Freight Shipping between Vietnam and Laos

Shipping between Vietnam and Laos doesn't have to feel more complicated than folding a fitted sheet! With complexities like understanding rates, transit times, and customs regulations, it's essential to have the right information at your fingertips. This guide aims to demystify the freight transport process, break down the various shipping options – air, sea, road, and rail, and provide a deep dive into customs clearance, duties, and taxes. Tailored for businesses, you'll find actionable advice and insights to make your freight forwarding decision an informed one. If the process still feels overwhelming, let FNM Vietnam handle it for you! As skilled international freight forwarders, we turn shipping challenges into success, managing every step of the process for you. Your journey towards smooth sailing starts here.

Which are the different modes of transportation between Vietnam and Laos?

Choosing the best way to shuffle your goods between Vietnam and Laos is like fitting puzzle pieces together. The trick lies in overcoming hurdles, the main ones being a short distance that's crammed with international borders. With air freight often impractical and expensive for this short journey, and ocean routes off the table, your practical solutions boil down to either road or rail freight. These options, akin to tour guides, help you smoothly navigate through customs quirks and cross-border speed bumps, making them crucial pieces in your logistics puzzle.

Sea freight between Vietnam and Laos

Thriving on a dynamic trade relationship, Vietnam and Laos are key players in the Southeast Asian region. Ocean shipping forms the backbone of this relationship, connecting key industrial centers through cargo ports like the Vung Ang Port in Vietnam and the Pakse Port in Laos. Cost-effective yet slow, sea freight is an optimal choice for those dealing with high-volume goods, proving that patience can pay off.

However, like any other business venture, it's not as simple as it appears. Like arranging puzzle pieces, many shippers find themselves challenged when shipping between these two countries. Navigating the sea of customs rules, freight charges and documentation can feel like trying to learn a new language overnight. Yet, rest assured, amidst these surging waters, there are life-saving best practices and specifications that can champion your shipping needs. Dive in with us as we unfold these in the guide that follows, rectifying common mistakes and making shipping as smooth as a calm sea.

Main shipping ports in Vietnam

Port of Hai Phong

Location and Volume: Situated in Northern Vietnam's coastal city of Hai Phong , this port handles approximately 34 million tons of goods a year, making it one of the largest ports in the country.

Key Trading Partners and Strategic Importance: The Port of Hai Phong plays a critical role in Vietnam's import and export activities, in particular with its largest trading partners, including China, South Korea, Japan, and the United States.

Context for Businesses: If you're planning to expand your business in the North Asian markets, the Port of Hai Phong, with its efficient port facilities, might be a significant aspect of your shipping strategy due to its location and trade links.

Da Nang Port

Location and Volume: Located in the central city of Da Nang, the third-largest in Vietnam, this port has a cargo throughput of over 8 million tons per year.

Key Trading Partners and Strategic Importance: Da Nang Port serves a diversified clientele and handles a wide range of cargo, from containerized goods to bulk and liquid cargo. It maintains cargo flow from countries like China, Japan, the United States, and South Korea.

Context for Businesses: If your business activities include a variety of goods, the Da Nang Port’s diversity of services could be a strong advantage. Its central location provides a strategic access point to the East–West Economic Corridor (EWEC), linking Myanmar, Laos, Thailand, and Vietnam.

Port of Ho Chi Minh City

Location and Volume: Located in Vietnam's commercial hub, Ho Chi Minh City, this port is the largest in the country, handling around 5.5 million TEUs per year.

Key Trading Partners and Strategic Importance: This port acts as a significant gateway for Vietnam's international trade, serving key markets including China, Southeast Asia, Europe, and America.

Context for Businesses: If you're looking to ramp up imports or exports or venture into new markets, the Port of Ho Chi Minh City could be an integral part of your strategy due to its high shipping volume and access to diverse markets.

Port of Quy Nhon

Location and Volume: The Port of Quy Nhon lies in Binh Dinh Province, central Vietnam, and handles over 8 million tons of cargo per year.

Key Trading Partners and Strategic Importance: It is a critical connection point for goods from the Central Highlands and central coastal provinces. Its primary trading partners are SEA countries, China, and several European nations.

Context for Businesses: If your business targets the Vietnamese domestic market, particularly the central regions, the Port of Quy Nhon's strategic location could make it your port of choice.

Port of Cai Lan

Location and Volume: Positioned in Quang Ninh Province, the Port of Cai Lan boasts a shipping volume of over a million TEUs a year.

Key Trading Partners and Strategic Importance: As the lead port for exports of Vietnam's northern provinces, it channels trade to countries such as China, Japan, the US, and South Korea.

Context for Businesses: With its efficient facilities and location near the border with China, Cai Lan’s appeal lies in its position as an important export point for businesses focusing on Northern Vietnam.

Port of Vung Tau

Location and Volume: Located in Southern Vietnam's Ba Ria–Vung Tau Province, the Port of Vung Tau has a shipping volume of several million tons annually.

Key Trading Partners and Strategic Importance: The port primarily handles coal, ore, and agricultural products, with key trade links to China, US, Japan, and ASEAN countries.

Context for Businesses: For businesses dealing in raw materials, the Port of Vung Tau presents a compelling option due to its specialized cargo handling. Its proximity to Ho Chi Minh City further enhances its business relevance.

Main shipping ports in Laos

The Port of Vientiane

Location and Volume: The Port of Vientiane, located along the Mekong river, is a crucial gateway for transportation and trading in Laos, handling a moderate shipping volume annually, largely due to its size and infrastructure.

Key Trading Partners and Strategic Importance: Major trading partners include countries like Thailand, China, and Vietnam, which export a sizeable amount of goods through this port. Its strategic location, linking the remote regions of Laos with neighboring countries, adds to its importance.

