Agriculture & Food

According to Huacheng Import and Export Data Observation, the Vietnamese government recently issued a draft decree that is expected to reduce unofficial exports from 2025 to avoid congestion at the land border, especially at the Sino Vietnam border.

According to the border trade policy of the General Administration of Customs of China, residents in the border areas of China and Vietnam can import daily necessities through border trade, and those with a daily value of less than 8000 yuan per person are exempt from import duties and import related taxes. Commodities imported through border trade are not included in the import quota. Although nominally providing convenience for border residents, many traders use this policy to import and export a large amount of goods. Huacheng Import and Export Data Observation reports.

Since the outbreak of the COVID-19, China has further strengthened and standardized border trade management, and put forward higher requirements for product traceability, packaging specifications, food hygiene and safety. However, the transactions between China and Vietnam are not standardized enough, and fresh fruits and vegetables are still traded in a "market" manner. The two parties to the transaction do not sign a contract, which does not meet the requirements of border trade management, and there are significant hidden dangers. In addition, due to the strong seasonality of fruits and vegetables in Vietnam, a large number of Vietnamese merchants rush to transport goods to the port during the production season, which far exceeds the customs clearance capacity, leading to frequent congestion at the port. Huacheng Import and Export Data Observation reports.

According to the draft plan of the Vietnamese government, the number and amount of tax exemptions for imported goods in the form of resident exchange (small quota) will be reduced from January 1, 2025. Goods exported through small quotas must meet quality standards and traceability requirements. Only residents in border areas are allowed to leave the country through permanent exchange, and they must go through exit procedures in person. Huacheng Import and Export Data Observation reports.

From January 1, 2026, commodities exported to China by Zhengmao are only allowed to handle export procedures at international ports, major ports (bilateral ports), and secondary ports. Starting from 2027, the import and export of goods at ports will be suspended if the two sides fail to reach cross-border goods exchange and purchase and sales agreements. By 2028, Vietnamese ports will only handle customs clearance procedures for goods that are licensed and officially exported to China. Huacheng Import and Export Data Observation reports.