Opportunities to sell in Vietnam, what you need to know

Selling in Vietnam is becoming an increasingly attractive opportunity for many Italian companies wishing to embark on a path of internationalization.

Indeed, this country represents a rising market as it has increased its purchasing power over the past decade due to a GDP that has doubled over this period. 

When considering Southeast Asia, Vietnam is the second largest trading partner for the European Union thanks in part to specific trade agreements that have favored its imports.

Want to sell to Vietnam? Take advantage of the EU-Vietnam free trade agreement 

In order to enter the Vietnamese market by selling directly to the customer without intermediaries, it is necessary to have a specific license that can be obtained in a time frame of one to three months. Alternatively, you can rely on local distributors if you want to export products without having to deal with logistics and all the regulations related to the sales process yourself.

In Vietnam, specific documentation is then required for customs clearance of the goods, such as the import trade code registration certificate and the company registration certificate. It should be remembered that in case the company offers the same products during a certain period of time, only one customs declaration can be used as long as all goods are present in the same act of sale. 

As of August 2020, the EVFTA, a special free trade agreement between the European Union and Vietnam, which includes a drastic reduction in customs duties and a more streamlined bureaucracy for those wishing to export to this country. For example, the majority of machinery and technological devices are no longer required to pay import duties until 35 %, while the rest will cease paying them by August 2025 (source European Commission).

This is a great advantage for Italian companies, which can plan for a lower budget than in the past for their sales in the country.

What products are best to sell in Vietnam?

The products of greatest interest to the Vietnamese market belong to the machinery sector, particularly footwear and leather processing, food processing, and plastic and rubber processing.

This is followed by basic pharmaceuticals and pharmaceutical preparations, food products, and furniture supplies (source the’Economic Observatory of the Italian government).

.Vietnam represents a growing country on multiple trade spheres, and gradually more opportunities are opening up for Italian exports, already a strong magnet as the Made in Italy brand represents a guarantee of great quality all over the world.

The country's wealthiest people buy luxury goods such as fine wines and fashion garments, but the middle class (which has seen its purchasing power increase in recent years) has also increasingly entered the EU import market.

In fact, according to the World Bank, Vietnam may be considered an upper middle-income nation by 2035, projecting per capita income to exceed $7,000.

All this contributes to making this country a very attractive business option for many Italian companies.

To start an internationalization procedure in Vietnam or other foreign places without making mistakes, optimizing time and resources, you can turn to Octagona whatever your business is.

We can help you plan every aspect of selling your products and/or services by providing you with qualified and experienced professionals, such as Temporary Export Manager and Digital Export, who will be able to work out the right strategy to choose and penetrate the best markets.

If you have any questions or requests for clarification on how to grow your business outside your home country, please contact us from this form. We will respond promptly, giving you all the information you need.