Appendices

Summary checklist

This list provides a summary checklist for companies to “check off” their market readiness tasks and start exporting to Vietnam.

• Check applicable import tariffs on products, using HẢI QUAN VIỆT NAM  or Canada Tariff Finder.
• Check future tariff movement under CPTPP terms, if current tariff is not 0% (Section 3.2).
• Check non-tariff barriers, such as inspection requirements, testing and certification requirements, labelling and packaging requirements, sanitary and phytosanitary (SPS) measures and import quotas (Section 6.0, Appendix 2).
• Evaluate market potential (Section 2.0, Section 5.0), some ideas on how this could be done are provided under “Market Potential” in Section 4.1).
• Select a suitable business model and prepare market entry plan (Section 4.2, Section 4.3).
• Find and contact local importers/distributors/customers, arrange meetings and negotiate.
• Conduct due diligence and conclude commercial arrangement.
• Check CPTPP’s Rules of Origin requirements and ensure that the certification of origin contains the minimum data requirements as set out in the origin procedures (Section 3.3).
• Ensure that products are compliant with local regulatory requirements (Section 6.0).
• Obtain relevant Export Certificates required by the Vietnamese government (Section 6.2.8).
• Complete pre-export processes, applying with the Canadian Food Inspection Agency for addition of establishment to the list of establishments approved for export of foodstuffs of animal origin to Vietnam (Section 6.2.2, Section 6.2.3), food product registration Section 6.1.3), etc., and ensuring that labels are compliant with local requirements (Section 6.1.4).

  Notes:

  • Vietnam has specific import requirements for any given food product. It is critical for Canadian exporters to work with their importer(s) in foreign markets to confirm the official and detailed import requirements applicable to their product(s) and the necessary steps and documentation required. The Government of Canada strongly encourages exporting companies to contact their regional Canadian Food Inspection Agency (CFIA) office to confirm any certification requirements before exporting to Vietnam. Please refer to the following link to find the nearest CFIA office.
  • Distribution partners in Vietnam typically assist with certain requirements such as food product registration.
• Once orders are received
  • Check logistical requirements and make arrangements for shipping, bringing in freight forwarders and customs brokers for assistance, as required.
  • If trade finance support is required, contact the organizations mentioned in Section 4.
• Keep in regular touch with local partners/customers in Vietnam regarding market demand or need for marketing support, and stay up-to-date on market trends and regulatory changes.

Source: Orissa International

Information on market access

Under several Free Trade Agreements (FTAs), Vietnam eliminated many non-tariff barriers, including sanitary and phytosanitary measures (SPS), import quotas, bans, customs clearance, permit requirements, prior authorization requirements, licensing requirements, and other restrictions having the same effect, which appeared to be inconsistent with its WTO commitments. Nonetheless, many other non-tariff barriers on agricultural products remain in place. 

Specifically, Vietnam’s MoIT issued Circular 03/2020/TT-BCT prescribing the import quota for raw tobacco imported from CPTPP countries. Accordingly, apart from the quota of raw tobacco to be announced annually, CPTPP members are allowed to export an extra amount of raw tobacco to Vietnam each year. The quota would gradually increase from 575 tons in 2022 to 975 tons by 2038.

The legislations relevant to the implementation of CPTPP in Vietnam are presented in the official website under the management of Vietnam’s Ministry of Industry and Trade. The non-tariff barriers and SPS measures eliminated under CPTPP are not yet explicitly stated on this website but are subject to updates in the near future.

Vietnam strictly governs the residues of chemicals on fresh fruits, vegetables, other agricultural products, and food products of animal origin imported into the country. In 2016, MOH issued Circular No. 50/2016/TT-BYTpromulgating the Maximum Residue Levels (MRLs) in food. Accordingly, Circular 50 updated and complemented the MRLs for 205 compounds in accordance with Codex MRLs. Furthermore, Vietnam also adopted MRLs for a number of fruits and vegetables, following MRLs of the Association of Southeast Asian Nations (ASEAN), of which it is a member.

In 2020, MARD issued Circular No. 10/2020/TT-BNNPTNT, which provides a list of plant protection drugs that are prohibited for use in Vietnam. Accordingly, there are 29 active chemical substances prohibited from use in agricultural products intended for the Vietnamese market, which can be found in Appendix II of Circular 10. It should be noted that in cases where Canadian MRLs are higher than those prescribed by Codex, Canadian firms shall comply with Codex’s MRLs. For more information, see the regulations of Health Canada.

In 2020, MARD issued Circular No. 15/2020/TT-BNNPTNT stipulating the National Technical Regulations on phytosanitary requirements for imported regulated articles (QCVN 01-192: 2020/BNNPTNT (Vietnamese) /QCVN 01-192: 2020/BNNPTNT (English)). The objective of the National Technical Regulation is to regulate the quarantine requirements of imported plants and set a zero-tolerance on all plant quarantine pests as per Circular No. 35/2014/TT-BNNPTNT, including the weed seed Cirsium arvense (Canada thistle or Creeping thistle).

It was reported that as of August 2020, DAH collected and tested 171 samplings of imported frozen food and food packaging from 15 countries, such as Canada, the US, Germany, Japan, Australia, etc. DAH announced that all samplings were negative for the coronavirus, and it would continue monitoring imported frozen meat, poultry, and seafood products. Therefore, Canadian firms exporting these products are advised to consult local legal services providers on any temporary inspection procedures amidst the Covid-19 pandemic.

