VIETNAM GENERAL CONFEDERATION OF LABOR

TON DUC THANG UNIVERSITY

FACULTY OF BUSINESS ADMINISTRATION
INTERNATIONAL BUSINESS

FINAL REPORT
PRACTICES OF INTERNATIONAL TRADE

IMPORT ACTIVITIES
OF ELECTRONIC EQUIPMENT FROM
INDIA TO VIETNAM

Lecturer: Ms. Ta Hoang Thuy Trang

Group: 04 Shift: 4

TP. Hồ Chí Minh, Tháng 12 năm 2022

 GROUP MEMBER

Student’s Đánh
STT Nội dung thực hiện Ký tên
Name giá

Hoàng Thị Mỹ
1 - Chapter 1. (1.1, 1.2 & 1.3). 100%
Phương

Nguyễn Thị
2 - Chapter 3. (3.2 & 3.3). 100%
Diễm

Đỗ Nguyễn - Chapter 3. (3.1).

3 100%
Minh Phương - CONCLUSION.

Cao Thanh - INTRODUCTION.

4 100%
Huyền - Chapter 2 (2.3).

- CHAPTER 2. (2.1.1, 2.1.2

Đoàn Hồng
5 2.1.3, 2.1.5 & 2.1.6). 100%
Phương

- ACKNOWLEDGEMENT.
- Chapter 2 (2.1.4).
Nguyễn Lý Tú
6 - Chapter 3 (3.2). 100%
Ngân
- Formating edition.

2
 EVALUATION OF INSTRUCTOR LECTURE
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3
 ACKNOWLEDGEMENT

First of all, with the deepest and most sincere feelings, we ask for the
opportunity to express our gratitude to all the individuals and organizations that have
facilitated and helped our group throughout the learning and research process of this
topic.

During the time from the beginning of researching the topic to the presentation,
the team has received a lot of attention and help from the lecturer Ms. Ta Hoang Thuy
Trang, thanks to their guidance, the research topic of my group could be better.

With the deepest gratitude, our team would like to thank Ms. Pham Thi Ngan,
Head of International Business at Ton Duc Thang University, for giving us the
opportunity to study and interact with the practices of international trade.

The initial step into the implementation of the group still has many difficulties,
so we cannot avoid the shortcomings. We are looking forward to receiving valuable
comments from our teachers so that our knowledge in this field will be complete.

We sincerely thank you!

Ho Chi Minh City, 14th December 2022

Implementation’s student – Group 4

4
 CONTENTS
ACKNOWLEDGEMENT ........................................................................................ 4
INTRODUCTION ..................................................................................................... 7
CHAPTER 1: OVERVIEW OF IMPORT IN VIETNAM .................................. 8
1.1. Overview of electronic equipment imports in Vietnam ....................................... 8
1.2. Overview of the Indian electronic equipment export market .............................. 8
1.3. The role of importing electronic equipment for Vietnam .................................... 8
CHAPTER 2: ANALYSIS OF IMPORTING ELECTRONIC EQUIPMENT
FROM INDIA TO VIETNAM BY AIR ................................................................ 10
2.1. Procedure for importing by airplane in Viet Nam ............................................. 10
2.1.1. The seller and the buyer sign an international sales contract ........................ 10
2.1.2. Loading and shipping to the airport ................................................................. 12
2.1.3. Receiving the shipment at Vietnam airport ( SGN) ....................................... 13
2.1.4. Customs clearance for electronic equipment imports in Vietnam................ 15
2.1.4.1. Import license for electronic equipment into Vietnam ......................... 15
2.1.4.2. The import clearance in Vietnam and documents ................................ 16
2.1.4.3. Time and time limit for customs clearance .......................................... 18
2.1.4.4. The responsibilities of the parties when declaring customs ................. 18
2.1.5. Take the goods out of the port and deliver them to the warehouse of the
customer.......................................................................................................................... 19
2.1.6. Payment procedures ........................................................................................... 19
2.2. Vietnam import activities and price ................................................................... 19
CHAPTER 3: THE SOLUTION TO IMPROVING IMPORT ACTIVITIES . 21
IN VIETNAM .......................................................................................................... 21
3.1. SWOT analysis of the electronic equipment import process ............................. 21
3.1.1. Strength (S): ........................................................................................................ 21
3.1.2. Weakness (W): .................................................................................................... 21
3.1.3. Opportunity (O): ................................................................................................. 21
3.1.4. Threat (T): ........................................................................................................... 21
3.2. The import situation of goods in Vietnam in 2022 ............................................ 22
3.3. The solution to improving the import activities in Vietnam .............................. 23
CONCLUSION ........................................................................................................ 24
REFERENCE .......................................................................................................... 25

