Over the past few years, the Bilateral Trade between Vietnam and the United States has seen tremendous growth. As per our Vietnam Import Export Data, the trade between these two soared from $60 billion in 2018 to $111.56 billion in 2021.
For the first time in years, the trade between the two hit the $100 billion mark. That was 25 percent more compared to $ 92.2 billion in 2020. In 2021, the USA exported around $3.5 billion of goods from Vietnam.
The Top 5 imports of the USA from Vietnam were Mobile Phones ($57.5 billion), Electronics, computers and components ($50.8 billion), Machinery, equipment and parts ($38.3 billion), textiles and garments ($32.8 billion), and Footwear ($32.8 billion).The USA has now emerged as the single largest export market for Vietnam Goods.
Vietnam is the fastest-growing economy in the world. Vietnam is currently ranked 16 on the world’s leading exporters list. The main reason behind Vietnam’s success is manufacturing quality goods at least production costs. That is why the buyers are slowly shifting from China to Vietnam.
A million-dollar opportunity has now come for Vietnam exporters to start an export business to the USA from Vietnam. Selling your products from Vietnam to the USA can be challenging due to some restrictions and customs duties. Also, the USA market is quite competitive. So, to stand out among your competitors, you need well-researched Vietnam Export Data.
Through this blog, you will learn about the need for Vietnam Trade Data to plan a successful market strategy and all the rules & procedures involved while selling to the USA from Vietnam.
What documents are required while exporting from Vietnam to the USA?
All Exports Shipments from Vietnam usually take a day while import shipment takes one to three to complete. You need following documents while exporting from Vietnam to USA:
- Contract
- Export Permit
- Packing list
- Commercial invoice
- Certificate of origin
- Technical standard/health certificate.
- Customs export declaration form
- Electronic Export Customs Declaration
- Bill of lading (A legal agreement between the shipper and carrier describing the type, quantity, and destination of goods being shipped.)
What are the Custom Rules and Restrictions on the Export of goods to the US?
For exporting products from Vietnam to the USA, you must be aware of the following rules and regulations.
Customs Duties – Customs Duties on the goods entering the USA are applied under Harmonized System Classification (HS Code). Duty is the responsibility of the importer receiving goods. Also, under the Trans-Pacific Strategic Economic Partnership Agreement (TPP), Vietnamese exporters are exempted from duty under certain conditions.
Taxes- The US imposes tax on both individuals and businesses. There are two different levels of tax administration – federal and state levels. Sales tax or VAT applies at the state level only. Also, the exporters having a good presence in the US are relieved from these taxes.
Sanctions- The Office of Foreign Assets Control (OFAC) is responsible for applying sanctions on product exports from certain nations to the USA. Also, the main objective of these sanctions is to prevent terror funding or the sale of narcotics and conflict diamonds.
Bribery- The US has made strict rules for bribery. You will get penalized if found guilty.
Litigation- Business-related laws are strict in the US as compared to Vietnam. If your products and services are found guilty, you will get sued by persons or groups. Exporters mainly purchase Product Liability Insurance (PLI). Your potential business prospects might expect you to buy such inclusion.
How to sell your products in the USA Market?
Being the largest economy in the world, the USA is a very competitive market with high consumer expectations. The USA is the vast marketplace for selling products. To succeed as an exporter, you must know all the methods of selling your products in the USA. It depends on the nature of your product and resources.
Selling directly to the customer – You can sell your products by direct mail to your target audience. You need a well-defined email list and payment system for accepting payments. Another way of selling your product is by making a solid online presence in the US Market. That’s quite a difficult way to sell but is highly rewarding. Due to intense competition, you should have a good reputation in the US Market.
Selling through Agents – Selling through Agents means selling your products through intermediaries like trading houses, distributors, and representatives. That is the best way of establishing your presence in the US market without setting up a sales office there. But you no longer are able to connect to your customers and have less control over the marketing of your product.
