A Practical Guide to Importing Used Machinery into Vietnam: Legal Regulations and Customs Risks Japanese Companies Should Know

This article explains, based on typical use cases, the legal conditions concerning manufacturing year, performance, and environmental standards, as well as commonly encountered customs-clearance problems, the practical points to keep in mind when Japanese companies import used industrial machinery, equipment, and production lines into Vietnam. It is a practical guide that companies considering the import of used machinery should review beforehand.

For Japanese companies considering investment in Vietnam, importing used industrial or construction machinery can present a significant business opportunity in terms of cost reduction and equipment reuse. Utilizing high-quality used machinery previously operated in Japan offers the benefits of quickly setting up production lines while holding down initial investment, as well as reducing environmental burden. At the same time, Vietnam has established detailed legal regulations concerning the import of used machinery, and failure to address them properly can lead to problems at customs. This article explains, based on Vietnam's current laws, typical cases, legal conditions, and points for Japanese companies to note when planning to import used machinery.

01 - Common Cases of Used Machinery Imports by Japanese Companies

First, let us look at typical scenarios in which Japanese companies import used machinery into Vietnam.

Establishing or expanding a factory: There are cases where used production equipment previously used by a Japanese parent company or affiliated factory is relocated to a Vietnamese subsidiary in order to increase production capacity. This leads to reduced capital investment costs and a shorter time to start-up. For example, an automotive parts manufacturer may repurpose machine tools used at its Japanese factory for a new production line in Vietnam.
Reuse of high-performance used machinery: Machinery made in Japan is highly durable and can still perform well even years after manufacture. For this reason, some companies deliberately choose used equipment in order to balance quality and cost. In particular, for time-limited projects or trial production, using used equipment is more economical than purchasing new machinery.
Bringing in equipment for construction projects: Construction and infrastructure companies sometimes bring used construction machinery (cranes, excavators, etc.) from Japan for use in construction work. If the equipment is taken back to Japan after the work is completed, this constitutes a temporary import; if it is sold or left in Vietnam, it becomes a permanent import and is subject to the relevant regulations.

Each of these cases presents an opportunity for Japanese companies to utilize used machinery, but at the same time requires an accurate understanding of, and compliance with, Vietnamese law.

02 - Key Legal Conditions for Importing Used Machinery

The Vietnamese government has set out detailed conditions for the import of used machinery, equipment, and production lines in Decision No. 18/2019/QD-TTg (partially amended by Decision No. 28/2022/QD-TTg). The main points are as follows.

Age limit from the year of manufacture: As a general rule, the age of used machinery (the period from the year of manufacture to the year of import) must not exceed 10 years. For example, if importing in 2025, machinery manufactured up to 2015 satisfies the age requirement, while machinery manufactured in 2014 would be 11 years old and, in principle, could not be imported. This is intended to prevent the inflow of aging machinery and to avoid the introduction of equipment that does not meet energy-saving and safety standards.

Age Exceptions (Machinery in Specific Fields)

For machinery used in certain industrial fields, an exception permits the import of used machinery up to 15–20 years after manufacture. This applies to fields such as mechanical engineering (machine tools), wood processing/sawmilling, and pulp and paper, which generally have longer useful lives and lower environmental impact. Which machinery qualifies for this exception is determined by HS code (type of machinery); qualifying machinery may be imported up to 20 years after manufacture. However, even when importing used machinery in the 15–20 year range, the technical standards and performance requirements described below must still be satisfied.

Prohibition of machinery unsuitable on safety or environmental grounds: Machinery that has been treated as scrap in the exporting country (the machine's original location), or that fails to meet safety, energy-saving, or environmental protection standards, is not permitted for import, even if relatively new. For example, equipment that is a major source of environmental pollution, or machinery that is technically obsolete, is excluded from import. From the standpoint of environmental protection and the introduction of advanced technology, the Vietnamese government requires a certain technical standard even for used machinery.
Standards for performance and efficiency: Imported used machinery and equipment must retain at least 85% of its original design performance, and its consumption rate of energy or raw materials must not exceed the design level by more than 15%. In simple terms, it must be demonstrated that the machinery is "still sufficiently usable and efficient." Machinery whose performance has significantly deteriorated, or which is energy-wasteful, is not permitted.
Compliance with technical standards: Used machinery must comply with Vietnam's national technical regulations (safety standards, energy-saving standards, environmental protection standards, etc.). Where no corresponding Vietnamese national standard exists, compliance with the national standards of the G7 countries or South Korea is required instead. For Japanese-made machinery, Japan's JIS standards, among others, are generally considered relevant, but in any case the machinery must meet internationally recognized safety and environmental standards.
Requirements for entire production lines: Additional requirements apply when importing an entire used production line (a line composed of multiple machines). Conditions include that the production line to be imported must not be included in the government's list of technologies prohibited from transfer, and that an equivalent line must be in operation at at least three production sites in OECD member countries. In short, technology lines considered outdated in Vietnam are not permitted, and the line must have an internationally proven track record.

