How To Ship From Vietnam // The Ultimate Guide To Vietnam Cargo Shipping & Freight Forwarding
Vietnam has experienced massive and consistent growth over the last decade, second only to China in Asia. This remarkable growth made Vietnam more visible on the international map, especially for manufacturers and multinationals looking to outsource their factories to a new destination. The cargo volume between Vietnam and the US increased 34% between January and September 2019. This growth is due to Vietnam's hard work and the government's willingness to address investor concerns.
Vietnam's extensive coastline, proximity to China, and large workforce make it one of the world's premier outsourcing destinations. Political stability also contributes to its appeal as an international outsourcing hub. In addition, Vietnam has a coastline stretching 2000 miles with 114 seaports, of which 14 are essential ports located in the north, center, and south of the coastline - giving factories an easy way to ship their merchandise internationally.
Outsourcing To Vietnam
Vietnam is one of the best countries to invest in and one of the most competitive countries looking to attract foreign investment in the developing world. Vietnam provides a highly educated young workforce combined with an abundant low-skilled labor force, which creates the optimal setting for a diverse range of factories and companies to outsource their product manufacturing to the country. Vietnam’s rapid growth has also reflected significant improvements in its infrastructure, including modernizing its ports and roads, effectively streamlining the shipping process for international buyers.
Vietnam offers the best shipping rates, including the fastest shipping between Asia, the US, and the EU. Despite Vietnam having slightly fewer modern shipping ports and forwarding companies, the shipping rates are comparable to China's. Investors considering moving to Vietnam to open an Asian factory or buy an office in the area should read this guide to learn more about shipping from Vietnam internationally. This article is the ultimate guide to shipping from Vietnam, and we’ll cover shipping forwarders, documents, prices, intercoms, ports, and more.
Vietnam Shipping Companies
You can read the complete list of Vietnam Freight forwarders here: https://www.cosmosourcing.com/blog/vietnamese-freight-forwarders-cargo-shipping-in-vietnam.
Vietnam has dozens of international shipping companies that utilize the country’s main ports to ship. Many provide a combination of sea and air shipping at rates similar to those of Chinese forwarders. You can expect a fair price and reliable shipping using the companies below. Here’s a list of the most prominent Vietnam shipping companies:
JAS Vietnam
JAS Vietnam is part of the JAS group, an international shipping company founded in Italy. JAS Shipping currently has 35 offices worldwide, and its Vietnam office is one of the most significant in the area. JAS shipping provides shipping to over 100 international destinations. The company was founded in 1978 and currently employs over 4000 personnel.
Head Way
Headway is based in Ho Chi Minh City and is one of Vietnam’s fastest-growing shipping companies. HeadWay exclusively operates out of Vietnam, and they’ve recently expanded their offices to Hanoi and Nui Thang. They provide a mix of sea shipping and airfreight options for their clients.
Royal Cargo
Royal Cargo is one of the largest shipping companies in Vietnam. Its main focus is the SE Asian market. Royal Cargo was established in 1978 in Manila, Philippines, but the company expanded to other countries in the region, including Vietnam. Royal Cargo’s first Vietnam office was opened in 1993.
Saigon Ocean
Saigon Ocean International Logistics LTD., based in Ho Chi Minh City, offers clients sea and air freight shipping options. The company was founded ten years ago.
Logistics Network Vietnam
Logistics Network Vietnam has a vast distribution network in 121 countries. The company is based in Hanoi and Ho Chi Minh City. It combines sea shipping, airfreight, product warehousing/logistics services, customs services, and packing.
T&M Forwarding
T&M Forwarding is a Vietnamese shipping company that provides ocean freight services to Europe and Singapore. The company mainly works with EU-based companies. Its headquarters are in Ho Chi Minh City, with smaller offices in Hai Phong, Hanoi, and Danang. The company also provides airfreight services.
Tien Phong Trade and Transporting Services Co., Ltd
Tien Phong Trade and Transporting Services Co., Ltd is a Vietnamese shipping company based in Hanoi. Founded in 1993, it has expanded to include offices in Ho Chi Minh City and Haiphong.
How To Book A Shipment From Vietnam
There are numerous ways to book a shipment from Vietnam. US freight forwarding companies like Freightos and Flexport provide easy access to hundreds of potential companies that can ship from Vietnam to the US from the desired port.
