Overview of Vietnam's Trade Regime
Vietnam is a member state of the World Trade Organization and applies the rules and the regulations of the WTO. In addition, on August 1, 2020 the Free Trade Agreement between the European Union and Vietnam entered into force.
When importing goods into Vietnam, three categories of rates are applied:
♦ usual (applies to countries with which Vietnam does not have an agreement on mutual granting of most favored nation treatment – MFN);
♦ preferential (applies to goods imported from countries with which Vietnam has signed agreements on mutual provision of MFN);
♦ special preferential (applies within the free trade zones, which Vietnam joined).
Belarusian-made products are subject to the usual import duty rate, unless a special preferential rate is applied.
Customs duties are set as a percentage and are paid in Vietnamese Dong (VND). Prices in foreign currency, as a general rule, are converted into dongs at the rate of the State Bank of Vietnam on the day the duty is calculated.
On October 5, 2016 the Free Trade Agreement between the member states of the Eurasian Economic Union and the Socialist Republic of Vietnam entered into force. The document provides for a significant improvement in the conditions of Belarusian products access to Vietnam, in particular, the simple average tariff level of import duties in Vietnam for goods from the EAEU countries will be gradually decreased from 10% to 1% by 2027.
The text of the Agreement and the list of tariff obligations can be found on the website of the Eurasian Economic Commission: http://www.eurasiancommission.org/ (section Trade Agreements of the Eurasian Economic Union).
When importing goods into Vietnam, VAT is charged in addition to customs duties. The VAT rate is established by the Law “On Value-Added Tax” dated 03.06.2008 No. 13/2008/QH12 and currently has 3 levels: 0%, 5% and 10%.
Measures of non-tariff trade regulations: the introduction of a ban or temporary restrictions on the import of certain categories of goods, the use of import and tariff rate quotas, licensing, technical regulation, etc.
When planning the export of goods to Vietnam, it is also necessary to take into account that some goods are subject to phytosanitary, veterinary and other types of control.
More detailed information on the import of goods to Vietnam can be found on the website of the Vietnam Trade Promotion Agency (Vietrade) under the Ministry of Industry and Trade of Vietnam: https://infovietrade.vn/, as well as on the portal of the General Department of Vietnam Customs under the Ministry of Finance of Vietnam: http: // www. vietnamtradeportal.gov.vn.