Contact details

Austrade offices

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

See map below for Austrade office locations for this country. Please note that the markers are a guide only. A full list of Austrade offices (in alphabetical order of country) is also available.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

Australian Embassy

Australia Embassy in Vietnam
8 Dao Tan Street
Ba Dinh District, Hanoi
Tel +84 4 831 7755
Fax: +84 4 831 7711
Web: www.vietnam.embassy.gov.au

Business hours:
8.30am–5.00pm, Monday to Friday

Current business situation

The Department for Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to Vietnam. This is regularly updated, and should be checked before planning travel.

Country overview

Country facts

Capital city:	Hanoi
Surface area:	332,000 sq km
Population:	84.4 million
Official language(s):	Vietnamese
Government:	Communist state
Head of State:	H.E. President Nguyen Minh Triet
Head of Government:	H.E. Prime Minister Mr Nguyen Tan Dung
Australian exports to Vietnam:	A$1,630 million
Australian imports from Vietnam:	A$4,522 million
Vietnam's principal export destinations:	USA, Japan, Australia
Vietnam's principal import sources:	China, Singapore, Taiwan

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Key economic indicators and statistics for 2006:

GDP - US$61 billion
GDP per capita - US$723
Real GDP growth – 8.2 per cent 
Inflation – 7.5 per cent

Vietnam has been in transition from a centrally-planned to a market-based economy since 1986. Despite the many positive reforms in the last few years, progress is slow and trade and industrialisation policy remains largely one of import substitution affording disproportionate protection to the dominant state-owned sector.

High economic growth and development was achieved in the early-to-mid 1990s, but growth slowed in the late-1990s due to the combined effects of the slow reform process and declining foreign and domestic investment resulting from the regional economic crisis of 1997. Momentum has picked up but this is mostly due to high earnings from crude oil exports.

As part of its efforts to improve the investment climate, the government is undertaking a privatisation program and is revising its investment laws.

The main deterrents to trade and investment are:

• the lack of a comprehensive and transparent legal system
• restricted land usage rights
• complex foreign investment laws
• continued corruption in infrastructure projects
• the poor state of the financial system

Eighty per cent of banking is controlled by five state owned banks. Another 12 per cent of the market is controlled by semi-autonomous domestic players. The sector is weighed down by non-performing loans and government lending practices which favour SOEs.

Standard and Poor's rate the systemic risk in the banking sector as one of the highest in the Asia-Pacific region (along with China and Indonesia). As a long-term objective, Vietnam is committed to global economic integration through participation in APEC, the ASEAN Free Trade Area and World Trade Organization (WTO) accession negotiations. Since joining ASEAN in 1995, Vietnam's exports to ASEAN countries have grown an average 23-25 per cent per annum.

ASEAN-initiated FDI accounts for 30 per cent of total FDI. The US-Vietnam Bilateral Trade Agreement, ratified in December 2001, is considered by many to be a forerunner to WTO accession.

As a signatory to the ASEAN Free Trade Area, Vietnam is required to reduce many of its tariffs to less than five per cent by 2006. Membership of the WTO will require a more level playing field and more transparency in the economy. Strong protection for domestic firms is, however, expected to continue for some time.

Political climate

The Socialist Republic of Vietnam (SRV) is a one-party communist state. Although conservatively communist, Vietnam has undertaken some reforms in recent years.

The political stability of Vietnam lies in the strength of its single, undisputed ruling political party, the Communist Party of Vietnam (CPV).

At the senior level Vietnam is run by a ‘troika’ consisting of the President, the Prime Minister and the General Secretary of the CPV.

In 1986, at a time of economic crisis following years of economic stagnation, the Party embarked upon a program of limited market-based economic reforms. Under these reforms known as ‘doi moi’ the private sector was permitted to exist in a limited capacity. There was also greater decentralised economic planning and a greater acceptance of market forces as the determinant of prices and production. This model has been steadily pursued and a socialist market-oriented economy is now in place. During 1994-1995, at the height of the open door policy, the Vietnamese Government continued its emphasis on political and social stability as it seeks to erase any remnants of domestic turmoil resulting from numerous years of war. The pace of economic liberalisation has outstripped political advances. Vietnam’s leadership continues to acknowledge the need for political conservatism and initiates limited political change.

The CPV’s exclusive role in government is constitutionally mandated. Members of the Central Committee of the CPV come from the top echelons in the bureaucracy, the military, the internal security services, the media and the many state owned enterprises, which form the core of the nation’s economy.

