Shipping goods between Thailand and Vietnam: The ultimate to-do-list

You’re certainly close to do an importation of goods between Vietnam and Thailand if you’re asking this to yourself.

This article was written to answer all the possible questions about this subject, because great English data is hard to sort out about it on the internet. Several hours spent on this topic and many years of practice on the Asian freight market is enabling us to give you all the essential details to control this process.

It doesn’t matter if you have many years of experience in the import/export field, or if it’s your first time, if you only need to do a single exportation/importation, or regular freights in time.

This article will provide you valuable information that will permit you to increase or enforce your freight operation.

Our freight partner in Vietnam : FNM Shipping Vietnam

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You want further information about the best freight forwarder in Vietnam ? Check directly their website : FNM Vietnam

SEA FREIGHT TO VIETNAM

sea-freight-guide

TOP 5 – Shipping line

cma-cgm-shipping-line
cosco-shipping-line
evergreen-shipping-line
maersk-shipping-line
msc-shipping-line

Ocean cargo from Thailand to Vietnam

By dint of the proximity between the two countries, Ocean freight from Thailand to Vietnam is the most convenient option in your hand. Transit times are low, and prices are very competitive.

With its very elongated territory edging the South China Sea, Vietnam owns numerous harbours that enable goods to enter and leave the country. The two major ports are Haiphong Port and Ho Chi Minh City (HCMC). It’s explained by their closeness with the two biggest and busiest cities, Hanoi the capital, and HCMC the economical lung of Vietnam.

The other trade ports are smaller than those two. Whether they are little or large, all ports are well-equipped with FCL or LCL cargo services.

We can range the ports in three classes. The first is ports located on the north shoreline of the territory:

  • Vung Ang
  • Nghe Tinh
  • Haiphong
  • Cam Pha

The 2nd class, which holds only Da Nang port, is the Central Vietnam port’s class.

To end, the 3rd and last class is including ports that are in the South of the country:

  • Can Tau
  • HCMC
  • Nha Trang
  • Qui Nhon

Here are is a table that defines transit times and rates on average, between the biggest Thai and Vietnamese ports. Smaller ports will have a slightly higher transit time than the two majors, because of their tiny traffic:

will have a slightly higher transit time than the two majors, because of their tiny traffic:

HaiphongDa NangHCMC
Phuket9 days7 days6 days
Bangkok12 days5 days4 days
Laem Chabang
6 days5 days4 days
Map Ta Phut6 days5 days4 days
Rayong6 days5 days4 days
Songkhla6 days5 days4 days
Sattahip6 days5 days4 days
Si Racha6 days5 days4 days

*Please note that those transit times are just indicative timing between Thailand and Vietnam

AIR FREIGHT TO VIETNAM

air freight guide

Thailand and Vietnam are greatly equipped in International Airports. There are around 10 international airports that links the two countries to the rest of Asia and wider the world. They are all adapted in terms of freight ad passengers transfer. The biggest International Airlines are implanted in.

For your goods, it will take less than one day to transfer them from one country to another, via air freight.

how-to-calculate-gross-weight-airfreight-shipments

how-to-calculate-gross-weight-airfreight-shipments

CROSS BORDER TO VIETNAM

trucking guide

*We’re not advising you to choose Road freight for your transfer between Thailand and Vietnam, and this for many reasons.

First, roads in Laos, Cambodia, Thailand and Vietnam are not very well designed and in good conditions, and major traffic jams can happen almost anytime anywhere. Also, the average age of the truck fleet in those 4 countries is older than 15 years. Thus, even if the middle time to link the two countries is less than 3 days, a big delay can easily happen.

Moreover, it will be almost always more expensive than the other freight solutions. Road freight is only good when it’s coupled with other freight modes, like Sea freight + Trucking, Air freight + Trucking…

RAIL FREIGHT TO VIETNAM

Even if there aren’t high-speed railways in Indochina, the railway network is dense enough to link all the Thai and Vietnamese major cities in less than 5 days. As Thailand and Vietnam doesn’t have boarders in common, all the trains are passing through Laos and Cambodia. Some of the lines are passing through their capitals Vientiane and Phnom Penh.

