Vietnam has followed an export-led growth model, combining trade liberalization and policies to attract foreign direct investment to spur exports. This has allowed Vietnam to accelerate growth in recent years, emerging as a clear leader in low-cost manufacturing and sourcing. Vietnam’s growth has also been accelerated in part due to the US-China trade war, which shows no sign of abating.
Vietnam’s exports to the US rose by 28.9 percent year-on-year in the first quarter of 2019, making the US the largest importer of Vietnamese goods. In addition, Vietnam’s collection of free trade agreements (FTAs) has helped the country integrate with global trade flows; the recent ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and European Union – Vietnam Free Trade Agreement (EVFTA) will ensure Vietnam continues to grow.
Many foreign investors are interested in importing and exporting – these investors should make understanding current trade conditions and regulations a priority. In this issue of Vietnam Briefing magazine, we examine Vietnam’s import and export landscape and the top sectors for trade. We then look at import and export procedures, including business models that investors should explore for importing and exporting. We finally conclude with an introduction for duties, exemptions, and tax rates that traders need to be aware of.
This magazine is based on Dezan Shira & Associates many years of experience supporting foreign enterprises in Vietnam. Importers and exporters will find a conducive trade environment in Vietnam with its relatively low costs and stable government policies. Still, we hope this magazine will help you develop your import and export operations in the country.