Vietnam's export processing enterprises (EPEs) refer to enterprises that are established in Vietnam's export processing zones, industrial zones or economic zones and specialize in the production and processing of export products. The investment registration certificate (or other documents) of an export processing enterprise will indicate its status of an export processing enterprise (EPE).

1. Pros and Cons
   
   

   (1)	Pros (a) Imported raw materials, fixed assets and goods are exempted from import tariffs and import value added tax. (b) Exported goods are exempted from export tariffs and export value added tax.
   (2)	Cons (a) The purchase or sale of goods in other regions of Vietnam will be deemed as import or export and shall be declared to the customs. (b) The customs supervision requirements are really strict and the procedures are complicated.

   
   
2. Customs Supervision
   
   An export processing enterprise (EPE) shall satisfy the special requirements for customs supervision, including but not limited to:
   

   (1)	There must be hard fences or walls to separate the enterprise with the outside area.
   (2)	Goods must pass in and out through the gate for delivery and the gate for entrance respectively.
   (3)	There must be 24 hours operating monitor cameras that connected to customs system.
   (4)	The historical data of the monitor cameras must be kept for at least 12 months.
   (5)	It is compulsory to regularly declare to the customs for verification of inventory and unused raw materials.

   
   If an export processing enterprise (EPE) fails to satisfy the customs supervision requirements within one year from the date of incorporation, the import tariffs and value added tax will be recovered, and the exemption of import tariffs and value added tax will be revoked.
   

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See Also:
Vietnam WFOE Registration Procedures and Fees