With its entry into the World Trade Organization (“WTO”) in January 2007, Vietnam has captured the attention of multinational corporations and large regional businesses as an attractive production base as well as a large potential market. Vietnam is increasingly becoming an integral part of many companies’ global business network. Whether companies already have an established presence in Vietnam or are exploring opportunities there, they must realize that the old ways of doing business in Vietnam are no longer adequate or even compliant. Businesses must respond effectively to the changing environment as Vietnam transitions to a WTO rules-based system, so that they can maximize the opportunities and minimize the risks.

Bryan Cave International Trade has extensive customs, trade and investment expertise in Vietnam. With support from our local partners, we advise clients on their business strategies and operations in Vietnam, compliance with Vietnam’s laws and regulations governing exports, imports, in-bound investments, direct and indirect taxes, transfer pricing, valuation, classification, franchising, incorporation, and joint ventures, and the general conduct of business in Vietnam.  

Strategic Business Advisory

Bryan Cave International Trade assists clients in identifying and analyzing the risks and opportunities for their investment and business strategies in Vietnam. Specifically, we advise clients on:

• Identifying the restrictions and requirements when establishing operations in Vietnam, such as conditions for setting up representative offices, distribution services, logistics services, trading entities;
• Examining Vietnam’s commitments to the World Trade Organization (“WTO”), incorporating the anticipated implementation of the relevant commitments into the short-, medium- and long-term strategic planning for their business in Vietnam;
• Structuring their operations to capitalize on certain special schemes, such as bonded zones, bonded warehouse schemes, special economic zones, free trade zones, export processing zones;
• Reviewing transaction, documentation, supply chain and financial flows, identifying the cost-savings opportunities as well as assessing the risks;
• Examining the current pricing practices and determine whether they meet with Vietnam’s transfer pricing policy; and
• Integrating their Vietnam operations into their global business network.

We also produce customized reports for clients, monitoring and analyzing the evolving regulatory and administrative environment in Vietnam, and in the Asian region, affecting customs, trade and investment. We anticipate movements in policy direction, regulatory changes and competitive developments that would affect their business and operations. We offer insights into the latest policy thinking, as well as government decisions and actions with regard to specific issues or sectors. In addition, we report on the status and direction of on-going FTA discussions and implications of the on-going discussion in relation to a client’s business and operations.

WTO & FTA Advice

Many of Bryan Cave International Trade’s consultants are former trade and investment officials with experience negotiating free trade agreements (“FTAs”) and at the World Trade Organization (“WTO”). We assist clients in:

• Understanding the interpretation and application of the FTAs that Vietnam has entered into, as well as its World Trade Organization (“WTO”) commitments;

• Reviewing government programs relating to the industrial and services sectors for compliance with WTO/FTA obligations;

• Incorporating the anticipated implementation of the relevant FTA/WTO obligations into the short-, medium- and long-term strategic planning for their business in Vietnam;

• Avoiding potential WTO-related problems in transactions (e.g., addressing discriminatory regulations and barriers in the services and other sectors), as well as on leveraging on WTO rules to obtain fair treatment and/or to increase market access; and

• Devising investment schemes, incentive programs and other tax and regulatory structures that are compliant with WTO rules and FTA requirements for presentation to the government.

Customs Compliance & Advice

Bryan Cave International Trade’s strength lies in its team of customs specialists with vast experience dealing with Vietnam Customs matters and who have vast contacts within the Customs authority and other regulatory agencies. We advise clients on:

• Reviewing importations to ensure that information provided to Vietnam Customs is accurate, as well as to identify risk areas and cost saving opportunities. This includes a review of goods and document flows, correspondences, internal controls and systems, contracts and agreements, and transfer pricing policies;

• Determine the declared value of imports for customs purposes. This includes advice relating to dutiable elements not included in the invoice price, as well as possible exclusion of certain costs, partially or wholly, from the transaction value resulting in lower customs value and thus, reduced payable duty/tax;

• Review and update transfer pricing policies from the perspective of indirect tax planning, assisting in risk analysis and business planning;

• Review the tariff classification of their products, ensuring compliance with Vietnam-specific classification rules;

• Identify regulatory requirements affecting importation into Vietnam, such as licensing and notification requirements, and labeling requirements;

• Develop a reliable and practical internal system to ensure customs compliance; and

• Train relevant personnel, ensuring that they understand the customs issues and know how to manage them effectively.