Freight Shipping between Malaysia and Vietnam | Rates – Transit Times – Duties & Taxes

Commercial trade between the two countries

 Before diving into the article, it is important to know the commercial trade the trade value Between the two southeast Asian countries was approximately US$2.2 billion as of the beginning of 2022, up 20 percent year on year, and as of 2020, Rice ($237 million), integrated circuits ($235 million), and broadcasting equipment ($217 million) are the top three imports from Vietnam to Malaysia and Integrated Circuits ($1.08B), Refined Petroleum ($868M), and Semiconductor Devices ($652M) were the top three Malaysian exports to Vietnam.

In addition to having overlapping claims in the Spratly Islands, Vietnam and Malaysia share a maritime border in the Gulf of Thailand and the South China Sea.

It measures up to 560 km (350 mi) in breadth and about 800 km (500 mi) in length.

The littoral states greatly benefit from using the Gulf of Thailand as a shipping route. For instance, over boats that called into Thai ports had shipping volume of roughly million tons of cargo and million TEU foot equivalent units (TEUs, which are m x m x m of containers). These figures are expected to rise by around 12% per year.

The main seaports in Malaysia

Port Klang

On the Strait of Malacca, which is the busiest strait in the world with over 100 000 commerce ships passing through it, there is a port called Kelang. It is Malaysia's first port and ranks 16th in the world with a 573 km2 area. Previously a transshipment port, the port has been able to accommodate numerous container ships by making use of Singapore's port's overcapacity. It is now the primary hub for CMA-CGM in Asia.

Port of Tanjung Pelepas

The largest container terminal in Malaysia is the Port of Tanjung Pelepas (PTP). The port offers major shipping lines and box operators dependable, effective, and cutting-edge services, giving shippers in Malaysia and overseas substantial connectivity to the global market. PTP is a joint venture between APM Terminals (30%), a major international port organization with a global port network in 62 countries, and MMC Corporation Berhad (70%), a leading utilities and infrastructure group.

Kota Kinabalu port

The Kota Kinabalu port is of medium size. Oil/chemical tankers (13%), container ships (12%), general cargo (11%), bulk carriers (8%), and offshore supply ships (7%) are the different types of ships that frequently call at Kota Kinabalu.

Should I ship my goods as a groupage or a full container between Malaysia and Vietnam?

The three main categories of standard container sizes are as follows. All of them can be used for both personal and professional transportation. We can see that merchants use them most frequently for any kind of solid sample:

• The HQ at 40 feet (High Cube, which has a capacity of 76 cubic meters)
• The forty-foot container (which has a capacity of 67 cubic meters)
• 20-foot container (which has a capacity of 33 cubic meters)

Less than Container Load (LCL)

When your cargo does not fill an entire container, LCL shipping is a good option. In addition,  it allows you to simply pay for the amount of space you use, making it ideal for little deliveries. Your goods will be positioned next to those of a different vendor traveling in the same direction.

Full Container Load (FCL)

It indicates that only one customer uses the entire space in the bearer from the time of departure to the time of arrival until it is delivered to the customer to minimize the dangers and expenditures.

If you want to purchase a lot of goods, it is a fantastic method of transportation to use.

Therefore, even if you simply fill a portion of it, FCL will be safer and less expensive for a bigger quantity. Undoubtedly, a full container can be less expensive than LCL starting at 15 m3.

 How much does sea freight between Malaysia and Vietnam cost?

The weight-to-size ratio of the products, which is computed by dividing the chargeable weight by the price per kilogram, also affects how much air freight will cost.

Although the IATA tax is fundamentally required, there may be size limitations. It is a territorial tax that differs from one nation to another and has a quick weight loss. There is a little fee for small shipments.

Air freight is frequently less expensive per kilogram than delivery services, despite having higher base pricing. The largest gross tonnage (based on the scale) and cubic load (taking into account all factors) will be used to estimate the cost of air freight for both artwork and express couriers.

What are the advantages of air freight?

-Air freight is the fastest way to ship, so when your goods need to be transported quickly, it is undoubtedly better than sea freight or road transport.

-Reliability of arrival and departure times.

-While going through airport security might be a pain for those of us who fly, air freight carriers benefit from tight restrictions and screenings. The risk of theft or damage is reduced by intense monitoring and security in cargo receiving zones and air terminals.

-The majority of air freight service companies provide web-based monitoring so you may monitor the progress of your cargo in real time from destination to arrival.

How much does it cost to transport air cargo between Malaysia and Vietnam?

It is very important to keep in mind all the costs you will have to face if you make the choice to ship by air cargo. Specifically, we are talking about airport charges, documentation and reporting fees, customs, duties and taxes, etc… . It is also important to mention that the price of your shipment depends on both the weight and volume of your goods and the type of air freight. For example, if a cargo weighs 1 kg, its express charges will be ₹ 948 and its economy charges will be ₹ 473 and if a cargo weighs 50 kg, its express charges will be ₹ 20892 and its economy charges will be ₹ 14241.

How to calculate the volumetric weight of your shipment?

For classic freight, The basic rate is a weight band rate with a minimum fee for incredibly small shipments. As for express freight, it provides a fee per step based on the quantity you are shipping. The greater of the gross weight and the volumetric weight, which is determined as follows, will serve as the carrier's basis for determining the rate, as previously stated:

• Classic Air Freight: 1 m³ = 167 Kgs
• Express Air Freight: 1 m³ = 200 kgs 

Customs clearance in Malaysia and Vietnam

Shipments in Malaysia can only be fully cleared for release if all taxes and duties have been paid and verified by the appropriate authorities. The shipment's release could take up to 48 hours after it arrives if there are any problems with the paperwork or payments pertaining to the goods in concern.

Before you import goods into Vietnam: bill of landing, a certificate of origin, an import goods declaration form, an import permit, a commercial invoice, a customs import declaration form and many others.

 What are the customs duties and taxes?

 Just like everywhere else, imported items are subject to customs duties. The Harmonized Commodity Description System (HS) is used in Malaysia for imported and exported items that are not produced by the Association of Southeast Asian Nations (ASEAN). Malaysia imposes a tariff rate that follows ad valorem rates and ranges from 0% to 50%.

How to get your HS code?

Asking your seller is the most secure and effective course of action.

Visit this webpage if he is unable to deliver it: HS code.

It is fairly simple to use. Enter your search word in the search area to get the results. Use "pineapple" as an example.

  Calculating customs duties with the HS code

   Do you know what your HS code is? It's time to verify how many taxes will need to be paid on your shipment now. Simple steps are as follows:

 Visit the webpage for Malaysian customs first: Tariff for Malaysian Customs.

You must first enter your information (in this example, the HS code and the country of origin, which is Malaysia) : 

Are you done? You only need to click the search button to get to the next page:

How to calculate customs duties and taxes

• To find the value of the customs duty, you need to add the total value of the imported product to the consumption tax (if applicable) + environmental protection rate (if applicable) x tax rate.

• To calculate the VAT, the total value of the imported product + import tax) x VAT rate
• To calculate the special consumption tax, you simply multiply the value of the product by the applicable SCT rate. 
• To calculate the environmental protection tax, you simply multiply the quantity of taxable goods by the EPR rate 
• Finally, if you wish to calculate all the taxes applicable to importing into Vietnam, simply do the following calculation:  import tax + VAT + TCS (if applicable) + EPT (if applicable)