1. Points 1–3: Land Title (Sổ Đỏ), EVN 3-Phase Power & BHXH Headcount Rolls
(1) Land Use Rights or Industrial Park Sublease: Inspect the Land Use Rights Certificate (Giấy chứng nhận quyền sử dụng đất / Red Book) or notarized long-term Industrial Park sublease (Hợp đồng thuê đất khu công nghiệp). The physical factory address must appear as the headquarters or a registered -001 branch on the supplier's ERC.
(2) EVN Three-Phase Industrial Electricity Invoices: Request the last three months of Vietnam Electricity (EVN) 3-phase industrial power bills (Hóa đơn tiền điện sản xuất 3 pha). A genuine extrusion, CNC, kiln-drying, or cold-storage plant consumes tens of thousands of kWh monthly billed directly to the contracting company's 10-digit or 13-digit Mã số thuế.
(3) Vietnam Social Security (BHXH Form C12-TS): Cross-check the monthly Social Insurance contribution notice (Thông báo kết quả đóng BHXH — Mẫu C12-TS). This statutory document proves whether the counterparty actually pays payroll taxes for 150 factory operators or merely 4 office sales clerks.
2. Points 4–6: Environmental Permits (ĐTM), Fixed-Asset Ledgers & Fire Safety (PCCC)
(4) Environmental Impact Assessment (ĐTM) & Wastewater Permits: As highlighted in EuroCham Vietnam's industrial infrastructure audits, environmental compliance is a primary operational bottleneck. Verify the plant's approved Báo cáo đánh giá tác động môi trường (ĐTM) or Environmental Permit (Giấy phép môi trường) and Industrial Zone wastewater treatment connection contract.
(5) Fixed-Asset Depreciation Ledger & A12 Customs Declarations: Review the Sổ theo dõi tài sản cố định and import customs declarations (Tờ khai hải quan nhập khẩu mã A12 — import of fixed-asset machinery) proving the supplier legally owns the CNC centers, injection molders, or optical sorters on the floor.
(6) Fire Prevention & Fighting Acceptance (Nghiệm thu PCCC): Confirm an active Giấy chứng nhận thẩm duyệt và nghiệm thu PCCC—without which local police can padlock the plant mid-order.
3. Points 7–9: Input VAT E-Invoices (Hóa Đơn Điện Tử), Calibration & Shop-Floor Interviews
(7) Input VAT E-Invoices (Hóa đơn điện tử GTGT): Under Vietnam's electronic invoicing system, a real manufacturer holds input VAT invoices for raw materials (steel coils, timber logs, resin pellets, green coffee), whereas a trading company holds input VAT invoices for finished goods purchased from another Vietnamese factory.
(8) In-House QC Calibration Logs & (9) Unannounced Line Manager Interviews: Inspect internal lab calibration stickers and conduct direct Vietnamese-language technical interviews with the line production manager regarding cycle times, reject rates, and preventative maintenance.
4. Key Specifications & Summary Table
| Audit Checkpoint | Official Vietnamese Document | What It Confirms | Typical Trading Intermediary Signal |
|---|---|---|---|
| 01. Facility Title | Sổ đỏ / Hợp đồng thuê đất KCN | Legal tenure at the physical plant address | Factory address missing from supplier's ERC |
| 02. Industrial Power | Hóa đơn tiền điện sản xuất 3 pha (EVN) | Heavy machinery kWh load under supplier MST | Only commercial office electricity bill exists |
| 03. Workforce Roll | Thông báo đóng BHXH (Mẫu C12-TS) | Verified count of insured factory workers | Claims 200 workers; BHXH shows 5 sales staff |
| 04. Environmental | Báo cáo ĐTM / Giấy phép môi trường | Lawful industrial & wastewater operation | No environmental permit in supplier's name |
| 05. Machinery Title | Sổ tài sản cố định & Tờ khai mã A12 | Legal ownership of production equipment | Cannot show customs/VAT purchase docs for machines |
| 06. Input VAT Trail | Hóa đơn điện tử GTGT đầu vào | Buys raw materials (resin, steel, yarn, logs) | Buys finished goods from undisclosed third factory |
5. Frequently Asked Questions
Q1. How do trading companies in Vietnam present themselves as manufacturers?
Intermediaries often rent a commercial office in Ho Chi Minh City or Hanoi and partner with a provincial manufacturer in Bình Dương, Đồng Nai, or Bắc Ninh that lacks an English-speaking export team. During buyer visits, the trader may display their brand name at the meeting room, handle all communication, and add 12% to 25% onto the factory's EXW or FOB price.
Q2. What documents prove a Vietnamese supplier actually owns the factory?
Request four unforgeable statutory records bearing the supplier's exact 10-digit or 13-digit Mã số thuế (MST): (1) the ERC showing the factory address as headquarters or a registered branch (-001); (2) EVN 3-phase industrial electricity invoices; (3) BHXH Form C12-TS social insurance workforce rolls; and (4) input VAT e-invoices (Hóa đơn GTGT) showing raw material procurement rather than finished product purchases.
Q3. How do I avoid hidden middlemen markups when sourcing from Vietnam?
Insist on direct counterparty disclosure before signing a purchase order. Verify that the company name on your Proforma Invoice and bank account matches the licensed owner of the physical factory, negotiate factory-gate (EXW/FOB) pricing directly with the producer, and if using a local sourcing advisor, agree on a separate, upfront per-tonne or per-order advisory fee rather than bundled trader pricing.