Foreigners can request for local processing of goods of all kinds. The said request must be in writing, and subject further to the MOIT's consent with respect to goods being prohibited or ceased temporarily from the import and export.

10.1 Legislation
Local processing for foreigners are being governed by the Commercial Law dated 14 June 2005; Decree No.12/2006/ND-CP of 23 January 2006 of the Government making detailed provisions for implementation of the Commercial Law with respect to international purchases and sales of goods, and agency for sale and purchase, processing and transit of goods involving foreign parties; and Circular No.117/2011/TT-BTC dated 15 August 2011 of the MoF providing guidelines for customs procedures for goods processed for foreign traders.

10.2 Contents of the Contract
Having the similar contents of a formal economic contract, a processing contract must include the description about the goods to be processed, the required quality and quantity, the time and place for delivery of goods, the processing price, the terms and method of payment, and the duration. Trademark and the origin of goods in relation to the processing activities are normally falling within the responsibilities of the foreign principals.
As a matter of fact, a list of input materials for processing activities should be present in the contract, with a defined rate of consumption and waste. Dealings on relevant equipment are also contracted due to the fact that equipment are often leased to local processors from foreign principals in most cases. Both input materials and equipment can be imported into Vietnam on the basis of temporary import and re-export.

10.3 Permitted Activities
Foreign principals are entitled to receive and remit abroad finished products, surplus input materials and leased equipment. To supervise the local processing activities and guide on technical issues, foreign experts can be seconded to Vietnam by foreign principals.

10.4 Taxation
Input materials and equipment serving for the local processing activities are in principle, being exempted from taxes prevailing in Vietnam.