There is a growing sense of grass-roots democracy in Vietnam. A slow but steady move towards a more open and transparent system based on the rule of law is expected, within the context of a one party state. The Vietnamese Government will continue to pursue a policy of gradual economic reform, covering state enterprise, banking, foreign trade and public administration. Implementation, however, will remain a challenge, potentially slowed by vested interests.

Trade relations and statistics

Since the collapse of the USSR, Vietnam has largely set aside ideological considerations in seeking to integrate itself into the international community. Vietnam’s external relations can be characterised by:

• Vietnam joining ASEAN in 1995 marked a significant step forward in its regional integration.
• The relationship between Vietnam and the USA continues to be complex. Although the economic relationship has expanded through the recent ratification of a Bilateral Trade Agreement other issues have represented challenges to both sides.
• Vietnam’s relationship with Russia is still significant via defence links, however, trade and aid links have diminished in comparison with earlier years.
• Japan is now Vietnam’s major trading partner and bilateral aid donor.
• Vietnam applied to join the WTO in 1995 and is currently engaged in negotiations with member countries over its accession bid. 
• It became a member of the Asia Pacific Economic Cooperation (APEC) forum in November 1998.
• Although there have been periods when Vietnam’s relationship with China has historically been adversarial, in recent years Vietnam and China have formed a closer relationship with a broader range of exchanges. Vietnam has shown interest in China and the achievements of China’s leadership in transforming China from a centrally planned to market economy. The interests of a range of European nations in remaining politically and commercially active in Vietnam are still quite strong; notably the French, Germans, British and Swedish have strong diplomatic and commercial representation on the ground.
• Neighbouring countries such as Korea, Singapore, Malaysia, Thailand and Taiwan are all significant sources of foreign direct investment for Vietnam, and recent investment promotion efforts by the Vietnamese Government are aimed at investors from these countries. Under the AFTA Agreement there will be a tariff-free zone within ASEAN in place no later than 2006. Vietnam is taking steps to prepare to compete with other ASEAN members under AFTA and companies from other ASEAN nations are eagerly awaiting new opportunities within Vietnam that will result.

Major Australian exports to Vietnam (2006-07):

• Non-monetary gold - A$762 million
• Copper - A$222 million
• Aluminium - A$84 million 
• Wheat – A$81 million

Major Australian imports from Vietnam (2006-07):

• Crude petroleum - A$3,586 million
• Heating & cooling equipment - A$129 million
• Crustaceans - A$94 million  
• Furniture - A$85 million

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

According to statistics provided by Vietnam's Ministry of Planning and Investment, there were 87 Australian investment projects in Vietnam at the end of 2003. These projects had an investment capital of US$561 million. Nearly 70 per cent were 100 per cent Australian-owned.

Australia, through AusAID is one of the largest aid donors to Vietnam since 1991. In recent years, Australia's bilateral aid to Vietnam has amounted to almost A$60 million per year, in addition, Vietnam receives around A$14 million per year through Australian funding for regional programs, NGOs and emergency assistance.

Doing business

Business opportunities

Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.

In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
 

Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
 

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Business hours in Vietnam:

• Most business and government offices are open from 8.30am-5.00pm, Monday to Friday. Lunch time is between 12.00pm and 1.00pm, however most government agencies and State-owned enterprises tend to extend the break, usually from 11.30am to 1.30pm.
• Banks are open from 9.00am-4.00pm, Monday to Friday.
• Supermarkets (mini-marts) and shops are open around 8.30am-10.00am to 8.00pm, Monday-Sunday.
• Private shops in central city shopping areas close at 10.00pm to midnight on weekends.

Business practices:

• One of the keys to business success in Vietnam is understanding that local customs and behaviours have a significant effect on business relationships. While there are few formal limitations to doing business in Vietnam, there are some informal barriers and practices that differ from Western norms.
  Bureaucratic difficulties are not uncommon, particularly in relation to customs and documentation. However, patience, persistence and sound business advice can help in overcoming these obstacles.
• The exchange of business cards is important. If you have a business card that is in English and Vietnamese, it is good etiquette to present the card with the Vietnamese side facing up. Receive cards with both hands and carry a large supply even for short visits.
• Establishing contacts and networks is easier if the first meeting is through introduction from a known Vietnamese business contact or friend, or through an official channel such as Austrade.
• Personal business introductions are a fundamental way of doing business in Vietnam and ‘cold calling’ is not recommended.
• Bureaucracy and corruption are significant issues but the Vietnamese Government is making a concerted effort to streamline bureaucracy and stamp out corruption.
• Gift giving is widely practiced in business, usually at the end of meetings or during a meal in honour of your guests.  Small gifts, such as a company tie or a book on Australia, are suggested. It is customary to send gifts and cards to all of your business associates and contacts just before Vietnamese Lunar New Year, or ‘Tet’.
• Wear business attire similar to what you would wear in Australia, although suit jackets for men are not always required in Southern Vietnam and in the summer months in Hanoi. Women should avoid wearing halter neck tops, or shorts in the more traditional areas.

