Guide to Exporting to Vietnam
Vietnam with population over 98 million people and rapidly growing economy is becoming more and more attractive to foreign companies and investors. Simultaneously with it people in Vietnam are becoming more interested in imported commodities like food and beverages, healthcare, and others. It means that there are numerous opportunities to launch and expand business in this country. In this article we are going to discuss why you should export to Vietnam and what food items are mostly exported. And what is more important, how to start exporting to this country through using Vietnamese distributor company services.
Reasons why you should export to Vietnam
1) Increase of imported items in Vietnam
In May 2021 import in Vietnam reached historical maximum and equaled $28.3 billion while in April it was $27.8 billion. It represents that Vietnamese show high demand to international brands and their items. That’s why a lot of domestic businesses expand their relationships with foreign companies.
2) Trade agreements
Vietnam plays an active role in international trade, especially in Southeast Asia. For instance, Vietnam is an active member in ASEAN (Association of Southeast Asian Nations), within the frameworks of which it promotes lower interregional tariffs.
Vietnam together with other ASEAN countries, China, South Korea, Japan, New Zealand, and Australia concluded Regional Comprehensive Economic Partnership (RCEP). It came in force in the beginning of 2022 and created a free-trade zone.
Besides, the government recently signed the EU-Vietnam Free Trade Agreement with the European Union in order to expand trade between Vietnam and Europe. According to this agreement, EU countries can export to Vietnam without any custom taxes, so distribution of their items becomes much easier.
1) Increase of imported items in Vietnam
In May 2021 import in Vietnam reached historical maximum and equaled $28.3 billion while in April it was $27.8 billion. It represents that Vietnamese show high demand to international brands and their items. That’s why a lot of domestic businesses expand their relationships with foreign companies.
2) Trade agreements
Vietnam plays an active role in international trade, especially in Southeast Asia. For instance, Vietnam is an active member in ASEAN (Association of Southeast Asian Nations), within the frameworks of which it promotes lower interregional tariffs.
Vietnam together with other ASEAN countries, China, South Korea, Japan, New Zealand, and Australia concluded Regional Comprehensive Economic Partnership (RCEP). It came in force in the beginning of 2022 and created a free-trade zone.
Besides, the government recently signed the EU-Vietnam Free Trade Agreement with the European Union in order to expand trade between Vietnam and Europe. According to this agreement, EU countries can export to Vietnam without any custom taxes, so distribution of their items becomes much easier.
3) Prospering middle class
The development and growth of middle class in Vietnam is quite obvious. More than 50% of total consumption in the country is attributed to people with middle income level. Statistics say that around 56 million (which is 57% of the overall population) of the total population made up middle class. If we are talking about big and central cities' percentage of middle class is much higher. For example, in Ho Chi Minh City this category covers 90% of its population. The city’s inhabitants have high purchasing power which allows global brands to enter the internal market and do it successfully. There are numerous stores selling a lot of new branded and high-end items from all over the world.
What food to export to Vietnam?
Leading imported food items in Vietnam are fish (2.6% of the total import value in 2020; there was an enormous rise of 465% in imports of fish from the year of 2016 to 2017), fresh fruits and vegetables, nuts, dairy, beef, non-alcoholic beverages, pork, spices, etc. Food is very easy to export as there are a lot of distributors in this sphere in the country.
How to export to Vietnam?
There are two main ways to start it: setting up a trading company in Vietnam and engaging Vietnamese distributor (or importer). The first option will take approximately three months assuming the fact that you have obtained and filed all the required documents. These documents include a business registration certificate, an import license, and an investment license.
Another option is much easier, faster, and economical. The majority of foreign companies that need to start selling in Vietnam prefer using the services of Vietnamese distributors. The reason is that it allows minimizing taxes and eliminating the time-consuming process. For instance, setting up a trading business and registration of the commodity you want ta launch on the market require a lot of time. Thus, using distribution services helps foreign companies to start exporting goods to Vietnam almost instantly.
The development and growth of middle class in Vietnam is quite obvious. More than 50% of total consumption in the country is attributed to people with middle income level. Statistics say that around 56 million (which is 57% of the overall population) of the total population made up middle class. If we are talking about big and central cities' percentage of middle class is much higher. For example, in Ho Chi Minh City this category covers 90% of its population. The city’s inhabitants have high purchasing power which allows global brands to enter the internal market and do it successfully. There are numerous stores selling a lot of new branded and high-end items from all over the world.
What food to export to Vietnam?
Leading imported food items in Vietnam are fish (2.6% of the total import value in 2020; there was an enormous rise of 465% in imports of fish from the year of 2016 to 2017), fresh fruits and vegetables, nuts, dairy, beef, non-alcoholic beverages, pork, spices, etc. Food is very easy to export as there are a lot of distributors in this sphere in the country.
How to export to Vietnam?
There are two main ways to start it: setting up a trading company in Vietnam and engaging Vietnamese distributor (or importer). The first option will take approximately three months assuming the fact that you have obtained and filed all the required documents. These documents include a business registration certificate, an import license, and an investment license.
Another option is much easier, faster, and economical. The majority of foreign companies that need to start selling in Vietnam prefer using the services of Vietnamese distributors. The reason is that it allows minimizing taxes and eliminating the time-consuming process. For instance, setting up a trading business and registration of the commodity you want ta launch on the market require a lot of time. Thus, using distribution services helps foreign companies to start exporting goods to Vietnam almost instantly.
Awesome products Co.
If you want to start exporting to Vietnam, Awesome products Co. is a great option. We are a distribution company which is ready to help you enter FMCG market (and online market) and distribute your brand in Vietnam. Our team of professionals offers such services as comprehensive FMCG marketing support including merchandising, promo activities, and on-shelves promotions.
We are Vietnamese distributor that can also help your company to enter major marketplaces in South East Asia, Europe, and North America. We have years of experience selling our brands on Lazada, Shopee, Tiki, Sendo, and Amazon in different countries. Contact us and start doing business in Vietnam by letting us solve all the hustle for you!
If you want to start exporting to Vietnam, Awesome products Co. is a great option. We are a distribution company which is ready to help you enter FMCG market (and online market) and distribute your brand in Vietnam. Our team of professionals offers such services as comprehensive FMCG marketing support including merchandising, promo activities, and on-shelves promotions.
We are Vietnamese distributor that can also help your company to enter major marketplaces in South East Asia, Europe, and North America. We have years of experience selling our brands on Lazada, Shopee, Tiki, Sendo, and Amazon in different countries. Contact us and start doing business in Vietnam by letting us solve all the hustle for you!
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