Vietnam Export-Processing Enterprises: Domestic Sales and Customs Boundaries

A Vietnam export-processing enterprise (EPE) can sell goods into the domestic market. Article 26 of Decree 35/2022 expressly permits this, but goods entering the domestic market from an EPE fall within the export and import duty framework. A nearby customer does not make the shipment an ordinary local delivery. 1

Before accepting an order, establish what is being sold, which activity produces the revenue and who will complete the import formalities. Selling the factory’s own products, reselling imported goods and disposing of an old machine require different checks. EPE status is not a blanket exemption for the company or every transaction.

Check the operational status, not just the investment certificate

Decree 35 defines EPEs by their export-processing activities within export-processing zones, industrial parks or economic zones. Its registration framework records the EPE objective in the Investment Registration Certificate (IRC), or uses a separate confirmation where applicable. After construction, operational customs-supervision qualification matters before the enterprise formally starts operating. 1

The practical conditions in Article 28a of Decree 134/2016, inserted by Decree 18/2021, include physical separation with controlled entrances, continuous camera coverage of entrances and goods-storage areas, transmission of camera images to supervising customs, retention for at least 12 months, and software supporting receipt, dispatch, inventory and use reports. 2

There is an important 2026 qualification. Resolution 66.16/2026 removes the preliminary procedure for checking and confirming the ability to meet customs-supervision conditions under Article 28a(2). It also removes the specified legacy inspection procedure under Article 28a(5). The resolution took effect on 15 April 2026 and has a stated end date of 28 February 2027, subject to earlier replacement of corresponding provisions. These procedural cuts do not remove the substantive conditions in Article 28a(1). 3

For a new factory, distinguish a registration-stage commitment from evidence of actual operational readiness. Review the customs file for the relevant site, camera arrangements and inventory system. For an expansion, check whether the existing documentation covers the additional area rather than assuming that an earlier confirmation covers every later warehouse. Discuss the applicable operational procedure with supervising customs before relying on non-tariff treatment. 1 2 3

The broader IRC guide provides incorporation context. Here, the key question is whether the physical operation matches the customs status being used.

Classify the domestic transaction before pricing it

For ordinary transactions between an EPE and a domestic enterprise, the starting point is an export and import relationship. The customs rules provide exceptions, so the team should classify the movement rather than automatically declaring every item or treating every item as exempt. 1 4

Separate three commercial situations:

• Own manufactured products: identify the domestic buyer, the product and its material composition, then determine the appropriate export and import declarations and tax treatment.
• A separate trading activity: check the authorised investment and business scope and the segregation requirements for activities outside export processing. Permission to sell manufactured products is not evidence that every distribution activity is authorised. 1
• Disposal of imported assets or stock: review the original import treatment and the liquidation or change-of-use procedure before agreeing collection. 4

A contract should assign responsibility for declarations, supporting invoices, inspection arrangements and import taxes. It should also specify what happens if customs clearance is delayed. Otherwise, a sales team may promise a delivery date that the warehouse cannot lawfully meet.

Build the paired declarations into delivery planning

Circular 121/2025, effective from 1 February 2026, amended the EPE customs procedures. Under amended Article 75, ordinary goods transactions between an EPE and a domestic enterprise require the exporter and importer to use the corresponding procedures. One export declaration corresponds to one import declaration, and vice versa. 4

The importer must complete customs procedures within 15 days from export clearance or release. Crucially, the exporter may deliver only after the importer registers the corresponding import declaration. The importer may put the goods into production or consumption only after import clearance or release. 4

These are different milestones. Registration of the buyer’s declaration is not permission for the buyer to consume the goods. Use an order-level control linking the contract, product quantities, export declaration, import declaration and release status. Avoid one-sided completion where the EPE has filed but nobody has checked the buyer’s matching declaration.

Special priority-enterprise arrangements exist, so an eligible transaction may follow a different sequence. Do not adopt that exception merely because one party describes itself as a large exporter. Confirm the applicable priority status and procedure first. 4

Calculate import duty and VAT separately

The domestic buyer’s tax position depends on the goods and the applicable relief, not simply on the seller’s EPE label. Article 22 of Decree 134 distinguishes goods made in a non-tariff zone without foreign-imported raw materials or components from products using those inputs. The former can qualify for the stated import-duty exemption; the latter are subject to duty based on the imported product’s tariff rate and customs value. 5

For pricing, retain the bill of materials, input-source evidence, product classification and valuation support. Do not assume duty is calculated only on the imported component value. Equally, do not assume Vietnamese assembly establishes eligibility for a preferential tariff. The applicable tariff and supporting origin evidence need their own assessment. 2 5

Value Added Tax (VAT) is a separate question. The VAT law makes goods used for production, business and consumption in Vietnam taxable unless an exclusion applies, and identifies importers of taxable goods as taxpayers. An import-duty exemption does not itself establish a VAT exemption. Budget for the applicable import VAT and any other product-specific taxes after checking the goods, transaction and exclusions. 6

Keep this shipment analysis separate from wider investment-incentive planning. Avoid using a project’s incentive position as a substitute for checking the domestic import.

Keep other business activities and asset disposals controlled

Decree 35 permits other business activities subject to the relevant laws and conditions. It requires separate storage for export-processing goods and other business goods, and separate accounting of the associated revenue and costs. Tax-incentivised EPE assets cannot simply be used for another business activity without addressing repayment of the relevant relief. 1

For liquidation of imported machinery or other owned goods, amended Article 79 provides alternative routes. One involves a new change-of-use declaration followed by a domestic sale without further customs formalities. Another involves EPE export and domestic-buyer import procedures, with the buyer paying the applicable taxes. Outstanding specialised checks or licensing conditions can still matter. 4

Do not release a machine on the strength of a fixed-asset disposal approval alone. Link its serial number and original import declaration to the selected customs route. The accounting and tax compliance guide is useful background, but the disposal also needs customs treatment.

A short checklist before goods move

• Confirm the site’s EPE documentation and operational customs controls.
• Identify own production, separate trading or liquidation, and check the authorised scope.
• Agree the declaration sequence and identify the domestic importer.
• Confirm classification, valuation, input evidence and separate duty and VAT treatment.
• Set the delivery and consumption controls against declaration and release status.
• Reconcile the movement to inventory, invoices and the relevant accounting records.

Focused FAQs

Can an EPE buy office supplies locally without customs declarations?

For specified domestic construction materials, office supplies, food and consumer goods used for the listed construction, office or employee purposes, the EPE and supplier may choose not to perform customs procedures. The EPE must still retain detailed records identifying the goods’ purpose and source. This exception should not be extended automatically to production inputs or unrelated goods. 1 4

Can production scrap leave under an ordinary local invoice?

Do not assume so. Amended Article 75 requires permitted EPE scrap and defective-product sales into the domestic market to follow EPE export and domestic-enterprise import procedures. Rules applicable to non-EPE export manufacturers are not interchangeable with this EPE rule. 4

References

• 1 Government of Vietnam: Decree 35/2022 on industrial parks and economic zones, Articles 2 and 26
• 2 Vietnam Customs Trade Portal: Decree 18/2021 amending export and import duty rules, including Article 28a
• 3 Government of Vietnam: Resolution 66.16/2026 and annexes, Article 19 and Annex I.9 Part C
• 4 Ministry of Finance: Circular 121/2025, amendments to Articles 74, 75 and 79
• 5 Decree 134/2016, Article 22: Duty treatment of goods manufactured in non-tariff zones, reproduced legal text
• 6 National Assembly: VAT Law 48/2024, Articles 3, 4 and 5