5
 LIST OF FIGURE
Figure 1.1. Top industries Vietnam import in 2021 .................................................... 9
Figure 2.2. The import process from India to Vietnam by air .................................. 10
Figure 2.3. The Air waybill ....................................................................................... 11

LIST OF DIAGRAM
Diagram 2.1. The process of importing goods in Vietnam ....................................... 13

LIST OF DIAGRAM
Table 2.1. Total cost in Domestic and International of the shipment ....................... 20

6
 INTRODUCTION
Globalization, along with international economic integration, has been taking
place like a wave around the world and has become an inevitable trend of the times.
Through foreign trade, countries are linked together and goods are moved from one
country to another. Along with domestic and international transportation activities,
import and export freight forwarding has become a very important stage in the freight
transport chain, it not only creates favorable conditions to promote and expand trade
but also significantly contributes to import and export business. In line with that trend,
Vietnam has actively participated in the international economic integration process
and achieved many remarkable achievements.
The VN PROJECTS Company is a typical example of professionalism,
dynamism, and creativity in the process of adapting to the transformation of the
economy with experience in the fields of freight forwarding, importing, and exporting
by air. Therefore, this report has selected the VN PROJECTS company as a place to
learn and practically approach the processes and procedures of importing and
exporting goods by air. From the experience gained by our team, we can make some
recommendations to help improve this business process in the future. Besides the
introduction and conclusion, this report is divided into three chapters:
Chapter 1: Overview of Import Activity in Vietnam
Chapter 2: Analysis of Importing Electronic Equipment from India to Vietnam
by Air
Chapter 3: The Solution to Improving Import Activities in Vietnam

7
 CHAPTER 1: OVERVIEW OF IMPORT IN VIETNAM
1.1. Overview of electronic equipment imports in Vietnam
By the end of the first four months of 2020, the import turnover had reached
17.58 billion USD, an increase of 11.45% over the same period in 2019, and 22.52%
of the nation's total import turnover. By the end of 2021, Korea, China, Taiwan, Japan,
the US, and ASEAN nations will be the key markets from which our nation imports
computers and electronic components. Over 90.24% of the nation's entire import
turnover for this item in 2021 will come from these markets. While India is Vietnam's
principal import and export market, India ranked 10th among Vietnam's import
markets in 2021, with imports of US$6.95 billion. India's imports climbed by around
2% in the first eight months of this year, placing it ninth in the markets. India is a
significant source of imports for Vietnam. India quickly became a member of the club
of import markets above 1 billion USD (since 2009) and has grown steadily ever
since. There are numerous commodities exported to India 10 of the 28 significant
products, including many phones and phone parts, computers, electrical products and
components, and machinery, have a market value of over $100 million USD.
1.2. Overview of the Indian electronic equipment export market
Domestic electronics production in India increased from $29 billion in 2014 and
2015 to $67 billion in 2020 and 2021. India is regarded as a prominent manufacturing
hub about 3.4% of India's GDP is derived from the country's electronics industry.
India ranks among the top exporters of electronic equipment services, making up
around 56% of the worldwide outsourcing industry. The value of India's software
service exports (excluding those resulting from commercial presence) is predicted to
have climbed by 17.2% to US$156.7 billion in the years 2021 and 2022. India
exported $2,009.07 million worth of electronics in September 2022, up 71.99% year
over year. Indian electronics exports will reach $120 billion dollars by 2026,
according to the Ministry of Electronics and Information Technology.
1.3. The role of importing electronic equipment for Vietnam
There are numerous other economic sectors that are experiencing considerable
growth in Vietnam, despite the fact that the country is well-known for being a top
destination for investors working in the textile industry. Interestingly, with multi-
billion dollar investments from businesses like Samsung, LG Electronics, Nokia, and
Intel, Vietnam is well on its way to becoming a major hub for high-technology
production. As a result, it is crucial to import electronic components needed for this
industry's development, production, and research. In 2021, Vietnam imported the
most electronic goods in all categories. For international technology companies
looking to establish facilities in Vietnam and sell their components to businesses like
Samsung, this creates a significant financial opportunity.

