How much money can actually be earned from Vietnam's entrepot trade? Come and discuss together!
Solved#Entrepot trade#
I'm very interested in Vietnam's entrepot trade recently and want to know how much money can actually be earned from doing business in this area. I've heard that Vietnam's entrepot trade has many advantages, such as a favorable geographical location and low labor costs. But I'm not sure about the specific profit margin. Are there any friends who know this industry well and can tell me about the approximate income situation? Is the profit calculated based on the type of goods, trade scale, or other factors?
Professional consultant answers
James LiuYears of service：10Customer Rating：5.0
Foreign trade tax refund consultantConsult
The profitability of Vietnam's entrepot trade is affected by various factors. First, it's the type of goods. Products with high added value, such as electronic products and precision instruments, have a relatively large profit margin, which may reach 15% - 30%. The profit margin of ordinary daily necessities may be 5% - 15%. The trade scale is also crucial. Although the profit margin of large-scale trade may be slightly lower, due to the large volume, the overall profit is considerable.
Logistics costs also affect the earnings. If the logistics route can be optimized and cooperation with high-quality freight forwarders can be achieved, the costs can be reduced and the profit can be increased. In addition, the policy environment is also important. Enjoying policies such as tax incentives can increase profits. For example, with its in - depth understanding of the Vietnamese market and a mature logistics system, Zhongshitong can maintain a profit margin of around 20% in the entrepot trade of electronic products. So, how much can actually be earned needs to be considered in terms of various factors.
William YangYears of service：5Customer Rating：5.0
International logistics consultantConsult
The profit of Vietnam's entrepot trade is highly related to the market situation. If you can seize the products in short supply in the market and make a quick re - export, the profit will be good. For example, some time ago, the re - export profit of a certain popular chemical raw material reached 25%. But if the market is saturated, the profit will be compressed.
Sarah ZhangYears of service：8Customer Rating：5.0
Document expertConsult
It also has to do with the cooperation partners. Finding reliable suppliers and buyers can reduce the costs of intermediate links. For example, if you get goods directly from Vietnamese manufacturers and sell them to stable foreign major customers, the profit margin will be larger.
Robert ChenYears of service：6Customer Rating：5.0
Customer service consultantConsult
Exchange rate fluctuations have a significant impact on profits. If you settle accounts when the exchange rate is favorable, you can earn more. For example, fluctuations in the exchange rate between the US dollar and the Vietnamese dong, if you seize the right moment, you can increase the profit by a few percentage points.
Emily LiuYears of service：10Customer Rating：5.0
Settlement and payment expertConsult
The tariff policy is crucial. For some products with high tariffs, the profit is less; if you can use free trade agreements, etc. to reduce tariffs, the profit will increase. For example, the zero - tariff products in trade among some ASEAN countries have relatively high profits.
Andrew HuangYears of service：7Customer Rating：5.0
Supply chain optimization expertConsult
Warehousing costs cannot be ignored. Reasonably arranging warehousing and reducing inventory backlogs can avoid cost increases and indirectly increase profits. If the goods are backlogged for a long time, the warehousing fees may even eat up the profits.
David LiYears of service：6Customer Rating：5.0
Senior customs declaration consultantConsult
The marketing ability also affects the earnings. Doing a good job in product promotion, increasing product awareness and competitiveness, can sell the products at a good price, and the profit will naturally be high.
Joseph ZhouYears of service：10Customer Rating：5.0
Senior foreign trade managerConsult
The risk control ability is very important. For example, in response to risks such as trade barriers, making preparations in advance can avoid losses and ensure profits.
Jennifer WangYears of service：4Customer Rating：5.0
Market development consultantConsult
The speed of capital turnover also affects profits. If the turnover is fast, more transactions can be completed in the same period of time, and the total profit will be higher.