VIET NAM TRADE

Viet Nam's Trade Ministry Urges Australia to Lift Ban on Shrimp Imports

Minister of Industry and Trade Tran Tuan Anh has just called on the Australian Government to soon lift its ban on prawn and uncooked shelled shrimp imports, saying that it poses negative impacts on Viet Nam’s shrimp breeding and processing sector.

The Vietnamese minister made the call in his recent letter to the Minister of Commerce and Minister of Agriculture and Natural Resources of Australia.

On January 7, the Australian Department of Agriculture and Natural Resources announced the suspension of prawn and uncooked shelled shrimp imports from Asian nations in fear of white spot disease outbreaks in Australia. The ban took effect on January 9, 2017 and will last for six months.

Shrimp shipments which departed the exporting country on or after January 9, 2017 will be re-exported or destroyed when arriving in Australia. Other shipments en route to Australia will face strict examinations.

Right after the announcement, the Ministry of Industry and Trade instructed related bodies and the Viet Nam Trade Office in Australia to update relevant associations and enterprises on the information while working with the Ministry of Agriculture and Rural Development to look for suitable solutions.

The Office worked with the Seafood Importers Association of Australia to have common voices in raising concern over the ban’s negative impacts on Australian shrimp importers and consumers as well as Vietnamese shrimp farmers and exporters.

The agency also met with representatives from several shrimp exporters to voice their common concern to the Australian Government.

Meanwhile, during his working session with Australian Ambassador to Vietnam Craig Chittick in Hanoi on February 10, MoIT Deputy Minister Tran Quoc Khanh briefed on huge losses caused by the ban to Vietnamese shrimp farmers and exporters, calling the Australian Government to consider, devise alternative measures and soon lift the ban in order not to impact growing trade relations between the two nations.

MoIT will continue working with relevant bodies from the two nations to ask the Australian Government to remove the ban as soon as possible.

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Australia’s Trade with Viet Nam in 2016

Two-way goods trading between Australia and Viet Nam in 2016 reached AUD 8.21 billions, in which, Viet Nam exported to Australia AUD 4.47 billions and imported from Australia AUD 3.74 billions.

Details of Australia’s Trade with Viet Nam in 2016.

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Australian state invites Vietnamese investors

The Australia Viet Nam Business Council (AVBC) and Canberra University recently held a workshop in Sydney to call on Vietnamese businesses to make investment in Australia’s New South Wales.

Addressing the event on February 16, Suzanne Gilham, a senior official from the NSW Department of Industry, introduced the Australian business visa programme in 2017, which offers many incentives for entrepreneurs and investors from China, Malaysia and Viet Nam. 

She said the state’s government regards Viet Nam as a potential and promising market to develop this new model in Australia.

Local authorities are coordinating with Vietnamese agencies and organisations to promote this programme in Hanoi and Ho Chi Minh City in June this year, she added.

President and founder of the AVBC Laurence Strano said the programme aims to encourage Vietnamese enterprises to do business in New South Wales.

He cited two-way trade surged from 45 million USD in 1990 to 10 billion USD at present.

Bilateral trade is expected to double in the coming time, he said, adding that he hopes more Vietnamese businesses will make investment in Australia and vice versa.-VNA

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ASEAN village shines at Australian multicultural festival

An ASEAN village has been a big attraction at the 21st National Multicultural Festival recently held in Australia.

The colourful village consisted of a central stage and 10 stalls of traditional crafts and food run by 10 member nations. 

Brunei High Commissioner in Canberra Zakaria Ahmad, also head of the ASEAN Committee in the city in 2017, said it is not the first time ASEAN member states have taken part in the festival, but it is the first time they have joined it together.

Vietnamese Ambassador to Australia Luong Thanh Nghi said the village aims to promote ASEAN’s solidarity and diverse cultures to international friends.

Rachel Stephen-Smith, Minister for Multicultural Affairs at the Australian Capital Territory Government, called the ASEAN village an interesting destination, adding that the participation of the bloc members has been an indispensable part of the fair in the past two decades. 

This year, Australia’s National Multicultural Festival, first held in 1996, comprised 400 stalls covering 10 km. It was estimated that 40 tonnes of food were consumed during the three-day event.

ASEAN and Australia have built their partnership over the past 42 years, with bilateral trade doubling to reach 100 billion AUD within the last decade. The figure accounted for 15 percent of Australia’s total trade revenue.

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Understanding Viet Nam’s Import and Export Regulations

Once an investor has set up their trading company within Viet Nam, it is important that their workers gain a strong understanding of the country’s import and export regulations and procedures. Below we lay out the key takeaways that companies must be aware of before starting their trading activities in Viet Nam.

Import and Export Licensing Procedures

Viet Nam does not require a company to have an import/export license in order to set up a trading company. However, in order to be able to conduct import/export business, a foreign investor must register with the Department of Planning and Investment (DPI). Additionally, foreign investors who wish to engage in import/export activities in Viet Nam are required to obtain an Investment Certificate. Companies that wish to expand their current business operations in order to engage in import/export activities must follow the procedures for adjusting their Investment Certificates.