Buyers can analyze prices and determine which one gives you the best price for their cargo, choosing from all major shipping ports in the country. The forwarders also provide receipts on a mobile app, making it easy to follow the shipping process. Alternatively, you can contact Vietnamese shipping companies directly and arrange your shipment by calling them and negotiating the process.
FreightOS in Vietnam
FreightOS is the world’s largest forwarding directory, enabling you to compare hundreds of quotes for Vietnam shipping into the US and other locations, such as Canada and the UK. FreightOS will enable you to compare different providers by analyzing their costs and transit time to make your decision easier. For example, users can compare airfreight, ocean, and trucking quotes to lower costs. In addition, FreightOS provides perks such as live updates, on-demand tracking, and easy disputes/issue resolution with forwarders.
Flexport in Vietnam
Flexport provides a similar service to Freightos, but it recently expanded into Vietnam by opening a large warehouse there. Flexport International LLC offers its clients a large storage warehouse in Thu Dau Mot City, on Ho Chi Minh City’s periphery.
This warehouse is an integral part of Flexport’s global network and is their main warehouse for the entire Southeast Asian region. Flexport can easily store your merchandise and move it to Ho Chi Minh City’s international ports, making international shipping easy. Flexport partnered with Indo-Trans-Logistics Corporation, a major Vietnamese-based logistics company.
Vietnamese Forwarders
You can contact one of the shipping companies mentioned above to book directly from Vietnamese companies. Vietnamese shipping companies offer similar services to Chinese shipping services, and if you’re switching from a Chinese forwarder, you can expect the same service quality.
For instance, one top-rated service is the “Door-To-Door” service, also known as the “all-inclusive” service, where the forwarder does all the hard work for you. In essence, the shipping company takes over the shipment, including the transfer from the factory, the warehousing/storage, the customs clearance, and the shipping to the international port where you pick up the delivery.
Door-To-Door /Port-To-Door Shipping
Using “Door-To-Door” shipping, the shipping company can deliver from your Vietnamese factory to any port of choice in the US without you lifting a finger. An alternative “Port-To-Door” service includes trucking from the US port directly to your US-based warehouse if you want the shipping company to completely take over the shipping process.
The company will transfer the cargo directly to your address/destination. In essence, the main difference between “Door To Door” and “Port To Door” is that under the first arrangement, the shipping company ships from the Vietnamese factory to the US port (where you pick it up), while under the latter arrangement the shipping company ships from your Vietnamese company directly to your US location including transfer on US soil.
Documents Needed To Ship From Vietnam
Ocean freight is the most common way to ship, and the following documents are necessary for each shipment from Vietnam to the US and beyond:
Bill Of Lading (BOL)
The Bill Of Lading is essential for all international cargo shipments. To understand the importance of a BOL, consider it the passport for your cargo, which allows it to travel to international transit ports. The BOL is only used for sea shipping, while an airway bill is typically used for airfreight. The document will prove that you’ve legalized the transfer and allow you to unload your shipment on US soil.
Business Invoice
The business/commercial invoice you use will be used as proof of value for the goods when you have to make a customs declaration in the US.
Packing List
The packing list is a list of all items contained in the shipping container. The packing list is sometimes called an “MSDS” document, and one must inform the authorities if you’re carrying potentially hazardous or chemical goods.
C/O’ Certificate Of Origin’
The ‘Certificate Of Origin’ document is essential to certifying the origin country of the goods. If you manufacture in Vietnam, you need this document to prove that the products were manufactured there. Vietnamese government agencies can issue this document, and they can sign it for you if you’re using a supplier. Some shipping companies also offer CO services. All countries that signed a Free Trade Agreement with Vietnam can benefit from a CO because it qualifies them for tax exemptions upon import.
Proof Of Insurance
Depending on the destination port, you may have to provide proof of insurance to unload the goods. Certain countries will not let you import goods unless they’re insured. Check with the destination port to ensure you don’t need insurance before shipping. Proof of Insurance is why the freight forwarder can issue an insurance certificate to present to the customs agents.
Shipping Cargo Insurance From Vietnam
Cargo insurance from Vietnam is optional; you can ship your goods uninsured. However, cargo insurance can be pretty cheap and worth the investment - especially if you use ocean shipping routes to avoid damage caused to goods in transit.
