Importing from Vietnam to Australia: Tariffs, Regulations, and Taxes
Most goods imported from Vietnam to Australia enter at 0% or 5% duty under the AANZFTA free trade agreement, plus 10% GST on the landed value. Below is a step-by-step breakdown of how Australian import duties, taxes, and product regulations apply when sourcing from Vietnam, along with guidance on using preferential trade agreements to minimize costs.
Why Vietnam Is a Growing Source of Australian Imports
Vietnam is now Australia's ninth-largest source of imports. Two-way trade in goods and services reached AU$28.5 billion in the 2024-25 financial year, according to the Australian Department of Foreign Affairs and Trade. Both countries have set a target of US$20 billion in bilateral goods trade, with leaders formally committing to that goal during the September 2025 state visit.
The top categories of Vietnamese exports to Australia include footwear, electronics (phones, computers, components), textiles and apparel, furniture, seafood (particularly prawns), and coffee. Vietnam also supplies growing volumes of plastics, rubber products, and iron and steel to Australian buyers.
Several factors are driving this growth. Vietnam's manufacturing labor costs remain significantly lower than those in China's coastal factories; its government actively courts foreign investment through economic zones and infrastructure; and multiple overlapping free trade agreements reduce or eliminate tariffs on most goods entering Australia.
In our experience helping over 4,000 clients source more than 10,000 products across Southeast Asia, the Vietnam-to-Australia corridor has seen a notable increase in demand since 2020, particularly among Australian businesses seeking to diversify their supply chains away from a sole reliance on China.
Free Trade Agreements Covering Vietnam-Australia Trade
Three major trade agreements reduce or eliminate tariffs for goods moving between Vietnam and Australia. Understanding which agreement offers the best rate for your specific product is one of the most important steps in the import process.
AANZFTA (ASEAN-Australia-New Zealand Free Trade Area)
AANZFTA is the primary agreement most importers use for trade between Vietnam and Australia. It entered into force in January 2010 and covers all 10 ASEAN member states, as well as Australia and New Zealand. Under AANZFTA, tariffs have been eliminated on approximately 90% of tariff lines for Vietnamese goods entering Australia.
A significant upgrade to AANZFTA entered into force on 21 April 2025, improving processes for traders to access existing tariff preferences, introducing streamlined rules of origin, and adding new chapters on e-commerce, government procurement, and sustainability. The upgrade reduces friction for businesses already claiming preferential rates.
To qualify for AANZFTA preferential tariffs, importers must provide a Certificate of Origin (COO) proving the goods were produced in an ASEAN member state and meet the applicable rules of origin.
CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)
Both Australia and Vietnam are CPTPP signatories. The agreement entered into force for Vietnam on 14 January 2019. For some product categories, CPTPP may offer better tariff rates or more flexible rules of origin than AANZFTA. Importers should compare the rates under both agreements before deciding which to use.
RCEP (Regional Comprehensive Economic Partnership)
RCEP entered into force on 1 January 2022 and covers 15 Asia-Pacific countries, including both Vietnam and Australia. While RCEP's tariff commitments are generally less aggressive than those of AANZFTA or the CPTPP, its streamlined, region-wide rules of origin can be advantageous for goods with components sourced from multiple RCEP member countries (for example, a product assembled in Vietnam using materials from China, Japan, and South Korea).
How to Check Which Agreement Gives You the Best Rate
Use the Australian Government's Free Trade Agreement Portal to look up your product's HS code and compare the preferential tariff rates available under each agreement. Different agreements may offer different rates for the same product, so checking all three is worth the time.
Australian Import Duties on Vietnamese Goods
How Customs Duty Is Calculated
Australian customs duty is calculated as a percentage of the goods' customs value (the FOB price in Australian dollars). The standard (MFN) customs duty on most manufactured goods imported into Australia is 5% of the customs value. However, under AANZFTA, most Vietnamese goods enter at 0% duty.
The Australian Border Force uses a 10-digit HS classification system. Getting your HS code right is critical: even a small misclassification can change the duty rate, trigger different regulatory requirements, or disqualify you from preferential treatment under a trade agreement.
GST on Imported Goods
Australia's Goods and Services Tax (GST) applies to most imports at a rate of 10%. GST is calculated on the total of the customs value plus any duty, shipping costs, and insurance (the "VoTI," or Value of the Taxable Importation).
Here is how it works in practice. Say you import a shipment of furniture from Vietnam with a customs value of AUD $10,000, a 0% duty (under AANZFTA), and shipping and insurance of AUD $1,500. The GST base would be $11,500, and the GST payable would be $1,150 (10% of $11,500).
A small number of goods are GST-exempt, including certain medical devices, some food items classified as necessities, and precious metals.
Low-Value Import Threshold
Goods with a customs value under AUD $1,000 are generally exempt from both customs duty and GST. However, tobacco, alcohol, and goods with an equivalent value above $1,000 (after consolidation) still attract duty and GST regardless.
Since July 2018, a 10% GST has also applied to low-value imported goods sold to Australian consumers by overseas vendors. However, the GST is collected at the point of sale by the vendor (if registered), not at the border.
Other Taxes That May Apply
Certain categories of imports attract additional taxes beyond duty and GST:
Wine Equalisation Tax (WET): Applies to wine imports at 29% of the wholesale value.
