Vietnam Simplifies Import-Export Goods Classification Procedures

The Ministry of Finance of Vietnam has issued a new Circular, No. 85/2026/TT-BTC, concerning the classification and analysis of imported and exported goods. This circular will come into effect on September 15, 2026, and aims to significantly simplify the procedures for classifying goods for import and export. Key changes include a reduction in required documentation, a shortened processing time for goods classification, the promotion of digitalization in procedures, and an improvement in convenience for customs declarants. This is seen as part of Vietnam's broader efforts to transition towards "smart customs" and "digital customs." In recent years, with economic growth, Vietnam has seen an increase in the volume of imported and exported goods, making the efficiency of customs procedures a crucial issue for trade facilitation. Particularly, under the one-party system where government-led economic policies are advanced, streamlining administrative procedures can enhance the competitiveness of domestic industries and attract foreign investment. This circular aligns with the direction of "transitioning to smart customs and digital customs" as outlined in the amendments to the Customs Law. Furthermore, the refinement of penalty regulations in the customs sector is also being advanced to improve transparency and ensure practical application. Additionally, the pilot implementation of a centralized customs clearance system marks a new step in the modernization of customs operations. These initiatives are considered essential for Vietnam to solidify its position as a manufacturing hub in the Southeast Asian region and enhance its importance in global supply chains. Especially for Vietnam, which has strong economic ties with China, facilitating trade procedures holds significant importance in mitigating geopolitical risks and ensuring economic stability.