|Seaports||20ft container||40ft container|
|Ho Chi Minh||£1380||£1700|
LCL shipping from our London office in Feltham TW14 post code to Vietnam ports
|Total Volume *||Hanoi|
|Destination||50 kg||200 kg||500 kg|
|Airports||50 kg||200 kg||500 kg|
|Noi Bai International - HAN||£120||£220||£480|
|Ho Chi Minh - SGN||£100||£240||£530|
* Documentation surcharge applies to any shipping to Vietnam.
* For an accurate price, please use our online quotation form above and provide detailed information about your shipment requirement to Vietnam.
Vietnam has made rapid economic progress since launching its first major economic reforms in 1986. It continues to develop from a low-cost labour economy to a higher value, high-quality enterprise marketplace. Vietnam is forecast to be one of the top 10 fastest growing economies in the next few decades.
Vietnam is one of the most vibrant economies in Asia with a large market for capital goods and a growing domestic market for consumer goods. It has an ambitious programme of major infrastructure developments including new urban railway networks, a new international hub airport and expansion of regional airports.
Increasing numbers of UK companies are following well established brands like Standard Chartered, HSBC, Karen Millen and Oasis into the market. Rolls Royce motor cars, Mini and Marks and Spencer established a presence in 2014.
Incentives for UK companies exporting to Vietnam include:
Strengths of the Vietnamese economy include:
Vietnam is 78th in the World Bank’s Ease of Doing Business ranking.
The main challenges of doing business in Vietnam are:
Transparency International rated Vietnam 119th in its Corruption Perceptions Index.
Vietnam’s Gross Domestic Product (GDP) is USD 170.6 billion. Per capita purchasing power is around USD 3,600.
GDP increased 5.98% in 2014. An average of 6% growth a year is forecast from 2015 to 2017.
Retail trade grew 10.6% in 2014, +6.3% in real terms.3.2 Free Trade Agreements (FTAs)
The ASEAN Economic Community (AEC) was officially launched on 31 December 2015. Overall, the AEC will benefit UK companies operating in the region. The AEC agenda helps promote reform and raise economic growth in the region. Improved trade facilitation, regulatory reform and financial development will benefit all domestic and foreign firms. British firms producing and shipping within the region can benefit from intra-ASEAN tariff reduction.
ASEAN has signed 6 regional FTAs:
There are also a bilateral FTAs with Japan, South Korea, Chile, and the Eurasian Economic Union.
Negotiations for the Trans-Pacific Partnership and the EU-Vietnam Free Trade agreement were concluded late 2015.
If your company is in a contract with a Vietnamese buyer, goods and services provided by your overseas subsidiary in these countries will benefit from preferential import duties.
UK exports to Vietnam were £300 million in 2014, an increase of 12% on 2013.
Top 10 UK goods exports:
Trade and investment ties are an important element of the UK-Vietnam Strategic Partnership Agreement signed in 2010.
UK Foreign Direct Investment (FDI) into Vietnam is currently USD 2.7 billion. It is expected to meet the USD 3 billion target set under the above agreement. The UK is the largest EU investor in Vietnam’s education sector, and the third largest EU investor in Vietnam.
Power consumption in Vietnam has increased more than 5 fold between 2000 and 2012. Estimated growth is forecast to be 12% to 15% in the 2015 to 2030 period. Vietnam forecasts that nuclear power plants will supply 20% to 25% of its power supply by 2050.
Vietnam’s power development plan includes:
There are opportunities for UK companies in all project phases including consultancy and equipment.
Opportunities for UK companies in specialist power areas include:
Oil and gas
Vietnam is south east Asia’s third largest oil producer. Opportunities for UK companies include supply of equipment and services for:
There are a number of British education institutions doing business in Vietnam. However, there is room for many more due to the size of the market. The UK is amongst the top 5 favourite destinations for overseas study with more than 8,000 Vietnamese students. The number is rising 15% every year.
The Vietnamese Prime Minister signed decision 404/QĐ-TTg in March 2015 to approve a curriculum project worth USD 37 million. The Ministry of Education and Training plan to launch the curriculum and textbooks in 2018 to 2019 academic year.
The Ministry of Education and Training have spent more than USD 10 million on equipment for a pilot smart school project in the last 2 years. A further USD 89 million will be spent in the next 3 years.
