How to Establish a Bonded Warehouse in Vietnam

Posted by Written by Melissa Cyrill Reading Time: 5 minutes

As Vietnam continues to solidify its position as a key player in global trade, the need for efficient logistics solutions has never been more critical. One such solution is the establishment of bonded warehouses, which serve as secure storage facilities for goods awaiting customs clearance.

This article briefly discusses the requirements for businesses interested in establishing a bonded warehouse in Vietnam, including necessary steps, key documents, and applicable regulations. We also present some of the key benefits and locations where bonded warehouses are currently set up in the country.

Understanding the regulatory framework

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The establishment of bonded warehouses in Vietnam is governed by a series of legal documents:

  • Customs Law No. 54/2014/QH13
  • Decree No. 08/2015/NĐ-CP dated January 21, 2015, of the Government on customs management of imported and exported goods.
  • Circular No. 38/2015/TT-BTC dated March 25, 2015, of the Ministry of Finance guiding the implementation of some provisions of Decree No. 08/2015/NĐ-CP
  • Circular No. 39/2018/TT-BTC dated April 20, 2018, of the Ministry of Finance amending and supplementing some provisions of Circular No. 38/2015/TT-BTC

These regulations outline the procedures, requirements, and conditions for setting up and operating bonded warehouses, ensuring that they meet the stringent standards set by the General Department of Customs.

Key steps to establish a bonded warehouse

Step 1: Submit the required documents

The first step in establishing a bonded warehouse is to compile and submit a dossier to the local Customs Department. The required documents include:

  • Application Form: This must be completed using the template issued by the Ministry of Finance.
  • Business Registration Certificate: A photocopy proving the company’s involvement in warehouse operations.
  • Layout Plan: A detailed map showing the warehouse area, including boundary lines, warehouse locations, internal transportation routes, fire prevention systems, and security measures.
  • Land Use Right Certificate: A photocopy of the document proving the right to use the land where the warehouse will be established.

Step 2: Customs department review

Once the dossier is submitted, the Customs Department will conduct a thorough review. This includes checking the documentation and inspecting the actual warehouse site. If all conditions are met, the Customs Department will forward a proposal to the General Department of Customs for final approval.

Step 3: Decision by the General Department of Customs

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The final step in the process is the issuance of a decision by the General Department of Customs. The department will either approve the establishment of the bonded warehouse or provide a written explanation if the application does not meet the required conditions. The entire process typically takes up to 17 days—10 days for the initial review by the Customs Department and an additional 7 days for the General Department’s decision.

Conditions for establishing a bonded warehouse

To ensure compliance with Vietnam’s regulatory standards, businesses must meet several key conditions:

  • Location requirements: Bonded warehouses must be located in designated areas such as seaports, international airports, industrial zones, or areas planned for logistics development.
  • Security and accessibility: The warehouse must be separated from surrounding areas by a secure fence system, facilitating regular inspection and supervision by customs authorities.
  • Warehouse owner’s qualifications: The owner of the bonded warehouse must be a legally established enterprise in Vietnam, specializing in warehouse operations, freight forwarding, and customs agency services.
  • Minimum area specifications: The warehouse must cover at least 5,000 square meters, with a minimum of 1,000 square meters designated for storage. For specialized warehouses requiring particular preservation conditions, the minimum area is 1,000 square meters. Specialized bonded yards must cover at least 10,000 square meters.
  • Management and surveillance systems: The warehouse must be equipped with an advanced accounting system that tracks all imported, exported, and stored goods, directly connected to the customs authorities. Additionally, a surveillance camera system meeting customs standards is required for monitoring purposes.

Why set up a bonded warehouse in Vietnam?

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Establishing a bonded warehouse in Vietnam offers significant strategic and operational advantages for businesses engaged in international trade. These specialized facilities, controlled by the Customs authority and segregated from surrounding areas, provide several key benefits:

  1. Deferred import duties: Goods stored in bonded warehouses are exempt from immediate import duties, which are only applied when goods are brought into the domestic market. This can significantly enhance cash flow and reduce upfront costs for businesses.
  2. Export duty exemption: Goods exported directly from bonded warehouses are not subject to export duties, streamlining the export process and reducing costs associated with international trade.
  3. Enhanced operational efficiency: Bonded warehouses serve multiple functions beyond storage. They facilitate various value-added services such as packaging, sorting, inspection, repair, and recycling. This can lead to improved logistics and operational efficiency.
  4. Flexible trading and ownership: These warehouses provide a platform for buying, selling, and transferring ownership of goods both domestically and internationally. This flexibility supports dynamic business operations and market responsiveness.
  5. Optimized goods handling: They are ideal for consolidating, sorting, and distributing goods, making them a valuable asset for import and export businesses aiming to streamline their supply chain operations.