According to Circular 34/2013/TT-BCT, there are certain goods that foreign invested enterprises may not export from, or import into, Viet Nam. Goods banned for export include petroleum oil. Goods banned from import into the country include cigars, tobacco, petroleum oils, newspapers and journals, and aircraft.

Certain goods require the trading company to obtain import and export permits from the government, as per Appendix II of Decree 187/2013/ND-CP. These include:

• Goods subject to export control in accordance with international treaties to which Viet Nam is a contracting party
• Goods exported within quotas set by foreign countries
• Goods subject to import control in accordance with international treaties to which Viet Nam is a contracting party
• Chemicals, explosive pre-substances and industrial explosives

All imports and exports must comply with the relevant government regulations on quarantine, food safety, and quality standards, and must be inspected by the relevant government agencies before clearing customs.

Import/Export Duties

Most goods imported/exported across the borders of Viet Nam, or which pass between the domestic market and a non-tariff zone, are subject to import/export duties. Exceptions to this include goods in transit, goods exported abroad from a non-tariff zone, goods imported from foreign countries into non-tariff areas for use in non-tariff areas only, and goods passing from one non-tariff zone to another.

Most goods and services being exported are exempt from tax. Export duties (ranging from zero percent to 45 percent and computed on free-on-board (FOB) price) are only charged on a few items, mainly natural resources such as minerals, forest products, and scrap metal.

Consumer goods, especially luxury goods, are subject to high import duties, while machinery, equipment, materials and supplies needed for production, especially those items which are not produced domestically, enjoy lower rates of import duties, or even a zero percent tax rate. Duty rates for imported goods include preferential rates, special preferential rates, and standard rates depending on the origin of the goods.

Import/export duties declarations are required upon registration of customs declarations with the customs offices. Export duties must be paid within 30 days of registration of customs declarations. For imported goods, import duties must be paid before receipt of consumer goods.

Depending on the trade conditions, Viet Nam imposes a number of different types of duties on the import and export of goods. Companies wishing to find in-depth information on a range of goods would be well advised to visit the website of Viet Nam Customs.

Imports

Viet Nam imposes a tax on almost every type of product that is imported into the country. The import tax rates range depending on the type of product, for example, consumer products and luxury goods are highly taxed while machinery, equipment, and raw materials, tend to receive lower taxes and even tax exemptions. Imports are subject to import tax, Value-added tax (VAT) and, for certain goods, Special Consumption Tax (SCT).

Tax rates applicable to imported goods include preferential tax rates, special preferential tax rates, and ordinary tax rates:

Preferential tax rates apply to goods originating from countries, groups of countries, or territories, which apply the most favored nation treatment in their trade relations with Viet Nam

Special preferential tax rates apply to goods originating from countries, groups of countries, or territories, which apply special preferences on import tax to Viet Nam. Currently, it is mainly applicable to ASEAN nations under common preferential tariffs (CEPT).

Ordinary tax rates apply to goods originating from countries, groups of countries, or territories, which do not apply the most favored nation treatment of special preferences on import tax to Viet Nam. Ordinary tax rates will be no more than 70 percent higher than the preferential tax rates specified by the government

VAT rates range from zero to ten percent, with ten percent being the most common rate. Detailed information can be found in Circular No. 83/2014/TT-BTC.

Exports

Only certain commodities are liable for export tax. Export taxes range from zero to 45 percent. Many goods are also subject to Value-added Tax. In addition, the Law on Special Consumption Tax (SCT) stipulates that exporters who purchase SCT tax-liable goods for export, but instead sell the products domestically, are liable for SCT.

The export tax rates applicable to exported goods are specified for each item in the Export Tariff. For the year 2017, the tax tariff can be found in Decree 122/2016/ ND-CP. Whenever there is an update in the tax tariff, the Ministry of Finance will issue new Circulars which will either replace or supplement the previous ones. VAT on exported goods is zero percent.

Tax exempt goods

In certain situations, imported and exported goods are exempt from tax, these include the following:

• Goods temporarily imported for re-export or temporarily exported for re-import
• Goods imported for processing for foreign partners then exported or goods exported to foreign countries for processing for Viet Nam then re-imported under processing contracts
• Goods imported to create fixed assets for projects entitled to investment incentives or investment projects funded with official development assistance (ODA) capital sources
• Goods imported in service of petroleum activities
• Goods imported for direct use in activities of scientific research and technological development

Tax Calculation

The payable import/export tax amount is equal to the unit volume of each actually imported/exported goods item. These are inscribed in the customs declarations and are multiplied by the tax calculation price and the tax rate of each item, which is stated in the tariff at the time of tax calculation.

The tax calculation methods are specified below:

Payable Tax = unit volume of each actually imported/exported goods item x the tax calculation price x the tax rate of each item at time of calculation

For goods items subject to absolute tax: Payable tax = unit volume of each actually imported/exported goods item x the absolute tax rate provided for a goods unit at time of tax calculation

Viet Nam Trade Office
9 Poate Road
Centenial Park NSW 2021 Australia
Tel (02) 9356 4869
Fax (02) 9361 5898
[email protected]
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