VATIS UPDATE Article

Viet Nam is set to extend export tax relief to a number of goods including products and machinery used in the treatment of waste, as well as goods registered under Viet Nam’s emerging Green Label certification. Viet Nam has recently released an optional environmental certification for enterprises with hopes of emphasizing its commitment to environmental protection and as a means of incentivizing investors to comply with a more stringent set of standards within its boarders.

Pursuant to Circular 128/2016/TT-BTC, goods that have achieved compliance with standards set out under Viet Nam’s Green Label program will soon be eligible for a complete exemption from all export taxation outlined under MOF Circular 182/2015/TT-BTC. Viet Nam’s Green Label program conforms with the International Standards Organization (ISO) and is administered at the national level by the Ministry of Natural Resources and Environment.

To obtain Green Label certification, specific procedures and protocols must be followed dependent on the good in question. The structure of the application process is broadly outlined in Circular 41/2013/TT-BTNMT while criteria for individual goods is regularly updated online.

In addition to exemptions offered to goods with Viet Nam’s Green Label, export of specific goods relating to recycling activities, waste treatment and disposal will also be eligible for 50% reduction on applicable export tariffs.