Context for Businesses: If you're planning to tap into markets of East and Southeast Asia, the Port of Vientiane might just be your key link. Given its proximity to these regions, it can provide efficient trading routes, especially for bulk goods like energy products and raw materials.

The Port of Luang Prabang

Location and Volume: positioned along the Mekong river, is less frequented compared to Vientiane but handles a notable volume of trade, especially tourism-related goods.

Key Trading Partners and Strategic Importance: It shares strong trading ties with Thailand and China, mainly in the tourism sector. Its strategic importance lies in its ability to facilitate trade for regions in northern Laos.

Context for Businesses: If your business deals with the tourism sector or you are eying the markets of Northern Laos and parts of China, Port of Luang Prabang may be a valuable asset in your shipping strategy.

The Port of Savannakhe

Location and Volume: The Port of Savannakhet is located in the South of Laos and has a relatively small volume but is strategically important for southern trade routes.

Key Trading Partners and Strategic Importance: The primary trading partners are neighboring countries such as Vietnam, Cambodia, and Thailand. The port plays a vital role in transportation for the southern regions.

Context for Businesses: If your business goals involve significant South-East Asian penetration in countries like Vietnam and Cambodia, the Port of Savannakhet can be an essential part of your logistics, considering its strategic location and established trade routes.

Note: Laos, due to its landlocked nature has limited port choices. The above are essential points to consider based on your specific business needs.

Should I choose FCL or LCL when shipping between Vietnam and Laos?

Deciding between Full Container Load (FCL) and Less than Container Load (LCL) - also known as consolidation - is no small matter when shipping from Vietnam to Laos. Your choice promises to strategically influence cost, delivery time, and overall success. This section empowers you to understand the differences, weigh the pros and cons, and ultimately make an informed decision that complements your specific shipping needs. Let's steer your sea freight decisions in the right direction, ensuring a smoother voyage and successful delivery!

LCL: Less than Container Load

Definition: LCL or Less than Container Load is a shipment method where your cargo shares space in a container with other shippers. It's used primarily for smaller loads that don't require the full capacity of a shipping container.

When to Use: LCL is often the most prudent option in terms of price and flexibility for shipments with a lower volume, typically less than 13/14/15 CBM (cubic meters).

Example: Suppose you're a retailer in Laos importing bamboo products from a Vietnamese supplier. If your order makes up only 10 CBM, booking a whole 20-foot container (which can hold around 30 CBM) wouldn't be cost-effective - here's where an LCL shipment comes in. Your products would share a container with other goods, thus saving you from unnecessary expenses.

Cost Implications: While LCL freight rates can be higher per unit compared to a full container load, you only pay for the space your cargo occupies. You also avoid the high costs of renting a full container for shipments that aren't large enough to justify such a vessel, making LCL freight a very economical shipping option.

FCL: Full Container Load

Definition: FCL, or Full Container Load, refers to when a single consignee books an entire container for their cargo. Unlike LCL (Less than Container Load), FCL shipping allows you to seal your goods from origin to destination, ensuring higher security and safety.

When to Use: It's appropriate to opt for FCL when your cargo exceeds 13/14/15 CBM. Due to the larger volume, FCL offers the benefits of economies of scale, making it a cost-effective option.

Example: Suppose you're exporting furniture from Vietnam to Laos. Given the bulky nature of your products, your shipment might take up around 20 CBM. In this scenario, you would get an FCL shipping quote for a 20'ft container or even a 40'ft container, ensuring you maximize usage, cost savings and safety.

Cost Implications: With FCL, you bear the cost of the entire container. But given the high-volume load, the overall 'per unit' shipping cost is reduced, which is particularly beneficial when sending larger shipments. The guarantee that your FCL container remains sealed from pickup to delivery also reduces the risk of damage or loss, potentially saving costs in the long run.

Say goodbye to shipping headaches!

Shipping between Vietnam and Laos? FNM Vietnam, your dedicated freight forwarder, aims to simplify your shipping challenges. With expertise in ocean freight, our team can help you navigate the optimal course, whether that's consolidation or full container shipping. Factors such as cargo size, budget, and timeline play into this strategic decision. Trust FNM Vietnam to help chart your cargo's journey effortlessly. Get in touch with us now for a hassle-free shipping estimation.

How long does sea freight take between Vietnam and Laos?

Sea freight between Vietnam and Laos typically takes around 5 days. However, this estimate is fluid; actual transit times can vary depending on factors like the specific ports used, the weight of the shipment, and the nature of the goods being transported. To get a more accurate timeframe for your shipment, it might be beneficial to seek advice from a freight forwarder like FNM Vietnam.

Below is a brief overview of the average transit times for shipping between some of the major freight ports in both countries:

From Port (Vietnam)	To Port (Laos)	Average Transit Time (in days)
Port of Quy Nhon	The Port of Luang Prabang	4 DAYS
Port of Quy Nhon	The Port of Savannakhe	3 DAYS
Port of Vung Tau	The Port of Luang Prabang	5 DAYS
Port of Vung Tau	The Port of Vientiane	5 Days

*This table is a rough guide. Transit times can vary greatly and it's advised to get a custom quote for the most accurate information.

How much does it cost to ship a container between Vietnam and Laos?

Understanding the cost of shipping a container between Vietnam and Laos is key to planning your logistics. While ocean freight rates typically offer the most cost-effective solution, the shipping cost doesn't have a fixed number. It can vary widely based on factors such as Point of Loading, Point of Destination, carrier used, nature of goods, and monthly market fluctuations. But don't let this detail overwhelm you - each shipping scenario is unique, and that's where our specialists come into the picture. They'll explore all possible avenues for your shipment, ensuring you get the best possible rate tailored to your specific needs.

