Vietnam is one of the fastest-growing e-commerce markets globally, with an estimated market size of $22 billion in 2024 and expected to expand to $45 billion by 2025. The rapid growth of Vietnam’s e-commerce market has made it one of the fastest-growing major national markets in Southeast Asia.

Starting from February 18, 2025, Vietnam will cancel the VAT exemption policy for low-value goods imported via express delivery. Previously, goods valued below 1 million VND (approximately 288.8 RMB) could be imported duty-free via express delivery.

This policy adjustment aims to curb the growth of e-commerce imports bypassing local taxes, ensure consistency and adequacy of national tax policies, and encourage consumers to choose domestically produced goods. According to Chinese customs data, bilateral trade between China and Vietnam surpassed $260 billion in 2024, with China maintaining its position as Vietnam’s largest trading partner for over 20 years.

After Vietnam cancels the tax exemption policy, the cost of Chinese goods may increase by 10% to 20%, which will have a significant impact on the import and export of goods between the two countries, thereby affecting shipping rates.

This policy adjustment by the Vietnamese government may create short-term pressure on businesses and consumers relying on cross-border small package trade. The Vietnamese government emphasizes that this move will improve tax collection efficiency and help build a more standardized e-commerce business environment. Therefore, cross-border e-commerce sellers should closely monitor changes in tax policies and regulatory requirements in their target markets and adjust their business strategies accordingly.

The rapid growth of the Vietnamese e-commerce market and policy adjustments present new opportunities and challenges for China-Vietnam trade. Cross-border e-commerce sellers need to adapt flexibly to maintain their competitiveness in the Vietnamese market.