Importing Civil Cryptography Products into Vietnam

A guide to getting cryptography products into Vietnam

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We live in a world that runs on an array of apps and digital services. The expansion of telecommunications and the internet into every aspect of our lives brings new demand for data storage systems, devices, and software. Importing civil cryptography products into Vietnam to meet this need can be challenging, but it is a legal necessity for protecting customers’ data.

Emerhub can help you overcome these challenges with our Importer of Record (IOR) service, acting on your behalf to ensure compliance, clear customs, and process payment for taxes and duties, all in a few short weeks.

What are civil cryptography products?

Civil cryptography products (encrypted products) are systems, devices, integrated modules and circuits, and software explicitly designed to protect information via cryptographic techniques. 

According to Appendix I of Decree No. 58/2016/ND-CP, the list of civil cryptographic products includes the following:

  1. Biometric cryptography products, cryptographic key management or storage items
  2. Cryptographic components of a PKI system
  3. Stored data security products
  4. Online data security products
  5. IP and channel security products
  6. Analog and digital voice security products
  7. Wireless security products
  8. Facsimile and telegraph security products

Using civil cryptography products in Vietnam

Brands such as Cisco, Hewlett Packard Enterprise, Dell, and Palo Alto Networks are some of the world’s largest IT manufacturers offering encrypted software, hardware, and other devices. 

Their products, among others, are used in the development of new technology in Vietnam and are common within banks, telecommunications companies, and data centers, where routers, switches, firewalls, storage systems, servers, and application delivery controllers, are all vital security components.

Vietnam is an ideal location for building data centers, due to its low costs and fast-growing market. Since January 1st, 2019, Vietnam’s cyber security laws have required local and foreign investors to store their data locally in Vietnam. There are currently 27 locations in the country and we can expect this number to continue to grow in the future in line with the demand for data storage rental. 

Cisco

Cisco provides solutions for everything from networking and data centers, to collaboration and security. Their products contain cryptographic elements such as switches (Cisco Nexus Series ) and routers (Cisco 4000, 1000, 2900 Family Integrated Services Routers).

Hewlett Packard Enterprise

HP servers deliver the right balance of performance, storage, reliability, manageability and efficiency in a dense and compact chassis (ie: HPE ProLiant DL160, DL360, DX380  Gen9 or Gen 10 Server).

Juniper:

Switches (ie. EX2300, EX4300, QFX5100, QFX5200); Routers (ie. PTX3000, PTX5000); Gateway (SRX1500 Services)

Amazon

Custom-built server racks (AWS Outpost Server Racks, AWS Edge Server Racks, AWS Edge Network Racks, AWS Outpost Ace Racks)

Impact of Covid-19 on demand for importing cryptography products in Vietnam

The pandemic has changed how many businesses operate. The current trend towards employee outsourcing and remote working will have a lasting impact, driving investment in new technology. Cloud services and digital communication systems such as Zoom, Skype, and Slack are integral parts of most businesses today.  

The digital banking and e-commerce explosion picked up even more momentum during the pandemic.  There is now a need for data storage in just about every area of our online activity. Data loss and customer information leakage threaten customers’ privacy and your business’ reputation and prestige as a whole.

According to the MIC Report, budget allocations for information security will double in the coming years. Companies will seek to protect themselves and ensure the swell in amounts of customer data does not lead to a breach in security. This demand creates enormous potential for IT manufacturers in the Vietnamese market..

Why is it difficult to import civil cryptography products into Vietnam?

An enterprise that wishes to import civil cryptographic products into Vietnam shall obtain a trading license (stage 1) and import license (stage 2) from a competent state agency – Government Cipher Committee for doing so. 

However, the regulations remain highly strict in Vietnam due to the complicated and underdeveloped information security system.

Conditions to meet to obtain a trading license:

AreaConditions
Managerial, Administration, and Technical StaffMust meet professional requirements on information confidentiality and security
Equipment and Physical foundationsSuitable to the scale and provision of civil cryptographic products and services
Technical PlansConformable with standards and technical regulations
Cyber Information Confidentiality and SecurityA plan must be in place within the management and provision of civil cryptography products and services. 
Business PlanMust be appropriate to the business

It requires a great deal of patience to understand and meet these requirements. Without a significant local presence and a knowledge of Vietnam’s laws and regulations, it is easy to see your application rejected. You may find certain parts of the law unclear and the application process can become a costly and time-consuming distraction.

The application process and its appraisal take 3-6 months, depending on the preparation of detailed and complete dossiers.

The above requirements are quite challenging to fulfill if your customer is not an IT company or specializes in trading these products in Vietnam. Emerhub can help you overcome these obstacles with our IOR service, which removes the need to complete the stage one process. 

How Emerhub’s IOR Service simplifies the importation of civil cryptographic products 

Emerhub can be your Importer of Record (IOR), taking on responsibility for completing compliance requirements. These requirements include customs clearance, licensing compliance, and payment of taxes and duties.

We also bear all risks associated with clearing the goods and delivering them to your destination address in Vietnam.

It might take the Ministry 10-14 working days (counting from the date we apply) to appraise and release the import license and then we can ship your products to Vietnam.

Why choose Emerhub to import cryptography products into Vietnam?

We have been actively importing civil cryptography products into Vietnam for over two years. Realizing the great potential for these products, we have focused our efforts on finding the most efficient method of fulfilling our clients’ importation and trading license requirements.

We have experience with encrypted items and have successfully satisfied stage one for a long list of products. This means we already hold the trading license for a host of encryption products in Vietnam. All that remains with these products is to submit for stage two, which takes less time and costs less than stage one.

With our IOR service, you can ensure that you meet the customs and licensing requirements and the encryption systems or components reach their destinations. 

We are one of the only companies to hold licenses to import cryptography products into the country. Book a call today to learn more about our IOR service and how it can help your business import encrypted products into Vietnam.

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