Special transportation services

Out of Gauge (OOG) Container

Definition: Out of Gauge (OOG) Containers, also known as 'OOG containers', are designed to accommodate oversized or irregularly shaped cargo that exceeds the regular dimension of standard shipping containers.
Suitable for: Large equipment, machinery or goods that are bulky, heavy, or with unique dimensions.
Examples: It's ideal for shipping items like industrial machinery, tractors, or yachts which exceed standard container dimensions.
Why it might be the best choice for you: If your business deals with non-standardized, bulky, or 'Out of gauge cargo,' the flexibility and adaptability of OOG containers could prove to be a cost-effective and reliable shipping solution.

Break Bulk

Definition: Break bulk involves the transportation of goods that are loaded individually, not in containers, onto a shipping vessel.
Suitable for: Goods that are too large or heavy to fit into containers, commonly used for oversized machinery or infrastructure materials.
Examples: This method is perfectly suited for items like turbines, generators or steel beams.
Why it might be the best choice for you: If your business focuses on industrial development or infrastructure projects dealing with large and heavy equipment, opting for break bulk can offer flexibility, simplicity and could lead to greater cost efficiency.

Dry Bulk

Definition: Dry Bulk refers to the transportation of commodities in large quantities, loaded directly into the ship's hold and transported without any packaging.
Suitable for: Loose commodities such as coal, grain, or minerals.
Examples: It's an ideal way to ship significant volumes of agricultural commodities, cement, or coal.
Why it might be the best choice for you: If your company deals with a 'loose cargo load' of raw materials in mass quantities, then Dry Bulk transportation can provide an economical and efficient solution.

Roll-on/Roll-off (Ro-Ro)

Definition: Roll-On/Roll-Off (Ro-Ro), facilitated by a 'ro-ro vessel', refers to a shipping method where vehicles and machinery are driven on and off the ship on their own wheels or using a platform vehicle.
Suitable for: Wheeled cargo such as cars, trucks, trailers or railroad cars.
Examples: If your business is in automotive or heavy equipment sectors, this would be ideal for shipping cars, bulldozers, or cranes.
Why it might be the best choice for you: For businesses dealing with large numbers of vehicles or heavy machinery, Ro-Ro shipping is a convenient and efficient option as it reduces the need for complex loading and unloading processes.

Reefer Containers

Definition: Reefer Containers are temperature-controlled containers used to transport perishable goods that require a specific temperature to maintain their condition.
Suitable for: Perishable goods like food, pharmaceuticals or chemicals.
Examples: If you're trading temperature-sensitive products like fruits, meat, dairy products, or even pharmaceuticals, reefer containers are the way to go.
Why it might be the best choice for you: Reefer containers offer accurate temperature controls to maintain the quality of your goods, ensuring they arrive at their destination in optimal condition.

Remember, choosing the right sea freight option for your specific needs is crucial when shipping goods between Vietnam and Laos. At FNM Vietnam, we're committed to providing tailor-made shipping solutions for your unique shipping needs. Why not connect with us for a free shipping quote in less than 24 hours? We'd be delighted to help you navigate your shipping options.

Air freight between Vietnam and Laos

Fast, reliable, and cost-efficient - welcome to the world of air freight between Vietnam and Laos. Let's say you're a tech company with ten crates of intricately-crafted smartwatches. Air freight ensures your high-value, low-bulk gadgets reach their destination quickly, their continued usefulness maintained. But, there's more to it than just tossing them into the cargo hold of the next flight out. There's a maze of weight formulas, pricing models, and best practices that can drastically affect costs if misunderstood. It's like participating in a marathon with zero training - you might finish, but at what cost? In the coming sections, we'll make sure you're not just crossing the finish line, but clinching first place.

Should I choose Air Cargo between Vietnam and Laos?

Air cargo between Vietnam and Laos offers a cost-effective and reliable solution, especially for shipments exceeding 100/150 kg (220/330 lbs). Carriers like Vietnam Airlines and Lao Airlinesmajorly manage this route, operating on fixed schedules which could mean longer transit times. However, the reliability of schedules and quick handling times at the airports can often offset these. If cost-effectiveness, time sensitivity, and reliability are vital for your business, air cargo might be your best choice. This method's flexibility can play to your advantage while planning your budget and logistical requirements.

Should I choose Express Air Freight between Vietnam and Laos?

Express air freight is a speedy service with dedicated cargo planes, devoid of passengers. Often ideal for shipments under 1 CBM or 100/150 kg, this method can efficiently ship your goods between Vietnam and Laos. Companies like FedEx, UPS, and DHL lead in this field. They guarantee rapid delivery and handle all administrative tasks, saving you time and hassle. So, if your shipment matches the weight criteria and needs to be delivered quickly, express air freight could be the perfect choice for you.

Main international airports in Vietnam

Tan Son Nhat International Airport

Cargo Volume: Handles 470,000 tons of cargo annually.
Key Trading Partners: Major trading partners include China, South Korea, the United States, Japan, and Taiwan.
Strategic Importance: Key hub for southern Vietnam and the country's largest airport in volumes of passengers and cargo. It is crucial for you to consider if the majority of your business operations are in this area.
Notable Features: Includes a designated domestic and international terminal, with comprehensive cargo facilities. It processes a variety of commodities including perishables, electronics, textiles, and machinery.
For Your Business: If your business deals with time-sensitive or perishable goods, the comprehensive facilities and frequent flights from this airport can provide efficient and quick handling for your cargo.