Location of bonded warehouses in Vietnam

As of 2023, Vietnam hosts approximately 175 bonded warehouses spread across 22 provinces and cities. Below is a list of bonded warehouse locations by region:

A) Northern Region

  • Hanoi: Bac Thanh Long Industrial Park, Dong Anh District
  • Hai Phong: Dinh Vu Industrial Park, Hai An District
  • Bac Ninh: Yen Phong Industrial Park; VSIP Bac Ninh Industrial Park, Thuan Thanh District
  • Hung Yen: Pho Noi Textile Industrial Park, Yen My District; Pho Noi A Industrial Park, Van Lam District
  • Vinh Phuc: Thanh Long Industrial Park
  • Thai Binh: Tan Truong Industrial Park, Vu Thu Ward
  • Quang Ninh: Hai Yen Industrial Park, Mong Cai
  • Bac Giang: Quang Chau Industrial Park, Viet Yen District
  • Ha Nam: Dong Van 3 Industrial Park, Dong Van Ward, Duy Tien District
  • Hai Duong: Tan Truong Industrial Park, Cam Giang District; Dai An Industrial Park, Hai Duong City
  • Lao Cai: Kim Thanh Commercial and Industrial Park, Duyen Hai Ward
  • Lang Son: Cai Lan Industrial Park, Lang Son City; Huu Lung Industrial Park, Huu Lung District
  • Thai Nguyen: Song Cong 1 Industrial Park, Song Cong City
  • Ha Tinh: Vung Ang 2 Industrial Park, Ky Anh District
  • Nghe An: Nam Cam Industrial Park, Cua Lo District; VSIP Nghe An Industrial Park, Nghi Loc Ward
  • Thanh Hoa: Lam Son – Sao Vang Industrial Park, Tho Xuan Ward; Nghi Son Industrial Park, Tinh Gia District
  • Ninh Binh: Khanh Phu Industrial Park

B) Southern Region

  • Ho Chi Minh City: Tan Cang Port; Tan Tao Industrial Park
  • Binh Duong: Song Than 2 Industrial Park
  • Dong Nai: Nhon Trach 3 Industrial Park; Bien Hoa 2 Industrial Park; Saigon Port, Hiep Phuoc
  • Ba Ria – Vung Tau: Tan Cang Port – Cai Mep, Tan Thanh District; Cai Mep Port, Tan Thanh District
  • Long An: Long Hau Industrial Park
  • Tien Giang: My Tho Industrial Park, My Tho City

C) Central Region

  • Da Nang
  • Quang Nam
  • Quang Binh
  • Dong Thap: Sa Dec Industrial Park, Sa Dec City

Conclusion

Establishing a bonded warehouse in Vietnam is a strategic move for businesses involved in international trade. By adhering to the outlined procedures and meeting the necessary conditions, companies can take advantage of Vietnam’s growing logistics sector and enhance their operational efficiency.

With proper planning and compliance, a bonded warehouse can become a valuable asset in your supply chain, offering a secure and efficient solution for managing goods in transit.

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Vietnam Briefing is published by Asia Briefing, a subsidiary of Dezan Shira & Associates. We produce material for foreign investors throughout Asia, including ASEAN, China, and India. For editorial matters, contact us here and for a complimentary subscription to our products, please click here. For assistance with investments into Vietnam, please contact us at vietnam@dezshira.com or visit us at www.dezshira.com.

Dezan Shira & Associates assists foreign investors throughout Asia from offices across the world, including in Hanoi, Ho Chi Minh City, and Da Nang. We also maintain offices or have alliance partners assisting foreign investors in China, Hong Kong SAR, Dubai (UAE), Indonesia, Singapore, Philippines, Malaysia, Thailand, Bangladesh, Italy, Germany, the United States, and Australia.