Figure 1.1. Top industries Vietnam import in 2021

9
 CHAPTER 2: ANALYSIS OF IMPORTING ELECTRONIC EQUIPMENT
FROM INDIA TO VIETNAM BY AIR
2.1. Procedure for importing by airplane in Viet Nam

Figure 2.2. The import process from India to Vietnam by air

The process of importing electronic items from India to Vietnam by air. After
the two parties agree and sign a sales contract under EWX terms. The seller in India
is obliged to prepare the goods exactly as agreed upon by the two parties. A subsidiary
of Vietnam Project in India is responsible for picking up goods from the seller's
warehouse and transporting them to the airport. At the same time, prepare the
necessary documents for this shipment in the exporting country. After the goods
arrive in Vietnam, Vietnam projects does the procedures to receive the goods at the
airport and deliver it to the customer's warehouse. Customers receiving goods are
obliged to pay for Vietnam projects as in the contract.
2.1.1. The seller and the buyer sign an international sales contract
Step 1: After completing the contract, the buyer is required to contact the
exporter in India to provide all information about the electronic shipment to be
imported to VN PROJECT company specific, the international sales contract, the
packing list, the invoice, and the estimated delivery time (other documents, if any).
The Vietnam Project Transport Co., Ltd. (VN PROJECTS) is a company that
specializes in transporting large and oversized cargo, chartering ships whole or in part,

10
chartering aircraft for project-related travel, shipping containers, and conducting
surveys of roads and machinery.
The main lines of business are project forwarding, chartering and handling for
oversized, heavy-lift cargoes, ship-brokering for general cargo vessels, bulkers,
tankers, containers, and tugs general forwarding, LCL, FCL, air freight, multimodal
transports, insurance.
Step 2: VN PROJECT's subsidiary will prepare a Certificate of Origin to supply
to the parent company in Vietnam. Also, proceed to contact the airline to book
transportation from India International Airport in Ahmedabad (INNAMD4) to Ho
Chi Minh City, Vietnam (SGN). The expected arrival date is May 12, 2022, with a
departure date of May 9, 2022. Select your carrier, flight, and shipping locations. A
booking note with the airline or the main contents of the booking note will include
the following:
- Name of the consignor: authorized representative of Vietnam Project Company
in India.
- Consignee: Vietnam Project Company's Representative in Vietnam.
- Description of goods: electronic equipment.
- Port of loading: INAMD4 (Ahmedabad).
- Port of discharge: SGN (Ho Chi Minh City)
- Weight: 95.4 KGS

Figure 2.3. The Air waybill

11
 2.1.2. Loading and shipping to the airport
Step 1: Transfer of responsibility for exporting the shipment
VN PROJECTS will assign its subsidiary in Ahmedabad, India, to take charge
of this shipment for the exporting country. Specifically, the subsidiary will rent a
truck to the seller's warehouse, the address is MultiSpan Control Instruments Private
Limited, 72B, Phase 1, GIDC, VATVA, Ahmedabad. At the same time, hire an
unpacking service from the mode of transportation.
Step 2: Unloading and shipping the shipment
Upon arrival at the warehouse, two personnel of the means of transport will
contact the customer and be responsible for safely unloading the goods onto the
vehicle and transporting it to the airport (INAMD4).
Step 3: Ship goods to the airport
When the goods arrive at the airport, VN PROJECT staff will be there, unload
the goods from the truck and put them in the airport's warehouse. Here, the people of
the airport will re-weigh the goods, get the actual data, and charge the fee. After that,
VN PROJECT staff will receive the new information, correct the information, and
transmit the customs declaration according to the new data. The required documents
are:
- Referral
- Sale contract
- Commercial invoice
- Packing List
- C/O certificate of origin of electronic goods
- Export license
- A manifest, made by forwarders when they collect many odd shipments and
send them together in a master bill of lading (MAWB).
Along with this set of documents, carry out customs procedures for export goods.
After the goods have been cleared, the Vietnam Project staff submits the customs
clearance declaration to the airline, who signs it for actual export with the supervising
customs.After receiving the Airway Bill, the subsidiary of the Vietnam Project will
notify the parent company in Vietnam that the goods have been shipped with the
AWB soft file so that they can prepare the import documents.

