In fact, the wine market in Vietnam has exploded, and local citizens have been enjoying a myriad of selection of wines from red to white, from peach wines to sparkling ones and other liqueurs.
Read About Cekindo’s Food & Beverage Registration Services in Vietnam
The Wine Market in Vietnam
The thriving gross domestic product (GDP) in Vietnam has a lot to do with food and beverage.
Between 2017 and 2021, the total food and beverage sales are estimated to grow at a compound annual average rate of 11.3 %. From 2010 up until the present, there is a steady increase in wine imports to Vietnam with an annual rate of 10%.
The popular division of wine in Vietnam is based on the country of origin with favorite choices from France, the USA, Chile, Italy, and Australia. French brands hold 35% of the wine market share, followed by Chilean brands of 25%.
Also, Vietnam has lowered its restrictions on importing wine after it joined the World Trade Organization (WTO) and ASEAN. To improve long-term relationships with its stable trading partners, Vietnam has issued less strict import tariffs for wine exporters coming from Australia or other European countries.
For instance, AANZFTA is the agreement that affects the wine trade and its import tariffs between Vietnam and Australia. The lowered barrier presents opportunities for greater exposure to imported wine and wine products.
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Regulation on Wine Imports in Vietnam
Imports in Vietnam are regulated by the Customs Law (2015) and other notices and decrees issued by the Vietnamese Government.
Inspection and Documents
Imported wine must be inspected before they can be cleared at the customs, in compliance with the National Technical Regulation on Food Safety for Alcoholic Beverages (QCVN:2010/BYT).
The attributes during the inspection include wine’s quality, specifications, quantity, and volume.
Besides, wine import firms in Vietnam are required to submit their document portfolio to the import authorities, including the import business code and the certificates of company registration.
Here are some documents required for imported wine:
- Bill of lading
- Commercial invoice
- Certificate of origin
- Value statement
- Cargo release order
- Inspection report
- Import declaration form
- Terminal handling receipts
- Technical standard/health certificate
- Packing list
Import declarations must be submitted in advance or within 30 days of arrival through electronic data processing system of the Vietnam Automated Cargo and Port Consolidated System/Vietnam Customs Information System (VNACCS/VCIS).
Other supporting documents, including commercial invoices, inspection reports, value statements and certificates of origin, may also be required to be submitted.
Import Tax on Wine in Vietnam
Vietnam adopts Harmonized System (HS) for commodities, and most import goods are subject to import tariffs.
In addition to import tariffs, some goods may be subject to other taxes, such as value added tax (VAT). To determine if a certain wine is subject to tax exemption, it is advisable to refer to Article 107 about Cases under tax-exempt consideration, and Article 108 about Dossier for tax-exempt consideration of Circular 38/2015/TT-BTC of March 25, 2015.
The applicable tax rate depends on the origin of the goods (the certificate of origin must be produced) and is divided into three categories:
- Preferential tax rate – for countries with MFN status (most favored nations) in Vietnam
- Ordinary tax rate – applicable to other countries
Import duties must be paid before the delivery or shipment. Wine belongs to food and beverages category, and the tax rate will be determined under Decree 94/2012/ND-CP dated 12/11/2012 by Government on wine production and wine trading.
As a general rule of thumb, the following are some key taxes businesses should pay attention to for wine imports:
- 50% of customs duties (cost, insurance, and freight – CIF)
- 25% excise duties
- 10% VAT
Food Safety Regulation for Wine
For food safety and quality regulations of wine in Vietnam, the Vietnam Directorate for Standards, Metrology and Quality (STAMEQ) is in charge of setting industry standards and testing requirements for wine and wine products.
Other than STAMEQ, Vietnam Food Administration, under the Ministry of Health (MoH), is responsible for an establishment of the specifications and limits for heavy metals, chemical and microbiological parameters, labeling, and food additives.
Labeling Regulations for Wine
All imported wine must comply with labeling regulations upon release.
Some mandatory information (such as product name/brand of alcohol content) must be shown in Vietnamese on the label of wine products, according to the Decree No. 89/2006/ND-CP of August 30, 2006, On Labeling of Goods.
The Ministry of Science and Technology is responsible for the coordination with authorities in revising the labeling content.
Import and Distribute Your Products in Vietnam through Cekindo
Cekindo’s primary goal is to provide one-stop services to entrepreneurs dealing with the Vietnamese market.
Our wine import related services enable traders to reach their customers in Vietnam conveniently. Not only we can act as a buying agent and search for distributors, but we will also assist and guide you during company or product registration in Vietnam.
There is no easier way to import wine to Vietnam than to fill in the form below and contact us now.
we wish to know import & distribution regulation of wines into Vietnam
Hi please get in touch by sending your requirements to vietnam@cekindo.com, thanks!