IE Singapore iAdvisory Seminar 2014

Export & Import Vietnam

Singapore, October 14th, 2014

Vu Duc Thinh
National Gateway Manager, DHL Express Vietnam
 Contents

1. Vietnam Overview

2. Vietnam Customs Clearance

3. DHL Express in Vietnam

4. Q&A

2 Export and import Vietnam| Singapore| October 2014

Vietnam Overview

General information:

Official Name: The Socialist Republic of Vietnam

Political system: Communist State
Capital name: Hanoi
Time zone: UTC + 7 hours
Area 331,210 sq. km
Population 90 million

Hanoi, Ho Chi Minh City (Saigon),

Major cities:
Haiphong, Da Nang

Principal rivers: Mekong, Red

Principal industries: Food processing, garments, shoes,

machine-building; mining, coal, steel;
cement, chemical fertilizer, glass, tires,
oil, mobile phones
3 Export and import Vietnam| Singapore| October 2014
Vietnam Overview

4 Export and import Vietnam| Singapore| October 2014

Vietnam at a Glance

Economy Overview (2013):

GDP total: $176 billion

GDP per capita: $1,960

GDP growth rate (%): 5.42%

Inflation 6.04%

Total exports: $132.2 billion

Total imports: $131.3 billion

FDI Inflow: $21.6 billion

Forex reserves: $32 billion

Currency: 1 USD= 21,246 VND

Economic Status World 42nd largest Economy

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Vietnam Trade: Import & Export

Import-Export turnover 2013 top 5 import market

180
24%
28.03%
160
154.4 7.01%
140
16.30%
132.2 8.83%
120 15.84%
114.6
100
96.3
80
China ASEAN Korea Japan EU Others
60 71.6

56.6 2013 top 5 export market

40

29% 18.46%
20
68.8 84 105.8 114.3 131.3 154
0 17.93%
2009 2010 2011 2012 2013 2014 E 9.91%
Export Import 10.29% 13.99%

Source: Vietnam General Statistics office/ General customs

EU USA ASEAN Japan China Others

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Vietnam Trade: Key Commodities

2013 Imported commodity 2013 Exported commodity

13.48% 16.26%

50.72% 14.17% 8.09%

46.52%

5.07%
5.33%

6.09%

13.54%
6.35%
4.16%
2.82%
2.28% 5.10%

Computer/Electronic device Machinery/tools Mobile phone and spare part Electronic

Fuel Mobile phone/spare parts Seafood Wood and products
Garment/shoes material Steel Garment/textile Shoes
Chemical Other Other

Source: Vietnam General Statistics office/ General customs

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 Vietnam–Singapore Trade

Relationship Facts
Viet-Sin trade 2010 - 2013 (US$ billion)

15
41 years official
relationship: 10.87
10.21 10.36
1973-2014
10
7.39
#3 FDI country; USD 30.3
billion; 1,266 projects; 5
3.06
2.25
1.61 1.66
US$ 8.4 billion in 2013
trade; 0
2010 2011 2012 2013

