How to Import Food into Vietnam: Ultimate Guide 2024

Importing food into Vietnam plays a crucial role in satisfying the country’s growing demand for diverse and high-quality food products. As Vietnam’s population grows and urbanisation increases, the local agricultural sector is sometimes unable to meet the needs of consumers.

This is particularly true for certain staples like meat, dairy, and fruits, which may be in short supply due to production limitations or seasonal fluctuations. Imported foods, especially from countries like the United States, Australia, New Zealand, and the European Union, help fill this gap, ensuring that consumers have access to a stable and varied supply of food.

One of the driving factors behind food imports is the changing lifestyle and rising incomes of the Vietnamese population, especially in urban centres like Ho Chi Minh City and Hanoi. As more people seek higher-quality or premium products, the demand for imported foods has surged. Items like beef, cheese, and temperate fruits, which may not be widely available or produced domestically, are increasingly popular.

With this in mind, this article looks at how foreign firms can go about importing food into Vietnam.

Using a local distributor in Vietnam

Firms that want a quick and easy solution to import food into Vietnam may find engaging a local trading company the most effective way forward. This is a simple transaction whereby goods are shipped to the local trading company which takes care of the logistics from the port of arrival onwards. This does, however, give firms little control over their goods after they arrive in Vietnam.

Finding a distributor

Professional business matchmaking services in Hanoi and Ho Chi Minh City are a dime a dozen. Most consultancies offer these services and can advise on the right distributor for your product as well as negotiate terms.

For firms that would like a little more control over their goods after they arrive in Vietnam, establishing a local presence is always an option.

Establishing a trading company

Establishing a trading company in Vietnam gives a firm the power to both import and export food as well as distribute those foods within Vietnam. 

Note that, a trading company is generally formed the same way as any other foreign-invested enterprise. The ‘trading company’ designation is simply a means of notifying the authorities as to the nature of the business conducted.

Wholly foreign-owned trading companies in Vietnam

A wholly foreign-owned trading company in Vietnam allows a foreign investor complete control over the company’s operations. It is, however, generally more costly and time-consuming.

Specifically, before they can apply to register a business, foreign entrepreneurs who want to set up a wholly foreign-owned company will need to first apply for an Investment Registration Certificate (IRC) which they do not have to do with a local partner.

Joint venture trading companies in Vietnam

With a local partner foreign business persons do not need to file for an Investment Registration Certificate, but rather the Vietnamese partner establishes the company and the foreign investor buys a share. In this sense, working with a local business partner can considerably reduce setup costs and application processing times. 

Packaging and Labelling

Vietnam has a number of packaging and labelling requirements. These are outlined in Decree 43/2017/ND-CP with amendments to said decree made in Decree 111/2021/ND-CP. Labels for products sold in Vietnam must include:

• The name of the goods;
• The name and address of the organisation or individual responsible for the goods; and
• The origin of goods.

There are also additional labelling requirements for different products. For food products, importers must also include on the product labelling the:

• quantity,
• date of manufacture,
• expiry date,
• ingredients and ingredient quantities,
• warnings (if necessary),
• usage instructions, and
• storage instructions.

On a practical level, this often means a sticky label in Vietnamese applied over the information printed on the original packaging.

Shipping to Vietnam

Once you have established your trading company in Vietnam the next step is shipping your goods. If you’re using a local distributor, they will provide you with the delivery details and advise you on the best way to ship your goods. If you have set up your own trading company, however, then there are a number of means by which you can get your goods into Vietnam.

Airports

Airfreight is popular for high-value and perishable goods. Fresh fruits and vegetables or high-value foods can be most efficiently delivered via air freight to one of Vietnam’s many international airports. Most international logistics companies service Vietnam–DHL and FedEx, for example. These companies usually fly to the big cities, Hanoi and Ho Chi Minh City, however, they may also sometimes fly to regional airports if demand warrants it and facilities can accommodate international air freight.

Seaports

For non-perishable items, or bulky low-value items, sea freight is likely the most effective option for shipping goods to Vietnam. Vietnam has approximately 36 ports scattered along its coastline. However, Hai Phong and Ba Ria-Vung Tau are by far the largest and can accommodate the biggest volume of goods. These service key manufacturing hubs in northern Vietnam and southern Vietnam respectively.

