As a result of Vietnam's accession to the World Trade Organization (WTO) in 2007, the customs environment in Vietnam has undergone great change. Many new Laws, Decrees and Circulars have been issued in relation to customs and trade, some of which are complex and potentially subject to different interpretation.
Import taxes (import duty, import VAT, and special sales tax) remain important revenue sources for the Vietnamese Government. However, in line with its WTO commitments, Vietnam has reduced import duty rates since its accession and this has led to Vietnam Customs becoming more determined in ensuring that set revenue targets are collected. This in turn has led to an increased number of Customs audits and investigations focusing particularly on issues related to customs valuation such as transfer pricing policies and the dutiable treatment of royalties, and service fees. Consequently companies importing products and materials into Vietnam face many challenges often leading to additional customs assessments for import taxes.
On the other hand, in line with its WTO commitments, as Vietnam continues to open up its market by introducing new trading rights and, since 1 January 2009, distribution rights for foreign invested companies, so new associated laws and regulations provide businesses with a wide range of options for import/export trading structures, each with their own regulatory, operational, and regional risks and benefits. Therefore, companies looking to re-structure their operations or enter Vietnam for the first time should, beforehand, devote sufficient time and effort to determine the most effective, customs-optimized business model to suit their future operational needs.
Customs and International Trade Advisory Services Vietnam is part of the regional Customs & Trade network in Asia which consists of a specialized team of experienced trade and customs professionals who have assisted many clients throughout the region to manage import/export risk, reduce costs, and increase efficiency.
Our Services in Vietnam include: