Vietnam’s import tax rates range from 0% under 17 FTAs to 30%+ for non-preferential imports — the rate depends primarily on HS code classification and Certificate of Origin documentation. FDI companies in manufacturing zones that hold Export Processing Enterprise (EPE) status receive full import duty exemption on production inputs under Law 107/2016/QH13. Non-EPE companies pay MFN rates unless they qualify for FTA preferential treatment.
Getting the classification wrong costs more than paying the standard rate — customs audits apply retroactive reassessment plus 0.03% daily interest from the original import date.
Key takeaways
- 17 FTAs in force: CPTPP, EVFTA, RCEP, AKFTA, ACFTA, and others provide 0% or reduced rates on qualifying imports.
- EPE status = full import duty + VAT exemption on manufacturing inputs. The single biggest tax advantage for manufacturing FDI.
- HS code classification is the #1 customs audit risk. One digit difference can change the rate from 0% to 20%.
- Certificate of Origin (C/O) required for every FTA-preferential import. No C/O = MFN rate by default.
- Related-party import pricing faces customs valuation scrutiny — align with transfer pricing documentation.
Import Tax Framework
Tax Types at the Border
Importing goods into Vietnam triggers up to four tax types:
| Tax Type | Rate Range | Basis | Legal Framework |
|---|---|---|---|
| Import duty | 0-135% (varies by HS code) | CIF value | Law 107/2016/QH13 |
| Special consumption tax (SCT) | 10-150% | CIF + import duty | Law 70/2014/QH13 (amended) |
| Environmental protection tax | Fixed rate per unit | Quantity-based | Law 57/2010/QH12 (amended) |
| Import VAT | 10% (standard) | CIF + duty + SCT + EPT | VAT Law (amended 2024) |
Not all imports trigger all four. Standard manufacturing inputs typically face only import duty + VAT. SCT applies to alcohol, tobacco, automobiles, and luxury goods. Environmental protection tax hits plastics, chemicals, and selected fuels.
MFN vs Preferential Rates
MFN (Most Favored Nation): Default rates applied to goods from WTO members without FTA preference. Ranges from 0% (many raw materials) to 30%+ (finished consumer goods, automobiles).
Preferential rates: Reduced or zero rates under Vietnam’s 17 FTAs. Each FTA has its own preferential tariff schedule and rules of origin.
| FTA | Key Partners | Applicable C/O Form | Common Rate |
|---|---|---|---|
| EVFTA | EU members | EUR.1 or REX | 0-5% |
| CPTPP | Japan, Canada, Australia, Mexico | CPTPP | 0-5% |
| RCEP | China, Japan, Korea, ASEAN, Australia, NZ | RCEP | Varies |
| ACFTA | China | Form E | 0-5% |
| AKFTA | Korea | Form AK | 0-5% |
| AIFTA | India | Form AI | Varies |
Each FTA requires its specific C/O form. Using Form E (China-ASEAN) for goods that qualify under EVFTA applies the wrong rate — and vice versa.
EPE Import Exemptions
Export Processing Enterprises receive the most favorable import treatment in Vietnam’s FDI tax framework.
What’s Exempt
Export Processing Enterprises qualify for the following exemptions under Law 107/2016/QH13 and Decree 134/2016/ND-CP:
- Raw materials and components for manufacturing exported goods — 100% import duty exempt
- Machinery and equipment for production — import duty exempt as charter capital contribution
- Import VAT — exempt on all EPE-qualifying imports
Conditions for EPE Exemption
The exemption isn’t automatic. EPE companies must:
- Hold valid EPE status confirmed in the Investment Registration Certificate (IRC)
- Operate within a designated industrial zone, export processing zone, or economic zone
- Specialize in manufacturing products for export (Decree 35/2022/ND-CP)
- Maintain customs supervision records tracking import-to-export conversion ratios
- Report to customs authorities on inventory of bonded goods
Domestic sales by EPE companies lose the exemption — those goods incur import duty + import VAT as if they were standard imports. This strict separation catches companies that gradually shift toward domestic sales without adjusting their customs treatment.