Language:

• Most of your business contacts in the foreign invested companies will be able to speak English but this may not be the case with government ministries and state owned enterprises. You will need to speak slowly and concisely.
• Make sure your interpreter or local business partner has knowledge of the northern or southern language. The Vietnamese accent and pronunciation is quite different in the north and the south. A number of the better-educated older Vietnamese speak French and/or Russian.
• It is impolite to undermine the authority of a more senior Vietnamese person by directing questions or responding to a more junior person whose English skills may be better.
• When using interpreters, talk to the person you are dealing with and maintain eye contact, talking through your interpreter, not with them. If possible, try to have a Vietnamese-speaking team member. It is also advisable to employ an interpreter who has a good knowledge of your industry.
• The Vietnamese are very polite people and will often smile and agree with you when in fact they may not have fully understood what you have said.
• It is advisable to have bilingual sales literature, including business cards and product manuals, for more complex negotiations.

Business entertainment:

• Eating and drinking are a major part of doing business in Vietnam. Dinners with local agents and customers help to develop networks and give the local agent ‘face’.
• Vietnamese men often smoke during the meal.
• Toasting at banquets and after-dinner activities such as singing are common practices. When cognac or whisky is served at a meal, the custom is for individuals to drink only after a toast is made. The glass should be held in the right hand supported by the left. Returning a toast is standard practice. Common toasts are ‘Tram phan tram ('chum fun chum' = empty your glass - 100 per cent) and ‘Chuc Suc Khoe’ ('chook sook hue' = good health).
• Seating should be arranged so that the Australian host’s party is interspaced with the Vietnamese guests.
• The guest of honour will be expected to leave the dining table first at the conclusion of the meal.

Negotiations:

• The most important quality in negotiations with Vietnamese is patience.
• Outward displays of anger are interpreted as a sign of personal weakness, and will invariably be met with a stony response and increased resistance in negotiations.
• You should focus on transaction details as well as cultural factors. More often than not, this means price, as the formative Vietnamese market is extremely price-conscious.
• Vietnamese buyers have a preference for stable and well-proven products, turnkey solutions, and a strong reliance and expectation on the supplier to provide after-sales service support.
• Do not feel compelled to fill silences that may occur during business negotiations. Being silent is particularly useful if the Vietnamese have made an unreasonable demand or proposal.
• The pace of negotiations may be slower than expected with informal conversation at the beginning of the meeting.
• As business decisions are not usually made during an initial meeting, it is often beneficial to send a written proposal well before the meeting if an immediate response is required.
• Negotiations will usually continue after an agreement is executed. Have your lawyer operate behind the scenes rather than taking part in the negotiations as most Vietnamese companies prefer a less legalistic approach to negotiations.

Correspondence:

• Prompt response to faxes from business associates in Vietnam indicates professionalism, commitment and an interest in the market. However, you may find that the Vietnamese company may not reciprocate.
• Telephone charges are very high in Vietnam and the company may expect you to call them.
• Internet access should not be taken for granted, and is also expensive.
• Other problems can occur with the telephone service and it is our experience that many barriers to concluding deals are caused by very simple communications misunderstandings.
• Correspondence to government ministries and departments should be written in Vietnamese if possible.

Forms of address:

• It is normal practice in Vietnam to put the surname first, followed by a middle name and then the given name, eg. Nguyen Hong Lan.  In this case, the person should be addressed as Ms Lan. The full name is only used on a formal occasion.
• The Vietnamese will often address Australians by their first name preceded by their title, eg. Mr. Greg.
• Vietnamese will often ask you how old you are at the beginning of a conversation because there is no universal word for ‘you’ in the Vietnamese language and people need to classify you as either older or younger than themselves in order to determine the correct form of address.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Tariffs and regulations

Import duty rates are classified into three categories:

1. ordinary
2. privilege import tax tariff
3. special privilege tax tariff

Privilege import tax tariff is applicable to goods imported from countries that have a Most Favoured Nation (MFN) status with Vietnam (including Australia).

