Vietnam: On-the-spot export-import scheme retained and approved

10 Jul 2025    1 minute read

In brief

The on-the-spot (OTS) export-import scheme has been under discussion since last year when the Ministry of Finance (MOF) considered amending the regulations on the OTS export-import scheme provided under existing Decree No. 08/2015/ND-CP ("Decree No. 08") by abolishing the OTS export-import scheme in various aspects.

Nonetheless, with the new Decree No. 167/2025/ND-CP ("Decree No. 167") (with limited provisions including the OTS export–import scheme taking effect from 1 July 2025 and the remaining provisions from 15 August 2025), the government has recognized and approved the OTS export-import scheme.

Contents

Key takeaways

1. OTS export-import scheme retained and restriction on foreign entities without a commercial presence removed

Decree No. 167 confirms and approves the OTS export-import scheme. More importantly, Decree No. 167 no longer requires that the foreign entity engaging in the OTS export-import scheme be a foreign entity without commercial presence in Vietnam.

2. Guidance on customs procedure 

Currently, as stipulated under Circular No. 38/2015/TT-BTC, the export procedure must be completed before the goods are delivered to the ultimate local buyer, and the local buyer must complete the customs declaration for import within 15 working days.

Decree No. 167 allows the relevant parties to complete the customs procedure first and deliver goods later, or deliver goods first and complete customs procedure later.

3. Transactions between local entities and export-processing enterprises no longer subject to OTS export-import scheme

Decree No. 167 removes transactions between local entities and export-processing enterprises from the scope of the OTS export-import scheme.

4. Confirmation on 0% VAT treatment for OTS exports

The amended law on value added tax also confirms that goods exported under the OTS export scheme are eligible for 0% VAT.

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Ngoc Trung Tran, Senior Regulatory Advisor, has contributed to this legal update.

Contact Information
Thanh Vinh Nguyen
Partner at BakerMcKenzie
Ho Chi Minh City
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thanhvinh.nguyen@bmvn.com.vn

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