The Complete Guide To Shipping From Vietnam

Vietnam is rapidly becoming a major player in global manufacturing, with huge multinational companies like Nike, Samsung, Hyundai, Pepsi and more producing and shipping their goods there. This has dramatically boosted Vietnam’s position on the industrial value chain. 

When you combine this with Vietnam’s accessibility to China, the South China Sea, and other major international shipping routes, it becomes clear that shipping from Vietnam is an incredibly viable option.

In this guide we break down everything you need to know about shipping from Vietnam, from the pros and cons of air and sea freight, to the specific ports and airports where goods are shipped from and to. We also offer broader advice on shipping from Vietnam, alongside other frequently asked questions.

 

The benefits of working with SEKO in Vietnam

 

SEKO-owned offices

SEKO’s Vietnam based offices allows for greater control and efficiency around all shipping processes. Our Vietnam-based team have local knowledge that is second-to-none, which allows them to pick the best possible carriers for your shipment, optimising price and service.

When shipping with SEKO Vietnam, customers can utilise any of SEKO’s 8 warehouses to store goods in transfer. At our warehouses, all care is taken to ensure your goods are well taken care of and all paperwork is in place before they start the next stretch of their journey.

 

Years of Experience

SEKO is a leader in the logistics industry, with over 40 years of shipping and logistics experience to pull from. The operational expertise gathered over this time allows us to rapidly handle any requests, whether in Vietnam or globally.

 

One Universal Operating System

SEKO’s powerful operating systems allows for all shipping information from one single source of truth.

Our operating system also allows for seamless communication from country to country, and boasts the latest in operational efficiencies and standardised processes. This means faster processing times with comms whenever you need.

Highly accurate real-time tracking is also used to provide rapid updates on all shipments, and allow users to monitor the progress of their shipment at the click of a button.

Alongside the above features, our operating system allows for easy integration for partners and vendors. It can also scale smoothly with operations in new markets, with manageable KPIs to keep track of success rates and other metrics.

 

SEKO’s Container Freight Station

SEKO’s Container Freight Station (CFS) offers a range of benefits, including:

• A buyer’s console - This allows for the consolidation of multiple LCL’s into an FCL to improve lead time/reduce costs.
• Quality Control checks on CFS arrival
• Relabelling and reworking of goods on CFS arrival

 

An introduction to our Vietnam freight services (ocean, air, sea-air, customs compliance)

SEKO Vietnam offers comprehensive logistics and shipping solutions from Vietnam. Within these solutions, we also manage customs compliance, clearance processes, and other considerations.

Below we discuss our sea freight and air freight options. If you would like to learn more, please keep on reading our guide. If you would like to discuss shipping directly, please get in touch now.

 

Sea freight from Vietnam to the UK

Sea freight uses large shipping vessels to transport goods from port-to-port, and is for around 90% of all international goods shipments. While it can be a slower method of transportation than air freight, it is incredibly cost-effective for large volumes, especially from countries like Vietnam that have exceptional access to international shipping routes.

 

LCL vs FCL Meanings

Less than Container Load (LCL)

Less than Container Loads are where the shipment does not fill the entire container it is being shipped in.

For smaller businesses, LCL shipping can be less expensive, as they only pay for the space they need within the container. 

On the other hand, there is a risk that your shipment may be held up by customs due to the mixed load of the container, or take longer to arrive due to the unloading of other goods.

With this in mind, you should ensure that any time-sensitive shipments are planned and put into action well ahead of time.

When you speak to a member of our team, they will be happy to run you through LCL Shipping costs, and can advise on shipment consolidation options.

 

Full Container Load (FCL)

Full Container Loads are where the shipment fills the entire container, and as such there is only one consignee to that container, and the container space is not shared with another shipment.

Depending on the volume rate, FCL shipping is likely to be cheaper than LCL shipping. It is worth bearing in mind though that you will be solely responsible for the fixed rates that accompany FCL shipping, such as the chassis fee and handling charges.

When you speak to a member of our team about FCL shipping, they will run through all costs, container sizes (20’ or 40’ containers), and any other variables.

 

Advantages and disadvantages of sea freight shipping

Advantages

• For large volume rates, sea freight shipping is much more economical than other shipping methods like air, road, or rail.
• Industrial goods, cars, machinery, and other larger shipments benefit from sea freight where weight costs are less impactful.
• It is easier to ship sensitive materials via sea freight, thanks to options like reefer containers that can control airflow, humidity, and temperature.
• Compared to planes, shipping vessels have a much lower carbon footprint, which can benefit businesses aiming toward net-zero or reduced carbon emission goals.

 

Disadvantages

• Sea Freight is susceptible to bad weather at sea, which can slow down shipments.
• Similarly, port congestion can also slow down shipments.
• Not all countries have a well-developed port infrastructure. Even some ports in Vietnam can only accept small vessels.
• Other shipment methods, in particular air freight (over long distances), can be much faster than sea freight.

 

Ports in Vietnam

1. Hai Phong Port

Hai Phong Port is located in the city of Hai Phong, in Northern Vietnam. It is one of the largest ports in the north, with connections to strategic trading points like the Red River Delta. 

Hai Phong Port also serves the Kunming-Haiphong Transport Corridor. This corridor is a free trade route between China and the Association of Southeast Asian Nations (ASEAN). As such, this port is critical to Vietnam’s trade.

To put into perspective just how much is shipped from Hai Phong Port, Vn Economy reports a huge 37.58 million tonnes of cargo shipped. This equates to Hai Phong Port JSC earning VND2.5 trillion ($104 million)

The city of Hai Phong itself also has great connections, and can transport goods via railway, road, airways, inland waterways, or maritime.

 

2. Da Nang Port

Da Nang Port is one of the largest ports in central Vietnam, and includes the Tien Sa Port and its subsidiaries. The port is based in the Da Nang bay, at the mouth of the Han River. 

Da Nang is another rapidly growing port. According to Dangang Online, between January-September 2023, Da Nang shipped more than 492 TEUs (Twenty-foot equivalent units), a 3% increase from the same period in 2022.

 

3. Saigon Port/Ho Chi Minh City Port

The Saigon Port/Ho Chi Minh City Port is managed by the Saigon Newport Company, and has great connections thanks to its placement on the Song Sai Gon river, the Mekong River Delta, and the South China Sea.

This port is a deepwater seaport. This means its channel depths range from 8.5-91 metres at different terminals, making it a suitable space for particularly large or heavily laden shipping vessels.

Shipping companies using Saigon Port perform very well. According to the Saigon Port website, SSIT saw their cargo throughput during the first six months of 2024 reach over 1 million tonnes, or over 300,000 TEUs.

 

4. Vung Tau Port 

Much like Ho Chi Minh City, Vung Tau is a major international entry point for trade and travel into Vietnam. It is located in the southeast of the country, and is part of a cluster of ports that operate in that area.

Vung Tau is the third-largest seaport in Vietnam, and is currently undergoing a phase 2 expansion to allow more throughput. According to VietnamPlus, Vung Tau handled around 5.6 million TEU in 2022

 

5. Quang Ninh Port

Quang Ninh Port is based in Northern Vietnam, and is well-connected, with railways, roads and maritime routes to other parts of the country.

The port is capable of handling exports on a huge volume, with 36 kilometres of berth, and channel depths of 10-20 metres.

The port is well known for its infrastructure and service investments, which have helped it increase throughput of goods by over 10 percent on average since 2022.

 

Ports in the UK

The UK Ports industry is the second largest in Europe, and handles more than 500 million tonnes of freight each year. There are currently 120 commercial ports in the UK.

 

1. Felixstowe Port

Felixstowe Port is one of the largest ports in Europe, and is based in the southeast. It has three terminals and handles approximately 3 million TEU each year.

The port has the infrastructure to handle some of the largest shipping containers in the world, and offers services that reach over 700 ports globally.

 

2. Southampton Port

Southampton port is on the south coast of the UK, and is particularly well-known for its vehicle processing, handling around 900,000 vehicles per year. 

The port handles more than 1.5 million TEUs each year, making it one of the busiest container ports in the UK. 

It also has great connections by rail, air and road, with the M27 Motorway less than two miles away, and Southampton and Heathrow airports close by.

 

3. London Gateway Port

London Gateway Port is based at the mouth of the River Thames where it meets the North Sea. From there it has great connections up to Northern Europe, or down the English Channel.

The port is well-placed for quick access to the UK’s capital, London, and with an annual capacity of 3.5 million TEUs, is well-placed to manage all kinds of cargo, although is well known for handling perishables.

 

4. Liverpool Port

Liverpool Port is based on the UK’s west coast, allowing it greater access to North American based ports, or other parts of Europe via the Irish Sea and Atlantic Ocean.

The port is capable of handling some of the largest shipping vessels in the world, and handles around 900,000 TEUs a year.

Cargo shipped from Liverpool often includes vehicles, and goods such as coal and grain.

 

5. Port of Immingham

The Port of Immingham is based on the UK’s East-coast and handles around 500,000 TEUs a year. 

It is largely used as a gateway to Europe, and handles goods from oil and gas, to coal and chemicals.

Like Liverpool Port, the Port of Immingham boasts great connections to some of England’s largest industrial centres, like Manchester, Sheffield, and Leeds.

 

Vietnam Sea Freight Statistics

• Sea freight rates have seen a massive spike since Covid. 
• According to a report by the Vietnam Association of Seafood Exporters and Producers (VASEP), shipping costs to Southampton jumped to £4,190 by the end of 2020, compared to £1,340 per container at the beginning of the year. International shipping rates have stabilised since, but they remain elevated compared to before the pandemic.
• Vietnam is one of the leading shipowners in the world, with a shipping fleet of 959 national-flagged vessels, and 167 international-flagged vessels as of 2022.
• Vietnam has a very long coastline, which allows easy access to the Gulf of Tonkin, the South China Sea, and the Gulf of Thailand.

 

Air Freight from Vietnam to the UK

Air Freight is a particularly fast method of transporting goods, and is well suited to smaller volumes of high value goods.

Advantages and Disadvantages of Air Freight Shipping

Advantages

• Ideal for perishable goods that will not last the journey on alternate shipping methods.
• Where coastlines or port infrastructure is not always available, air freight is global, and most countries have suitable airports for landing a cargo plane.
• Air freight is comparatively safer and more reliable than other methods, and is the fastest way to transport goods over long distances.
• There are a greater range of express options which can see your goods delivered much quicker.

 

Disadvantages

• Much like sea freight, air freight can be subject to poor weather conditions which may slow the delivery down.
• It is not as easy to transport high volume rates by air. Compared to cargo ships which may hold over 20,000 TEU, cargo planes are much smaller.
• Compared to sea freight, air freight is generally much more expensive, although there may be circumstances where it is as cost-effective, if not more so, than LCL shipping.

 

Other considerations for Air Freight from Vietnam

When consider exporting from Vietnam via air freight, you should consider:

Documentation requirements

There are a number of documents that are required for shipping from Vietnam to the UK. These include:

 

Packing List

The packing list should include the volume of the cargo, alongside its weight and value. It is essential for customs clearance inspections.

 

Commercial Invoice

The commercial invoice acts as a customs declaration for items shipped internationally. It should include:

• Information on the transaction between the supplier and customer.
• Information on the shipped goods.
• The value of the shipped goods.

This information should be as comprehensive as possible.

 

Bill of Lading

The Bill of Lading is another important document for international shipping. In essence, it is the contract between the shipper, the consignee, and the carrier. It should include:

• The shipping destination.
• The type of goods.
• The quantity of goods.

This document also acts as a receipt of shipping, and details the agreed conditions for the goods to be transported.

 

Shipper’s Letter of Instruction (SLI)

The purpose of this document is to convey the instructions of the exporter to the freight forwarder. This is to reduce any misunderstandings in getting the goods to foreign markets.

 

Letter of credit

This document is a guarantee of payment from the buyer to the seller when conditions are met. The importer or buyer’s bank issues this document.

 

Certificate of Origin

The certificate of origin verifies the product’s country of origin. It should include:

• Contact information and name of the exporter
• Contact information and name of the producer (if it’s different to the exporter)
• Contact information and name of the receiver
• The HS Code, quantity, weight, and a description of the goods
• The country of origin
• The means of transport and route
• A commercial invoice number and date
• The Air Waybill number
• Any other remarks

 

Customs procedures

As you would expect, customs procedures in the UK are incredibly precise, with automatisation making up a large part of the process.

The two countries also benefit from the UKVFTA (UK-Vietnam Free Trade Agreement), which includes provisions on:

• Tariff rate quotes.
• Rules of origin.
• Preferential tariffs (where the UK has an agreement with a country you buy goods from).

The UK Customs process works as such:

1. Your goods arrive in the UK, and all paperwork is checked by customs.
2. Your duties are calculated by the UK customs office, and payments are collected before your goods can move on.

 

Customs Duty

Customs duty can be quite complex. You will be charged customs duty on all goods sent from outside the UK if:

• They are excise goods.
• They are worth more than £135.

For gifts that are between £135 and £630, you will pay a 2.5% custom duty rate. This is not the case for all items between this range.

Customs duty charges on goods above £135 and gifts above £630 is subject to:

• The place of origins.
• What the goods are.

If the goods are non-excise goods, or worth £135 or less, you will not be charged customs duty.

 

EORI Numbers

Your EORI number is checked by customs upon arrival. 

This number begins with the letters ‘GB’ if you are importing to England, Wales, or Scotland. If you're importing to Northern Ireland, your EORI will start with an ‘XI’.

If your EORI does not include either of these starting letters for your respective delivery countries, you will be required to get a new one.

 

Registered Importers

You must be a registered as an importer if you are importing any of the following:

• Medicines
• Textiles
• Plants
• Chemicals
• Animal products

For goods that are more likely to harbour dangerous bacteria, such as high-risk foods, animal products, and chemicals, a licence or certificate will be required.

 

VAT Considerations

When importing to the UK, consider that all goods, aside from gifts worth £39 or less, are subject to VAT (Value-added tax).

This is generally charged to the delivery company before you receive the shipment, or when you initially buy the goods.

 

Cost considerations

Air freight is by far the most expensive method of shipping, and can sometimes cost up to 20 times more than other shipping methods. This is because elements like the jet fuel, labour, landing fees and maintenance are all taken into account for a shipment.

 

Which freight forwarder you will use

Choosing the right freight forwarder is crucial for successful international shipping. At SEKO Logistics, we offer air freight forwarding solutions that cater to diverse needs and timelines. With over 40 years of experience, SEKO delivers exceptional service across the globe, 7 days a week, 365 days a year.

Get in touch with SEKO today to kickstart your experience.

 

The best possible airport routing

When shipping goods via air freight from Vietnam to the UK, selecting the right airport routing is crucial for efficiency and cost-effectiveness. There are many factors in which decide the best airport route for your requirements:

Cargo type

Different airports may specialise in handling specific types of cargo, such as perishables, hazardous materials, or oversized freight. Choose an airport equipped to handle your specific cargo needs.

 

Cost considerations

Evaluate landing fees, handling charges, and potential discounts through airport alliances or freight forwarder agreements. Balancing cost with service quality is important.

 

Time sensitivity

For urgent shipments, direct flights and airports with frequent schedules are ideal. Consider airports known for minimal delays and efficient turnaround times.

 

Customs efficiency

Airports with streamlined customs processes can expedite cargo clearance, reducing overall transit time. Choose destinations known for their efficient customs operations.

 

Airports in Vietnam

1. Noi Bai International Airport of Hanoi

Located in the capital city, this airport is ideal for shipments originating from northern Vietnam. It offers robust cargo handling facilities and frequent international flights.

 

2. Tan Son Nhat International Airport

Serving the southern region, this airport is a major hub for international cargo. It’s close to many manufacturing hubs, making it a strategic choice for exporters.

 

Main UK Cargo Airports

1. Heathrow International Airport

Heathrow is the busiest airport in the UK. It serves as a major global hub with numerous direct flights and efficient customs clearance processes. There are five terminals, each equipped with modern facilities to handle cargo traffic. Heathrow connects to over 180 locations around the world, playing a crucial role in international trade. 

 

2. East Midlands International

East Midlands Airport is known for its significant cargo operations, being one of the busiest pure cargo airports in the UK. Located in the heart of the UK, it offers excellent access to major road networks. This facilitates the swift distribution of goods across the country. The airport is home to major cargo carriers and supports a wide range of freight services.

 

3. London Stansted Airport

London Stansted Airport is a key player in the UK's aviation sector, particularly for cargo operations. It serves as a major gateway for freight, with extensive cargo facilities that support the handling of goods. The airport's close to London, which makes it an attractive option for cargo traffic. Stansted's cargo village ensures a smooth operation to meet the needs of various logistics providers.

 

4. Manchester Airport

Manchester Airport is a large logistics hub in the North West of England, offering extensive cargo services. It connects to over 200 destinations worldwide and is equipped with facilities to handle a diverse range of cargo. Manchester Airport's cargo centre is equipped with advanced handling and storage facilities. This allows for the efficient processing and distribution of goods.

 

5. Belfast International Airport

Belfast Airport is a vital gateway for Northern Ireland for cargo. The airport is designed to handle a range of goods, ensuring efficient customs clearance and processing. Belfast's location and infrastructure make it an important hub for logistics and supply chain operations in the region.

 

6. London Luton Airport

London Luton Airport is a key airport serving the London area. It offers a range of services to support the handling of goods, making it a popular choice for logistics companies. Luton’s strategic location and connectivity to major road networks further enhance its appeal as a cargo hub.

 

Vietnam Air Freight Statistics

The air freight industry in Vietnam has shown resilience and growth potential despite the global challenges posed by COVID-19 and geopolitical tensions such as the Russia-Ukraine conflict.

Here are some key statistics and insights into Vietnam's air freight sector:

• Economic impact: According to the International Air Transport Association (IATA), the air transport sector has generated over 2.2 million jobs and contributed approximately US$12.5 billion to Vietnam's GDP.
• Airline operations: As of March 2022, Vietnam's domestic air market featured six airlines operating an average of 55-60 domestic routes. The country has 19 airports facilitating both inter-regional and intra-regional connectivity.
• International air freight surge: Despite a 93 percent drop in international flights in 2021 due to the pandemic, international air freight saw a significant increase of over 21.3 percent compared to 2020.
• Cargo volume: In the first quarter of 2022, the domestic cargo volume was around 98,000 tons (a 5 percent decrease from the same period in 2021). International cargo volume reached about 292,000 tons, marking a 21.1 percent increase over the same period in 2021.
• Market dominance: Approximately 88 percent of Vietnam's air cargo volume is managed by foreign logistics providers.
• Export growth: Vietnam's position as a manufacturing hub has boosted its exports, particularly to the US, driving the demand for air freight services.
• Lack of dedicated cargo airlines: Currently, Vietnam does not have an airline dedicated solely to cargo transport. Passenger airlines have adapted by incorporating cargo transport to offset pandemic losses. For example, Vietnam Airlines used 12 wide-body aircraft for cargo, utilising passenger and belly compartments and removing seats from narrow-body aircraft for cargo space.
• Future prospects: IMEX Pan Pacific Group (IPPG) is seeking to establish IPP Air Cargo, aiming to be Vietnam's first dedicated air freight company. This initiative could further enhance the country's logistics capabilities by partnering with foreign carriers.

 

What to expect from Vietnam’s clearance process

Navigating the customs clearance process in Vietnam involves several key steps and an understanding of the regulations. Here's what you need to know:

• Regulatory compliance:

• Imported and exported goods must follow Vietnam's classification list.
• Follow preferential import tariffs and export tariff nomenclature.
• Adhere to the six general rules of the Harmonised System (HS) Convention.

 

• Import guidelines:

• Companies, including those with foreign investment, must hold a registered operating licence.
• Ensure goods meet specific quality and performance standards set by Vietnamese authorities.

 

• Essential documentation:

• Bill of lading.
• Import goods declaration form.
• Import permit for restricted items.
• Certificate of origin.
• Cargo release order.
• Commercial invoice.
• Customs import declaration form.
• Inspection report.
• Packing list.
• Delivery order (for seaport imports).
• Technical standard/health certificate.
• Terminal handling receipts.

 

• Standards and certification:

• QUACERT (Vietnam Certification Center).
• TCVN (Vietnamese Directorate for Standards and Quality).
• QUATEST 3 (Quality Assurance and Test Center 3).

At SEKO Logistics, we streamline the entire logistics process. We handle everything from packaging to customs clearance. This ensures an efficient and cost-effective solution tailored to your needs.

 

Tips for successful shipping from Vietnam 

Successfully shipping goods from Vietnam requires careful planning and adherence to regulations. Here are some tips to ensure your shipping process is smooth and efficient:

 

1. Choose the best shipping method

Selecting the right shipping method is crucial. Air freight offers faster delivery, making it ideal for time-sensitive shipments. This is usually required in industries like fashion, tech, and shipping e-commerce goods. On the other hand, sea freight is more cost-effective but takes longer, around 25-30 days. This method is more suitable for bulk shipments and less urgent deliveries.

 

2. Understand and comply with customs regulations

Compliance with customs regulations is vital to avoid delays and extra costs. Ensure you have an ‘EORI number’, which is mandatory for importing goods into the UK. The number must start with 'GB' for general imports or 'XI' for Northern Ireland.

Commodity codes are essential, which determine duty rates and whether an import licence is needed. These codes are specified using the UK Integrated Online Tariff based on HS codes. Additionally, be aware of duties and taxes. VAT is applied on almost all imported goods, and customs duty is imposed on items over £135 or specific excise goods like alcohol and tobacco.

 

3. Prepare essential documentation

Accurate and complete documentation is critical for a smooth shipping process. The air waybill (AWB) serves as the shipment's ID tag. This details the shipper and receiver's contact information, a description of the goods, and the shipment's weight and dimensions. The commercial invoice, a detailed record of the transaction, should include addresses, contact details, transaction costs, and the currency code used. It must also state the reason for export and the Incoterm applied.

A customs declaration is required, listing all goods being imported, with over 50 fields to complete. Often, a customs compliance provider is hired to ensure accuracy. Certain goods may also need a licence or certification, as per UK regulations.

 

4. Be aware of shipping restrictions

You need to understand what can and cannot be shipped. Prohibited items include controlled drugs, offensive weapons, self-defence sprays, endangered species, and indecent materials. 

Restricted items require special permissions or certifications to be shipped. These include alcohol, batteries, electronic devices with lithium batteries, hazardous substances, cosmetics, and rough diamonds. Adhering to these guidelines helps avoid complications such as goods confiscation or penalties.

 

5. Use Proper packaging and labelling

Proper packaging and labelling are vital for protecting goods and ensuring efficient customs clearance. Packaging should safeguard goods from damage during transportation, and clear labels ensure proper storage and handling. Properly labelled packages speed up the clearance procedure.

For products entering the UK, businesses must apply the UK Conformity Assessment (UKCA) mark, indicating the product meets local standards. Post-BREXIT, the CE marking is recognised indefinitely for many goods, simplifying the transition. 

Specific products, like wine and food, have additional labelling standards. For instance, wine labels must detail the importer or bottler, and food packaging must state suitability 'for food contact'.

 

DCM technology 

DCM technology at SEKO Logistics enhances supply chain efficiency and visibility, crucial for businesses shipping from Vietnam.

Our SEKO 360 Demand Chain Management (DCM) software streamlines supply chain operations with:

• Enhanced visibility: Tracks shipments from booking to delivery at the SKU level.
• Workflow management: Ensures efficient handling and optimised processes.
• Business intelligence: Provides insights into supplier performance and carbon footprint.

The SEKO 360 Warehouse Management System (WMS) boosts inventory management with:

• Flexible integration: Supports process automation for adaptable supply chains.
• Stock management: Monitors inventory and supports asset tracking.
• Real-time data: Enhances performance reporting with real-time analytics.

 

End-to-end supply chain visibility

Combining DCM and WMS, SEKO Logistics offers seamless, global supply chain management through MySEKO.

Our platform ensures efficient shipment tracking and comprehensive logistics management, crucial for importing from Vietnam.

 

Transform your supply chain with SEKO Logistics

SEKO Logistics simplifies your global supply chain with advanced technology, supporting your business growth from Vietnam to the world. Contact us to learn how SEKO can enhance your logistics operations.