Noi Bai International Airport

Cargo Volume: Handles 700,000 tons of cargo annually.
Key Trading Partners: Key trading partners are from China, South Korea, Japan, the US, and Singapore.
Strategic Importance: Being conveniently located in the capital city of Hanoi, it is a crucial entry and exit point for goods transported in and out of northern Vietnam.
Notable Features: Caters for a variety of cargo types and has extensive warehousing facilities.
For Your Business: If your goods are destined for northern Vietnam or nearby regions, this airport offers a prime location and streamlined processes to support your business's logistics needs.

Cam Ranh International Airport

Cargo Volume: Handles 50,000 tons of cargo annually.
Key Trading Partners: Majorly associated with regional trading partners including China, South Korea, and Japan.
Strategic Importance: Situated in the city of Nha Trang, which is centrally located in Vietnam, it is a crucial part of regional logistics chains.
Notable Features: Boasts of modern facilities and is continuously being developed to become a major cargo hub.
For Your Business: The central location offers a strategic advantage if your business is looking to reach multiple Vietnamese markets without relying only on northern or southern hubs.

Da Nang International Airport

Cargo Volume: Handles around 35,000 tons of cargo annually.
Key Trading Partners: Principally works with partners from North East Asia, South East Asia, and some parts of Europe.
Strategic Importance: As it rests in the center of the country, it is advantageous for goods directed towards middle Vietnam.
Notable Features: Houses two terminals with modern facilities, capable of processing a variety of cargo, including perishables, textiles, and electronics.
For Your Business: If your business entails regular shipping to central Vietnam, this airport serves as a valuable node in your logistics network, providing speedy and reliable service.

Cat Bi International Airport

Cargo Volume: Handles around 20,000 tons of cargo annually.
Key Trading Partners: Mainly caters to East Asia, Southeast Asia, and parts of Europe.
Strategic Importance: Located in Haiphong, Vietnam's crucial northern port city, it serves as a strategic destination for cargo going to this area.
Notable Features: Its proximity to Haiphong Port makes it convenient for combined sea-air logistics solutions.
For Your Business: If your trade requires flexibility between air and sea freight or you are exporting/importing from nearby regions, this airport’s location is ideal for creating efficient multimodal solutions.

Main international airports in Laos

Wattay International Airport

Cargo Volume: Wattay International Airport is one of the busiest in Laos, handling a substantial portion of the country's international cargo flights, which is around 50,000 metric tons yearly.

Key Trading Partners: Key trading partners include surrounding Asian countries like China, Vietnam, and Thailand. The airport also receives international flights from further afar, like Australia and several European countries.

Strategic Importance: As the only international airport in Vientiane, the capital city of Laos, Wattay International Airport holds considerable strategic importance in terms of trade, with access to major markets in both Asia and beyond.

Notable Features: The airport boasts modern cargo facilities, multiple handling services and is continually expanding, increasing its capabilities to accommodate a high volume of cargo. It has the capacity to handle wide-body freighters.

For Your Business: The airport's strategic location, good facilities, and strong connections with various countries make it an excellent choice for shipping goods to and from Laos. If your business is constantly trading with Asian countries, or if you're considering expanding your reach to this part of the world, Wattay International Airport can efficiently be a part of your logistics plans.

Luang Prabang International Airport

Cargo Volume: A smaller operation compared to Wattay, Luang Prabang International Airport nonetheless handles a fair share of cargo. The airport manages approximately 10,000 metric tons of cargo annually.

Key Trading Partners: The airport's main trading partners include China, Thailand, and Vietnam, and it also handles services to Cambodia and South Korea.

Strategic Importance: As it’s situated in the World Heritage City of Luang Prabang, this airport has strategic tourism importance. Nevertheless, it also plays an invaluable role in freight transport, providing an essential logistics link for businesses globally.

Notable Features: It's equipped with modern infrastructure and provides weight checks, and capacity for cargo charter flights. The airport is currently undergoing renovations to increase cargo-handling capacity.

For Your Business: If your business is involved in less volume-intensive cargo, Luang Prabang International Airport can be the perfect hub. Its size allows for flexibility and potentially more efficient cargo handling and customs procedures. Plus, as a hub less used by large-scale cargo operations, it could provide a strategic advantage in terms of competition and transit times.

How long does air freight take between Vietnam and Laos?

Shipping goods between Vietnam and Laos by air freight typically averages around 1-3 days. However, keep in mind that this timeframe can vary, as it depends on factors such as the specific airports involved, the weight of the goods, and the types of goods being transported. For the most accurate transportation times relevant to your specific shipment needs, it's always best to consult with experienced freight forwarders like FNM Vietnam.

How much does it cost to ship a parcel between Vietnam and Laos with air freight?

Estimating a price range for air freight from Vietnam to Laos isn't exact due to variables in play - distance from departure and arrival airports, parcel dimensions, weight, and nature of goods. Nevertheless, a wide average could be between $4 to $7 per kg. Keep in mind, these rates are subject to change based on the previously mentioned factors. That’s why we're here - to make sense of it all and provide you with the best rates possible. Our quotes are tailored to each specific shipping need, so every scenario gets a fitted solution. Contact us to receive a free quote in less than 24 hours.

What is the difference between volumetric and gross weight?

Gross weight refers to the actual physical weight of your shipment, including its packaging and all contents. Volumetric weight, on the other hand, considers the amount of space the package occupies in the aircraft. It's a theoretical weight derived from the dimensions of the package.