12
 2.1.3. Receiving the shipment at Vietnam airport ( SGN)
Under the authorization of the goods owner (AUTOMATION SOLUTION A
COMPANY LIMITED ED ASOLA CO.LTD.), Vietnam Project Company performs
import customs procedures in Vietnam (the importing country) as follows:

Receive and check Custom clearance

Receive and check
A/N and check the for electronic
the accurate of the
D/O form the shipping equipment import
documents
line in Vietnam

Delivery to
Take the goods out
Payment procedures customer
of the port
warehouse

Diagram 1.1. The process of importing goods in Vietnam

Step 1: Receive and check the accuracy of the documents
In terms of importing, CHB Department Staff is in charge of obtaining a set of
documents from the customer via email, which comprises:
- B/L Telex Release: 1 original copy.
- Sale contract: 1 original copy or certified true copy.
- Commercial invoice: 1 original copy or certified true copy.
- Packing List: 1 original copy or certified true copy.
- Import License : 1 original copy and 1 certified true copy.
- Phytosanitary Certificate (if any): 1 original copy and 1 certified true copy.
- Certificate of Origin (if any): 1 original copy and 1 certified true copy.
- Certificate of Analysis (if any): 1 original copy and 1 certified true copy.
- Insurance contract (if any): 1 original copy and 1 certified true copy.
- Other documents: Inspection application form, memorandum of deposit, etc.
Step 2: Receive, check the A/N, and check the D.O. from the shipping line
Before the ship arrives, the staff of Vietnam Projects receives the A/N from the
agent in the exporting country via fax, telex, or email. Here is the main content of
A/N:
- Consignee's name.
- Vessel/number of itineraries.

13
 - Shipped in advance by.
- AWB number.
- The Shipment.
- Number of packages or containers.
- Total weight.
- Date of sending the A/N to note to avoid disputes.
- Fee conditions.
- The airline will penalize the consignee if the goods are not picked up within the
storage period specified on the A/N.
- Receive and check D/O from shipping lines.
The operator will prepare a set of documents to receive D/O, including:
- Introduction letter of the importing company (original).
- Air way bill.
- Arrival Noticed (A/N).
- Citizen's identity card (photocopy).
The operator must put the document in the command box and wait. Then the
shipping line officer will present an invoice for the payment process. The operator
will bring this invoice to pay fees such as delivery order fee (DO), handling fee, and
labor fee.
After payment, shipping lines will issue D/O (the number of delivery orders
depends on the regulations of that shipping line). The operator's signature will be kept
by the shipping line to verify that the order has been delivered to the forwarder. The
operator will then receive the D/O and verify important information, such as:
- Train/Trip.
- Airway bill number.
- Port of loading.
- Port of discharge.
- Shipper.
- Consignee.
- Number of bales.
- Total weight.
- Description of goods.
- HS code.
In the event of an error, the airline must correct it as soon as possible to avoid
issuing invalid documents. The Vietnam Project will send an electronic delivery order
to the importer after receiving the D/O from the airline.

