Core conclusions:A low-voltage electrical equipment company in Yueqing, Zhejiang (focusing on circuit breakers and contactors) decided to enter the Southeast Asian market in the first half of 2025. They adopted a combination of “Thai TISI certification, compliance with Vietnamese regulations, Form E origin certificates, and a 30% prepayment for new customers” as their marketing strategy. In just 15 months, they managed to achieve export revenues of 39 million yuan in Vietnam and Thailand. The number of distributors increased from zero to four. By having these certifications in place earlier than competitors, they were able to secure two full-container orders.
This company has been manufacturing low-voltage electrical equipment for over a decade. Its domestic sales channels are well-established. In the first half of 2025, they intend to find another source of growth. The boss’s insights are similar to those of most manufacturers: Southeast Asia is relatively close, and people there speak Chinese, making communication easier. However, when actual operations began, it turned out that “being close” doesn’t mean things are easier to handle. The certification requirements in Vietnam and Thailand are completely different. Here’s a breakdown of the situation in seven points.
1. Customer background
The company is located in Yueqing, Zhejiang. Its main products include small circuit breakers, AC contactors, and distribution box components. The company’s annual revenue in China amounts to approximately 40 million yuan. Previously, the company relied solely on sporadic Chinese channels for business transactions, without any systematic efforts to enter the overseas market. The team consists of four people, all working in the foreign trade department. The sales staff understand the products but do not have knowledge regarding certification procedures.
The logic behind market selection is quite straightforward: Both Vietnam and Thailand have needs for urban development and industrial power consumption upgrades. Additionally, both countries have Chinese-owned electrical and mechanical companies that can provide relevant services. However, the companies were unaware of the requirements for entering these two markets. In 2024, they encountered a problem when they tried to deliver goods to Thailand, as the goods lacked the necessary TISI certification. As a result, they had to return the goods, suffering a loss of over 70,000 yuan. This experience became the starting point for the “certification-first” approach that was later adopted by these companies.
2. Problem diagnosis: four stuck points
- Authentication is unclear:Thailand implements the TISI mandatory certification for controlled electrical products. Importing companies in Thailand must have valid certificates and labels in Thai language. Vietnam, on the other hand, follows QCVN standards. Generally, IEC reports along with compliance statements are accepted; however, some categories require local verification. Companies were previously completely unaware of these requirements.
- The certificate has not been planned for:The TISI certification is issued by Thai importers. Changing the importer means also changing the certification. Companies should carefully consider under whom the certification is registered before choosing a partner.
- The tariffs were not used to their full extent:Under the China-ASEAN Free Trade Area, the FORM E origin certificate allows for preferential tax rates (usually 0 to 5 percentage points for most categories). Enterprises that previously exported goods at normal tax rates will now incur additional taxes on each container shipped, which will be added to their costs.
- The collection of payments isn’t very organized at all:This is the first time we’ve collaborated with someone, and they offered a short payment period. The risk of non-payment lies entirely with the factory. Additionally, we have no information about the credit status of new customers in Southeast Asia.
In a nutshell: The product is competitive, but it lacks both compliance and payment processing capabilities. As a result, even when orders come in, they cannot be processed properly.
3. What have we done?
- Certified maps come first:We have checked the list of circuit breakers and contactors against the regulations in Thailand’s TISI catalog, as well as the requirements of Vietnam’s QCVN standards. In Thailand, we are following the process involving licensed importers, and we have already identified two dealers who are willing to provide certification services. In Vietnam, we are preparing the necessary documents based on IEC reports and compliance statements.
- Normalization of FORM E:By integrating the process of obtaining origin certificates with the services provided by customs brokers, we ensure that each shipment is certified accordingly. This allows customers to pay preferential tariffs during customs clearance. This certificate becomes a key selling point for agents when negotiating prices.
- Localization of data:The product samples, nameplates, and instructions are available in both Thai and Vietnamese languages. The plugs and voltages are compatible with Thai standards of 220V/50Hz, as well as Vietnamese standards. The specifications table indicates the certification status of the products.
- Customer acquisition through two channels:The customs data system helps to identify potential buyers for mechanical and electrical products in both countries. It also supports proactive search efforts for products marketed in Vietnamese and Thai languages. Additionally, it can assist in organizing appointments for customers at events such as the Bangkok Mechanical and Electrical Exhibition.
- There are thresholds for receiving payments:For new customers, a 30% prepayment is required, with the remaining amount to be paid upon receipt of the bill of lading. For high-quality customers, a three-month evaluation will be conducted, and they will be granted an extended payment period of 30 days. Additionally, export credit insurance can be purchased alongside the service.
4. Execution rhythm
First month: Authentication and documentation completion
After completing the verification of Thai regulatory requirements and Vietnamese relevant documents, we have identified two Thai licensed partners who can provide samples for certification purposes. The Vietnamese documentation (IEC reports, compliance statements, bilingual documents) has been prepared. Additionally, we have established an account with the customs authorities, and obtained a list of 217 importers of circuit breakers and contactors from both countries.
