Vietnam currently maintain a drop ship model under which a foreign buyer may purchase goods in Vietnam, and instruct the seller to deliver the goods to another Vietnamese entity, which is called “On The Spot” Export/Import (OTS).

Under this OTS scheme, the seller is still qualified as exporting their goods out of Vietnam to enjoy certain tax and duty incentives (i.e import duty exemption of imported materials, 0% VAT).Under this new proposal, OTS scheme is to be abolished, and current transactions would be categorized under other existing rules. Accordingly, there is possibility that seller no longer receives tax and duty incentives as they are now under the OTS scheme.