5 Must-Know Things When Setting Up A Factory In Vietnam [Part 3]

How to Ship Production Equipment from Korea to Vietnam

Hello, this is RSQUARE, a company specializing in commercial real estate data.

Following our post published on June 8, 2022, “5 Things You Must Know When Establishing a Factory in Vietnam [Part 2] – Regulations on Foreign-Invested Enterprises Owning Real Estate in Vietnam,” in this part we would like to guide you on “How to ship production equipment from Korea to Vietnam.”

For companies operating manufacturing plants in Korea or other countries and planning to expand into Vietnam, the general process is as follows: selecting a real estate location → signing a lease agreement → establishing a legal entity and obtaining licenses → interior construction → and then transporting production equipment from Korea.

When shipping production equipment from Korea to Vietnam, it is essential to review in advance the import procedures and relevant restrictions.

First, we will explain the process of importing used machinery from Korea to Vietnam.

The procedures carried out in Korea are as follows:

After the vessel arrives, the following procedures are carried out in order:

​ After the equipment arrives in Vietnam, a physical inspection will be conducted. Please refer to the images below for this process.

In addition, when importing used equipment from Korea to Vietnam, only equipment that is within 10 years of manufacture is allowed to be imported.

The equipment subject to the above regulation is limited to items with HS Codes starting with 84 or 85, including machinery, equipment, components, and spare parts. Used equipment with other HS codes is not subject to this regulation during customs clearance.​

​ The customs procedures for used equipment under 10 years may vary depending on each case, so they are summarized as follows:

For used equipment over 10 years old, it is generally very difficult to import. However, in some cases, importation may still be possible through consultation with specialized service providers.

In terms of costs, assuming CIF delivery to Ho Chi Minh City, expenses can generally be divided into port-related charges, customs/inspection fees, and inland transportation costs. Please refer to the details below:

Port charges: include THC (Terminal Handling Charge), D.CIC (Container Imbalance Charge), container cleaning fee, D/O fee, handling fee, infrastructure fee, etc., typically around $300–400 per 20’/40’ container.

Customs/inspection/inland transport: assuming the final destination is industrial zones near Ho Chi Minh City such as Binh Duong or Dong Nai, the cost is approximately $250–400 per container for new equipment, and $800–1,000 per container for used equipment.

Finally, when companies expand from Korea to Vietnam, expatriates may require international relocation services. Related cost information is summarized as follows:

The above cost applies to a 20ft full container, with a typical total cost of approximately $5,000–6,000 USD. In addition, household goods must be shipped within 6 months from the date of entry into Vietnam. Required documents include an entry confirmation certificate and a notarized power of attorney in Vietnam.

In addition, RSQUARE provides brokerage services for offices, leased factories, and industrial parks completely free of charge.

This is a unique policy of RSQUARE aimed at supporting all Korean companies entering Vietnam.

In this post, we have reviewed the procedures and costs of transporting existing production equipment from Korea to Vietnam. We would like to express our sincere thanks to the logistics company KONET EXPRESS for their support in providing materials and information for this post.

About RSQUARE VN

RSQUARE Vietnam operates a nationwide commercial real estate data platform, staffed entirely by in-house professionals. In addition to Korean companies, RSQUARE also serves local Vietnamese businesses and various global clients from Japan, China, Europe, and beyond. Its services include real estate brokerage, corporate housing leasing, visa support, and settlement services for businesses entering Vietnam.