EPE Customs Documentation
EPE imports follow a simplified customs procedure under Decree 08/2015/ND-CP (amended by Decree 59/2018/ND-CP):
- E-customs declarations via VNACCS/VCIS system
- No import license required for manufacturing inputs
- Periodic (monthly) customs finalization instead of per-shipment clearance
- Annual bonded inventory reconciliation submitted to customs by March 31
Companies establishing manufacturing operations in zones like Bac Giang, Binh Duong, or Long An should evaluate EPE status during the company registration process — the decision affects the entire import duty structure.
HS Code Classification
HS (Harmonized System) code classification determines the import duty rate and FTA eligibility. Misclassification is the single most common customs audit finding for FDI companies.
Why Classification Matters
A single digit difference in the 8-digit HS code alters the classification and the import duty rate substantially:
| Example Product | HS Code A | Rate A | HS Code B | Rate B |
|---|---|---|---|---|
| Electrical connector | 8536.90 | 10% | 8538.90 | 0% |
| Textile input | 5407.10 | 12% | 5402.33 | 0% |
| Steel component | 7318.15 | 15% | 7326.90 | 3% |
Getting Classification Right
Three approaches, ordered by reliability:
-
Pre-ruling from customs: Request an advance ruling (Quyết định trước) from the General Department of Vietnam Customs under Circular 38/2015/TT-BTC. Valid for 3 years. This pre-ruling is the gold standard — customs is bound by their own decision.
-
Customs broker classification: Professional customs brokers classify goods based on product specifications. Get this in writing — verbal classifications carry no legal weight.
-
Self-classification: Review the Vietnam tariff schedule at customs.gov.vn against the WTO Harmonized System explanatory notes. Risk: self-classification has no legal protection if customs disagrees.
Customs Valuation for Related Parties
FDI companies importing from parent companies or affiliates face additional customs valuation scrutiny.
Customs determines the dutiable value using the WTO Customs Valuation Agreement methods (implemented in Vietnam via Circular 39/2015/TT-BTC, amended by Circular 60/2019/TT-BTC):
- Transaction value (preferred): The actual price paid, adjusted for freight and insurance (CIF basis)
- Transaction value of identical goods
- Transaction value of similar goods
- Deductive method
- Computed method
- Fall-back method
For related-party imports, customs may reject the declared transaction value if it doesn’t reflect arm’s-length pricing. The transfer pricing documentation prepared under Decree 132/2020/ND-CP supports the customs valuation position — but customs and tax authorities sometimes apply different benchmarks.
Practical guidance: maintain consistent pricing documentation for both customs and tax transfer pricing purposes. Discrepancies between customs declarations and CIT transfer pricing files trigger investigations from both authorities.
Export Tax
Most Vietnamese exports are duty-free. Export duties apply to a limited list:
| Product Category | Export Duty Rate | Notes |
|---|---|---|
| Natural minerals (unprocessed) | 20-40% | Encourages domestic processing |
| Scrap metals | 15-25% | Resource conservation |
| Sand, stone | 10-25% | Environmental regulation |
| Crude oil | 10% | Revenue generation |
| Processed goods | 0% | Standard — no export duty |
EPE companies exporting manufactured goods face 0% export duty. The export duty framework primarily targets unprocessed natural resource extraction — not manufactured exports.
For import/export tax planning, HS code pre-ruling applications, and EPE customs setup, contact the Certified CPAs — David Nguyen manages customs and tax advisory for manufacturing FDI operations in industrial zones.
This guide reflects import/export tax regulations as of March 2026 under Law 107/2016/QH13, Decree 134/2016/ND-CP, and Vietnam’s FTA tariff schedules. Tariff rates and FTA conditions change annually — verify current rates via customs.gov.vn before import planning.
