Vietnam proposes lowering import tax exemption threshold to 4

Vietnam is considering lowering the import tax exemption threshold for low-value goods to $4 per shipment. Under the proposed change, goods valued at less than $4 would be exempt from both import and export duties, including those sent via postal and express delivery services. The Customs Department estimates that monthly shipments of low-value goods worth between $1.3 billion and $1.9 billion currently receive tax exemptions.

The adjustment aims to address concerns that the current mechanism may give imported goods an unfair advantage and encourage trade fraud. Vietnam’s e-commerce market has been growing rapidly, with retail sales estimated at $38 billion last year. The proposed change would bring Vietnam in line with other economies that are tightening exemptions for low-value imports, such as Indonesia and India.

Despite the proposed reduction, the Ministry of Finance does not support continuing exemption for low-value goods in import and export duties.