Necessity for the development of the Vietnamese market! Full Vietnam Export Guide
With the advancement of the “One Belt and One Road”, more and more friends have begun to pay attention to developing the Vietnam market. The following has compiled a guide to Vietnam market development and hopes to help you.
What product?
Vietnam's trade with its neighboring countries is very developed. It has close economic relations with China, South Korea, Japan, the United States, and Thailand. The annual import and export volume is also growing. According to statistics released by the General Administration of Statistics of Vietnam, Vietnam’s total exports in 2016 were US$175.9 billion, which was lower than the annual planned export target of US$181.5 billion, which represents an increase of 8.6% from the same period of the previous year (an increase of 7.9% in 2015).
In 2016, Vietnam’s import market was mainly concentrated in Asia, the Americas, and Europe, with import amounts of US$14.37 billion, US$14.5 billion, and US$13.43 billion, respectively, accounting for 80.8%, 6.7%, and 6.4% of the total national imports. Among them, China is Vietnam's largest import market, importing 49.93 billion US dollars from China, accounting for 28.7% of the total. The United States ranked second, Vietnam imported US$8.708 billion from the United States in 2016.
Vietnam's imports mainly include three categories: capital goods with mechanical equipment (30% of imports), intermediate products (60%) and consumer goods (10%). China is the largest supplier of capital products and intermediate products in Vietnam. The weak competitiveness of the domestic industrial sector in Vietnam has forced many private companies and even Vietnamese state-owned enterprises to import machinery and equipment from China.
Vietnam mainly imports machines, equipment accessories, computer electronic parts, textiles, leather shoes materials, telephones and electronic parts, and transport vehicles from China. In addition to China, Japan and South Korea are also two major sources of imports for machinery, equipment, tools and accessories in Vietnam. In particular, South Korea, the Vietnam-Korea Free Trade Agreement (VKFTA) entered into force in December 2015, expanding South Korea’s exports to Vietnam, especially after machinery and equipment and raw materials entered into force after the agreement entered into force. Some products even directly abolished import tariffs. This will help promote the export of Korean products to Vietnam.
In addition, it is also recommended that exporters go to Vietnam to participate in the exhibition, on-site inspection of the market, after all, not far away.
Export instructions
Certificate of origin
If requested by Vietnamese guests, you can apply for a common country of origin certificate CO or China-ASEAN certificate of origin FORM E, where FORM E can only be used in specific countries of China-ASEAN free trade, such as exports to Brunei, Cambodia, Indonesia, Laos, Malaysia FORM E of goods originating in 10 countries of Myanmar, Myanmar, Philippines, Singapore, Thailand and Vietnam can enjoy preferential tariff treatment. This type of certificate issued by the Bureau of Commodity Inspection or the China Council for the Promotion of International Trade, but it needs to be filed first; if it is not filed, it can also be issued by an agent, providing a list of invoices and invoices, and about one working permit.
In addition, we must pay attention to the recent FORM E requirements will be more stringent. If the agent is found, then all the customs documents (bill of lading, contract, FE) must be looked up in unison. If the exporter is the manufacturer, the description of the goods will be displayed as MANUFACTURE, and then the name and address of the exporter will be added; if there is In the case of a shore company, then the offshore company is shown under the cargo chart in the seventh column, then the thirteenth third-party invoice is ticked, and the mainland Chinese company commissions the agent to issue a permit. The thirteenth item cannot be ticked. It is best to choose Vietnamese customers with strong customs clearance ability to avoid unnecessary troubles.
payment method
The usual payment method for Vietnamese guests is T/T or L/C. If it is an OEM, it is best to make a combination of T/T and L/C, which is safer.
Do T/T need to pay attention:
Under normal circumstances, 30% of advances are paid before 70% loading, but new customers do not agree.
Do L/C need to pay attention:
The shipping schedule in Vietnam is relatively short, and the L/C delivery period will be relatively short, and it is necessary to control the delivery time;
Some Vietnamese guests would artificially create discrepancies in the letter of credit. Therefore, they must be completely in accordance with the information on the letter of credit. They must be completely consistent, and do not change the way the guests say that they should be modified.
Clearance procedures
In August 2017, Article 3 of Article 25 of Decree No. 8 of the Decree No. 8 issued by the Vietnamese government stipulated: Customs declarers must provide enough accurate goods information so that goods can be cleared in time.
This means that bad/incomplete product descriptions and under-declared goods may be rejected by local customs.
Therefore, a complete description of the goods should be provided on the invoice, including brand, name, model, material, quantity, value, unit price, and other information. The customer needs to ensure that the weight on the waybill is the same as the weight declared by the customer to the customs. The difference between the forecast weight of the (origin of origin) and the actual weight of the weighing may cause delays in customs clearance. The customer must ensure that all information on the waybill, including weight, is accurate.