For the latest information on sanitary and phytosanitary measures, please visit the website Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point.

Apart from SPS measures, Canadian companies are advised to check and comply with various National Technical Regulations (QCVN) that are currently imposed on food products circulated in the Vietnamese market, regardless of whether they are domestically-produced or imported products. Some current technical regulations are outlined below:

In terms of import quotas, following Circular No. 24/2021/TT-BTC (Vietnamese; can be translated), dated December 16, 2021, Vietnam is currently imposing an import quota for salt, poultry eggs, and raw tobacco, as follows:

As per Circular 03/2021/TT-BCT (Vietnamese; can be translated), guiding the pilot auction of tariff quotas for sugar imports in 2021 (effective from July 26, 2021, to December 31, 2021), the amount of import tariff quota for sugar imported in 2021 was 108,000 tons. For the year 2022, the import tariff quota for sugar is not as yet decided by the Government of Vietnam.

CPTPP Tariff Rate Quotas (TRQs): For this group of goods, import tax is only eliminated or reduced with a certain volume of goods (referred to as elimination/reduction of tax in quotas). With the import volume exceeding the quota in the schedule of commitments, the applicable import tax rate will be higher and will not be eligible for preferential treatment.

Harmonized System Codes

The Harmonized System (HS) Codes can be accessed from the List of Goods for Export and Import - Vietnam (issued together with Circular No. 65/2017/TT-BTC dated June 27, 2017, of the Ministry of Finance). The page is in Vietnamese. Please right click on the webpage opened in the Google Chrome browser and select the option ‘Translate to English’.

From the above link, please download the zipped folder titled ‘tt-65.rar’, which can be opened using a free, open-source software called 7-Zip.

Within this folder, HS Codes are available in the PDF file titled ‘Phụ lục I Danh mục hàng hóa xuất nhập khẩu Việt Nam 17.07’, which translates to ‘Appendix I List of Vietnam's import and export goods 17.07’.

Sources

• Australian Border Force. CPTPP Rules of Origin. 2021
• Australian Grains Export Innovation Centre (AEGIC). Wheat and barley markets in Vietnam. 2019
• Canadian Food Inspection Agency (CFIA). Food Export Certification. 2022
• Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), 2022
• Eurofins - National Technical Regulations, 2021
• Fitch Solutions. Vietnam Dietary Shift Spending. 2021
• Foodexport.org, 2021
• Food Navigator (William Reed). Consumer food trends in Vietnam: Rising incomes offering big opportunities for manufacturers. 2018
• Food Safety Institute (FSI) – Vietnam, 2021
• Global Affairs Canada. Vietnam Tariff Elimination Schedule. 2016
• Google Trends Study. Year in Search 2020. 2020
• Government of Canada. Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 2021
• Government of Canada. Guide: Spotlight on Export Financing. 2021
• Government of Canada. Step-by-Step Guide to Exporting. 2021
• Ihara, Motoi. Vietnamese Marketing Channels in the Process of Retail Modernization. 10.13140/RG.2.2.19614.08007. 2020
• ITC Trade Map. Trade Statistics for Canada and Vietnam. 2020
• Leger Inc. Vietnam Consumer Perceptions of Canadian Food and Seafood Products. 2022
• Luatvietnam.vn (Vietnam’s Law), 2021
• Ministry of Agriculture and Rural Development, Vietnam. Vietnam and Canada strengthen cooperation in sanitary and phytosanitary measures. 2021
• National Public Service Portal – Vietnam, 2021
• Statista, 2021
• Statista. Retail sales of food and beverages in Vietnam from 2016 to 2020 with forecasts until 2023. 2021
• Thuvienphapluat.vn (Library of Law – Vietnam), 2021
• United States Department of Agriculture (USDA) – Foreign Agricultural Service. Vietnam Updates List of Imported Products under MARD Specialized Inspection. 2021
• USDA. Food and Agricultural Import Regulations and Standards – Narrative (Vietnam). 2017
• USDA. Food and Agricultural Import Regulations and Standards Country Report (Vietnam). 2021
• USDA. Food and Agricultural Import Regulations and Standards Export Certificate Report (Vietnam). 2021
• USDA. Grain and Feed Annual (Vietnam). 2021
• Văn bản pháp luật (VBPL), 2021
• VCCI - Chamber of Commerce and Industry of Vietnam. Vietnam posts $175 million trade surplus in confectionery products. 2019
• Vietnam Food Administration (VFA), 2020
• Vietnam FoodExpo. Vietnam among world’s fastest middle-class growth nations. 2021
• Vietnam Investment Review. Around 21 million Vietnamese will join the middle class by 2030. 2021
• Vietnam News. How grocery stores can keep their edge over retail chains. 2021
• Vietnam News. Retail market increasingly attractive to investors. 2021
• Vietnam Sanitary and Phytosanitary Notification Authority and Enquiry Point (Vietnam SPS), 2021
• VietnamCredit. Overview of Vietnam's Fruit & Vegetable Industry. 2021
• VietnamNet Global. Meat consumption in VN is almost double the recommended amount. 2021
• Visa. Visa study finds Vietnamese consumers keen to adopt digital payments to adapt during COVID-19. 2021
• VN Express. KFC most favored fast food chain in Vietnam: survey. 2020
• VN Express. Vietnam among most price sensitive ASEAN markets. 2020
• World Bank Group. Vietnam Development Report 2016. 2016