Online Marketing Platform- Online Marketing Platforms like Amazon and eBay are among the most used platforms by US customers. Here, selling your products is very easy. All you need is to list your products here. After that, they will process your orders and charge a minimal fee. You only have to manage the shipment of products at your end. The cons of using these platforms are that these platforms are highly competitive while users usually buy products with better reviews. You must offer better quality products to surpass your competitor.
Mutual Partnerships and Investments – By setting mutual partnerships, investments, and acquisitions, you can increase the authenticity of your brand. You can resolve many issues related to US tax, custom duties, accreditation, legal status, etc. Also, you need accountants, bankers, and lawyers to assign rights and responsibilities to all parties.
Which Products are difficult to Export in the USA?
There are certain goods you might face difficulty with while exporting to the USA as there are strict rules and restrictions imposed on these goods. They are mainly drugs, seafood, alcoholic beverages, meat, poultry, toys, processed foods, and electrical products. So, if you are looking to export any of them, then first read all rules and restrictions applied to them.
What are the basic principles of Successful Export Business from Vietnam to the US?
The US Market is a very competitive market. To survive here, you must offer something extraordinary to your customers. Many businesses fail due to insufficient knowledge of the US market, lack of working capital, unfamiliarity with/her product, foreign exchange fluctuations, and poor promotion strategy. To succeed as an exporter in the USA, you must have –
- Extensive business knowledge and prior experience
- In-depth insights into the USA Market.
- Complete Product Knowledge
- Offering High Quality goods because quality matters
- Know how to present your product in the market
- Know the complete cost structure from wholesale to retail.
- Good reputation amongst distributors
- Must have working capital
That is why, Vietnam Export Data is very crucial for your business to succeed as an exporter in the USA.
To view our sample Vietnam Trade Data, click here.
How Does Vietnam Export Data help you plan a better marketing strategy?
Better Market Research
If you want to run an export business from Vietnam to the USA, you first need to find a market for your product. That is where Vietnam trade statistics come into play. Trade data gives you in-depth insights into the US Market. You can discover
- Where to sell your products in the US?
- What are the most selling goods in the US?
- Identify your Audience (age groups interested in your product niche)
- Perfect costing for your product as per the US market
- Analyze Customer’s behaviour (helps to make your product better)
- Potential buyers and suppliers
Identifying Product Demand
An accurate US-Vietnam trade data gives you detailed information about which raw materials and finished goods are being exported From Vietnam to the USA. That will help you analyze whether there is demand for the product you are offering in the US market. Also, this will mitigate financial risk and help you produce better quality goods as per consumer demand.
Finding Potential Customers
A successful exporter that knows its market and customers better always stays ahead of its competitors. A well-organized Vietnam Export Data helps you discover your potential US customers such as distributors, wholesalers, and retailers.
Competitor Analysis
Vietnam Trade Statistics can help you outrank your competitors by giving a thorough competitor analysis. You can build a better marketing strategy that delivers results by analyzing –
- Which products compete with yours?
- Who are your competitors?
- How are they promoting their products?
- Whether their marketing strategy is paying off!
- Who are their suppliers?
- How much do they pay for merchandise?
- What is their manufacturing cost?
- Finding loopholes in their marketing strategy
- How many agents operate their products before reaching out to the customers?
- What are their sales policies and commissions?
- Whether their products are better priced than yours or not!
- What are their Customer’s Reviews?
- Is their product better than yours or not? If yes, how can you improve your product?
- How can you provide more value to customers than your competitors?
After performing all these trade statistics, you can plan an impactful market strategy to skyrocket your sales in the US Market. Exim Trade Data is a renowned data service provider company across the world. We offer accurate data statistics from more than 60+ countries. If you are looking for the most reliable Vietnam Export Data Service provider, you can opt for Exim Trade Data Services.
For any inquiry regarding Vietnam Trade Data, feel free to contact us at info@eximtradedata.com or call us at +91-9625812393.