#6 market after CN, JP, US,

KR, TW; #1 in ASEAN -5
-5.78

24 daily flights -8.55 -8.11 -7.81

-10

Export Import Trade balance

Source: Vinh Phuc Industry and Trade Department

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CUSTOMS CLEARANCE
 Major law and regulations on import and export
Type Number Issuer Issued date Contents
The National
Law 54/2014/QH13 23/06/14 Law on customs
Assembly
Customs procedures, customs supervision and inspection, export tax,
Circular 128/2013/TT-BTC MOF 10/09/13 import tax, and administration of tax on exported goods and imported
goods
Stipulates regulations on customs procedures for products outsourced for
Circular 13/2014/TT-BTC MOF 24/01/14
foreign trader
Circular 22/2014/TT-BTC MOF 14/02/14 E-customs procedures for commercial exports and imports
Customs procedure for imports and exports sent via international air
Circular 100/2010/TT-BTC MOF 09/07/10
express delivery services
Circular 156/2011/TT-BTC MOF 14/11/11 Promulgating the list of Vietnam’s imports and exports
Guideline for implementing value added tax based on the import tariff
Circular 83/2014/TT-BTC MOF 26/06/14
shchedule
Promulgation of export tariff schedule and preferential import tariff
Circular 164/2013/TT-BTC MOF 15/11/13
schedule
Detailing the implementation of the commercial law regarding
The
Decree 187/2013/ND-CP 20/11/13 international goods sale and purchase and good sale, purchase
Government
processing and transit agency activities with foreign countries
Elaborating the implementation of the Government's decree number
Circular 04/2014/TT-BCT MOIC 27/01/14 187/2013/ND-CP dated 20 Nov, 2013, which elaborates the regulations
on international trade of law on commerce
Providing for temporary import for re-export, temporary export for re-
Circular 05/2014/TT-BCT MOIC 27/01/14 import, border-gate transfer of goods
On procedure for declaration, collection, payment of taxes, late payment
Circular 126/2014/TT-BTC MoF 28/8/14
interests, fines & other amounts payable upon export and import
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Clearance documentation

PACKING LIST

- Import licence
- Business licence
- Inspection licence
- Processing contract
- Commitment letter
- Certificate of origin
- Others (if any)

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Export - Vietnam Customs Regulations

 No duty / tax for exported shipments (except for minerals).

 Based on destinations’ regulations, attached to physical shipments.

quarantined shipments need to be passed to quarantine department and
have certificates

 Wooden items, made from wood in grade 1 and 2 ( precious / rare wood) are
prohibited to be exported.

 Repair / return items should have serial numbers shown on customs

paperwork for re-checking when shipments re-enter VN.

 Chemicals are required to have MSDS attached for verification.

 Items concerning the VN war ( Zippo lighters, prints, uniform etc) are
prohibited and will be seized by customs.

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Import modes

Types of Import Entry

Formal Entry Common Informal Entry Express Informal Entry

Machinery for Fixed

Temporary Import Document
Assets

Normal Informal
Processing for Export Deminimus import
Import

Manufacturing for Low value duty

Export import

Temporary Import High-value import

Re-direction for
immediate re-export

Normal Formal Import

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 Entry Type: Formal Import Entry

Type of Reason for Duty

For local use VAT Other requirement Payment Terms
Goods Import incurred

Yes
(if it can be manufactured locally)
Machinery for 1. Import License
Local Use Yes No NIL
Fixed Assets 2. Approval for Tax Exemption
No
(if it cannot be manufactured locally)

1. Processing Contract
All Processing No No No 2. Raw Material Monitoring NIL
For Eventual Re-Export
Sheet

No
All Manufacturing Yes Yes Export Contract within 275 days
For Eventual Re-Export

Import for No
All Yes Yes Export Contract within 275 days
immediate re-export For immediate Re-Export

Specified No Before Release of

Temporary Import Yes Yes Bank Warranty
Commodities For Eventual Re-Export Goods

Before Release of
All Commercial Uses Yes Yes Yes Bank Warranty
Goods

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 Entry Type: Common Informal Import Entry

Type of Reason for Duty

For local use VAT Other requirement Payment Terms
Goods Import incurred

1. Bank Warranty
Specified No Before Release of
Temporary Import Yes Yes 2. Import License
Commodities For Eventual Re-Export Goods
3. Others (if necessary)

1. Bank Warranty
Non-Commercial
All Yes Yes Yes 2. Import License NIL
Uses
3. Others (if necessary)

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 Entry Type: Express Informal Import Entry

Duties &
Import Category Type of Goods Value Limit Taxes Rate
Incurred

Document Document No limit No NA

a. Commercial Documents
Deminimus Entry VND 1 Million
No NA
Category 1 (L1) (USD48)
b. General Cargo

VND 1 Million (USD48)

Low Value Duty Entry
General Cargo to Yes As per HS Code
Category 2 (L2)
VND 20 Million (USD950)

a. General Cargo with value >VND 20 Million

(USD950)

b. Cargo requiring import licences/permits from a. > VND 20 Million (USD950)

High Value Duty Entry
appropriate authorities Yes Yes
Category 3 (L3)
b-d. VND 20 Million (USD950)
c. Cargo with restricted contents

d. Cargo with controlled commodities

Note: DHL Express acts as a liaison party between customs and importer
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Customs Clearance Practice in DHL Express Vietnam
Customs Clearance – 6 days a week, ( 0800 to 1700 Mon - Fri & Sunday)

Approximately 40% of dutiable inbound shipments are physically inspected.

