With the rapid pace of globalization, Vietnam has become an increasingly important player in international trade as an emerging economy in Southeast Asia. Its strategic location and open economic policies have made Vietnam a major hub for global manufacturing and exports.

Vietnam’s import and export processes involve several stages, from initial cargo preparation to final customs clearance and delivery. Each step must comply strictly with relevant laws, regulations, and operational standards.

This guide provides a thorough breakdown of each step involved in the import and export processes in Vietnam, helping businesses navigate their import and export activities smoothly.

Step-by-Step Breakdown of Vietnam’s Import and Export Processes

1.Import and Export Licensing and Business Registration

The first step to engaging in import and export activities in Vietnam is obtaining the necessary licenses and completing the business registration procedures.

1.1 Import and Export Licenses

• Requirements: Import and export licenses in Vietnam are required for certain types of goods, such as chemicals, medical devices, and specific agricultural products. Businesses must apply for the correct license according to their product category.
• Application Process: Companies must submit an application to the Ministry of Industry and Trade or the relevant sector authority, including business registration details, a description of goods, and trade contracts. The approval process generally takes 2-4 weeks.
• Fees: The cost of applying for a license varies depending on the type of goods and license category, usually ranging from 500,000 to 2,000,000 VND.

1.2 Business Registration

• Requirements: Companies must be registered as a legal entity in Vietnam, typically with the Department of Planning and Investment, to obtain a business license and tax ID number.
• Required Documents: Necessary documents include the company’s charter, board resolutions, business registration certificate, and bank account details.
• Time and Costs: The registration process usually takes 1-2 months, with costs varying based on the size and type of business, typically between 10,000,000 and 30,000,000 VND.

2.International Sourcing and Contract Signing

Once registration and licensing are complete, companies can start sourcing internationally and signing trade contracts. This step is critical, as the contract terms will directly affect all subsequent import and export operations.

2.1 Selecting Suppliers

• Selection Criteria: Companies should consider factors such as the supplier’s reputation, product quality, price, delivery time, and payment terms. It is advisable to evaluate multiple suppliers to find the best partner.
• Supplier Verification: Perform background checks, visit factories, and conduct sample testing to ensure suppliers meet both Vietnamese and international standards.

2.2 Trade Contract

• Contract Details: A trade contract should cover product description, quantity, price, delivery terms, payment methods, quality standards, packaging requirements, insurance, and dispute resolution.
• International Trade Terms (Incoterms): Common terms used in Vietnam include FOB (Free on Board), CIF (Cost, Insurance, and Freight), and DAP (Delivered at Place). Companies should select terms that best suit their business needs.
• Signing the Contract: Ensure that both parties formally sign the contract and keep copies on file for future reference.

3.Cargo Preparation and Packaging

After signing the contract, suppliers begin producing and preparing goods. Companies need to ensure that the goods comply with the standards of both Vietnam and the destination country and are properly packaged.

3.1 Production and Inspection of Goods

• Quality Control: Companies should monitor the supplier’s production process and perform quality inspections once production is complete to ensure products meet the agreed standards.
• Third-Party Inspection: Hiring a third-party inspection agency to conduct independent checks is recommended to ensure goods meet quality requirements.

3.2 Packaging Requirements

• Packaging Standards: Packaging must comply with Vietnamese customs regulations and protect goods during transport. Common materials include cardboard boxes, wooden crates, plastic wraps, and metal containers.
• Labeling and Marking: According to Vietnamese regulations, all export goods must have clear labels, including product name, manufacturer, origin, batch number, net weight, gross weight, and other information. Certain goods must also meet labeling requirements of the destination country.

4.Transportation and Insurance of Goods

Once goods are ready, companies must arrange transportation and insurance. This step involves choosing a mode of transport, organizing logistics, and securing cargo insurance.

4.1 Choosing a Mode of Transport

• Sea Freight: Suitable for large shipments and non-urgent goods. Vietnam’s major ports include Ho Chi Minh City Port, Haiphong Port, and Da Nang Port. Sea freight is cost-effective but slower.
• Air Freight: Suitable for high-value or urgent goods. Major international airports in Vietnam include Tan Son Nhat International Airport and Noi Bai International Airport. Air freight is more expensive but faster.
• Rail and Road Transport: Ideal for trade with neighboring countries such as China, Laos, and Cambodia. Rail is cost-effective but less flexible and slower than road transport.

4.2 Logistics Arrangements

• Choosing a Logistics Company: Companies should select a reputable international logistics company to ensure safe and timely delivery of goods. Most logistics companies provide door-to-door services, including loading, customs clearance, transport, and delivery.
• Loading of Goods: Ensure goods are loaded according to the contract specifications, and logistics companies provide loading documents such as the Bill of Lading (B/L) and Air Waybill (AWB).

4.3 Cargo Insurance

• Insurance Options: Companies should insure goods with appropriate coverage, such as All Risk Insurance or Marine Insurance. The insurance amount typically ranges from 110-120% of the total value of the goods.
• Insurance Providers: Choose a well-known international insurance company and ensure all insurance documents and policy copies are complete.

5.Customs Declaration and Clearance

During transportation, companies must handle customs declarations and clearance. This is one of the most crucial steps in the import and export process, as smooth customs clearance ensures timely delivery.

5.1 Preparing for Customs Declaration

• Document Preparation: Required documents include the Commercial Invoice, Packing List, Bill of Lading or Air Waybill, Certificate of Origin (CO), Cargo Insurance Policy, and Import-Export License.
• Calculating Duties and Taxes: According to Vietnamese customs regulations, companies must pay customs duties and value-added tax (VAT). Duties are calculated based on the HS code (Harmonized System Code) and declared value, while VAT is based on the type and value of goods.

5.2 Submitting Customs Declaration

• Submission Methods: Companies can submit declarations online through Vietnam’s customs electronic system (VNACCS/VCIS) or use a customs brokerage firm.
• Customs Documents: Ensure all information on customs documents is accurate, especially key details like goods description, HS code, and declared value.

5.3 Customs Clearance Process

• Customs Inspection: Customs may inspect goods to verify the accuracy of the declaration. If everything checks out, customs will release the goods; if not, further inspection or additional duties may be required.
• Clearance Time: Typically, clearance takes 1-3 days, but it can take longer for complex goods or special cases.
• Payment of Duties: Companies must pay all relevant duties and taxes before clearance. Once cleared, goods can be collected or arranged for further transport.

6.Final Delivery and Financial Settlement

After customs clearance, companies must arrange the final delivery of goods and settle financial transactions.

6.1 Delivery of Goods

• Local Distribution: If further distribution within Vietnam is needed, companies should arrange local logistics to ensure timely delivery to customers or the final destination.
• Delivery Documentation: Ensure customers sign the delivery note upon receiving goods and keep records for future reference.

6.2 Financial Settlement

• Payment Methods: According to the contract, companies should settle payments after delivering the goods. Common payment methods include Letter of Credit (L/C), Telegraphic Transfer (T/T), and Cash on Delivery (COD).
• Invoicing and Billing: Companies should promptly issue commercial invoices and reconcile with customers to ensure all payments and deliveries are correctly accounted for.

7.Tax Refunds and After-Sales Services

After completing import and export transactions, companies can apply for tax refunds under Vietnamese tax policies and provide necessary after-sales services.

7.1 Applying for Tax Refunds

• Tax Refund Policy: Under Vietnamese tax laws, companies can apply for a VAT refund on paid taxes. The refund amount is usually the full or partial VAT on exported goods.
• Application Process: Companies must submit a tax refund application to the Vietnamese tax authorities, including commercial invoices, customs declarations, and payment receipts. After approval, the tax authority will refund the amount to the company’s account.
• Refund Time: The refund process usually takes 2-3 months, so companies should plan accordingly.

7.2 After-Sales Service

• Customer Support: Companies should provide after-sales services, such as handling quality issues, product replacement, and technical support. Good after-sales service helps build long-term relationships.
• Market Feedback: Gather customer feedback to understand market needs and identify opportunities for product improvement, which can help optimize future trade activities.

Key Points to Consider in Vietnam’s Import and Export Processes

When conducting import and export activities in Vietnam, businesses should pay close attention to the following points:

• Compliance: Ensure all activities comply with Vietnamese laws, particularly regarding licenses, duties, and labeling requirements.
• Accuracy of Documentation: All information on the declaration documents must be accurate to avoid delays or cargo detention.
• Timeliness: Every stage of the process must adhere to strict timelines, especially during customs declaration and clearance, to avoid additional costs and delays.

Risk Management: Be prepared for potential risks in international trade, such as exchange rate fluctuations and shipping delays, by having contingency plans and obtaining appropriate insurance.