Calculating gross weight is straightforward - it's simply the weight of your items, packing materials, and the shipping container, measured in kilograms (kg). However, volumetric weight demands a little math. Airlines use the formula: Length (centimeters) x Width (centimeters) x Height (centimeters) / 6000. For example, let's say you're shipping a box measuring 50cm x 50cm x 50cm and its gross weight is 40 kg (or roughly 88.18 lbs). To calculate its volumetric weight, you'll multiply the dimensions (50 x 50 x 50 = 125,000cm³) and then divide that by 6000, giving you a volumetric weight of 20.83kg (or approximately 45.95 lbs).

In Express Air Freight services, the divisor in the above formula changes to 5000 instead of 6000. Repeating the same calculation, the volumetric weight for Express Air Freight would then be 25 kg (around 55.11 lbs).

Understanding the difference between gross and volumetric weights is imperative - your freight charges are determined by whichever is greater. Hence, a lightweight, sizeable shipment may incur more cost due to its volumetric weight, impacting your shipping cost calculations and strategy.

Overview – Door to Door

Are complex shipping procedures giving you a tough time? Embrace the stress-free world of Door to Door shipping between Vietnam and Laos! For our beloved clients at FNM Vietnam, it’s a popular choice. Although it may cost a bit more due to the extensive services provided, it simplifies the process by managing everything, from pickup to delivery at your doorstep. It counters the difficulties of customs clearance and transportation. Just like taking a breath, make your shipping experience effortless with Door to Door service. ADSS benefits shine when simplicity and efficiency are paramount!

Why should I use a Door to Door service between Vietnam and Laos?

Ever made a cross-border move only to feel like a novice chess player lost in a grandmaster's match? That's where Door to Door service comes in! Here are five compelling reasons to adopt this logistics powerhouse when shipping from Vietnam to Laos:

1. Stress-Free Shipping: With Door to Door service, say goodbye to the dizzying world of logistics. Instead of managing each stage yourself, you handover the entire shipping process to seasoned experts. They handle everything: from the initial pick-up in Vietnam to the final delivery in Laos.

2. Timeliness: Have a fast-approaching deadline? Door to Door services prioritize punctuality. They oversee every step, making sure your shipment arrives at its destination exactly when needed. Don't let the clock run down on your business deals!

3. Specialized Care: Got an antique statue of a mythical creature or perhaps a wildly eccentric wine collection to transport? Complex cargos require expert handling which Door to Door services gladly provide. Safeguard your precious freight with this method!

4. Complete Convenience: Door to Door service isn't just a shipping method; it's a convenience package. Spare yourself the headache of coordinating with multiple trucking companies along the route. Let your freight forwarder handle this - sit back and track your package's progress from the comfort of your office or home.

5. Reliability: No need to be an ace navigator in the twisting maze of logistics. Rely on the pros! With extensive experience and a deep understanding of the industry, your freight forwarder guarantees a smooth and secure shipment from Vietnam to Laos.

So, if you are looking to make shipping a breeze, Door to Door service from Vietnam to Laos is the way to go. You won't just be moving goods, you'll be moving mountains of stress out of your path!

FNM Vietnam – Door to Door specialist between Vietnam and Laos

Experience stress-free shipping from Vietnam to Laos with FNM Vietnam. We offer comprehensive door-to-door services including packing, transport arrangements, and customs clearance. Highly skilled in our domain, we ensure each client receives seamless service from a dedicated Account Executive. Simply, you won't have to lift a finger - we've got it covered! Reach out for a free cost estimate within 24 hours or engage our consultants at no cost. Your smooth shipping journey starts with FNM Vietnam.

Customs clearance in Laos for goods imported from Vietnam

Shipping goods from Vietnam to Laos involves meticulous customs clearance—a complex process tinged with unexpected fees and potential roadblocks. This critical step can see your goods delayed or stuck if you're unaware of the varying customs duties, taxes, quotas, and licensing requirements. An oversight could lead to soaring costs or logistical nightmares. But no stress, this guide delves into every nuance to equip you for smooth sailing. And remember, if you need aid, our experienced team at FNM Vietnam is poised to assist you globally, for any type of goods. Contact us with your goods' origin, value, and HS Code for a precision-tailored estimate. With the right insights and expertise, customs clearance can go from daunting to doable. Stay tuned.

How to calculate duties & taxes when importing from Vietnam to Laos?

To successfully navigate the terrain of calculating customs duties when importing from Vietnam to Laos, it's crucial to equip yourself with a few key pieces of information. Primary among these are the country of origin, which indicates the nation where the goods were originally manufactured or produced. Next, the Harmonised System (HS Code) - a universally accepted coding system for products, and the Customs Value, essentially the complete value of your imported goods.

The Applicable Tariff Rate, which varies for different classes of goods and between different trade agreements, is also a vital consideration. Lastly, be advised that other taxes and fees, such as Value-added Tax (VAT), may apply to your items. Gathering this pertinent information will help pave the way for an accurate estimation of duties and taxes. Now, always remember the first stepping stone on this journey: identify where the goods were born, that is, where they were originally manufactured or produced.

Step 1 - Identify the Country of Origin

Knowing the origin of your goods, in this case, Vietnam, sets the groundwork for any successful import operation. Why, you ask?

1. Top of the list is the Harmonized System (HS) code assignment, essential for defining duties and taxes. The first digits relate directly to the country of origin.

2. Trade agreements play a crucial role, too. The trade relationship between Vietnam and Laos, regulated by ASEAN Free Trade Area (AFTA), allows tariff reductions on numerous goods. Hence, it becomes vital to know the origin.

3. Source nation consideration also aids in anticipating import restrictions. Certain products from Vietnam, like tobacco and arms, face restrictions in Laos.