Document shipments are randomly inspected if required.

X-ray machines are used for shipment screening, both Import & Export.

Inbound shipments can be cleared on a “Formal” or “Informal” basis depending on

Import licenses, business license & customer’s request

45 dedicated Customs Officers are assigned to work in DHL premises.

Censorship commodity like CDs, books, brochure will be inspected by censorship

authorities

Fabric which over 25m, textile product which over 2 pcs will need to go for quality
(formaldehyde) test

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OVERVIEW OF IMPORT PROCESS

Receives images of
shipment paperwork.

Reviews & approves Prints Manifest & submits

manifest to Customs.

Containers brought to Applies formal

Flight Classifies by Category
DHL facility direct from import mode.
arrival (1, 2, 3)
aircraft

Translates description &

classifies

Prepares all document &

Release ? Processes with Customs by paperwork, processes
categories (informal clearance) Customs clearance

NO YES

Contacts customer to Supports DHL to have

Holds. have information information supplement.
supplement.
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 Prohibited commodities (Import)

 Most of used or second-hand goods.

 Any advertising material for cigarettes or alcohol
 Antiques
 Asbestos
 Firearms or parts of
 Furs
 Gambling devices
 Ivory
 Military equipment
 Playing cards
 Pornography

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Commercial clearance – VNACCS/VCIS system

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DHL IN VIETNAM
DHL Express Within The Group

Corporate Center
GLOBAL
Post - eCommerce - Parcel (PeP) EXPRESS FORWARDING, SUPPLY CHAIN
FREIGHT

DHL CUSTOMER SOLUTIONS & INNOVATION

GLOBAL BUSINESS SERVICES

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DHL Express Vietnam Overview

26 02 10
Service locations 01
Dedicated Aircraft
Years in Vietnam Market Leader in
country as a
Pioneer of
Gateways International
express
134
Express Vehicles

1988 450 10
Established in Certified Active Customers with
Vietnam International new accounts every day
Specialists

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Unparalleled Infrastructure and Best in Class Operations
2 Gateways at the core of our operations

>97
Transit Performance
%
>98
Pre noon city delivery
%
1st Quality Control
QCC Center

TAPA certified with

3 more on the way

> 41
Cleared on arrival
%
- Service Center / Depot
- Gateway 2.5 mn shipments

- Dedicated Aircraft 19 mn kilograms

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Security Features

High Value Cage Customs Bonded Warehouse Security Control Center

• CCTV Surveillance System

• Facility equipped with intrusion and motion detection alarm system

E-Card Access System

• Security-trained Guards on duty 24x7

• Independent access gate into the General Area

• In-House Customs

Surveillance System

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Why choose DHL Express to and from Vietnam

Strong brand • Strong brand awareness, leading in Express industry in Vietnam.

Full express service
World’s largest
geographical network
Dedicated DHL Aircraft
• Time Definite services with various time options (Standard,
Express 9:00 am, Express 10:30 am, Express 12 noon, Same
day service)
• Genuine worldwide service coverage, reaching more
destinations than any other express carrier
• Next-day delivery to most Asian cities with over 40 ton payload
capacity 5 days a week

• Only charter flight with same day uplift

Earliest flight arrival • Flight arrival as early as 5:45 AM in the morning and latest flight
and latest flight cut-off take-off at 9:55 PM

Advance Custom • Only DHL Express is currently performing Sunday inbound

clearance clearance.

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HO CHI MINH SOUTH SERVICE CENTER

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HO CHI MINH NORTH SERVICE CENTER

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HO CHI MINH GATEWAY

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HANOI SERVICE CENTER

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HANOI GATEWAY

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THANK YOU