Fourth month: First batch of inquiries converted into sales
Thailand has completed the certification process and is now in the review stage. Vietnam has already started the process. After the language materials are available, there will be several rounds of inquiries and data development efforts. We have signed our first distributor in Vietnam. The initial trial sales involved the sale of one cabinet. We included in the thank-you email the cost savings that customers achieved due to simplified customs procedures as a result of using FORM E.
Month 8: Two national channels are established
The TISI certificate from Thailand is now in hand (the importer has the certificate). Coincidentally, there was a tender for a local construction project. With all the necessary certifications, our company was immediately included in the list of qualified suppliers, and we won the first large-scale project contract. Another distributor in Vietnam has also signed with us. In total, we have four distributors in both countries.
Month 15: Stabilizing repeat purchases
All four dealers have agreed to repeat their purchases. Customers in Vietnam have requested a 30-day payment period, with credit protection provided by the insurance company. Customers in Thailand have started to order additional supplies. The total export volume has reached 3.9 million yuan. The foreign trade department has been expanded to include seven employees.
V. Outcome data
In 15 months, the cumulative export value reached 3.9 million yuan. The changes in key indicators are as follows:
- Export value:3.9 million yuan(Over a period of 15 months, Vietnam accounted for approximately 55%, while Thailand accounted for about 45%)
- Overseas distributors:4 hotels(2 from Vietnam, 2 from Thailand – all were repeat purchases.)
- Certification results:1 item of TISI certificate from Thailand(Importer’s license) + Vietnam compliance declaration package
- Customs duty rate:Preferential tax rate: 0 to 5 percentage points(FORM E: Previously cleared under normal tax rates)
- Collection method:A 30% prepayment for new customersFor high-quality customers, a 30-day credit period is offered, along with export credit insurance coverage.
- First engineering order:One entire cabinet(After completing all certification requirements, the supplier is listed as a qualified vendor for local projects.)
| indicators | before starting | 15 months later |
|---|---|---|
| annual export volume | Scattered units (no stable channels) | 3.9 million yuan (cumulative amount, including 2 reselling dealers) |
| Target country certification | None (Lost 70,000 yuan due to lack of required documents during shipment) | Thailand's TISI+ and Vietnam compliance statements are both compliant. |
| collection method | Full credit sales to acquaintances, with purchase orders provided. | 30% prepayment + credit protection. For high-quality customers, the billing period is 30 days. |
6. Which factories can this method be replicated to?
Suitable for factories in the electrical, mechanical, and building materials industries where there are mandatory certification requirements and a clear market structure: It’s necessary to first understand the regulatory requirements of the target country, negotiate with the entities that hold the necessary certifications, and then discuss distribution channels. The certification process typically takes 4 to 8 months. The sooner you start, the sooner you can receive orders. Wait until customers make inquiries before proceeding with certification—otherwise, the certification windows might close before you get the chance.
Suitable for factories that have suffered losses in the past: Turning those losses into a starting point for certification processes is the most worthwhile decision for this company. Electrical manufacturers in Leqing and Wenzhou have similar supply chains, and their certification processes can be reused. Once one market is successfully navigated, entering another market simply requires a few adjustments to the documentation.
7. Common questions
Q: Does the TISI certification in Thailand require that the importer be a holder of this certificate?
Controlled products are typically imported into Thailand through licensed importers. The factories, as manufacturers, provide testing reports and technical documents. Licensed importers have established relationships with distributors; any changes in distributors require prior negotiation regarding the transfer of licenses or the need for reapplication. This is a clause that must be clarified before signing any contracts.
Q: Do both Vietnam and Thailand use FORM E for shipping their goods?
A: Yes. Both countries benefit from the China-ASEAN Free Trade Area framework. By obtaining the FORM E origin certificate issued by customs, they can enjoy preferential tariffs. For most mechanical and electrical goods, the tariff rate is between 0 and 5 percentage points. It is necessary to obtain the certificate before the ship’s departure, and the information on the certificate must be consistent with that on the customs declaration form.
Q: What is the approximate cost of authentication? Who will bear that cost?
A: This varies depending on the category and testing requirements. In Thailand, TISI includes sample testing and document review. In Vietnam, the focus is on IEC reports and declarations. Commonly, the manufacturer bears the costs of testing, while the importer handles the application and certification procedures within their country. These details are specified in the distribution agreement.
For factories that produce low-voltage electrical equipment and mechanical products, entering the markets of Vietnam and Thailand isn’t difficult. What’s challenging is arranging everything related to certification, origin marks, and payment arrangements before submitting the quotation. Only after meeting all these requirements can a company be eligible to receive orders.
Qihang Zhilian Foreign Trade Research Institute