[Summary Point]

To demonstrate that used machinery, equipment, or a technology line satisfies all of the above conditions and standards, an inspection procedure must be carried out at an accredited inspection body, and an inspection certificate must be obtained.

Also, as a point to note regarding the purpose of import, Vietnam only permits the import of used machinery, equipment, and technology lines where they are to be used directly for the company's own production activities within Vietnam (Article 4, Clause 3 of Decision No. 18/2019/QD-TTg). Accordingly, please note that importing used machinery, etc. for commercial purposes such as sale or leasing is likely to be refused.

03 - Common Practical Problems (Issues That Frequently Arise in Practice When Importing Used Machinery)

① Customs clearance halted due to vague content in the inspection certificate

In the import of used machinery, the inspection certificate (appraisal certificate) is the single most important document determining whether customs clearance is possible. In practice, however, there are many cases where clearance is halted at customs because the content of the certificate is stated in abstract terms or does not sufficiently cover the requirements demanded by law.

Particularly problematic points include:

Failure to clearly demonstrate that the machinery's performance is "85% or more of its design performance"
Absence of an assessment of the energy/raw material consumption rate
Ambiguity regarding compliance with national technical standards (or G7 standards)

An inspection certificate is not something that need only be obtained "as a formality"—it is essential to confirm in advance whether its content can withstand review by Vietnamese customs.

② Cases where the year of manufacture is not accepted due to insufficient proof

In the import of used machinery, the requirement concerning the number of years elapsed since manufacture is strictly checked. As a result, if the documentation proving the year of manufacture is insufficient, import may not be permitted at customs even if the requirement is in fact satisfied.

Problems commonly seen in practice include:

Attempting to demonstrate the year of manufacture using only the manufacturer's specifications or catalog
An unclear correspondence between the serial number and the year of manufacture
No mention of the year of manufacture in the used equipment sales contract

Regarding the age requirement, it is important to prepare a certificate issued by the manufacturer or a confirmation document from a reliable inspection body.

③ Trouble arising from misinterpretation of HS codes

In the import of used machinery, the classification of the HS code directly affects whether the legal requirements apply.
A mistaken interpretation of the HS code carries the risk that machinery that would otherwise qualify for an exception may instead be treated as subject to full regulation.

For example:

Machinery that is in fact a "machine tool" is declared as some other general machinery
A machine that is part of a production line is declared as a standalone machine, leading to a determination that the requirements for the entire line are not satisfied

Such cases are seen in practice. HS codes are not merely a technical matter of customs procedure; because they are an important factor determining whether import is permitted and whether the age exception applies, it is advisable to have them confirmed by an expert in advance.

④ Cases treated as "permanent import" despite an intended "temporary import"

When bringing in used machinery for construction work or a project, many companies intend to use it temporarily and then take it back. In practice, however, there are many cases where customs determines it to be a permanent import.

For example, where:

No declaration or procedure for temporary import has been carried out
No clear re-export plan is presented following completion of the construction work
The machinery remains within Vietnam for a long period

In such circumstances, there is a risk that, contrary to the original intent, the equipment will be treated as a permanent import and the used machinery import regulations will apply in full. Where a temporary import is intended, it is essential to establish a system capable of providing a consistent explanation, including the contract, transport plan, and re-export schedule.

04 - Key Points for Japanese Companies to Note

Finally, here is a summary of the points Japanese companies should note when importing used machinery into Vietnam.

Thorough machinery selection and document preparation: It is essential to confirm in advance that the machinery to be imported satisfies the requirements for age, performance, and environmental standards. If possible, have the machinery inspected and serviced in Japan and obtain the necessary information from the manufacturer. On that basis, be sure to obtain the manufacturer's certificate or inspection body's appraisal certificate mentioned above. Preparing all documents without omission and sharing them internally and with the transport company can prevent trouble at customs clearance.
Cooperation with a reliable inspection body: The appraisal certificate from a designated inspection body is a critical document determining the success of the used machinery import. Japanese companies sometimes have the appraisal conducted by an accredited inspection company in Japan prior to shipment. Choose an inspection body with a proven track record and proceed early with inspection and obtaining certification for the machinery. It is also important to promptly address any points for improvement raised by the inspection body (if any) and to maintain the machinery's condition at a level that meets the standards.
Care regarding customs and logistics: Used machinery is often large and complex, and any damage or contamination during transport can hinder its operation after customs clearance. Take every precaution with packing and transport, and use a specialized logistics company where necessary. In addition, since customs procedures at Vietnamese ports can take time, it is recommended to allow ample margin in the import schedule. Maintain close contact with local staff and agents so as to respond promptly if customs requests additional documents or inspection.
Countermeasures for the risk of non-compliance: Should the imported machinery be found non-compliant, there is a risk that customs will refuse entry and the machinery will have to be re-exported. This would not only waste the cost of the machinery and transport, but would also affect the schedule of the entire project. As a hedge against this risk, consider measures such as including a return clause in the contract for cases of non-compliance, or preparing a plan to arrange substitute machinery. Above all, it is desirable to reduce the risk itself through advance checks and expert advice.