mid-1980s – when an economic reform program was set in motion – Vietnam has experienced an unbroken run of economic growth. In fact, it was one of the few countries to experience double-digit sales growth in 2020, despite the global pandemic¹.

The country’s rising middle class combined with a rapidly developing e-commerce market is presenting lucrative opportunities for online businesses. All you need is an international shipping partner and some local insights and you’ll be in a great position to cash in! Read on as we explore the market trends and customs knowledge you should know to export to Vietnam.

DOING BUSINESS IN VIETNAM: CONSUMER TRENDS

Where do consumers in Vietnam shop online?

Online marketplaces are a helpful gateway for foreign businesses wishing to enter a new market for the first time. Shopee, which has a huge presence in Southeast Asia, allows cross-border sellers to list and sell products directly to customers in countries where it operates.

What are they buying?

Products from these categories will get your business noticed by Vietnamese consumers – providing you can be competitive with your pricing. 

The good news for your business? Many of these purchases would have been from foreign brands – in fact, 38% of all e-commerce transactions in Vietnam are cross-border¹⁰. 

How do Vietnamese consumers like to pay for their online purchases?

Research shows that online consumers are more likely to abandon their carts if their preferred payment method is not an option at checkout¹¹. Offering local buyers' favored payment method(s) also helps cross-border brands establish trust with shoppers. 

Vietnam’s major shopping events and holidays

Vietnam has several shopping events and holidays throughout the year:

Tết

The biggest event in Vietnam is Tet Nguyen Dan (Vietnamese Lunar New Year). It marks the longest public holiday in the country with up to 10 consecutive work-free days. Tết is usually celebrated in January or February, and is the busiest shopping period in Vietnam. People prepare to buy gifts for their loved ones, and shopping takes place in the weeks before. 

9/9 

A shopping event that takes place on September 9th. It is gaining popularity in Vietnam. 

Singles’ Day, 11th November

Originated in China but has evolved to become the biggest shopping event in the world. 

Online Friday 

A 24-hour discount event in December. 

Vietnam’s customs and import regulations

Vietnam’s customs and import regulations are a set of rules and procedures that govern the importation of goods into Vietnam. These regulations are implemented and enforced by Vietnam’s General Department of Customs (GDC) under the Ministry of Finance. Here are some key aspects of Vietnam’s customs and import regulations:

1. Import Procedures: Importers are required to follow specific procedures when importing goods into Vietnam. This includes submitting import declarations, providing necessary documents, and paying import duties and taxes.
2. Tariffs and Taxes: Vietnam imposes import duties and taxes on certain goods imported into the country. The rates vary depending on the type of goods and their origin. Importers should be aware of the applicable tariff rates and any preferential trade agreements that may reduce or eliminate duties.
3. Customs Valuation: The customs value of imported goods is determined based on the transaction value, which includes the price paid or payable for the goods, along with certain adjustments. Customs authorities may verify the declared value and have the authority to adjust it if necessary.
4. Import Licensing and Restrictions: Some goods require specific import licenses or permits before they can be imported into Vietnam. Certain goods may also be subject to import restrictions, such as quotas, bans, or special requirements for health, safety, or environmental reasons.
5. Customs Procedures and Documentation: Importers must comply with customs procedures and provide the necessary documentation, such as commercial invoices, packing lists, bills of lading, and certificates of origin. Failure to provide accurate and complete documentation can result in delays or penalties.
6. Customs Inspections and Controls: Customs authorities in Vietnam have the right to inspect and control imported goods to ensure compliance with regulations. This may include physical inspections, sample testing, or verification of documents.

Restricted and prohibited items  

Vietnam has specific regulations regarding the importation of certain goods. These regulations are enforced by Vietnam's General Department of Customs (GDC) and other relevant government agencies and Ministries. The list of prohibited imports can be found under the Appendix I Decree No. 69/2018/ND-CP of Government.

Restricted items for import: Alcohol and Tobacco, Pharmaceuticals and Medical Devices, Chemicals and Hazardous Materials, Agricultural Products, Electronics and Telecommunications Equipment.

The Vietnam Government may carry out inspections based on quality, health, culture, quarantine, and food safety prior to customs clearance. Items subject to these inspections include smart cards, bank tokens, medicines, and cosmetics.

Prohibited items for import: Weapons and Explosives, Drugs and Narcotics, Drugs and Narcotics, Counterfeit Goods, Endangered Species. It's important to note that the list of restricted and prohibited items may change, and it's advisable for importers and exporters to consult with the GDC or relevant government agencies for the most up-to-date information and specific requirements for their goods.