14
 2.1.4. Customs clearance for electronic equipment imports in Vietnam
2.1.4.1. Import license for electronic equipment into Vietnam
The shipment of imported electrical and electronic equipment for sale in the
Vietnamese market must comply with all legal requirements for labeling. In
compliance with the requirements of the technical regulations, it must also be
certified as conforming to regulations and display the QR code. At the same time, it
is put under severe scrutiny by reputable organizations that check the quality of
products and items.
Customs clearance procedures are carried out, and electronic equipment is
imported for use in the Vietnam market.In accordance with the rules established by
the Ministry of Science and Technology, firstly, we should inspect the quality of
imported shipments of electrical and electronic equipment. The procedures for
applying for a license to import electronic equipment are carried out through the
following steps:
Prepare documents: An enterprise importing electronic equipment prepares a
dossier consisting of the following papers and documents:
- Paper register for state inspection of the quality of imported goods and commit
that the quality of goods conforms to technical regulations and announced applicable
standards as prescribed.
- Copy of the purchase order or contract and list of electronic equipment (if any)
- Commercial Invoice.
- Packing List.
- Airway Bill.
- Declaration of imported electronic equipment (if any).
- Quality certificate of the exporting country (quality certificate, test results).
- CFS certificate of free sale (if any).
Submit application to competent authority: Organizations and individuals
submit dossiers to the product and goods quality inspection agency chemical after
preparing the file.
The inspecting agency certifies the registration file for electronic equipment
quality inspection and electronic device clearance.
Within one working day, the inspection agency is responsible for certifying the
importer. The importer has registered for quality inspection of imported electronic
equipment on the registration form. The importer submits a copy certified by the
inspection agency to the customs office for permission to clear the goods.

15
 According to regulations, the importer must submit to the inspection agency the
results of a self-assessment of conformity within 15 working days of the date of
customs clearance of the goods. The importer must take full responsibility for the
results of the self-assessment of conformity and ensure that the equipment conforms
to the announced applicable technical regulations and standards.
In case the electromagnetic equipment does not conform to the announced
applicable technical regulations and standards, the importer must promptly report it
to the inspection agency and, at the same time, organize the handling and recall of
electronic equipment according to the regulations and provisions of the law.
2.1.4.2. The import clearance in Vietnam and documents
Vietnam Customs classify goods under three types of flow, including green
flow, red flow, and yellow flow.
Customs procedures for importing green flow: Submit the AWB and customs
declaration to the warehouse that is monitoring customs. After that, go to the counter
to see the barcode and get the order number to receive the goods. Warehouse staff
sign for delivery.
Customs procedures for importing yellow flow: Prepare documents,
including: a declaration, an invoice, a packing list, a MAWB/ HAWB, a tax payment
receipt, an introduction, a license, or specialized examination paper. Submit the
application and wait to assign the declaration, wait there when the company is
announced then come to receive the declaration, and then submit it to complete the
procedures. Printing the barcode and liquidating documents, including: the customs
declaration, the barcode, and the air waybill. Wait for the order to be picked up and
sign to receive the goods.
Procedures for customs clearance for air red flow: Prepare documents,
including: a declaration, an invoice, a packing list, a MAWB/HAWB, tax payment
receipt, an introduction, a license, or a specialized examination paper (if any).
Following that, submitted the dossier and registration form for inspection, had them
stamped, and am now awaiting the inspection to begin. Bring the registration form
and bill down to the warehouse monitoring room. Check the barcode on the bill
counter to get the order of receipt. Receive goods from the warehouse, take goods out
for inspection. Invite the customs officers assigned to inspect the goods to inspect the
goods and pay import tax via air. After the customs declaration is processed, return
the declaration. Customs clearance inspection officers then print the barcode.
Document citations such as declaration, barcode, and air waybill.

16
 Imported machinery and equipment is divided into 2 categories: 100% new and
used goods.
Procedures for importing 100% new machinery and equipment are included in
the customs declaration, which includes:
- Commercial Invoice.
- Commercial Contract.
- Packing list.
- Air waybill (AWB).
- Customs declaration of imported goods.
- Certificate order (C/O).
For 100% new goods, the customs file is quite simple, just go to the customs
clearance tax declaration and pick up the goods.
The procedures for importing used machinery and equipment: Imported used
equipment must satisfy the following conditions: The equipment life should not
exceed 10 years. In order to determine the life of equipment or machinery, in addition
to providing complete information on paper records, the enterprise must then register
at centers for determining the age of equipment (at the port of importation). Customs
declaration includes:
- Application for guardianship of imported machinery and equipment.
- Commercial Invoice.
- Commercial Contract.
- Packing list.
- Air waybill (AWB).
- Customs declaration of imported goods.
- Documents demonstrating that the equipment is less than ten years old.
- Certificate of origin, if any, is required to enjoy import tax incentives.
In addition to the import dossier as prescribed by the Customs Law, one
additional set of documents must be added, including:
For used equipment under regulated investment projects: one certified true copy
of the Investment Policy Decision or Investment Registration Certificate, enclosed
with one original of the list of used equipment in the project. import in the project
file.
For other cases of importing used equipment: one original of the manufacturer's
certification of the year of manufacture and production standards of the used
equipment and one original of the certificate of supervision by an inspection body are
appropriate.