As a general rule of thumb, the insurance value is estimated based on the package’s total value. Insurance is one of the main reasons you should be truthful with your customs value declaration. You want to get the total value of your merchandise in the event of an accident. Contact your freight forwarder to determine the insurance cost for the shipment.
Prohibited Items For Vietnam Shipping
Vietnam has special regulations regarding items shipping to and from the country. The following is a list of prohibited items for Vietnam:
Drugs/narcotics.
Radio transmitters.
Vietnamese history books.
Weapons and ammunition.
Satellite dishes.
Political material.
Cost Of Shipping From Vietnam
The shipping cost from Vietnam can vary greatly, depending on the shipping route and method. The shipping can be as fast as 1-3 days with “Express” shipping, but this is the most expensive model and is unavailable for large shipments.
The average ocean shipping cost to US and EU ports is between $1000 and $2000; the shipment takes 30-40 days, depending on the forwarder. On the other hand, airfreight may take 7-14 days and is generally twice as expensive as ocean shipping. Therefore, the most cost-effective solution from Vietnam is ocean freight.
Cost Of Shipping From Vietnam To The US
The average price of a fully loaded FCL container from Vietnam to the US is $3,500.
The average price of a 200kg LCL load to the United States is $1000.
The average price of a 200kg shipment via air freight to the United States is $2,100.
The average price for express shipping (up to 50 kg) is $650.
The average price of air freight shipping (200kg) from Vietnam to Los Angeles is $2000.
Cost Of Shipping From Vietnam To Canada
The average price of shipping a fully loaded 40’ container from Vietnam to Vancouver is $1800.
The average price of shipping from Vietnam to Montreal is $3300.
The average price of shipping from Vietnam to Toronto is $3300.
The average price of air freight shipping (200kg) from Vietnam to Canada is $2000.
Cost Of Shipping From Vietnam To The UK
The average price of shipping a 20’ container to London is $800.
The average price of shipping a 40’ container to London is $1800.
The average price of shipping a 20’ container to Southampton is $800.
The average price of air freight shipping (200kg) from Vietnam to the UK is $1500.
Best Incoterms for Vietnam Shipping
The shipping trade terms or “Intercoms” for shipping from Vietnam vary depending on the forwarder. Many forwarders can offer different trade terms depending on their service offerings. Vietnam’s most common trade terms are FOB, CIF, and EXW. When booking a shipment with a freight forwarder, please note the trade terms they offer.
Example: If you’re shipping from Ho Chi Minh City to Los Angeles, CA, you want to ask the shipping company about shipping from the supplier’s warehouse in HCMC (meaning using the EXW intercom) vs. shipping from the HCMC port (VNSGN) directly (FOB intercom).
While prices in FOB may appear lower, this doesn’t mean that your total costs will be lower upon import. Transferring your goods from the warehouse to the port may increase overall costs. The unexpected expenses are why you should consider all charges at once. The following is a list of the most used trade terms from Vietnam:
FOB (Free On-Board) from Vietnam
Free-On Board shipping means that the supplier is in charge of the shipment until the shipment is loaded to the international port of departure. Then, the responsibility falls on you (via your freight forwarder) to arrange the rest of the shipment. FOB is the incoterm that the team at Cosmo uses most frequently when shipping from Vietnam.
CIF (Cost, Insurance, And Freight) from Vietnam
Under the CIF Intercom, the seller is responsible for loading the cargo on the vessel. This responsibility includes the fees up to the port of arrival. Therefore, CIF shipping tends to include insurance as well.
EXW (Ex Works) From Vietnam
Ex Works shipping is used for domestic freight and is also a popular international intercom. However, EXW is less ideal than FOB or CIF for international shipments. EXW shipping means the supplier’s responsibility ends when the goods leave the warehouse and are immediately transferred to you (and your forwarder) outside the warehouse’s premises. Therefore, we recommend against using this incoterm when getting supplier quotes.
CFR (Cost And Freight) from Vietnam
CFR shipping is an international shipping intercom that features the benefits of CIF shipping without the required insurance.
DAT (Delivery At Terminal) From Vietnam
‘Delivery At Terminal’/DAT shipping means the supplier is responsible for your goods until they arrive at the international terminal.