Opportunity areas in Vietnam include:
Vietnam’s health care system is a mixed public-private system. However, the healthcare system has been slow to develop. Around 30,000 Vietnamese people travel abroad annually to seek treatment in foreign hospitals.
The government has offered incentives to healthcare investors including:
Vietnamese pharmaceutical production and supply capacity is weak. It spends more than USD 1 billion every year on imported drugs. UK medicinal and pharmaceutical products accounted for 11% of total imports in 2013 with a value of £33 million, an increase of 21% yoy.
Joint ventures with local companies should be considered as well as direct exports to access opportunities in Vietnam.
Most hospital medical equipment is imported as most domestic health equipment in Vietnam has yet to meet national and international quality standards. Local production accounts for only 5% of the market. Therefore, there is potential for UK medical equipment companies to export to Vietnam.5.4 Mass transport
The government will increase investment in transport infrastructure from USD 7 billion to USD 120 billion by 2020. Infrastructure plans include:
UK companies will have the opportunity to offer:
Working in partnership with leading contractors from Japan and South Korea is also an option.
There is potential for UK companies to become involved in the operation of the airline industry.
British companies can approach the Vietnamese market in several ways:
You should have a local representative acting as an importer/distributor for direct exports. In some certain cases, pre-registration of exporters/producers is required. Getting information in Vietnam can be difficult so it’s important to develop personal relationships.
You should seek legal advice if you intend to set up a company in Vietnam.
Vietnam has reformed domestic legislation as a result of entering into international free trade agreements. However there are still inconsistencies.7.1 Standards and technical regulations
Vietnam has its own sets of standards and technical regulations (including labelling), which are in line with international ones. However, exemption/simplification only applies where there is a mutual agreement with the other country.
You must make sure that you have obtained necessary technical licenses (if any) before exporting. The licensing process could take you some time.
The Information Centre of the Directorate for Standards and Quality (ISMQ) has responsibility for Vietnam’s standards system.7.2 Intellectual property (IP)
Vietnam has the regulations in place to protect IPR. However, enforcement is not strong. You must take measures to protect your IP before exporting. If faced with infringement you must work with the relevant inspectorates in various ministries.
The National Office of Intellectual Property of Vietnam (NoIP) has responsibility for IPRregistration.
Contact the Department for International Trade (DIT) team in Vietnam for help in working with NoIP. You can also request help from the Asean IPR SME Helpdesk.
Vietnam has signed a double taxation agreement with the UK.
Vietnam’s General Department of Taxation has responsibility for tax matters.8.1 Corporate Income Tax (CIT)
Enterprises are subject to tax rates under the CIT Law. Standard CIT rate is 22% and will be reduced to 20% from 2016. Businesses operating in certain sectors are subject to higher CIT rates.
Tax incentives are granted to businesses investing in some:
VAT applies on the duty paid value of imported goods. The importer must pay VAT to customs authorities at the same time they pay import duties. Different rates of VAT are applied to different goods and services. Generally, the rate is up to 10%.8.3 Other taxes and fees
Special Sales Tax (SST) is applied to the production and import of certain commodities. The commodities include:
Other taxes and fees include:
Vietnam’s General Department of Customs has responsibility for customs matters and provides information on tariffs..
Import duties are subject to frequent changes. Rates are applied according to different trade agreements. Contact the Department for International Trade (DIT) team in Vietnam to find out the rates applicable to your products and services.
Vietnam maintains a price reference database to avoid under-invoicing. This can impact customs valuation. More information on the reference price list can be found in Decision No.1114/QĐ-TCHQ dated 10 April 2014. There is no free English version available. Companies can look up their products by the 4 initial numbers of their Harmonised System (HS) codes8.5 Documentation
Your local representative can assist with the documentation needed to import your goods into Vietnam.
Vietnam’s General Department of Customs provides a comprehensive list of documents.
Contact the Department for International Trade (DIT) team in Vietnam for information on customs procedures.8.6 Exchange controls
The State Bank of Vietnam (SBV) imposes strict controls on foreign exchange transactions.
You must get foreign currency convertibility rights from SBV as early as possible. Convertibility rights are normally part of the investment licence so are given to companies operating in specific import substitute and other ‘important’ industries. Convertibility rights don’t guarantee availability of foreign exchange.
Foreign currency is allowed out of Vietnam only when:
Some cultural differences when doing business in Vietnam include: