The Socialist Republic of Vietnam (Vietnamese: Cộng hòa Xã hội Chủ nghĩa Việt Nam, English: Socialist Republic of Vietnam) is commonly referred to as Vietnam (Viet Nam). Its capital is Hanoi, and its major seaports for foreign trade are Ho Chi Minh City Port, Hai Phong Port, Da Nang Port, and Qui Nhon Port. Vietnam is located at the southeastern end of the Indochinese Peninsula in Southeast Asia. It is surrounded by the sea on three sides and has a long and narrow shape, resembling the letter "S" to some extent. It shares its northern border with Guangxi and Yunnan provinces of China and is one hour behind Beijing time.

The currency of Vietnam is the Vietnamese đồng (VND), which is not freely convertible. Vietnamese is the official language of Vietnam and is widely spoken as a common and major ethnic language. Some residents also speak English. According to the classification of language families, the Vietnamese ethnicity can be divided into three language families: Austroasiatic, Austronesian (Malayo-Polynesian), and Sino-Tibetan.

Vietnam is a multi-ethnic country with 54 ethnic groups. The majority ethnic group is the Kinh (also known as Viet) people. The population distribution of various ethnic groups is as follows: Kinh (Viet), Tay, Thai, Muong, Khmer, Nung, Hmong, and others.

Buddhism holds a dominant position in Vietnam, followed by Catholicism, Cao Dai, and Hoa Hao. In Vietnamese folklore, the lotus flower is considered the national flower and symbolizes strength, auspiciousness, peace, and enlightenment. The lotus flower is also metaphorically associated with heroes and deities. The national bird of Vietnam is the Cuckoo, which is regarded as one of the natural symbols of Vietnam.

Vietnam has trade relations with over 150 countries and regions around the world. In recent years, Vietnam has maintained high-speed growth in foreign trade, playing a significant role in driving economic development. According to statistics from the General Administration of Customs of China, the bilateral trade volume between China and Vietnam in 2022 reached 234,920,526 thousand US dollars, with a year-on-year growth of 2.1%. The export value from China to Vietnam during the same period was 146,959,900 thousand US dollars, showing an increase of 6.8%, while the import value was 87,960,626 thousand US dollars, experiencing a decline of 4.7%.

As of May 2023, the bilateral trade volume between China and Vietnam amounted to 87,642,053 thousand US dollars, a decrease of 2.6% compared to the previous period. Among this, the export value from China to Vietnam was 56,723,838 thousand US dollars, a decrease of 1.8% during the same period, while the import value was 30,918,215 thousand US dollars, showing a decline of 4%.

China is one of Vietnam's largest trading partners and an important source of investment. The two countries have close economic ties covering various sectors, including agricultural products, electronic products, machinery and equipment, textiles, and more. Both countries are actively exploring new areas of investment cooperation and strengthening bilateral investment protection and promotion measures.

Since January 1, 2021, the Regional Comprehensive Economic Partnership (RCEP) has officially come into effect for Vietnam. Developing the Vietnamese market is crucial for foreign traders. How much do you know about the current market in Vietnam?

China-Vietnam Latest Trade Policies:

① With the official implementation of the Regional Comprehensive Economic Partnership (RCEP) in Vietnam, tariff optimization mainly involves agricultural products, industrial goods, chemicals, machinery and equipment, electronic products, and more.

② Starting from January 1, 2023, modifications have been made to the rules of origin under the RCEP. The Product Specific Rules (PSR) list will adopt the HS2022 version coding (previously HS2012 version coding), and corresponding changes will be made to the back page instructions of the certificate of origin.

③ Starting from July 1, Vietnam has reduced the value-added tax rate from 10% to 8%.

④ Trade and Economic Analysis:

In recent years, Vietnam has experienced sustained and stable economic growth, with an average annual growth rate exceeding 6%, making it one of the fastest-growing economies in Southeast Asia.

Vietnam is an export-oriented economy, and export trade plays a vital role in its economy. Major export products include electronic goods, textiles, garments, footwear, furniture, and agricultural products. Vietnam's key trading partners include China, the United States, Japan, South Korea, and European Union countries.

In terms of investment, Vietnam has attracted a significant amount of foreign direct investment (FDI) to establish factories and production bases, leveraging its low-cost labor and favorable geographical location to export products to the global market. Manufacturing, electronics and electrical equipment, textile industry, and automobile manufacturing are sectors that have attracted substantial foreign investment.

Vietnam is undergoing a structural transformation from a traditional agricultural economy to an industrial and service-oriented one. The share of the industrial sector is gradually increasing, with manufacturing and construction being the main drivers of economic growth. The service sector is also experiencing rapid development, particularly in areas such as tourism, finance, retail, and logistics.

At the same time, Vietnam actively participates in regional economic cooperation, including the Association of Southeast Asian Nations (ASEAN), the Asia-Pacific Economic Cooperation (APEC), and the Regional Comprehensive Economic Partnership (RCEP). These cooperative frameworks provide broader markets and opportunities, promoting trade liberalization and investment facilitation. Overall, Vietnam's economic growth and open policies have brought many opportunities for its foreign trade.

Characteristics of Vietnamese Customers:

① Hospitality: Vietnamese people are known for their warm hospitality. They are welcoming and take pride in their culinary culture. Vietnamese cuisine, with its unique flavors and fresh ingredients, is internationally recognized.

② Diligence and Frugality: Diligence is an important quality among Vietnamese people. They typically work hard, striving for economic independence and a stable life. Frugality is also an important cultural value in Vietnam, emphasizing thrift and rational consumption.

③ Family Values: Family holds a significant position in Vietnamese culture. Vietnamese people respect their elders and value family and kinship relationships. They usually have strong family bonds, caring for the well-being of their family members and working towards family unity and happiness.

④ Politeness and Respect: Vietnamese culture emphasizes politeness and respect for others. Vietnamese people typically treat others with friendliness, gentleness, and respect, especially towards elders and strangers. They value etiquette and social norms.

⑤ Collectivism: Vietnamese culture exhibits a strong sense of collectivism. Individual interests are often seen as part of the greater good of the family or community. Teamwork, collective efforts, and community support are important values in Vietnamese society.

⑥ Respect for Tradition: Vietnamese people hold a respectful attitude towards traditional culture and values. Confucianism, Buddhism, and folk beliefs have profoundly influenced Vietnamese culture. Vietnamese people value the preservation of family heritage and traditional customs.

Tips for Negotiating with Vietnamese Customers:

① Vietnamese culture emphasizes the importance of respecting elders and others. Therefore, disrespectful behavior towards elders or others may be considered inappropriate and offensive.

② Vietnamese people generally prefer to maintain harmony and avoid arguments and conflicts. In business negotiations or other interactions, communicating in a gentle, friendly, and cooperative manner will be more appreciated.

③ Vietnamese people are sensitive to discussing historical and political topics, especially those related to Vietnam's sovereignty, territorial disputes, or sensitive events. Respecting Vietnam's sovereignty and sensitive issues is crucial.

④ Dressing neatly and appropriately is important in business settings. Avoid dressing too casually or inappropriately to avoid leaving a negative impression.

⑤ Respect and politeness are core values in Vietnamese culture. Therefore, avoid rudeness, arrogance, overconfidence, or inappropriate behavior and attitudes to maintain a good business relationship.

⑥ Vietnam has a rich traditional culture and customs. Respecting and adhering to these customs is important. For example, avoid using inappropriate gestures or behaviors in Vietnamese business settings and respect local dietary habits and religious beliefs.

Respecting and understanding the characteristics of Vietnamese culture and following local social norms and etiquette will contribute to the smooth progress of our business negotiations.

Exporting to Vietnam Considerations:

① Prior to exporting, it is important to understand Vietnam's relevant laws and regulations regarding import and export, and ensure that exported goods comply with the relevant requirements.

② Some goods require import licenses from the Vietnamese government to enter the Vietnamese market. Exporters need to apply for the relevant licenses from the Vietnamese government to ensure smooth entry.

③ Exporters need to prepare export documents, including invoices, packing lists, transportation contracts, etc. Additionally, these documents need to be translated into Vietnamese.

④ Vietnam has different customs duties and tax policies for different types of goods. Exporters need to be familiar with Vietnam's relevant policies to budget costs effectively before exporting.

⑤ Exporters need to ensure that exported goods meet Vietnam's standards and quality requirements and undergo appropriate packaging.

⑥ Prohibited and restricted items for maritime shipping include drugs, explosives, harmful or corrosive substances, flammable materials, toxic substances, etc.

⑦ Providing false declarations may result in customs clearance issues, so it is important not to understate or omit goods in the declaration. It is also prohibited to carry cigarettes, medications, etc., as the additional costs and fines can be substantial.

Ways to develop the Vietnamese market:

Vietnamese B2B websites:

www. Alibaba.vn

www. ecvn.com

www. EC21.vn

www.shopee.vn

www.lazada.vn

www.seller-vn.tiktok.com/

www.Tiki.vn

www. VietnamB2B Direct.com

www. Tradekey.vn

Official Foreign Trade Websites in Vietnam:

Vietnam Yellow Pages website:

https://www. Vietnam Yellow Pages

https:// yp.vn

Ministry of Commerce of Vietnam:

http://www.moit.gov.vn

Vietnam Customs Bureau:

http://www.customs.gov.vn

General Administration of Quality Supervision, Inspection and Quarantine of Vietnam:

http://www.na.gov.vn

Vietnamese Port Management Agency:

http: //www.vpa.org.vn/

Vietnamese Taxation:

http://www.gdt.gov.vn/

Vietnamese news website:

https://zingnews.vn

https://www.24h.com.vn

http://www.vietnamplus.vn
http://www.vnanet.vn/

http://www.vneconomy.com.vn/

http://www.nhandan.com.vn/

http://www.vnexpress.net
https://tienphong.vn