DDP (Delivered Duty Paid) From Vietnam
DDP/Delivered Duty Paid is known as “Door To Door” shipping. According to this intercom, the shipping company is responsible for the entire shipment from your Vietnam factory until the goods arrive at your location, as well as all fees, taxes, and duties.
International Shipping Ports In Vietnam
Vietnam has one of the most extended coasts globally, with over 2000 miles of coastline and 114 ports. As a result, Vietnamese ports are not concentrated at a certain point in the country. Still, they’re located throughout the North, Central, and Southern to facilitate fast shipping for factories nationwide. The most important ports in Vietnam are Saigon Port (south), Hai Phong Port (north), and Da Nang Port (central).
While ports in Vietnam are not as large as their counterparts in China, they provide easy shipping for most companies operating in the area. We’ll overlook the three biggest ports in the country, including other smaller ports that one can use for international shipping purposes:
Saigon Port
Saigon Port is the largest port in southern Vietnam and one of the country’s oldest ports. Most international cargo enters the southern region, covering the entire Southeast and the Mekong Delta. Saigon Port was opened in 1860, when Vietnam was still under French colonial rule, and has since served as an international shipping port.
Saigon port covers a total area of 500,000 sqm with five main terminals (Passenger Ship, Nha Rong Khanh Hoi, Tan Thuan, Tan Thuan 2 & Phu My Steel Port). In addition, the port has an enormous warehouse of 280,000 m2 and a 3km pier. The government of Vietnam plans to expand Saigon under a sustainable development scheme, making it the main maritime gateway of Vietnam, including high service standards and a deep-water port, and the port will serve as a war port.
Hai Phong Port
Hai Phong Port was built in 1874 and is currently the most modern international shipping port, serving as a shipping hub for North Vietnam. It has an advanced network system with the newest technology, hundreds of CCTV cameras for security, and a convenient international transport location.
Currently, the port consists of 5 separate terminals. The area covers 21 wharves, each 3,5 km long and with a depth of up to -9.4m. The container yard covers more than 712,000m2, and the port can receive 10 million tons of cargo annually.
Da Nang Port
Da Nang Port belongs to the general shipping ports in the country’s Central area. Da Nang Port has three main berth areas: Tien Sa-Son Tra, Lien Chieu, and Tho Quang. The biggest berth is Tien Sa - Son Tra, with 178,000 m2 and a 14,000 m2 warehouse.
Currently, the port is undergoing one of the biggest re-developments, which aims to make it the main port for all sea transport in Central Vietnam, including expanding Tien Sa Port to boost the capacity of receiving ships and increase the warehouse area to 50ha.
Other Major Vietnam Ports:
Vung Tau Port
Van Phong Port
Quy Nhon Port
Quang Ninh Port
Cua Lo Port
Dung Quat Port
Chan May Port
Shipping from Vietnam Final Thoughts
Shipping is the final step when you manufacture your product in Vietnam. The ship from Vietnam isn’t radically different, and most buyers outsource to Vietnam Freight forwarders. A good freight forwarder will offer complete services and shipping options to get your shipment from the factory to its destination.
Cosmo Sourcing // Your Trusted Partner In Vietnam
If you want to source from Vietnam, contact the Cosmo Sourcing team; we have been helping clients source from Vietnam since 2014. Cosmo Sourcing has the skills and the team to find you the best supplier possible. We are also established in China and are among the only companies that can find suppliers in China and Vietnam. Pick the one you think is best.
Our Vietnam Sourcing services allow you to access new manufacturers that you would not be able to in China and avoid Tariffs. Our services are designed to do everything to take your idea, turn it into a product, and ship it to the final destination. Cosmo can do everything from creating a product spec sheet to validating, sourcing, ordering, evaluating samples, arranging inspections, finding freight forwarders, quality assurance, negotiations, and shipping. We aim to handle every single step of your business in Vietnam for you.
If you start a new business, finding products and suppliers for your products is one of many things you need to handle. Our services are designed to handle every part of your business in China and Vietnam so you can focus on the rest of growing your own business.
We have helped clients from Fortune 500 companies, brick-and-mortar stores, FBA sellers, and brand-new businesses. So don’t hesitate to contact us and let us know how we can help you.