How to Maximise Import Duty Exemptions in Vietnam

Foreign investors in Vietnam may need to importscientific research and development of technology
components of their business not be readily availablewhich cannot yet be created domestically
in the local market.* Raw materials, supplies and components imported
Import duty rates regularly change so it is best tofor production under projects in the domains eligible
always keep abreast with the latest rates. Authoritiesfor special investment incentives or in geographical
however prefer businesses that do not importareas with especially difficult socio-economic
majority of their manufacturing needs from overseas.conditions or in the domain of manufacturing
Enterprises and business cooperation contract partiesmechanical, electric and electronic components and
doing business in the country are allowed theaccessories, are exempt from import tax for five
following import tax exemptions:years from the start of production
* Temporary imports for re-export or temporary* Goods which are manufactured, processed,
exports for re-importrecycled or assembled in non-tariff zones without
* Movable assets of organizations and individualsusing raw materials or component parts which are
brought into or from Vietnam within the permittedimported from abroad, upon import thereof into the
limitsdomestic market; in cases where raw materials and
* Exports or imports of foreign organizations andcomponent parts imported from abroad are used,
individuals enjoying diplomatic privileges and immunitiesupon import of goods into the domestic market,
in Vietnamimport duty must be paid on that part of the goods
* Goods imported for processing for a foreign partywhich is imported raw materials or component parts
which are exported or goods exported overseas forwhich form a constituent part of such goods
processing for a Vietnamese party which are* Plant varieties and livestock breeds permitted to be
re-imported pursuant to a processing contract. Theseimported for implementation of investment projects
imported articles shall be subject to a temporaryin agriculture, forestry and fisheries.
import duty but a tax refund may be claimed when* Goods imported for petroleum activities
the goods are exported* Shipbuilders are exempt from export duty with
* Goods which are imported in order to form fixedregard to exported seagoing ships and from import
assets of a project which is an encouragedduty with regard to machine and equipments to form
investment or of a project which is funded by Officialfixed assets, means of transport in technological lines
Development Aid, comprising equipment andand materials not yet domestically produced
machinery, specialized means of transportation of a* Import duty exemption for materials used in
technological line and means of transportation usedsoftware production which are not yet domestically
for transporting employees (including accessories), asproduced
well as components, details, separate sections, spare* Import duty exemption for goods imported for
parts, fittings and moulds, and raw materials anddirect use in scientific research and technological
materials used to manufacture the above stateddevelopment
goods; also construction materials which are not yet* Import duty and export duty exemption for
domestically producedmachinery, equipment and means of transport
* First-time tax exemption is granted to equipmenttemporarily imported into Vietnam for re-export by
imported for the formation of fixed assets offoreign contractors for construction works or official
projects eligible for investment incentives and officialdevelopment assistance-funded projects
development assistance -funded investment projects* Other goods and materials required for projects
in hotels, office buildings, apartments for lease,encouraged by the Prime Minister
houses, trade centers, technical service centers, golfAs part of its World Trade Organization membership
courses, tourist resorts, sport complexes,Vietnam has agreed to cut high import duty on
entertainment and amusement centers, medicaltraded goods. Imported goods to Vietnam consist
examination and treatment centers, training, andmainly of machinery and equipment, petroleum
cultural, financial, banking, insurance, audit andproducts, fertilizer, steel products, raw cotton, grain,
consultancy service establishmentcement and motorcycles.
* Goods which are imported for direct use in