Ex-Import Process

Question 1

Which markets do they export to?

Answer 1

• To sell/export to overseas companies worldwide
  (VN has exported goods to many markets worldwide. The biggest exporting markets are USA, EU, China, Japan, Korea,…)
• To sell/export to companies in Non-tariff area1
  (Industrial zone, export processing zone2)
• 1. Khu phi thue quan = tariff-free
  2. Khu che xuat

Question 2

Trung gian moi gioi/Dai ly

Answer 2

Brokerage/Trade agency

Question 3

Dai ly phan phoi doc quyen

Answer 3

Sole agent/Exclusive distributor

Question 4

Describe the export process for a consignment from VN and some note before exporting?

Answer 4

• ** Note before exporting:
• Make sure that the goods, products are [not prohibited to export]
• If the products are [under-controlled or subject to condition] –> they need to apply for [export permit/license] before exporting

*** Process
1. Searching for buyer
look for potential buyers by different channels:
+ B2B websites: Alibaba, EC21, indiamart, tradekey
Social network: Linkedln, Facebook
Internet/GG
+ Exhibition
+ 3rd party infor
+ Clearance Date
–> have buyer’s infor –> introduce the products –> send Quotation/Offer/Price List

2. Negotiation and transaction
   have many points to negotiation and do transaction
   Price, samples, payment terms, delivery, documentation
   –> try to reach mutual agreement
3. Fix order and sign SC
   - Buyer sends Purchase Order (P/O)
   - Seller arranges for Proforma Invoice (P/I)
   - Both together sign the Sales Contract (SC)
4. The buyer arranges for payment
   - L/C: buyer apply for LC –> send LC draft to seller for checking –> if correct, issuing bank would issue original LC to Beneficiary bank (advising bank)
   - T/T: depends on the payment terms, buyer handle
   deposit/advance/prepayment (20,30,40%,..)
   –> send seller the bank deposit for checking
5. Take booking, Loading, Customs clearance
   Seller: production/ take booking from lines / arrange loading / customs clearance with tax, document (except for EXW - buyer handle customs clearance)
6. Exporter prepare for shipping document set
   submit to:
   - LC: advising bank
   - TT: buyer (just send the copy or scan)
7. Receive full payment and follow-up
   - LC: if docs are correct, issuing bank would pay
   - TT: if ————————, buyer would transfer the balance amount
   - -> seller follow shipment status..
8. complete shipping docs to submit to sale/accounting department
   - storage purpose
   - tax inspection
   - post-clearance audit procedure

Question 5

How do you feel about the Export - Import field?

Answer 5

• find it very potential/promising especially after VN has participated many FTA (free trade agreement) worldwide
• have strong development in the coming future
• be one of the fastest growing fields in VN
• -> interested in dynamic and challenging environment
• -> I myself see many further opportunities in the future