Here is a table detailing the different transit times between major cities/province in Thailand and Vietnam:

HanoiDa NangHCMC
Chiang Mai5 days4 days5 days
Chiang Rai6 days5 days6 days
Bangkok4 days2 days3 days
Pattaya4 days3 days3 days
Pak Kret4 days3 days3 days
Nonthaburi3 days3 days3 days
Nakhon Ratchasima
3 days2 days2 days
Udon Thani2 days2 days3 days
Phuket5 days5 days5 days
Hat Yai5 days5 days5 days

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What duties and taxes will I pay for my goods ?

Belonging both on the Indochina peninsula, Vietnam and Thailand always had a deep common history in terms of trades and economy. In 2018, 5% of the importations in Vietnam where coming from Thailand. More focused on China and Japan, only 2% of the imported goods in Thailand are coming from Vietnam.

Because both countries are part of the ASEAN economical community, duties and taxes from Thailand to Vietnam have been decreased and facilitated. This was stated in an official agreement called the ASEAN Trade in Goods Agreement (ATIGA).

This partnership reduced the import duties in Vietnam to 0-5 percent on 98.86 percent of their tariff lines, for goods in provenance of Thailand and other ASEAN countries.

*This links below will help you to calculate the taxes you may pay to transfer products between the countries.

Import duties between Thailand and Vietnam

Tariffs and Taxes

Vietnam is aligned with the Harmonized Tariff System (HTS) for imported and exported goods coming from members states of the Association of Southeast Asian Nations (ASEAN).

Here is the composition of an HS Code, you can now see what an HS code is and what does it mean.

hs-code-example

import duties taxes vietnam

Is it possible to be exempted of taxes for an importation from Thailand?

As both countries are members of the ASEAN Free Trade Area, most of the goods transiting between the two countries are submitted to no taxes or maximum 5% taxes on their FOB value.

The Certificate of Origin (CO)

The CO is certifying that the goods shipped have a defined place and country of origin. This document must be provided by a notary public or government. It’s important for you to have it in order to benefit of the Common Effective Preferential Tariff (CEPT) existing between the two countries.

ASEAN-Vietnam Free Trade Certificate of Origin

Products under CEPT of a Member state to another shall be eligible for preferential concessions. To be eligible, these products must be supported by a CO, as said before.

In the ASEAN Trade in Goods Agreement, Vietnam engaged itself to reduce drastically its import duties by 2015. For many ASEAN imported products, tariff lines have been eliminated. 2018 has been a decisive year in the Tax elimination planning. For example, all the taxes applied on vehicles had been eliminated at the beginning of this year while they where rising at 50% in 2015. We can say that the ATIGA is fully effective since 2019.

Goods exempted of tax in Vietnam

Some goods are tax-free in Vietnam, but they should fulfil certain conditions:

  • They are momentarily staying on the Vietnamese territory, and will leave after a definite amount of time
  • They are momentarily exported out of Vietnam and will come back after a definite time
  • They are imported to generate planned assets for projects financed with the official development assistance fund.
  • They are imported to take part in petroleum activities
  • They are imported to take part in scientific research and technological development

*Now that you know the different legislation existing in terms of trade between the two countries, you will certainly learn more about the shipping details.

Customs contact in Thailand

thailand-customs-logo

Customs contact in Vietnam

Customs process

import-custom-clearance-process

Drug Contraband

drug contraband

Ivory

ivory

Poison

poison

Explosives

explosives

Batteries

loose lithium batteries

Pornography

pornography

 

Biohazard

biohazard

Flammable

flammable-combustible

Knife

tactical knives

Chemicals

chemicals

Firearms

firearms

Tobacco

tobacco

Corrosive

corrosive

Drugs

Prescription Drugs

Gambling

gambling

Counterfeit

counterfeit

Counterfeit Notes

means of payment

Hazardous

hazardous material

Reactivity

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