Special privilege import tax tariff is applicable to goods imported from ASEAN countries in accordance with the agreement CEPT/AFTA for 2003–2006. Tax rates for import goods within ASEAN countries are mostly from zero to five per cent.

Import goods from non-MFN countries are taxed at a rate 50 per cent higher than imports from MFN countries.

To be eligible for the privilege rates, the imported good must be accompanied by an appropriate Certificate of Origin (these can be obtained from Chambers of Commerce and other approved agencies).

A customs declaration must be lodged at the local office of the General Department of Customs for each permitted consignment of imported goods within 30 days of the goods entering Vietnam and duty must be paid within 30 days of receiving notice of the amount.

In addition to the above tariffs, Vietnam also reserves the right to impose surtaxes, such as anti-dumping and countervailing duties

Since Vietnam pursues a policy of export promotion, duties are only imposed on a small number of exports, which are mostly processed from natural resources and agricultural products. Goods that are not listed in the Schedule of Export Duties are entitled to an export duty rate of zero per cent.

Prohibited imports

The following imports are prohibited, with certain exceptions:

• firearms
• ammunition
• explosives and military equipment
• drugs and toxic chemicals
• dangerous and unhealthy cultural products
• firecrackers
• children's toys with the potential for harmful influences
• cigarettes
• second-hand consumer goods
• certain automobiles and other vehicles
• used equipment

As other products can be banned from import temporarily, current advice should be sought.

Prohibited exports include:

• antiques of high value
• logs
• timber
• rattan canes
• weapons
• drugs
• toxic materials
• precious or rare plants and animals

Wood products are still subject to government imposed quantitative restrictions or targets and are administered through export quotas.

Import/export in Free Trade Zones

Companies may choose to produce within an Export Processing Zone (EPZ) in order to take advantage of the exemptions from customs duties for equipment, raw materials and commodities imported into the zones and for finished goods and products exported from the zones subject to specific provisions regulating EPZs. All of the production within the EPZ must be exported.

Industrial Zones (IZs) are also being developed which offer tax advantages for establishing a factory within the zone. Companies can produce within the IZ for the domestic market or for export. The company will pay no duties when importing raw materials, if the end products are exported.

Weights and measures

Weight and measures are based on the metric system. Gross and net weights should be shown in kilograms.

Vietnamese standards system consists of over 5000 standards. Specific information by product or by standard may be provided by the importing organisation. Otherwise it may be sought from the relevant ministry or the government's management body with overall standards responsibility, the Directorate for Standards and Quality (STAMEQ) of Ministry of Science, Technology, and Environment. Vietnam is currently adopting over 1000 international standards to become national standards.

Public health requirements

Plants and parts of plants must be covered by a certificate of inspection issued by the appropriate authority in the country of origin attesting that the plants and/or parts of plants, as well as the packing material and accompanying soil, are free from diseases and pests. In Australia, the authority is usually the Australian Quarantine and Inspection Service (AQIS), Commonwealth Department of Primary Industries and Energy or the State Department of Agriculture.

Live animals require certificates attesting that the animals are free of brucellosis, tuberculosis and communicable diseases, the certificates are to be issued by the appropriate authority in the country of origin.

Approval and authorisation from the Ministry of Health must be obtained before importing or distributing pharmaceuticals. This ministry is also responsible for registering these products.

Documentation

Shipping document

Generally, the Vietnamese importer (agent, distributor, import-export company or joint venture partner) handles the preparation of the documentation and licenses. Shipping documents include commercial invoices, pro forma invoices, bills of lading, packing lists, certificate of origin, insurance certificate, and import licenses.

Commercial invoice

Vietnamese foreign trading organisations usually require the following information to be contained on the commercial invoice: 

• a complete description of the goods
• all marks and numbers
• the number of cases/bales or other shipping containers
• the net and gross weights
• the net value of the good
• the country of origin

A number of copies are required, the language used and any additional information should be contained in the import contract.

Certificate of origin

The C/O form must be an original and there should be a certificate number in the C/O. Authorised signatures should be in blue or red colour. If in black, Vietnamese Customs may suspect they are copies. If you or your importer encounter problems with the C/O from Australia, please contact Austrade first to assist with release of the shipment and consultation with the local Department of Customs.

Bill of lading

Importer’s instructions should be followed and all information should conform with that contained in other shipping documents.

Packing list

Use of a packing list is recommended even if not specifically requested in the import contract. All information should conform with that contained in other shipping documentation.

Special certificates

Health certificates are required for plant and animal products. All pharmaceutical products are required to be registered and approved by the Ministry of Health.