Violation of these regulations can result in penalties, confiscation of goods, or legal consequences.

Import taxes

Vietnam has a complex tax system with various tax types, including import duties, Value-added tax (VAT) and Special consumption tax (SCT). The tax rates and exemptions vary depending on the type of goods, their origin, and other factors.  

Imported duty rates are at 0%, 5%, 10%, 15%, 20%, and 25% based on the commodities type of HS code. The majority are 5%.

It is advisable to work with a local legal expert to help you navigate the intricacies of importing into Vietnam. 

Product Description Labels 

Imported goods must have a label or supplementary label detailing key information, such as Name, Origin, Entity responsible for goods, and Expiry date. 

Do I need to clear customs myself? 

The customs process will depend on whether the buyer in Vietnam is an individual or a business account customer. 

For individual buyers, official advice is provided to help guide the buyer through the process of customs clearance services.  

For business account customers, DHL offers customs clearance services. As such, merchants can also introduce the advantages of DHL customs clearance to their customers on their own websites/selling platforms. 

Exporting to Vietnam: useful resources

Here are some key government agency websites in Vietnam that can provide official and up-to-date information on regulations, procedures, and requirements:

• The WTO Center & International Trade: a prominent organization under the Vietnam Chamber of Commerce and Industry (VCCI). Its mission is to provide valuable insights, analysis, and resources related to international trade, World Trade Organization (WTO) agreements, and trade policies. Its website offers businesses a wealth of information on trade regulations, market opportunities, trade disputes, and other trade-related topics. Website: https://wtocenter.vn/wto/9-introduction/1
• The Ministry of Industry & Trade (MOIT): a key governmental agency responsible for the development and regulation of Vietnam's industry and trade sectors. It plays a vital role in shaping trade policies, promoting trade facilitation, and fostering a favorable business environment. The MOIT's website offers comprehensive information on trade laws, investment regulations, market research, and trade promotion initiatives, serving as a valuable resource for businesses seeking to engage in trade activities in Vietnam. Website: https://moit.gov.vn/en 
• Vietnam Customs: the government agency responsible for managing customs procedures and regulations in Vietnam. It oversees the import and export activities, collect customs duties, and ensure compliance with trade-related laws and regulations. The Vietnam Customs website provides essential information on customs procedures, tariff classifications, trade statistics, and other customs-related matters. It serves as a vital resource for businesses seeking to navigate the complexities of customs clearance and import/export requirements in Vietnam. Website: https://www.customs.gov.vn/index.jsp?ngon_ngu=en 
• Websites of Government Agencies: agencies which control and manage specialized inspections of imported-exported goods (Group 2 commodities): 
  • Ministry of Health 
    https://moh.gov.vn/en_US/web/ministry-of-health 
  • Ministry of Information & Communication https://english.mic.gov.vn/Pages/home.aspx 
  • Ministry of Agriculture and Rural Development 
    https://www.mard.gov.vn/en/Pages/default.aspx

Vietnam’s import regulations 

Certain items need approval from the Vietnam Government, for example: 

DHL’s expert tips for exporting to Vietnam

• Price rises are changing the way people shop: Rapidly rising prices in Vietnam are putting pressure on consumer spending habits. Demand for luxury goods, travel, and electronics are likely to fall as a result. 
• The rise of sustainable and eco-friendly products: There is a growing awareness of environmental issues. Consumers are looking for products that have minimal impact on the environment, such as organic, recyclable, or reusable items. For vendors, this also presents an opportunity to compensate for the increase in costs and decrease in profit margin. 
• Data privacy concerns: Vietnamese consumers are increasingly concerned about personal information security. This is driven by a fear of fraud and data theft, especially when interacting with digital platforms and social networks. Be clear about your data policy on your e-commerce website to build trust. 
• Social media shopping: Social media platforms play a crucial role in influencing consumer buying behavior in Vietnam. Facebook is the market leader in Vietnam, followed by Zalo, Instagram, and TikTok. Many businesses leverage these platforms to showcase products, run targeted advertising campaigns, and enable direct purchasing through integrated features like Facebook Shops or Instagram Shopping.
• You can find the correct HS Code(s) for your shipment easily via DHL’s MyGTS (My Global Trade Services) – a free, user-friendly platform designed to help SMEs navigate international shipping regulations, including examples of countries' import and export requirements that may be applicable.