4. Country of origin fuels risk assessment, vital for accurate planning and smooth delivery.

5. Finally, it offers a comprehensive cost estimate, making budgeting less of a guessing game, more of a precision task.

As an easy-to-follow tip, ensure to secure an actual certificate of origin. Keep it handy; customs can request it anytime. This step, while it sounds pretty basic, goes a long way towards a hassle-free import process from Vietnam to Laos. Now, let's gear up for that HS code!

Step 2 - Find the HS Code of your product

The Harmonized System (HS) Code is a standardized numerical method of classifying traded products. This multination code is used by all the countries worldwide to classify traded goods on a common basis, providing you with a universal economic language and code. When your product enters a foreign market, it will be reckoned by its HS code.

More often than not, your product supplier is your go-to solution for finding the HS Code. They are typically familiar with the goods they're exporting and respective regulations and should be able to provide you with the correct code.

But, if that's not feasible, fret not, we're going to guide you through an easy step-by-step process to find the HS Code yourself. You can find the HS Code of your product using tools like the Harmonized Tariff Schedule.

First, head to the Harmonized Tariff Schedule . In the search bar, input the name of your product. Once you've done so, your focus should be on the Heading/Subheading column. That's where your product’s HS Code will be.

Please be aware that accuracy is crucial while selecting the HS Code. A single mistake may lead to severe consequences like shipment delays and even potential fines, which no businesses would want to encounter. Take your time, be meticulous to avoid such unnecessary hassles.

Here's an infographic showing you how to read an HS code. This will give you a more in-depth understanding and confidence in dealing with HS codes. And as always, our team is here to support you with any questions or concerns. Enjoy shipping!

Step 3 - Calculate the Customs Value

Confused about the 'Customs Value'? You're not alone! It's not the same as the value of your products, though it's easy to mix them up. The Customs Value is actually the CIF value: the cost of your goods, the cost of international shipping, and insurance cost combined. Take an example: If you've got a shipment of textiles valued at $10,000 from Vietnam to Laos, the shipping cost is $2000, and insurance is $500, your CIF or customs value is $12,500. This is the amount the Laotian customs authorities will use to calculate duties and taxes. Breaking down these costs can help you anticipate your expenses better. So the next time you're stressing over customs value between Vietnam and Laos, just add it all up!

Step 4 - Figure out the applicable Import Tariff

An import tariff is a tax imposed by a country on goods bought from abroad, with the rate varying depending on the type of product and its origin. For goods imported from Vietnam to Laos, these tariffs tend to abide by the Most Favored Nation (MFN) rates.

To identify the tariff for your product, follow these steps:

1. First, locate your product's Harmonized System (HS) code. Let's say you're importing women's cotton t-shirts, which carry an HS code of 610910.

2. Then, check the ASEAN Trade in Goods Agreement website, as Laos is a member of this agreement. You'll find a database that displays the MFN tariff rates for all the products categorized under the HS code.

For instance, the MFN rate for our t-shirt example may appear as 20%. If the Cost, Insurance, and Freight (CIF) value of your import is USD 10,000, then the import tariff would be 20% of USD 10,000, which equals USD 2,000.

This process is an essential part of understanding your product's landed cost, helping you price your goods competitively while maintaining profitability.

Step 5 - Consider other Import Duties and Taxes

After you tackle the standard tariff rate, be aware of added import duties, which can vary depending on both the originating country and the product type. These could include the excise duty, anti-dumping taxes, and significantly, the Value-Added Tax (VAT) - your main consideration.

Excise duty, charged on specific products such as alcohol and tobacco, is levied at differing rates. For example, it might be $10 for a bottle of whiskey. Anti-dumping taxes protect domestic industries from unfairly low-priced imports. If shirts from Vietnam are usually priced at $5, and you import them for $2, you may face additional duties.

VAT is the major component, it is a consumption tax placed on a product whenever value is added at a stage of production and at the point of retail sale. For instance, if the base price of your imported goods is $100 and the VAT rate in Laos is 10%, you'll have an extra $10 to pay.

Remember - these are simplified examples, actual rates may vary. Understanding these hidden costs will help ensure your imports stay profitable and hassle-free.

Step 6 - Calculate the Customs Duties

Customs duties in Laos depend on several variables: customs value, Value-Added Tax (VAT), anti-dumping taxes, and Excise Duty.

To start, calculate your customs value - this is the total cost of your goods when they land in Laos, and includes shipping and insurance costs. Customs duties are then charged as a percentage of this value. For example, if your customs value is $10,000 and the duty rate is 5%, your customs duties owed will be $500.

VAT and other taxes are calculated similarly, but using different rates on the customs value. In a case where you have to pay a 10% VAT on a customs value of $15,000, you will pay an additional $1500.

In a composite situation where you have Customs duties, VAT, anti-dumping taxes, and Excise Duty, assume the duty rate is 5%, VAT is 10%, anti-dumping tax is 7%, and Excise Duty is 2%. With a $20,000 customs value, customs duties total $1000, VAT constitutes $2000, anti-dumping taxes are $1400 and Excise Duty amounts to $400. Your total costs would be $4800.

These calculations can be nerve-wracking and costly if not done correctly. At FNM, we make your customs clearance in Laos easy and economical. With our comprehensive services, our experts can manage your customs clearance from Vietnam or anywhere else in the world, ensuring you pay no more than necessary. Get a free quote in less than 24 hours by contacting us today.

Does FNM Vietnam charge customs fees?

FNM Vietnam is a diligent customs broker, alleviating the stress of understanding the subtle difference between two key costs - the customs clearance fees and government-alleged customs duties. Custom clearance fee is what FNM Vietnam charges for expert guidance through complex customs procedures. They simply act as facilitators, while the customs duties and taxes are paid directly to the government. To maintain transparency, all related documents from the customs office are provided, ensuring you pay only what is duly charged by the government. This clear demarcation of costs safeguards against any surprise expenses and helps structure your budget precisely.

Bill of Lading

Navigating the waters of international shipping? Wrap your head around the Bill of Lading. For your goods journeying from Vietnam to Laos, this important paper trail marks the shift in ownership. It's essential in keeping your goods safe and where they ought to be. Now, let's dip into the future with electronic, or telex release, saving you time and reducing the risk of lost or damaged documents.

If you're soaring through the skies with air cargo, look out for the Air Waybill (AWB). Much like it's sea-faring sibling, the AWB guarantees your air cargo's journey is tracked end-to-end.

Remember, grasping these documents is vital to smooth sailing (or flying!) in your shipping endeavors. Pay due attention, streamline the process, and take control of your cross-border trade growth. Navigating customs clearance? Now, that's a breeze.

Packing List

As the one shipping goods from Vietnam to Laos, it's your duty to provide an accurate Packing List - a key document that could make or break your cargo's timely arrival. Picture it as your goods' resume, detailing their type, quantity, and weight, which guides customs officers through their verification process. Imagine you're shipping textile machinery parts by sea from Hanoi to Vientiane. If the Packing List isn't precise, customs could delay your shipment, leading to unexpected storage costs or even missed deadlines! So, no matter you're using sea or air freight, a reliable Packing List is your best friend in ensuring a swift customs clearance. Accuracy is your winning ticket to smooth sailing (or flying) across the Vietnam-Laos border.

Commercial Invoice

A Commercial Invoice is your bread-and-butter when shipping goods from Vietnam to Laos. Think of it as your goods' passport: it details the items being shipped, their prices, and the parties involved. But it's not just a glorified list - it's a crucial document for calculating taxes and duties at Lao customs. To make processing as smooth as silk, ensure the invoice aligns perfectly with your other shipping documents like your packing list and bill of lading. One common hiccup is inconsistency in product descriptions and price differences – so double check those entries. Remember, shipping is like a relay race, and you don't want your invoice to drop the baton!

Certificate of Origin

Navigating the package journey between Vietnam and Laos? The Certificate of Origin (CO) is indispensable - it's like the identity card for your goods. This paper trail proves where your items were birthed, be it a tech hub in Hanoi or a garment factory in Ho Chi Minh City. Why is it so crucial, you ask? Sometimes, Laos offers preferential duty rates for products hailing from their Vietnamese neighbours. Bonus, right? But remember, no accurate details of manufacture on the CO, no deal. For instance, if you're shipping electronics made in Vietnam, a CO paves the way for smoother customs, potentially with reduced tariffs. Not bad for a piece of paper, eh? So, make sure it's part of your shipping toolkit.

Certificate of Conformity (CE standard)

If you're sending goods from Vietnam to Laos, your items might require a Certificate of Conformity (CoC), based on the CE standard. This CoC is proof that your products meet high safety, health, and environmental protection requirements. Essentially, it's your product's passport for entry into the European Market. You must note that the CoC isn’t a quality assurance document; it doesn’t guarantee performance or durability, but it validates that the product meets regulatory standards. For comparison purposes, similar certification in the US is the FCC Declaration of Conformity. Understanding the nuances of certification can turn shipping challenges into opportunities, helping you avoid potential customs delays or penalties. Remember, customs clearance is a pivotal step in blazing your trade route between Vietnam and Laos.

For more information about UK's specific certification, kindly refer to the UKCA marking guidance here.

Your EORI number (Economic Operator Registration Identification)

If you're shipping goods between Vietnam and Laos, you won't need to sweat about the EORI Number. Since Laos isn't part of the EU, this regulation doesn't apply. You might encounter the EORI Number when dealing with EU countries, where it helps track imports and exports. It's kind of like a passport for your goods, letting authorities know who's responsible for what. But for now, you're all set without it. All aboard the stress-free express!

Remember this if you're planning to ship to or from EU nations in the future; Attention to such details will make your international shipping operations smoother and more reliable.

Restricted Products

- Pharmaceuticals: You have to apply for a permit issued by the Directorate General of Drug Administration in Bangladesh. We highly recommend visiting the DGDA's official website for any updates and changes.

- Dangerous Goods: For shipment of potentially hazardous items, you'll need an authorization certified by the Department of Explosive. The detailed information regarding application can be found on the Department's official website.

- Pets and Live Animals: Moving your furry friends requires approval from the Department of Livestock Services. You can find the guidelines on the Department's official website.

- Firearms and Ammunition: Shipping firearms or ammunition demands a special permit from the Ministry of Home Affairs. The necessary formalities can be located on the Ministry's official website.

- Remittance of Profits: To remit profits out of the country, you need a green signal from Bangladesh Bank. Rules and procedures can be accessed on the Bank's official website.

Remember, each of these licenses or permits need to be acquired prior to shipping. Be prepared for potential inspections or checks, should authorities wish to ascertain your compliance with their respective laws. Always stay up-to-date with the shipping laws in Bangladesh to avoid any problems.

Prohibited products

-Narcotics and illicit drugs
-Pornographic materials
- Explosives and other dangerous goods
- Wildlife and endangered species
- Counterfeit goods and unauthorized copies of intellectual property
- Radioactive materials
- Human body parts and remains
- Certain agricultural and livestock products that could introduce diseases
Please note that this list is subject to change and it is always important to verify from the destination customs authority or a reliable freight forwarding service about the latest prohibitions before shipping.