Certificate of Analysis

Certificates of Analysis are required for imported food and beverages.  All imported foodstuff for consumption in Vietnam (with the exception of products substituting mother milk and some particular items) must declare their content and obtain a Receipt of Quality Statement issued by the Food Administration.  The content must include details of perceptibility, physical and chemical criteria, microbiology, heavy metal content, food-sun ingredients, expiry date, and instructions for usage and preservation and production process.

Taxation

Personal income taxes:

Foreign investors in Vietnam have complained for years about the high rates of personal income tax (PIT)imposed on Vietnamese employees, which went up to 50 per cent on income of about US$1000/month, plus a 30 per cent surtax on take home income exceeding about US$1000/month. No deductions were allowed against income. As a result of these tax rates, foreign investors could not adequately reward talented local people, and often employed foreigners instead. Under the recent Ordinance 14 of the Standing Committee of the National Assembly, those tax burdens will be reduced on 1 July 2004.

Tax rates:

The maximum PIT rate has been revised down to 40 per cent from 50 per cent, applicable to locals and foreigners with monthly income of above VND40,000 (up from VND15,000) and VND80,000 (no change) respectively.

The minimum taxable threshold for locals has been increased to VND5000/month (up from VND3000/month).

The surtax of 30 per cent imposed on locals’ take home income exceeding about US$1000/month has been eliminated.

The taxable income and tax rates applicable to locals and expatriates are as follows:

For locals
Unit: 1000 dong

Grade	Average monthly income/person	Tax rate (per cent)
1	Up to 5000	0
2	Above 5000 up to 15,000	10
3	Above 15,000 up to 25,000	20
4	Above 25,000 up to 40,000	30
5	Above 40,000	40

For expatriates
Unit: 1000 dong

Grade	Average monthly income/person	Tax rate (per cent)
1	Up to 8000	0
2	Above 8000 up to 20,000	10
3	Above 20,000 up to 50,000	20
4	Above 50,000 up to 80,000	30
5	Above 80,000	40

A tax rate of 25 per cent is applicable to total income earned in Vietnam by foreigners who stay in the country for fewer then 183 days in a 12-month period. Foreigners working in Vietnam for fewer than 30 days are no longer exempt, though tax treaties with the foreigner’s home country (if any) may serve to shield the person from liability.

Business income tax
While domestic enterprises and foreign companies that are not FIEs are subject to a single business income tax (BIT) rate of 32 per cent the BIT rate for FIEs and foreign parties to BCCs is that imposed under the LFI, namely a standard rate of 25 per cent with the incentives referred to above.

Taxable income is the difference between 'revenue', whether domestic or foreign funded, and reasonable and valid 'deductible expenses', plus other additional income (including capital gains). Other additional income includes interest on bank deposits, interest on loans and exchange rate differences. Domestic enterprises, joint ventures, BCC parties and wholly owned foreign enterprises can carry forward (but not back) losses to the following year and may continue to do so for up to five years.

Capital gains tax
Where a party to a JVE or BCC or a foreign investor in a 100 per cent FIE makes a capital assignment by transferring its interest in an enterprise, the gain made on the transfer attracts a 25 per cent BIT rate. The gain is regarded as the excess of the sale proceeds less the original cost, or the initial value of the capital contributed less the costs of the transfer.

Value added tax (VAT)
There are two methods for calculating VAT payable:

1. The tax deduction method. The amount of tax payable is equal to output VAT (the price of goods or services sold multiplied by the tax rate) less the input VAT (the aggregate amount of VAT paid is evidenced by VAT invoices for goods and services purchased by the taxpayer to produce the goods and services supplied). This method applies to SOEs, FIEs and Vietnamese companies that have in place proper accounting books and records.
2. The direct payment method by which the business calculates the 'value added' in the period (ie. the sales price of the goods or services less the value of goods or services purchased). This method applies to Vietnamese household businesses and to foreign companies not licensed under the LFI.

There are effectively four VAT rates as follows:

• Nil – applies only to exported goods including sales to EPZs
• 5 per cent– applicable to essential food and services
• 10 per cent – the standard rate
• 20 per cent – applicable to trading in precious stones and metals and some other specialised activities.

There are a large number of activities which are exempt entirely from VAT or where reductions are allowed. Certain deemed input credits of either three, four or five per cent allowed to be claimed for special transactions.