Need to understand what business?
Language
The official language of Vietnam is Vietnamese. In addition, French is also very popular. Vietnamese businessmen generally have poor English.
The response is:
Communicate in Chinese. There are many Chinese in Vietnam, especially in the China-Vietnam border market. There are many ethnic Chinese or Chinese people doing business. Therefore, in these places, the RMB can be directly circulated and can be communicated in Chinese.
Hire domestic Vietnamese translators. The Vietnamese and the Chinese Jing are the same ethnic group. The Chinese Jing people are mainly distributed in Guangxi and China-Vietnam border. About 10,000 people in the coastal areas of the Jing Nationality in Fangcheng County of Guangxi Province use Vietnamese. Therefore, it is possible to employ the compatriots of the Jing nationality as translators to deal with the Vietnamese. Their own people are always more reliable.
People
To do business in Vietnam, invest in emotional relationships with your partners, that is, make more contacts with decision-makers to build relationships and clear relationships. Vietnam's business contacts are very biased towards personal friendship. For Vietnamese, there are absolute advantages to being “their own person” or being considered “their own person”, and it can even be the key to success or failure. To be Vietnam's own person does not need to spend millions of banknotes and does not have to make a reputation. Do business first to talk about feelings. Vietnamese people are happy to meet new people, but never do business with people they do not know. When doing business in Vietnam, human relations are very important. Vietnamese usually do not talk business with people they don’t know. They are in constant contact with the same people. The business circle is very narrow. Everyone knows each other well, and many are blood relatives or in-laws.
This is a good thing for foreigners, because as long as you have a good relationship, you will soon be able to get through the country. However, if you break the relationship, the relationship in the country may also end. However, some overly passionate Vietnamese like to boast about their “good relationship” and emphasize how important and important their own people are. These people’s words cannot be fully received. We must learn to discern, choose the target of choice, and try to be a valuable source of investment.
In addition, it is necessary to actively develop relations with relevant local authorities. The integrity of government officials is high and the promised policies and treatment can be well achieved. Since the government has the right and left power over most of the domestic business transactions, the government’s popularity is particularly favorable. In addition, the regulations in Vietnam are changing rapidly and changing rapidly. The authority of government employees is often much greater than that given by their positions. Some government officials even do business themselves. In Vietnam, under the table has more trades under the table, commission culture is more popular, and "benefits" are somewhat popular.
Vietnamese people pay great attention to ceremonial exchanges. Whether it is a government department or a partner or distributor who has an important relationship with your company, you need to treat them as friends. Every holiday must move.
Mouth is heart
Many Asian cultures do not agree that there is something to be said. Most Vietnamese do not say arbitrarily that public speeches and gestures are often far from “complete facts”. When doing business, the real intentions and thoughts of Vietnamese businessmen are often kept secret. This is especially true when they are dealing with foreigners because they believe that foreigners are playing the same tricks.
However, Vietnamese businessmen do not think that it is an act of deceit, but rather the performance of a customer. Viet Nam's culture is polite and considerate as a virtue of goodness. Being frank and ignorant and direct will lead to conflict. People should avoid conflicts with others, especially open conflicts. For this reason, the strategy they choose is to talk about lies, at least by duplicity.
Industrious and "狡黠"
Vietnamese people seem to be born entrepreneurs. In Vietnam, each household facing a commercial street will transform the front office into a warehouse or storefront. Behind their iron roll doors, large and small wooden box cartons are housed inside. Some people jokingly called the Vietnamese: "If a papaya falls from the tree, before it falls to the ground, someone rushes to sell it."
In Viet Nam, the Vietnamese have the means to use it for the benefit of even minor skills. Those who are completely unskilled are hackers. In Vietnam, all major roads and rural roads are lined with vendors on both sides of the road. Visitors will be surrounded by men, women and children as soon as they stop and sell everything from petrol to T-shirts. On both sides of the road in Vietnam, every kind of goods and services sold by these men, women and children are relatively simple, but they have a ready-made sales network.
Anyone who has been to the racecourse in the West District of Ho Chi Minh City can witness the competitiveness of Vietnam. Many locals are full of competitive spirit. Although the government is striving to maintain the socialist regime, economically speaking, strength is not yet strong, and commerce is not very prosperous. This does not mean that the Vietnamese have given up on doing business. On the contrary, entrepreneurs are very diligent. They go around and do business.
The "deafness" of Vietnamese people is reflected in their ability to make good use of small smarts and tricks, and business integrity is not very high. Some people even think that the Vietnamese are famous for ungratefulness. Many Vietnamese customers are not satisfied with their payments. They always look east for reasons. West is looking for excuses to drag you. He hopes to put you in a hurry and you will give him a discount, and even more will not directly give it to you. In this regard, we must pay attention to starting from the payment method and firmly control the initiative.
