At a logistics centre of Vietnam Post in Hà Nội. — VNA/VNS Photo Hoàng Hiếu

HÀ NỘI — The Ministry of Finance is considering sharply lowering the value threshold for tax-free imported good in a move to curb potential abuse as cross-border e-commerce expands.

The threshold for tax exemption is proposed to be lowered to VNĐ100,000 (US$3.8) in value or VNĐ10,000 in export tax payable per shipment.

The proposal is included in a draft decree detailing the Law on Export and Import Taxes and would apply uniformly to goods imported or exported through all channels, including postal services and express delivery.

Under current rules, goods imported through postal or express delivery services with a value of up to VNĐ1 million, or with import tax of up to VNĐ100,000, are exempt from import tax.

For other imported goods, the current exemption threshold is VNĐ500,000 or VNĐ50,000 in tax payable per shipment.

The proposal comes as cross-border e-commerce has driven a sharp increase in the number and frequency of low-value shipments entering Việt Nam, the ministry said.

The ministry’s statistics showed that e-commerce retail market valued $31 billion-$38.5 billion in 2025. The market maintained double-digit growth of about 19 per cent in the first half of this year.

The growth has made it easier for consumers to buy foreign goods through online platforms, while increasing the volume of small-value imports handled by customs, postal services and express delivery companies.

The ministry, however, said maintaining relatively high exemption thresholds could give imported goods an unfair competitive advantage over domestically produced goods, while creating opportunities for sellers to split shipments or underdeclare their value to qualify for tax exemptions.

Such practices, if carried out on a large scale, could result in revenue losses and make customs inspection and control more difficult, the ministry said.

The proposed threshold is also broadly in line with a global trend towards tightening tax exemptions for low-value imports.

Indonesia, for example, exempts imports from customs duty only when their value is $3 or less, while India does not provide import tax exemptions for goods purchased directly from overseas through e-commerce.

The European Union introduced a fixed three euro customs duty on each item in consignments worth no more than 150 euros from July this year and plans to abolish the 150 euro threshold from July 2028.

Việt Nam has been a member of the revised Kyoto Convention since 2008 which allows countries to set a minimum value or tax amount below which duties are not collected, to avoid administrative costs exceeding the revenue generated.

The country has also already removed its value-added tax exemption for low-value goods sent through express delivery services from the beginning of 2025. — BIZHUB/VNS