Buyer guide2 min read
FOB, CFR or CIF? Choosing Incoterms when importing from Vietnam
Who pays for freight and insurance, where the risk passes to you, and which term makes sense for your first container of coffee or cashews.
The Incoterm on your contract decides who books the ship, who pays for freight and insurance, and — most importantly — at which point the goods become your risk. For coffee and cashews shipped from Vietnam, three terms cover almost every deal.
FOB — Free On Board
We deliver the goods cleared for export and loaded on the vessel at the port of loading, usually Ho Chi Minh City or Hai Phong. From that moment the risk is yours, and you book and pay for the ocean freight and insurance.
Choose FOB when you already work with a freight forwarder or have good freight rates of your own.
CFR — Cost and Freight
We also book and pay for the sea freight to your destination port. The risk still passes to you once the goods are on board in Vietnam, so you arrange cargo insurance yourself.
Choose CFR when you want one delivered price to compare offers, but prefer to control your own insurance.
CIF — Cost, Insurance and Freight
Like CFR, plus we buy cargo insurance for the voyage. Under Incoterms 2020, CIF only requires minimum cover (Institute Cargo Clauses C) unless the contract says otherwise — ask for broader cover if you need it.
Choose CIF when this is your first import from Vietnam or you want the simplest paperwork on your side.
Other points to agree in the contract
- The exact named port, for example "FOB Ho Chi Minh City" or "CIF Jebel Ali".
- Payment terms — T/T, L/C at sight or CAD — and when each payment is due.
- The documents you need for customs: commercial invoice, packing list, bill of lading, certificate of origin, phytosanitary certificate and any quality or fumigation certificates.
We quote FOB, CFR and CIF on request. Tell us your destination port and we will send a side-by-side comparison.