 

Frequently Asked Questions

What are Vietnam’s Key Exports?

According to Statista, Vietnam’s 2023 key exports by value are:

• Electronics (including computers and components) - 57.34 Billion USD
• Mobile phones (including spare parts) - 52.38 Billion USD
• Machinery - 43.13 Billion USD
• Textiles - 33.33 Billion USD
• Footwear - 20.24 Billion USD
• Vehicles and Spare Parts - 14.16 Billion USD
• Timber and Wood products - 13.47 Billion USD
• Aquatic Products - 8.97 Billion USD
• Iron and Steel - 8.35 Billion USD
• Fruits and Vegetables - 5.6 Billion USD

 

How successful is Vietnam’s economy and trade sectors? 

In the first five months of 2024, Vietnam's exports surged by 15% year-on-year, reaching $156.5 billion, according to official statistics from the Vietnam Ministry of Industry and Trade.

Over the past three decades, Vietnam has experienced remarkable economic growth. From being one of the world's poorest nations, its GDP per capita soared to £3,117 in 2021, a significant increase from less than £90 in 1990.

Additionally, its trade volume has nearly quadrupled in the last decade. Key drivers of this growth include rising manufacturing costs in China, the China-U.S. trade issue, and Free Trade Agreements (FTAs), including the UK-Vietnam FTA, effective from January 2021.

According to UK Government data on trade and investment between the UK and Vietnam, the total trade in goods and services amounted to £5.9 billion in the four quarters to the end of Q4 2023, a 17.0% decrease from the previous year. 

UK exports to Vietnam were valued at £978 million, while imports from Vietnam reached £4.9 billion. Vietnam ranked as the UK’s 44th largest trading partner, representing 0.3% of total UK trade.

 

What are the Duty Tax benefits for exporting from Vietnam as opposed to China?

 

For exporting to the UK, Vietnam offers several duty tax benefits compared to China, primarily due to the trade agreements and preferential schemes in place:

 

UK-Vietnam Free Trade Agreement (UKVFTA)

This agreement, effective since January 1, 2021, replicates the benefits of the EU-Vietnam Free Trade Agreement (EVFTA) post-Brexit. It eliminates or reduces tariffs on a wide range of goods exported from Vietnam to the UK, offering significant cost advantages over Chinese exports, which do not benefit from such an agreement with the UK.

 

Generalised Scheme of Preferences (GSP)

The UK has implemented its own GSP program post-Brexit, known as the UK GSP. Vietnam is a beneficiary country under this scheme, allowing for reduced tariffs or duty-free access to goods exported to the UK. This preferential treatment can make Vietnamese goods more competitive than those from China, which may enjoy different tariff reductions.

 

Lower tariffs on key products

Specific products exported from Vietnam to the UK can enjoy lower tariffs under the UKVFTA. For instance, textiles, footwear, and agricultural products from Vietnam may have lower or zero tariffs compared to similar goods from China. This makes them more attractive to UK importers.

 

How long does it take to ship a container from Vietnam to the UK?

Shipping a container from Vietnam to the UK usually takes about 25 to 35 days if it's a direct route. 

Major Vietnamese ports like Ho Chi Minh City (Cat Lai Port), Hai Phong, or Da Nang connect to key UK ports such as Felixstowe, London Gateway, or Southampton. 

However, if the shipment involves transhipment, where the container is transferred to another vessel at an intermediate port, the transit time can extend to about 30 to 40 days. Common transhipment hubs for this route include Singapore, Hong Kong, and Rotterdam.

Transit times can be affected by various factors, including weather conditions, port congestion, and the time required for customs clearance at both ends. Different shipping lines and service types, such as economy versus express services, can influence the shipping duration.

 

Trust SEKO for your Vietnam shipping needs

SEKO is proud to offer shipping and logistical support across the globe, and provide services that include everything from freight forwarding to customs clearance and much more.

We also work across a range of industries including, but not limited to, fashion, high-tech goods, automotives and vehicles and the industrial and manufacturing industry.

Get in touch with a member of our highly experienced team today, and see how SEKO can optimise your supply chain.

 

Speak to a member of our team today