Around US$1 billion worth of goods are being imported into Vietnam via e-commerce sites that are not being taxed, according to Vietnam’s Ministry of Industry and Trade. It has suggested an exemption from VAT and import taxes on goods with a value of less than VND 1 million or about US$40 is unfair on local businesses and should be abolished.
Low-value Chinese-made goods are all over Vietnam’s major e-commerce sites and can be exported from China and arrive in Vietnam very quickly and easily given the two countries are so close. This proximity also means that shipping is relatively cheap too, and in this respect it does seem that the only real difference is that goods from China, with this exemption in mind, are cheaper.
Vietnam’s Value Added Tax is generally 10 percent, however, a policy reducing VAT to 8 percent as a COVID-era economic stimulus measure, has been extended several times and looks like it will be extended again at the current sitting of the National Assembly.
See also: Tax in Vietnam 2024: Quick Read