Streamlining European Steel Imports into Asia Through a Vietnam Bonded Warehouse Model

The client, a leading European metals company headquartered in Belgium, with manufacturing operations across the EU and a commercial office in China. While the business served customers across Asia-Pacific, it had no legal entity or distribution setup in Vietnam.

The existing supply chain relied on fragmented inbound flows from Europe and China, resulting in long lead times, high duty and VAT exposure, and inefficient use of working capital.

Management was looking for a way to improve service levels in Asia while reducing cash tied up in inventory and import taxes, without immediately establishing a full local entity.

The client faced several structural constraints:

• Separate inbound flows from Europe and China with no regional consolidation
• Long lead times into APAC markets, limiting responsiveness to customers
• Significant duty and VAT exposure on imports
• No Vietnam entity and no existing bonded infrastructure
• Working capital tied up unnecessarily in taxes and slow-moving inventory

The client needed a solution that improved speed and cash efficiency while remaining compliant and scalable.

Our team was engaged to advise on and design a bonded warehousing model in Vietnam that would support regional distribution without requiring immediate local incorporation.

Our role covered operating model design, customs structuring, project coordination, and execution support.

Bonded warehousing strategy design

Accriona designed a Vietnam-based bonded warehousing model that allowed the client to defer duties and VAT while positioning inventory closer to Asia-Pacific customers.

The model enabled consolidation of steel products manufactured in the EU with goods sourced from China into a single regional hub.

Supply chain consolidation and lead time reduction

Accriona established a cross-functional project team to redesign inbound flows. By consolidating shipments and centralising inventory planning, the new model significantly reduced transit times and operational complexity.

Customs and tax optimisation

We structured inbound and outbound flows to minimise duty and VAT exposure across the supply chain. This included advising on bonded import processes, re-export flows, and compliant documentation.

Execution support and coordination

Accriona worked closely with logistics partners and internal stakeholders to ensure the bonded model was implemented smoothly and operated correctly from day one.

The engagement delivered measurable operational and financial impact:

• Lead times to Asia-Pacific markets reduced by 55%
• Consolidation of EU- and China-origin goods into a single bonded hub
• Significant reduction in duty and VAT exposure across inbound flows
• Improved working capital through deferred tax payments
• A scalable regional distribution model without immediate entity setup

The client gained faster market responsiveness, improved cash efficiency, and a clear foundation for future expansion in Asia.