Special sales tax
This applies to cigarettes and other tobacco-related products, alcohol, imported cars, petrol, playing cards and certain services including racing and gaming. The rates range from 25 per cent on petrol to 100 per cent for imported cars of under five seats. Most of the services are rated at 25 per cent but the rates range between 50 per cent and 75 per cent for certain types of beer and 45 per cent to 75 per cent for certain types of cigarettes.

(Sources: Freehills and Freshfields)

Business travel

Public transport is not recommended for business travellers. Local car hire or taxis are the best options and the cost is reasonable.  If you wish to hire a car and driver for daily use, please contact Austrade for good recommendations on rates and drivers.

Noi Bai International airport is 39 kilometres from Hanoi City. The road journey takes about 35 minutes to the Australian Embassy and a further 15 minutes to the city centre. Noi Bai airport also services domestic flights.  Vietnam Airlines run a bus to and from Noi Bai airport from the centre of the city, costing US$4. Hotels also arrange for airport pick up with prices varying from US$15 (hotel bus) to US$25-60 (hotel car). A large fleet of airport taxis are available upon arrival at Noi Bai airport. Taxis can be hired for US$10 net for a one-way trip to downtown Hanoi, and are generally safe and reliable.

Tan Son Nhat International airport is about 15 minutes from Ho Chi Minh City to the city centre. A large fleet of airport taxis are available upon arrival at Tan Son Nhat Airport. Taxis can be hired for US$5 net for a one-way trip to the centre.  Airport bus service is not available.

Visiting this country

Security and health

The Department for Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists to Vietnam. This is regularly updated, and should be checked before planning travel.

Business visitors and tourists should be aware of petty crime, pick-pocketing and drug-related crime, which is on the increase. Pickpockets are often children or women with babies, and work as a group. In Ho Chi Minh City in particular, the cross-roads of Nguyen Hue and Ngo Duc Ke, Le Loi and Nguyen Hue, Dong Khoi and Ton Duc Thang should be regarded with caution.

Many thefts are also perpetrated by riders of motor bikes, often with the pillion passenger grabbing bags from tourists sightseeing or walking along the streets.

Business security:

• In Vietnam, payment risk can be minimised by only doing business after receipt of a confirmed letter of credit (LC). It is better to accept only those LCs that have been issued by one of the four major state-owned commercial banks in Vietnam, and by centrally located branches of those banks. Communication is not always good within the network and LCs issues by small provincial banks may not always be honoured. Having a foreign bank such as the ANZ confirm the LC where possible is also recommended.
• Vietnamese importers may need to wait two to three weeks to get approval from the State Bank of Vietnam to open an LC. Exporters should make some allowance for payment delays in their cash flow projections.
• The general risk of non-payment in Vietnam has reduced considerably in recent years, provided that exporters are dealing with qualified importers and buyers. Prior due diligence is important in this respect.
• The Vietnamese banking system still operates very slowly and Vietnamese companies can often have difficulties in getting quick access to foreign currency. Foreign currency payments abroad by banks can be temporarily stopped on decree for various reasons.
• The Australian Government’s Export Finance Insurance Corporation (EFIC) offers a range of export credit and insurance products, although its credit rating for Vietnam is not very high. EFIC also provides a country risk analysis and regular updates on countries around the world through its market watch service.
• Despite some formal legislative protection, intellectual property rights (IPR) infringements are pervasive in Vietnam. The problem stems from insufficiencies in the code of law, inadequate enforcement of regulations, lack of understanding of the concept of private ownership of IPR, and the powerful price advantage of counterfeit, versus genuine, merchandise. The experience of several major international companies indicates that informal negotiation and settlement, supported by educational campaigns, constitute a more effective approach in some instances.

Dispute resolution:

• Negotiation between the concerned parties is the most common and preferred means of dispute resolution.
• Although contracts are difficult to enforce in Vietnam, particularly if one party to a dispute is a foreigner, investors generally should negotiate and include contract resolution procedures in their contracts.
• Vietnam has acceded to the New York Convention on Foreign Arbitral Awards, but as yet there have been no disputes between a foreign and a Vietnamese entity settled under this multilateral agreement.
• Economic Courts, in addition to hearing bankruptcy cases, also have jurisdiction over cases involving business disputes. Administrative Courts hear cases that concern alleged infractions of administrative procedures by government authorities.
• Outside the court system, dispute resolution may also be pursued through the Economic Arbitration Centers. Each Center must include at least five arbitrators licensed by the Ministry of Justice. The Vietnam International Arbitration Center (VIAC) operates in close coordination with the Vietnam Chamber of Commerce and Industry.