Are there any trade agreements between Vietnam and Laos

Yes, Vietnam and Laos are part of the ASEAN Free Trade Area (AFTA), prompting reduced import duties, simplified customs procedures, and more shared business opportunities. For your business, this means potentially lower costs and smoother logistics when shipping goods. Strategic infrastructure projects, like the upcoming Vientiane-Vung Ang railway, underscore a growing transport corridor signalling even better connectivity in the future. Stay alert for fresh industrial partnerships that might further boost bilateral trade.

Vietnam - Laos trade and economic relationship

Vietnam and Laos share a long, prosperous history of trade and economic cooperation dating back to Laos's independence in 1953. Over the years, this relationship strengthened with reciprocal investments across key sectors like hydroelectric power, mining, and agriculture. In 2004, there was a significant milestone when the two countries reached a bilateral trade agreement, boosting economic interaction.

As of today, Vietnam ranks as one of the top investors in Laos, with over 400 investment projects valued at $4.2 billion. The mutual flow of goods, including Vietnamese commodities like oil, steel, and machinery and Laotian commodities such as timber, rubber, and minerals, contribute to a trade turnover surpassing $1.6 billion in 2024. This dynamic trade relationship testifies to the close economic ties between Vietnam and Laos, serving as a backbone for ongoing opportunities for enterprises in both nations.

Cargo insurance

Robust cargo insurance is essential in countering unforeseen damages and losses during shipping, acting as a safeguard much more comprehensive than mere fire insurance. For instance, it rescues businesses from significant losses due to mishaps like water damage, theft, or container accidents. Emphasizing risk mitigation, making a choice to insure is as crucial as setting the right precautions for your cargo's journey. Discover this protective shield via our Cargo Insurance page.

Supplier Management (Sourcing)

Seeking a hassle-free sourcing solution in Asia or Eastern Europe? FNM Vietnam is your trusted partner. We pinpoint ideal suppliers and streamline your procurement, burst through language barriers, and offer step-by-step guidance to simplify processes. Example? You're a sportswear brand and need specialist fabric providers. No sweat. We find you not just any supplier, but the right one, maximizing value for your brand. Dive deeper into our personalized approach on our Sourcing services page.

FAQ | For 1st-time importers between Vietnam and Laos

What is the necessary paperwork during shipping between Vietnam and Laos?

When shipping from Vietnam to Laos, it's essential you have the necessary paperwork ready. For sea freight, a bill of lading is required, while air freight necessitates an air waybill. Don't stress - we at FNM Vietnam will handle these particular documents for you. What we need from your end is the packing list and the commercial invoice for the goods. Depending on what you're shipping, other documents like Material Safety Data Sheet (MSDS) or certain certifications may be required. Ensuring these documents are in place will make the shipping process smooth and hassle-free.

Do I need a customs broker while importing in Bangladesh?

Yes, for smooth and successful importing in Laos, engaging a customs broker is highly recommended. Particularly because the customs clearance process involves complicated procedures and requires submission of certain specific details and documents. As your trusted partner, we at FNM Vietnam are always at your disposal to handle this on your behalf. In most shipments, we represent your cargo at customs, ensuring a hassle-free and efficient import process. Leveraging our expertise can prevent potential errors and delays, thus saving you time and resources. Our ultimate goal is to provide you with a seamless shipping experience.

Can air freight be cheaper than sea freight between Vietnam and Laos?

While it's tricky to state categorically if air freight is less expensive than sea freight from Vietnam to Laos because it hinges on factors such as route, weight, and volume, know that air freight becomes a viable option when your cargo is under 1.5 cubic meters or weighs less than 300 kg (660 lbs). Rest assured, here at FNM Vietnam, we'll always ensure that you're provided with the most competitive freight options by your dedicated account executive.

Do I need to pay insurance while importing my goods to Laos?

While we at FNM Vietnam can confirm that insurance isn't a requirement when importing goods to Laos or any other destination, we strongly recommend it. Unexpected incidents such as damage, loss, or theft can occur during transit, amounting to significant financial loss if your goods aren't insured. Getting insurance coverage ensures protection against these unforeseen circumstances, providing peace of mind throughout the shipping process. It's always better to be safe than sorry when it comes to transnational logistics.

What is the cheapest way to ship to Laos from Vietnam?

Given the close proximity of Vietnam to Laos, we recommend road freight as the most economical option. It's not only cost-effective but also allows for quick delivery times due to shorter routes. However, it's essential to understand that factors like the nature of the goods, urgency, and specific delivery locations can influence the final cost and feasibility of this choice.

EXW, FOB, or CIF?

Determining between EXW, FOB, and CIF entirely depends on your relationship with your supplier. Bear in mind, not all suppliers are logistics experts, so it's often preferable to have a skilled agent, like us at FNM Vietnam, manage the international freight and destination processes. Typically, suppliers sell under EXW (at their factory door) or FOB (including all local charges up to the origin terminal). Regardless of these terms, we can offer a comprehensive door-to-door service, handling all aspects of the freight forwarding process to ensure smooth, reliable delivery of your goods. We're here to simplify your shipping experience.

Goods have arrived at my port in Laos, how do I get them delivered to the final destination?

We at FNM Vietnam can handle your goods under the CIF/CFR incoterms, but you'll need to find a custom broker or freight forwarder to clear your goods at the terminal, pay import charges, and deliver them to the final destination. Alternately, you can hire us for DAP incoterms, where we handle everything for you. Be sure to check this with your dedicated account executive for clarification.

Does your quotation include all cost?

Absolutely, at FNM Vietnam, we ensure the quotation covers all costs, excluding only destination duties and taxes. To maintain transparency and avoid any unpleasant surprises, there are no hidden fees. You can always request your dedicated account executive for an estimate of these duties and taxes.

Freight Shipping between Vietnam and Laos | Rates – Transit times – Duties and Taxes