With a population of over 90 million, Vietnam can be a tempting market for international businesses. The average income (measured in GDP PPP per capita) was about $6,400 a year in 2016. However, income inequality gap is big. Rich people have the opportunity to access better education and more resources. According to World Bank’s report, 33% of the population stay in cities. Vietnam’s economy is growing.
What do we know about Vietnamese customers?
Vietnamese consumers are very keen on foreign goods. Commodities from other countries are perceived to have higher quality and more desirable. Consumption is focused in major cities such as Ho Chi Minh City and Hanoi and one-eighth of the population stays in these cities. Healthcare, food safety, and children’s education and future, are among the top concerns in Vietnam. A complete market research will give you insights to strategize your expansion plan.
What do people import in Vietnam?
- Main imports in Vietnam are refined petroleum, telephones, and integrated circuits.
- Vietnam’s top import partners are China, South Korea, Japan, Singapore, and Thailand.
What are the major ports of Vietnam?
Vietnam has a number of seaports and airports. These will be the gateways for international businesses to enter the market.
Major ports of Vietnam are:
- Ho Chi Minh
Major airports of Vietnam are:
- Tan Son Nhat, Ho Chi Minh City
- Noi Bai, Hanoi City
What are the customs and tariffs regulations in Vietnam?
- International businesses exporting their products to Vietnam are subject to import taxes, VAT, and Special Sales Tax.
- Taxes are calculated based on the total shipping value, including product cost, insurance, and freight.
- VAT rate is 10%.
- Goods whose values are below one million dongs are exempted from import duties.
- Special Sales Tax can be from 10% to 65%.
What is the distribution structure in Vietnam?
Foreign businesses can distribute their goods through Vietnam’s structure of wholesalers and retailers. There are many wholesale markets in Vietnam. Retailers include a mix of traditional stores and modern shops. Major retail players are Saigon Coop, Citimart, Maximart. The retail industry accounted for $124 billion in 2013.
Knowledge of the customer base, major gateways, legal matters as well as the distribution structure will be beneficial to your expansion. Having a local partner will help you navigate around Vietnam’s market and ensure optimal results for your strategies.