Love and petty money are also a well-known feature of them. They will ask you to arrange accommodation, transportation, meals and so on. You can do as much as you can, and often add a lot of extra things on the basis of good prices. .
The decision is particularly slow
Vietnam follows the Asian traditional collective decision-making model. Vietnamese businessmen value the harmony of the group. Aliens usually have no knowledge of disputes among partners in Vietnam, and their internal information is rarely revealed to outsiders. In Vietnam, the entire system emphasizes consistency. From a cultural perspective, Vietnam follows the Asian traditional collective decision-making model. Vietnamese businessmen value the harmony of the group. Aliens usually have no knowledge of disputes among partners in Vietnam, and their internal information is rarely revealed to outsiders. In Vietnam, the entire system emphasizes consistency.
Although compared with other Asians (such as Japan), Vietnamese people do not mind direct and candid manners of speaking, but they still do not like disputes because disputes are in conflict with the politeness and harmony they praise. In the decision-making process, this showed that Vietnamese people mostly expressed their opinions calmly, and they blushed and quarreled.
To do business with the Vietnamese, you must visit the other person several times in person to see a little sign of impending decision-making. Therefore, if the decision-making takes longer than expected, don't be disappointed. Because slow decision-making is a feature of Vietnamese people.
The Vietnamese use personal relationships and face issues as the basis for decision-making. If they have a good impression on you, they will give you special convenience. If the other person's impression of you is not good, no matter how good your proposal is, they will not accept it. .
Do not re-plan, slavishly
Many Westerners like to make plans and then follow the plan. Vietnamese people prefer to take it easy. They appreciate the positive style of Westerners, but they have no intention of evolving. Foreign businessmen doing business in Vietnam, remember to maintain a relaxed attitude and calm patience. The experienced businessman thinks that if you go to Vietnam and have 75% of itinerary can be carried out according to the plan, it will be very successful.
Local customs
Vietnamese love red, red as auspicious, festive color. I like dogs very much and think dogs are faithful, reliable and brave. I love peach blossoms and think that peach blossoms are bright and beautiful. They are auspicious flowers and they are called national flowers. They are jealous of others clapping their shoulders or yelling at them with a finger, thinking that it is impolite to behave. Do not use your feet to point at things, or place your feet against others, thinking that this is an act of insulting people.
The Future of "Made in Vietnam"
After Vietnam joined the TPP, with assistance from developed countries such as the United States and Japan, many Southeast Asian countries are systematically “scouring” Chinese manufacturing through various strategies such as trade, taxation, and land concessions. Nowadays, not only Japanese companies have increased their investment in Vietnam, many Chinese companies are also relocating production capacity to Vietnam.
Vietnam’s greatest advantage lies in the cheap labor. According to the statistics of the International Labour Organization, the average monthly salary of Vietnamese workers in 2013 was only US$197. In Thailand and China, this figure is US$391 and US$613 respectively. Dollars. In addition, the population structure of Vietnam is relatively younger, with only 6% of the total population aged over 65 years old, compared with 10% and 13% respectively in China and Korea.
Of course, Vietnam's manufacturing industry is still mainly in the relatively low-end industries, such as textiles, clothing, furniture and electronic products. However, this situation may change in the future as major companies increase investment, improve training levels, and change research and development strategies.
Labour disputes are the risk of Vietnamese manufacturing. How to deal with labor-capital relations is a problem that must be solved during the rise of Vietnam's manufacturing industry.
Vietnam will give priority to the development of the following industries:
Processing and manufacturing and chemical industry
1. Machinery and Metallurgical Industry
By 2025, priority will be given to the development of machinery and equipment used in industrial production, automobiles and spare parts, and steel; priority will be given to the development of shipbuilding, non-ferrous metals, and new materials after 2025.
2. Chemical industry
By 2025, priority will be given to the development of basic chemical, oil and gas chemical, plastics and rubber parts and chemicals; after 2025, priority will be given to the development of pharmaceutical chemicals.
3. Agriculture, forestry and fisheries processing industry
By 2025, priority will be given to improving the proportion of processing of major agricultural products, aquatic products, and wood products in accordance with the adjustment of the agricultural industrial structure. In the process of production and processing, international standards are adopted to build the brand and competitiveness of Vietnam's agricultural products.
4, textile and footwear
By 2025, priority will be given to the development of textile and footwear raw materials for domestic production and export; after 2025, priority will be given to the development of high fashion and footwear.
Electronic communications industry
By 2025, priority will be given to the development of computers, telephones, and spare parts; after 2025, priority will be given to the development of software, digital services, communications technology services, and medical electronics.
New energy and renewable energy
By 2025, we will vigorously develop new and renewable energy sources such as wind, solar, and biomass. After 2025, we will vigorously develop nuclear energy, geothermal energy, and tidal energy.