17
 This goods should be brought to the warehouse for storage and wait for the
certificate of inspection results to be sent to customs clearance, in order to avoid the
case of excessive storage containers causing costs to be inflated.
2.1.4.3. Time and time limit for customs clearance
The time limit for submitting the customs declaration is prescribed as follows:
For imported goods, to be paid before the date of arrival at the border gate or within
30 days from the date of arrival at the border gate. And the time limit for submitting
customs declarations for means of transport also complies. The customs declaration
is valid for customs clearance within 15 days from the date of registration. The time
limit for submission of relevant documents in the customs dossier is prescribed as
follows:
In the case of an electronic customs declaration, when the customs authority
conducts the inspection of the customs dossier and the physical inspection of goods,
the customs declarant shall submit the paper documents included in the customs
dossier, except for those that have already been submitted and are included in the
national single-window information system.
In the case of a paper customs declaration, relevant documents must be
submitted or presented when registering the customs declaration.
2.1.4.4. The responsibilities of the parties when declaring customs
The general responsibilities of customs declarers when clearing customs
procedures: Declaration and submit the customs declaration, present or provide the
customs dossier with the required documentation. The shipments must be transported
to the designated site for a physical inspection of the items and vehicles. Finally,
follow all applicable tax, fee, and charge rules while paying taxes and fulfilling other
financial duties.
The obligations of the importer specifically are: Declare information on the
importation declaration within the allotted time frame. After that, follow the correct
processes for importing products. Importers are only allowed to put goods into
production and consumption after the imported goods have been cleared.
The customs authority is responsible for the following while performing
customs procedures: Obtain written notification of the location of the manufacturing
plant for exported items, the processing facility, and the storage facility for raw
materials, supplies, machinery, equipment, and finished goods. The customs officials
will then check for the processing and production of export items, as well as their
usage and inventory of raw materials, supplies, machinery, equipment, and
merchandise. In addition, handling tax-related matters for the kind of import, they

18
must obtain the organization's or person's final settlement report on the usage of raw
materials, supplies, machinery, equipment, and exported items (supplies and raw
materials used in the manufacture of export). The customs authority then reviews the
final settlement report based on the outcomes of customs information processing and
risk management criteria. The customs authorities must conduct a clearance
inspection and treat companies and people with suspicious information that indicates
indicators of commercial fraud in accordance with the rules. Lastly, put into effect
tax assessments and administrative sanctions for tax and customs law infractions in
accordance with the requirements of the tax law and the legislation on managing
administrative infractions.
2.1.5. Take the goods out of the port and deliver them to the warehouse of the
customer
After completing the procedure of receiving goods at the airport, the Vietnam
project company will hire a vehicle to transport the goods from Tan Son Nhat airport
to the company of the customer at address 417/96/2 Quan Tru Street, Ward 10, Go
Vap District, Ho Chi Minh City, Vietnam. The carrier is responsible for unloading
and ensuring the safety of the goods when they are delivered to the recipient.
2.1.6. Payment procedures
After delivering the goods to the customer's warehouse, the employee in charge
of this contract will send the final settlement, shipping documents, invoices, and
receipts to the accounting department. The accounting department will then verify
that the payment matches the invoice and other paperwork. After that, the Accounting
Department will make a payment request and send it to the director to sign for
approval to claim the money back from the customer.
The staff takes a set of papers to return to the customer and copies 1 set for
preservation, including: Customs declaration, delivery order, air way bill, trade, other
invoices and delivery receipt.
2.2. Vietnam import activities and price
After summing all costs such as Air freight charges, Transportation charges and
other charges. Estimating the cost for this entire shipping process. Below is the price
quotation that is required for the shipment of electronic equipment.

