Vietnam Import Tax Exemption Ends for Low-Value E-Commerce Shipments Starting February 2025

Introduction

Vietnam import tax exemption has officially come to an end, marking a significant shift in the country’s import policy. Following the removal of the low-value import exemption under Decision No. 01/2025/QĐ-TTg, all shipments are now subject to applicable taxes. As a result, all shipments entering Vietnam—regardless of their declared value—are now subject to import duty (if any) and value-added tax, directly impacting cross-border purchasing behavior and the cost structure for businesses relying on small parcel imports.

How the policy evolved over time

Back in 2010, Vietnam introduced a tax exemption for low-value shipments under Decision No. 78/2010/QĐ-TTg. At the time, the goal was simple: make customs procedures faster and reduce the administrative burden for small parcels sent via express delivery.

For years, this approach worked reasonably well. However, things began to change as cross-border e-commerce expanded rapidly. The number of small-value shipments increased at a pace that was never anticipated, and with it came concerns over lost tax revenue and growing pressure on domestic manufacturers.

Imported goods, being tax-exempt, often ended up cheaper than locally produced alternatives, creating an uneven playing field.

What has changed under the new regulation

Starting February 18, 2025, the exemption for shipments valued at 1 million VND or less is no longer in place. This means every imported item—no matter how small its declared value—is now subject to applicable import duty (depending on classification and origin) and value-added tax.

In practical terms, this affects a wide range of goods typically ordered from overseas platforms and delivered through express services. What used to be a cost-saving advantage for consumers and small traders is now replaced by a more uniform tax treatment across all imports.

What this means for businesses and consumers

The most immediate impact is cost. Goods that were previously exempt will now carry additional tax charges, which inevitably pushes up retail prices. Businesses that rely on frequent low-value shipments will need to revisit their pricing strategies.

Compliance is another area that becomes more critical. Customs declarations must be accurate and aligned with updated tax and e-invoicing regulations, and all applicable taxes must be paid in full. Any discrepancies may result in delays or penalties, something that businesses cannot afford if they operate on tight delivery timelines.

For consumers, the change may influence purchasing decisions. Imported goods may no longer be as price-competitive as before, leading some buyers to reconsider local alternatives.

Understanding the applicable taxes

With the exemption removed, imported goods are now subject to the full range of taxes under current regulations.

Import duty varies depending on the product category and is determined based on classification. In many cases, rates fall within the range of 10% to 30%.

Value-added tax is also applied, typically at 10%, or 8% for eligible goods under the current tax reduction policy valid through 2026, although certain essential goods may qualify for a lower rate.

In addition, some products such as alcohol, tobacco, or high-end consumer goods may be subject to special consumption tax, depending on the applicable rules.

In addition, recent regulatory updates have strengthened tax management over cross-border e-commerce activities, particularly under Decree 117/2025/NĐ-CP, increasing compliance requirements for foreign sellers and platforms.

Why the government made this decision

The removal of the tax exemption is not just a technical adjustment; it reflects broader policy goals.

One key objective is to create a fairer competitive environment. When all goods are taxed equally, domestic manufacturers are no longer at a disadvantage compared to imported products.

Another important factor is revenue. With the rapid growth of cross-border trade, taxing all shipments allows the government to recover a significant amount of previously lost income.

At the same time, the policy supports local production by reducing the pricing gap between imported and domestically produced goods. The policy also aims to address tax avoidance practices such as undervaluation and shipment fragmentation commonly seen in cross-border e-commerce.

How businesses can adapt moving forward

In this new environment, businesses need to take a more structured approach to cost planning. Taxes should be factored in from the beginning rather than treated as an afterthought.

Accurate and consistent documentation is equally important. A well-prepared customs file can make the difference between smooth clearance and costly delays.

Some companies may also consider adjusting their logistics strategies, such as consolidating shipments, to better manage overall costs. However, any adjustment needs to be carefully evaluated to ensure compliance with current regulations.

Businesses should also review HS code classification, origin planning, and eligibility for preferential tariffs under applicable free trade agreements.

Conclusion

Vietnam import tax policy introduces a major change by removing the exemption for low-value shipments, requiring all imported goods to be taxed regardless of value. This shift affects both businesses and consumers, making cost planning and compliance more important than ever.

If you need support in navigating these changes or optimizing your import process, Green NRJ is ready to provide practical guidance tailored to your business needs.