Luxury Car Tax (LCT): Applies to vehicles above a specified value threshold.
Excise duty: Applies to alcohol, tobacco, and fuel products.
Step-by-Step: How to Import from Vietnam to Australia
1. Classify Your Goods (HS Code)
Determine the correct HS code for your product using the Australian Border Force Tariff Classification system. Vietnam uses an 8-digit HS system under the ASEAN Harmonized Tariff Nomenclature, which differs from Australia's 10-digit system, so you will need to confirm the Australian classification separately.
2. Determine Your Duty Rate and FTA Eligibility
Look up the applicable duty rate for your HS code. Check whether preferential rates are available under AANZFTA, CPTPP, or RCEP, and confirm your goods meet the relevant rules of origin.
3. Obtain a Certificate of Origin
To claim preferential tariff rates, you need a Certificate of Origin issued by the appropriate authority in Vietnam. Under the upgraded AANZFTA, exporters can also use self-certification for some categories of goods, simplifying the process.
4. Check Product-Specific Regulations
Australia has strict regulations around biosecurity, product safety, and labeling. The regulatory requirements depend on what you are importing (see the product-specific sections below).
5. Engage a Customs Broker
For shipments valued above AUD $1,000, you must lodge a formal import declaration through Australia's Integrated Cargo System (ICS). Most importers use a licensed customs broker to handle this. Your broker will classify goods, calculate duty and GST, lodge the declaration, and arrange clearance.
6. Arrange Shipping
Sea freight is the standard choice for most shipments from Vietnam to Australia. Transit times typically range from 12 to 25 days, depending on the origin port in Vietnam (Ho Chi Minh City, Hai Phong, Da Nang) and the destination port in Australia (Sydney, Melbourne, Brisbane, Perth). Air freight takes one to five days but costs significantly more, making it practical mainly for high-value, low-weight, or time-sensitive goods.
7. Clear Customs and Pay Duties
Once your goods arrive, your customs broker submits the import declaration and pays any applicable duty and GST. The Australian Border Force releases the goods after documentation is verified and any required inspections are completed.
Product-Specific Import Regulations
Textiles and Apparel
All clothing and textile products sold in Australia must carry care labeling in English, as required under Consumer Protection Notice No. 25 of 2010. Labels must include washing, drying, ironing, and dry-cleaning instructions, using either text or standardized symbols that comply with AS/NZS 1957:1998.
Fiber content labeling is also required for certain textile products. Australian Consumer Law holds importers responsible for ensuring products meet these standards before they reach consumers.
Electronics and Electrical Equipment
All electrical products imported into Australia must comply with the general electrical safety standard AS/NZS 3820 and carry the Regulatory Compliance Mark (RCM). The RCM certifies compliance with both the Electrical Equipment Safety System (EESS) and the Australian Communications and Media Authority (ACMA) requirements.
The RCM must be at least 3mm in height, printed in English, and securely attached to both the product and its packaging. Products that do not display the RCM cannot legally be sold in Australia.
Furniture
The Australian Competition and Consumer Commission (ACCC) sets both mandatory and voluntary safety standards for furniture. Key considerations include structural stability (particularly for items like dressers and bookshelves that pose tip-over risks), flammability requirements for upholstered furniture, and specific mandatory standards for nursery furniture and children's products.
Even where no mandatory standard exists for a particular furniture type, the Australian Consumer Law's general safety provisions still apply. Importers are responsible for ensuring product safety.
Timber and Wood Products
Australia's biosecurity laws, administered by the Department of Agriculture, Fisheries and Forestry, impose strict requirements on timber and wood product imports. All timber, bamboo, and wooden articles must meet the conditions set out in BICON (Biosecurity Import Conditions database).
Importers must demonstrate that pest hazards have been mitigated during manufacturing or through approved treatments such as heat treatment, fumigation, or chemical treatment. Documentation proving compliance is required, and physical inspections are conducted upon arrival.
Food and Agricultural Products
Australia has some of the world's strictest biosecurity and food safety requirements. Imported food must comply with the Food Standards Australia New Zealand (FSANZ) code and meet biosecurity conditions. Products of animal or plant origin typically require import permits and phytosanitary or health certificates, and may be subject to quarantine inspection.
Key Resources for Australian Importers
Australian Border Force: How to Import for customs procedures and requirements
FTA Portal for tariff rate lookups across all trade agreements
BICON for biosecurity import conditions by product
ACCC Product Safety for mandatory and voluntary product safety standards
Austrade: Vietnam Market Profile for market intelligence and trade support
Work with Cosmo Sourcing to Import from Vietnam
Navigating Vietnamese suppliers, trade agreements, and Australian import regulations can be complex, especially if you are sourcing from Vietnam for the first time. Cosmo Sourcing has been helping businesses source products from Vietnam since 2012. We have worked with more than 4,000 clients across 10,000+ products, from textiles and furniture to electronics and consumer goods.
Unlike commission-based agents, we operate on a transparent flat-fee pricing model, so our incentives are aligned with finding you the best supplier rather than the most expensive one. Our team handles supplier identification, sample evaluation, quality inspections, and shipping logistics.
Contact us at info@cosmosourcing.com or visit cosmosourcing.com/contact-us to discuss your project.