One of the most common questions I get from clients is: Is Vietnam tax-free? Some countries have duty free agreements with Vietnam, some don't. AND, it depends on your HS Code. I will explain. See the list and infographic below.
How much money can you save if you produce in Vietnam?
Keep in mind that just because there is a free trade agreement (FTA) that does not mean that every product is 100% duty free. Every product category is different. Some are 100% import duty free, others are unchanged and some are given duty free advantages gradually. If you want to know about the duty free status of your specific product you need to first figure out what the HS Code is. In my next email, I will explain how to find your HS Code.
Here are the names of all the active free trade agreements involving Vietnam:
1. European Union-Vietnam Free Trade Agreement (EVFTA)
2. ASEAN Free Trade Agreement (AFTA)
3. ASEAN-China Free Trade Agreement (ACFTA)
4. ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA)
5. Vietnam-Japan Economic Partnership Agreement (VJEPA)
6. Vietnam-Korea Free Trade Agreement (VKFTA)
7. Vietnam-Chile Free Trade Agreement (VCFTA)
8. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - includes Vietnam among its 12 member countries:
1. Australia
2. Brunei
3. Canada
4. Chile
5. Japan
6. Malaysia
7. Mexico
8. New Zealand
9. Peru
10. Singapore
11. Vietnam
12. UK
I hope this helps. :)