Land crossings

Firms that are shipping food to Vietnam from within Asia could also use one of Vietnam’s many land borders. This is common for firms where Vietnam is a part of a longer supply chain. For example, nuts grown in Cambodia might be shipped to Vietnam for processing. There are a number of land border crossings connecting Vietnam to its neighbours scattered along its northern and western borders.

Customs procedures on arrival in Vietnam

When goods arrive in Vietnam, as they must anywhere else in the world, they are subject to customs inspection. Customs procedures in Vietnam are governed by the Law on Customs.

Paperwork

Firms importing foods into Vietnam need to complete and submit a dossier of documents before the importation can be approved. This can in most cases be submitted online. It will include information on what the goods are, where they are from, their value, and a number of other details. The Vietnam National Trade Repository offers a detailed description of each item that is required.

Tariffs

In recent years, Vietnam has signed on to a number of free trade agreements that have reduced barriers and tariffs almost in their entirety for countries that are party to these agreements. 

Import-export licences

Most imports do not require an import licence, however there are a few areas where they do apply. These are detailed in the appendices of Decree 69. Generally, they cover sensitive materials like explosives or chemicals, publishing equipment and materials, and input materials for the agricultural sector–fertiliser and stock feed for example.

Priority customs treatment in Vietnam

Priority customs treatment in Vietnam is a way to fast track customs procedures for importing and exporting goods, out of and into Vietnam. Essentially this reduces the time goods spend in Vietnam’s ports and, depending on the volume of trade a business is doing through said ports, can be a significant time-saving measure. This incentive program is outlined in the Law on Customs 2014 but is implemented through a series of decrees and circulars.

Warehousing in Vietnam

In the event an importer needs to store their goods before they are shipped to the end consumer there is an abundance of warehouse space in Vietnam.

Average warehouse rents Vietnam, per square metre

Source: CBRE Market Insights

Cold storage in Vietnam

A surging middle class has seen demand for fresh foods soar in Vietnam. In particular, dairy products have become very popular in Vietnam, with the country importing US$438 million worth of milk and milk products in the first five months of 2024. These goods, however, need to be kept cool and as a result, cold storage warehouses in Vietnam are proliferating.

Of note, Ken Research estimates that Vietnam’s cold chain industry could be worth as much as US$10.2 billion by 2026. This huge demand has seen a phenomenal boom in cold chain services in Vietnam with cold storage providers popping up all over the country. These are fairly easy to access through most reputable logistics service providers in Vietnam.

Import taxes in Vietnam

There are no specific import taxes in Vietnam, however, goods imported into the country may be subject to Vietnam’s Value-added Tax (VAT).

Value-added tax (VAT)

The specifics of the VAT are outlined in Law No. 13/2008/QH12. Broadly, this is a consumption-based tax on goods and services in Vietnam. It is generally charged at the point of sale, with regard to imports that are at the port of entry. VAT is generally charged at 10 percent of the sale price, though for select specialty items, it is only 5 percent, and some items are also exempt.

Imported food attracts the full VAT rate of 10 percent, however, if the food is resold or used in a cafe or food shop, the purchaser in Vietnam may be able to claim the VAT back. For accurate advice, firms looking to import food into Vietnam should contact a Vietnamese tax professional.

Post-customs

After clearing customs, importers are free to distribute their goods or store them as they see fit. Vietnam logistics firms have built up vast networks of warehouses in recent years that can be an economical means of storing imported goods. Alternatively, depending on the size of the shipment, firms may find it easier to ship directly to their retail outlets.

What’s next?

There are a broad range of tax agents, lawyers, market research firms, human resource professionals, and all-in-one consultancies in Vietnam that can assist entrepreneurs in importing foods and food products into Vietnam. Rules and regulations, however, are prone to change quickly. 

With this in mind, for up-to-date information on what is happening in Vietnam’s import and export sector at any given time, food producers looking to ship products to Vietnam should make sure to subscribe to the-shiv.