Health

The sudden rise in the number of motorcycles and trucks, poor road conditions, lack of driver education and local driving habits create dangerous conditions. It is essential that you take necessary precautions when walking in the street, crossing the road or travelling by any vehicle.

Tap water is not safe to drink. Bottled water is widely available and should be used for both drinking and brushing teeth. There have been incidents of fake bottled water on the market, so seals of bottles should be checked carefully. Ice in drinks in most restaurants and hotels are usually safe.

Local hospitals and dental surgeries are poorly resourced and commonly rudimentary and unhygienic. There are several medical clinics and practices run by expatriates in Hanoi and Ho Chi Minh City, fully equipped with the latest technology and trained staff. Please consult your local doctor for vaccinations before departure from Australia.

In case of an emergency, the first call should be to the hospital or the police station. Apart from dealing directly with the international medical centres, you may want to contact the Australian Embassy, especially if translation or Australian Government representation is required to make yourself clearly understood.

Visas

Visitors travelling to Vietnam must have either a tourist or business visa for a minimum of three months from the date of arrival. These should be obtained in advance by contacting Vietnamese Government missions in Australia. Your local business contacts can help by issuing a letter of invitation or, better still, submitting visa applications for approval by the Vietnam Immigration Department who will instruct the Vietnamese Embassy/Consulate in Australia to issue visas.

It is important to keep the yellow entry form in your passport once you have been admitted to Vietnam for the duration of your stay. You may be required to produce it along with your passport when booking into hotels. You will be required to produce it in order to exit Vietnam, and may encounter difficulties with immigration officials at the airport if you misplace it.

Embassy of the Socialist Republic of Vietnam
6 Timbarra Crescent, O’Malley
ACT 2606
Tel: +61 2 6286 6059 or 6290 1556
Fax: +61 2 6286 4534

Consulate-General of the Socialist Republic of Vietnam in Sydney
205, Level 2, Edgecliff Centre
203-233 New South Head Road
Edgecliff NSW 2027
Tel: +61 2 9327 2539 or 9327 1912
Fax: +61 2 9328 1653

Travel tips and facts

Hotel and air travel confirmation – It is important to get a booking confirmation number if possible to ensure that bookings will be honoured on arrival. Vietnam Airlines can often alter its flight schedule at very short notice. Flight delays are common and this should be taken into consideration when planning itineraries. Some airlines have joint flight service with Vietnam Airlines.

Package deals – As in-bound tourism is growing strongly in Vietnam, there are a growing number of package deals available. It is worth enquiring with a travel agent in order to secure cost-effective quotations for accommodation and flights.

There are a wide range of hotels to choose from in Hanoi and Ho Chi Minh City. Internationally managed five-star hotels generally range from US$70 to US$150 per night. Value Added Tax is usually 10 per cent and service fee is five per cent. There is a proliferation of Vietnamese three-star hotels, which are quite clean and comfortable, although more limited in the range of services they offer. These range from US$25 to US$55 per night.

It is important to obtain some form of booking confirmation number if possible in order to ensure that bookings will be honoured on arrival. Austrade can secure preferential hotel booking rates and is happy to offer this service as part of a broader client service package. Most hotels will require a copy of your passport and yellow immigration entry form for their records upon checking in. Some will keep your passport for the duration of your stay but there is usually no problem about its safe return. Further information on hotels and accommodation in Vietnam can be sourced from www.HotelsTravel.com and Vietnam National Administration of Tourism.

Tipping is generally not expected in Vietnam. Hotels and most restaurants always add a service fee to their bills.  With taxis, it is usual to round up to the nearest VND1000 or leave some small change.

Traveller’s cheques and foreign currency can be exchanged at most major five-star hotels. Most restaurants and shops geared to tourists will accept US dollars and sometimes credit cards. Please noet that you should have plenty of cash (either in US dollars or preferably VND) before leaving Hanoi if you travel to the countryside - there are no ATM facilities in smaller towns.

Credit cards are becoming more widely accepted in the major cities, the most common being VISA, MasterCard and American Express. It is now possible to access cash with several internationally recognised credit cards in Hanoi and Ho Chi Minh City through ATMs at the ANZ Bank or the ATM network of Vietnam Foreign Trade Bank - Vietcombank, in Hanoi and Ho Chi Minh City.

There is an abundance of good food in Vietnam. Travellers should eat at established restaurants with high customer turnover. Avoid street stall vendors and cold, pre-cooked meats. Austrade recommends the following restaurants, but ask your hotel to make a reservation as some places little English is spoken.

