Incoterms are the eleven standard trade terms published by the International Chamber of Commerce (Incoterms 2020). They define who arranges and pays for transport, insurance and customs, and the exact point where the risk of loss passes from seller to buyer. Every quotation on CANG states its incoterm, so you can compare offers on a like-for-like basis.
The terms you will see most often
| Term | Seller delivers when… | Seller pays | Buyer pays |
|---|---|---|---|
| EXW (Ex Works) | goods are made available at the factory | packing | loading, export clearance, all transport, import |
| FCA (Free Carrier) | goods are handed to the buyer's carrier at a named place | export clearance, delivery to carrier | main carriage, insurance, import |
| FOB (Free On Board) | goods are loaded on the vessel at the port of shipment | export clearance, port charges, loading | ocean freight, insurance, import |
| CFR (Cost and Freight) | goods are on board; seller books and pays ocean freight | freight to destination port | insurance, import, on-carriage |
| CIF (Cost, Insurance and Freight) | as CFR plus minimum insurance | freight + insurance | import, on-carriage |
| DAP (Delivered At Place) | goods arrive at the named place, not unloaded | all transport to destination | import duties and taxes, unloading |
| DDP (Delivered Duty Paid) | goods arrive cleared at the named place | everything including import duty | unloading only |
Note that under CFR and CIF the risk passes when the goods are on board in Vietnam even though the seller pays the freight — insurance matters.
Which term should you use?
First order, you have a forwarder: ask for FOB Cat Lai (southern factories), FOB Hai Phong (northern factories) or FOB Da Nang (central). You control freight cost and can consolidate with other suppliers. Most Vietnamese exporters are comfortable with FOB and quote port charges included.
You want one price to your port: ask for CIF or CFR to your destination port. Compare the freight element with a forwarder's quote; in volatile freight markets a seller's CIF price may include a safety margin.
You want door delivery without handling import: ask for DAP to your warehouse. You still pay import duty and VAT in your country. DDP is rare for Vietnamese factories because it requires them to act as importer in your country; use it only with an experienced exporter or a logistics partner.
Samples and small air shipments: FCA at the factory or the airport is practical; the courier account can be yours.
Vietnam specifics
- The main container ports are Cat Lai and Cai Mep-Thi Vai (south), Hai Phong / Lach Huyen (north) and Da Nang / Tien Sa (centre). Quote the specific port on FOB terms.
- Export clearance is fast (usually same day) once the commercial invoice, packing list and, where applicable, certificate of origin are in place.
- Preferential duty under EVFTA, UKVFTA, CPTPP or RCEP depends on a certificate or statement of origin issued in Vietnam — request it in the RFQ regardless of the incoterm.
- Cargo insurance from partner providers on CANG can be added to any term; it is included at 110% of invoice value under CIF by default.
Reading a quotation on CANG
Every quotation shows: unit prices, subtotal, shipping cost, discount, total, incoterm and shipping method. A "CIF Hamburg — 2 × 40HQ" quotation therefore already contains ocean freight and insurance; an "FOB Cat Lai" quotation does not. Use the logistics request tool to obtain freight quotes so you can compare an FOB offer with a CIF one accurately.