Export to Vietnam from India

India Vietnam trade relationship

Vietnam is among India’s top 20 export destinations and the second-largest ASEAN partner after Singapore. Bilateral trade crossed USD 14 billion in FY 2024-25, with India running a comfortable surplus on most categories. Indian exporters benefit from a duty-free or low-duty corridor under the ASEAN-India Trade in Goods Agreement (AITIGA), which has been operational since 2010 and covers over 80% of tariff lines.

Vietnam’s industrial expansion, especially in electronics assembly, footwear, garments, and food processing, drives consistent demand for Indian raw materials and intermediate goods. Ho Chi Minh City, Hai Phong, and Da Nang are the primary trade gateways. Most Indian shipments arrive via direct vessel services from Mundra, Nhava Sheva, and Chennai with transit times of 10 to 14 days.

Top exports from India to Vietnam

The high-volume Indian export categories to Vietnam are:

• Iron and steel, particularly hot-rolled coils, billets, and stainless steel
• Cotton yarn and fabric, supplying Vietnam’s massive garment manufacturing base
• Buffalo meat, India is one of Vietnam’s largest meat suppliers
• Marine products, especially shrimp and frozen fish
• Pharmaceuticals and APIs, growing rapidly with Vietnam’s healthcare expansion
• Plastics and polymers, feeding Vietnam’s packaging and consumer goods sector
• Animal feed and feed additives
• Maize, rice, and processed foods
• Electrical machinery and components
• Engineering goods including auto parts, hand tools, and industrial valves

ASEAN India FTA and tariff benefits

Under AITIGA, Indian exporters get preferential duty access if shipments qualify under the Rules of Origin. The Certificate of Origin Form AI is required to claim preferential rates. Without Form AI, Vietnam Customs applies the MFN rate, which can be 5% to 25% higher depending on the product.

Common qualifying criteria under AITIGA:

• Wholly Obtained in India (mining, agriculture, marine catch within Indian jurisdiction)
• Regional Value Content of at least 35% with the last substantial transformation in India
• Change of Tariff Sub-Heading rule for specific products

The Form AI is issued by authorised agencies including EIA, FIEO, MPEDA, and various Export Promotion Councils depending on the product category. We handle Form AI applications as part of the export documentation package.

Documentation required for India to Vietnam shipments

• Commercial invoice in English with HS code, value, INCOTERMS, and consignee details
• Packing list with gross and net weight per package
• Bill of Lading or Air Waybill
• Certificate of Origin Form AI for preferential duty access (mandatory for tariff benefit)
• Phytosanitary certificate for plant-origin products from Indian Plant Quarantine
• Health certificate for meat, marine, and dairy products from EIA or MPEDA
• Fumigation certificate for wood and wood-packing material (ISPM-15)
• Insurance certificate if CIF terms
• Halal certificate for food products to Muslim-majority retail channels
• Test reports for chemicals and pharmaceuticals from authorised labs

Vietnam customs and import duties

Vietnam classifies imports under its national tariff schedule aligned with ASEAN Harmonised Tariff Nomenclature. Import duty (MFN or preferential), VAT at 5%, 8%, or 10%, and Special Consumption Tax for select items like alcohol and tobacco apply on the CIF value plus duty.

Restricted and conditional imports include pharmaceuticals (requires Vietnam Ministry of Health registration), agricultural produce (Ministry of Agriculture inspection), used machinery (Ministry of Science and Technology approval), and certain chemicals on the Vietnam REACH equivalent list.

Payment terms and banking

The standard payment terms used by Indian exporters to Vietnam are:

• Advance payment, 30% to 100% before shipment, common for new buyers
• Letter of Credit at sight or usance, typically 30 to 90 days, most common for established trade
• Documents against Payment (DP), riskier but used by long-standing partners
• Documents against Acceptance (DA), high-risk and not recommended without ECGC cover
• Open account, only with ECGC buyer-specific cover and 24+ months of clean trade history

Vietnam Dong (VND) is not freely convertible. Settlements happen in USD or EUR. Major Vietnamese banks like Vietcombank, BIDV, and VietinBank handle most LC operations cleanly.

Shipping routes and logistics

Primary shipping lanes:

• West India to Ho Chi Minh City, Mundra and Nhava Sheva direct vessel, 12 to 14 days transit
• South India to Hai Phong, Chennai or Cochin via Singapore transshipment, 14 to 18 days
• Air freight, Delhi or Mumbai to Hanoi or Ho Chi Minh, 1 to 3 days

Common carriers operating direct services include Maersk, MSC, ONE, Wan Hai, and CMA CGM. Vietnam’s main ports are Cat Lai (HCMC), Tan Cang Cai Mep (deep-water HCMC), Hai Phong, and Da Nang.

Common challenges Indian exporters face in Vietnam

1. Form AI rejections. Vietnam Customs is strict on Rules of Origin compliance. Even minor discrepancies between Form AI, invoice, and packing list trigger 5% to 15% duty demand and clearance delays.
2. Currency exposure. Vietnam Dong is not freely tradable. Buyers occasionally request VND quotations, exposing exporters to conversion risk.
3. Buyer creditworthiness. Many Vietnamese SMEs operate on tight cash cycles. ECGC buyer-specific cover is essential before extending credit terms.
4. Chinese competition. Goods from China cross the land border into northern Vietnam with minimal duty under the China-ASEAN FTA. Indian exporters compete on quality and reliability rather than price for similar categories.
5. Documentation language. Vietnam Customs requires English documents but accepts certified Vietnamese translations for restricted-category items. Wrong translation has caused significant delays.

Frequently asked questions on exporting to Vietnam

Do I need a separate licence to export to Vietnam from India?

No. Standard IEC, RCMC, and category-specific certifications (APEDA, FSSAI, Pharmexcil, etc.) are sufficient. Vietnam-specific licensing applies only to restricted categories on the Vietnam side.

How long does Vietnam customs clearance take?

Standard clearance is 1 to 3 working days for documented shipments with Form AI. Restricted categories like pharmaceuticals and chemicals take 5 to 10 days due to additional inspections.

Can I export buffalo meat to Vietnam?

Yes. India is among Vietnam’s top buffalo meat suppliers. Shipments require APEDA registration, plant approval from the buyer-side Vietnam Department of Animal Health, EIA-issued health certificate, and Halal certification for most distribution channels.

What is the minimum order size that makes Vietnam export viable?

For ocean freight, a 20-foot container load (typically 10 to 18 tonnes depending on cargo density) is the minimum economical shipment. Below this, LCL (Less than Container Load) consolidation is used but pushes per-unit freight cost up significantly. Air freight is viable for high-value, low-volume goods like pharmaceuticals or electronics.

Is RoDTEP available for exports to Vietnam?

Yes. RoDTEP is product-based, not destination-based. Any RoDTEP-eligible HS code claimed against shipments to Vietnam is reimbursed at the notified rate via scrip credit.

Does Vietnam recognise Indian Halal certifications?

Yes, with caveats. The Vietnam General Department of Standards accepts Halal certificates from recognised Indian bodies like Jamiat Ulama-i-Hind Halal Trust and Halal India. Some retail chains demand Halal certification from Indonesia’s MUI or Malaysia’s JAKIM, which adds a second certification step.

How Rasp International supports Vietnam exporters

Our Vietnam desk covers Form AI applications, port-of-loading coordination, ICEGATE filing, RoDTEP claim, ECGC buyer cover, document legalisation, and post-shipment follow-up. We run pre-shipment compliance checks against Vietnam Customs known issue lists for each product category, which removes the most common rejection patterns before the cargo leaves India.