HCMC – European businesses in Vietnam have called on the Government to maintain the country’s indirect import-export mechanism, warning that proposed restrictions could disrupt supply chains and increase costs.
At a meeting with Prime Minister Pham Minh Chinh on March 2, representatives from the European Chamber of Commerce in Vietnam (EuroCham) called for the policy to remain in place until formal legislation is enacted. The mechanism allows goods produced for export to be delivered directly within Vietnam based on foreign buyers’ instructions, reported the Government news site (baochinhphu.vn).
Nguyen Hai Minh, EuroCham’s vice chairman, said many European corporations have built supply chains in Vietnam that contribute to economic growth and job creation. He warned that tightening regulations could reduce competitiveness and extend delivery times.
Vietnam’s indirect import-export system has played a key role in supporting businesses. Since Decree 08/2015 took effect, the model has allowed for more flexible transactions, lower costs, shorter delivery times, and increased competitiveness. However, the Ministry of Finance has proposed tightening regulations and potentially eliminating the mechanism, raising concerns among investors.
Under the current rules, indirect export applies to goods such as processed products for foreign clients, leased machinery and equipment, excess raw materials, and transactions between domestic firms and export-processing enterprises or tax-free zones. Businesses warn that restricting the system could hinder operations.
EuroCham has urged authorities to ensure that all foreign traders, regardless of whether they have a legal presence in Vietnam, can continue using the indirect import-export system.
PM Chinh instructed Deputy Prime Minister Ho Duc Phoc to hold further discussions on the issue. Deputy Finance Minister Nguyen Thi Bich Ngoc said her ministry would work with other government agencies to find a resolution.
European investors also raised broader concerns about Vietnam’s business environment. Koen Soenens, sales and marketing director at Deep C, highlighted the need for better access to green energy for manufacturers.
Andre de Jong, managing director of Bosch, noted that businesses face difficulties accessing investment support funds due to high capital thresholds. He suggested revising investment criteria and improving the business licensing process to attract more foreign investment.
Ongoing reforms aim to streamline investment and regulatory procedures. Deputy Finance Minister Ngoc said the Investment Law now delegates authority to local governments for investment approvals, with investment registration certificates issued within 15 days. However, land-use projects requiring approval from the central Government may take up to 45 days.
She added that the National Assembly has approved special mechanisms for projects in industrial zones, economic zones, and export-processing zones. For high-tech projects, Vietnam is shifting from pre-approval to post-audit oversight to simplify processes and encourage investment.
The Investment Law also sets clear guidelines on conditional business sectors, prohibited investment areas, and restrictions for foreign investors. Local governments must establish criteria for land-use efficiency and labor requirements. However, due to regional differences, a uniform investment standard across all provinces is not feasible, Ngoc said.
To improve business conditions, the Ministry of Finance is working with customs authorities to accelerate clearance procedures. The ministry is also reviewing regulations on investment, taxation, customs, and treasury to simplify administrative processes while maintaining regulatory oversight.