19
 Table 2.1. Total cost in Domestic and International of the shipment

Amount/ Amount
Description Qty Unit
Qty (USD)

Air freight charges 100.000 PER KG 3.50 350.00

AMS 1.000 PER AWB 18.00 18.00

AWB fee 1.000 PER AWB 10.00 10.00

Customs clearance fee 1.000 PER SHIPMENT 81.00 81.00

Airline MISC 1.000 PER SHIPMENT 10.00 10.00

Transportation
1.000 PER TRUCK 50.00 50.00
charges

Handling charges 1.000 PER SHIPMENT 25.00 25.00

D/O fee 1.000 PER SHIPMENT 100.00 100.00

C/O Form (If any) 1.000 40.00 40.00 40.00

Source: By Author

20
 CHAPTER 3: THE SOLUTION TO IMPROVING IMPORT ACTIVITIES
IN VIETNAM
3.1. SWOT analysis of the electronic equipment import process
3.1.1. Strength (S):
Currently, technology 4.0 is developing more and more, so the demand for
electronic devices is rising. This leads to an increasing import of electronic equipment.
Electronics are sensitive items, so choosing to ship by air is the safest and most
optimal way. Additionally, transporting electronic goods by air helps the importer
save a lot of time.
3.1.2. Weakness (W):
Although transporting goods by air saves time, the freight rates are very high.
Electronic goods are valuable items that are difficult to transport, so they are subject
to strict inspection by competent product and goods quality inspection agencies, not
to mention the process of disassembling and assembling products. The product is
quite difficult, time-consuming, and error prone. In addition, domestic enterprises are
small in scale, and lack technological capacity and management skills, so the
domestic consumer electronics market is dominated by foreign brands. Electronic
equipment is very popular and sought after, so it is heavily imported into Vietnam,
resulting in fierce competition in the country.
3.1.3. Opportunity (O):
Vietnamese consumers are particularly interested in foreign or imported items
because they think that goods brought in from other nations are superior in terms of
quality and safety and also more attractive. Currently in Vietnam, electronic
components are still limited in terms of production, most of which are imported from
abroad. Therefore, some types of components are provided with preferential import
tax policies by the state in the form of tax exemption or a very low tax. The state also
has policies and reforms to encourage more investment in the electronics industry,
especially in research and development.
3.1.4. Threat (T):
Because this is an electronic item, it is easy to damage it and have problems
with it during transportation. In addition, it is easy to make mistakes in the process of
disassembling and assembling the goods, which is very detrimental to transporters
because when the goods are faulty during transportation, they have to compensate the
customer. Currently, there are more competitors in the import market for electronic
equipment, which leads to small and retail distributors that may dump prices to attract
customers. In particular, when the policy on intellectual property rights is not

21
improved, updated, or tightened by the government, competitors in the industry will
circumvent the law and abuse them, which leads to the loss of intellectual property
rights and means that intellectual property is not guaranteed.
3.2. The import situation of goods in Vietnam in 2022
The amount of goods imported in May 2022 was 32.62 billion dollars, up 148
million dollars in absolute terms and a little over 0.5% in relative terms from the
previous month. It saw increases in a number of product groupings, including iron
and steel of all types (367 million USD), corn (211 million USD), and animal feed
and raw materials (211 million USD).
In addition, a number of commodity groupings had declines in the month prior,
including: Computers, electronic devices, and components, which fell by 593 million
USD, crude oil, which fell by 449 million USD, and all types of phones and
accessories, which fell by 378 million USD.
In the first five months of 2022, the country's overall import value of products
increased by 15.3%, or by $20.26 billion, to reach US$152.86 billion, up from the
same time in 2021. In which commodity groups such as computers, electronic
products, and components increased by 8.25 billion dollars, all types of gasoline and
oil increased by 2.32 billion dollars, coal increased by 1.68 billion dollars, and phones
and accessories increased by 1.24 billion dollars, the biggest increases were seen.
Importing plays an important role in Vietnam. Import activities not only
contribute to the promotion of economic efficiency but also promote the processes of
industrialization and modernization in Vietnam. Besides, import activities, there is
also the association between the domestic market and the international market.
However, according to Vietnam's Ministry of Industry and Trade, the import
and export of chemicals in the Vietnamese market continue to face specific challenges,
such as record-high inflation in most countries, which causes consumer demand for
non-food products. Imports are affected, causing a decrease in the demand for
imported goods from other countries, affecting the economic recovery, reducing the
demand for goods and affecting new investment.
In addition, supply chain disruptions are expected to continue, reducing the
recovery of economic, investment, and trade activities after COVID-19. In addition,
the price of essential goods and freight rates, although showing signs of decreasing
but still at high levels, will negatively affect the recovery of global economic growth,
creating difficulties for the economy and trade. global trade in general, including
Vietnam's import and export activities.