For further travel information please visit Lonely Planet.

Time

Vietnam is three hours behind Australian Eastern Standard Time.

To find out the current time in Hanoi, view the World Clock.

Dialling codes

Vietnam's country code is 84.
For calls to Vietnam from Australia dial: 0011 + 84 + area code + telephone number
For calls from Vietnam to Australia dial: 00 + 61 + area code + telephone number

For further information (eg. area codes) please visit the White Pages - international dialling codes.

Electricity

Vietnam’s power supply is 220/240 volts, 50Hz. The round two-pin plugs are the most common.

Weather

Vietnam has tropical weather marked by the monsoon season. It is typically steamy and warm, although the weather can vary significantly from one area to another due to the length of the country which crosses many latitudes and the variance in altitudes - Vietnam is more mountainous than most people realise.

Temperature remains almost constant in Saigon while in Hanoi there is a marked cooler season (November through March) and warmer period during the summer.

Hanoi (north)

Spring: from February to April; average temperature is from 15°-25°C, drizzle is frequent with wet weather. This is the season of the Lunar New Year holiday and many folk festivals.

Summer: from May to August; average temperature is from 30°-36°C. There is a lot of rain and sunshine.

Autumn: from September to November; average temperature is 25°-30°C. It is cool, clear and dry. This is the best season in Hanoi, but is short, lasting no more than 50-60 days.

Winter: from December to January; the temperature is the lowest, from 10°-15°C, sometimes it can get as low as 5°-6°C with 100 per cent humidity rate. The weather is cloudy and wet. The monsoons cause many phases of cold.

The annual average rainfall in Hanoi is 1800mm.

Ho Chi Minh City (south)

Temperatures in the south and Ho Chi Minh City are fairly constant throughout the year (25ºC-30ºC). The climate in Ho Chi Minh City is distinctively seasonal. The dry season lasts from November to April, when there is much sunshine and dry wind. The average temperature is 26°C. The rainy season begins in May and ends in October characterised by sudden heavy rains. The hottest and most humid time is from the end of February until May. 

Humidity is 80 per cent which is low when compared with other regions of the country.

The central coast is dry from June to October. The highlands are significantly cooler than the low lands, and temperatures can be freezing in winter. 

In the rainy season there is the possibility of typhoons between July and November, affecting the north and central areas. In heavy wind and rain, stay indoors as flying debris may cause serious or even fatal injury. Flight schedules are frequently disrupted by typhoons. Ensure you check with the airline.

For weather details in Vietnam, please visit the World Meteorological Organization.

Currency

Oanda currency converter

The Vietnamese unit of currency is the Dong (VND). A government decree issued in 1994 stipulated that all financial transactions are to be carried out in Dong, but in practice, either the US dollar or VND can be used, except at any state- owned enterprise. The US dollar can be used in most purchases in Vietnam from the major hotels to the cyclo drivers.

Public holidays

January 1 - New Year's Day
February 3 - Communist Party Foundation
April 30 - Vietnamese Liberation Day
May 1 - Labour Day
May 19 - Ho Chi Minh's Birthday
May 28 - Buddha's Enlightenment
September 2 - Vietnamese National Day

Useful websites and resources

Government, business and trade

Australian Agency for Development and Cooperation - www.ausaid.gov.au
International Finance Corporation - www.ifc.org
Investment & Trade Promotion Center HCMC - www.itpc.hochiminhcity.gov.vn
Ministry of Foreign Affairs - www.mofa.gov.vn/en
Ministry of Industry- www.moi.gov.vn/EN/News/Main.asp
UN Vietnam - www.un.org.vn
Vietnam Chamber of Commerce and Industry - http://vibforum.vcci.com.vn
Vietnam Customs - www.customs.gov.vn/default.aspx?tabid=454
Vietnam Trade Promotion Agency - www.vietrade.gov.vn

News and media

Saigon Times Weekly - www.saigontimesweekly.saigonnet.vn
Vietnam Economic News - www.vneconomy.com.vn
Vietnam Investment Review - www.vir.com.vn
Vietnam News Agency - www.vnagency.com.vn

Travel and tourism

Vietnam Online - www.vietnamonline.com/travel
Vietnam Tourism - www.vietnamtourism.com
Vietnam Travel Guide - www.vietnam-travel.com
Way to Vietnam - www.waytovietnam.com

Please note: this list of websites and resources is not definitive. Inclusion in this list does not imply endorsement by Austrade. The information provided is a guide only.

(Last updated: 23 Jun 2008)