22
3.3. The solution to improving the import activities in Vietnam
There are many measures to improve import activities in Vietnam. Firstly, the
state should support the search, supply, and updating of a regular list of distributors,
exporting raw materials for textiles and garments, leather shoes, computers, and
materials for the production of chemicals, wooden furniture, and steel. Moreover, we
are ready to support the trade associations, and businesses connected to foreign
suppliers as required. Secondly, there is the research and promotion of essential
import materials for the production of labor-producing goods such as textiles, leather
shoes, and electronics, especially focusing on small and medium enterprises that have
no experience in import transactions. In addition, closely monitoring the situation of
the import, detecting murderers and misconduct as the cause, and actively advising
and implementing timely measures to strengthen the management and control
suitable for international commitments. Thirdly, the state should promote the
simplification of administrative procedures, complete institutional and investment
environments to facilitate and reduce costs for the enterprise. In addition, scrutinize
and improve the mechanism of management of import activities, strengthen the
examination of law enforcement, promptly detect issues argued for, propose the
editing or supplementation of the appropriate practical, and provide information and
legal support for enterprises related to import activities. Fourthly, it is necessary for
Vietnamese businesses to develop warehousing and distribution channels. In Vietnam,
the warehouse system and distribution channels are very poorly developed. But
warehousing and distribution channels play a great role in getting these products to
consumers. So government and non-government organizations as well as businesses
should take proper steps to improve the condition of warehouses and distribution
channels. Then the consumers can get the goods cheaply. Fifthly, Vietnam should be
establishing an import substitute industry. To increase the production of local
products, the establishment of import substitute industries is a must. As a result, the
rate of imports will be reduced and the trade balance will be equal. Finally, it is
necessary for the government to check corruption in the import trade. Some dishonest
importers are involved in corruption. They are involved in expanding imports, under-
invoicing, and many other dishonest activities. Reducing these activities requires
governmental honesty as well as lawful activities and willingness. By checking for
corruption in the import trade, consumers can get the products easily and cheaply.

23
 CONCLUSION
The manufacturing and trade activities in Vietnam were severely impacted by
the COVID-19 pandemic and faced numerous challenges, which had a detrimental
effect on the import and export market in general as well as import specifically.
Managers and enterprises have enhanced import activities to meet customer demand
because workshops and factories had to suspend production or even close for an
extended period of time.
Nowadays, electronic devices are an essential item and are increasingly used,
and the population uses electronics more and more. But in Vietnam, the production
of electronic machinery and equipment does not have a significant competitive
advantage, so businesses give priority to importing electronic goods to Vietnam and
then distributing or putting the finished goods into production. Due to Vietnam's still-
limited ability to create electronic equipment, the government has decreased or even
eliminated import taxes for some components. As a result, import turnover is rising
in Vietnam, particularly for electronic equipment.
Imports are essential to the stability and growth of each nation's economy.
Additionally, it helps to enhance the global balance of payments and achieve high
levels of workforce specialization. Consequently, imports are vital to our economy,
particularly as Vietnam moves toward integration and globalization. Importing
electronic equipment helps us economically and accelerates the digitization process
by integrating 4.0 technology with other nations.

24
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