Two quotes for the same Vietnamese tile can look wildly different and be identical value — because one is FOB and one is CIF. Incoterms are the three-letter codes that define, for a cross-border sale, exactly where the seller's job ends and yours begins: who books freight, who insures, who clears customs, and the precise point risk passes from them to you. Getting this right is how you compare quotes honestly and avoid nasty surprises at the port.
The ones that matter for building materials
EXW (Ex Works). The seller just makes the goods available at their factory. You arrange everything — inland trucking in Vietnam, export clearance, freight, the lot. Cheapest headline number, most work and risk for you. Rarely ideal unless you have a strong forwarder in Vietnam.
FOB (Free On Board) — our default. The seller delivers the goods, cleared for export, onto the vessel at the named Vietnamese port (Haiphong or Ho Chi Minh City). From that point freight, insurance and destination costs are yours. FOB is the market standard for a reason: it draws a clean line at the ship's rail, and it keeps the ocean-freight decision — the most volatile line in a landed cost — in your hands, where you can shop it.
CFR / CIF (Cost & Freight / Cost, Insurance & Freight). The seller adds sea freight to the destination port (CFR), plus marine insurance (CIF). Convenient if you'd rather not arrange shipping — but the freight is now inside the seller's number, so you lose visibility into what it actually cost. Fine with a trusted counterparty; worth unbundling if you're price-checking.
DDP (Delivered Duty Paid). The seller delivers to your door with everything paid, including destination import duty and clearance. The simplest possible experience for a buyer — but it's only realistic in markets where the seller (or their agent) can actually act as importer of record and clear your customs.
How to read a quote
Two rules save real money:
- Compare like for like. An FOB price and a CIF price aren't comparable until you add your own freight + insurance to the FOB one. Our landed-cost estimator does this — it starts from FOB and layers freight, insurance, duty and tax so you see the true number.
- Match the incoterm to your capability. Have a good forwarder and want control and price transparency? Buy FOB. Want a hands-off, single-number delivery and accept a bundled freight margin? CIF or DDP.
The total landed cost doesn't change much between incoterms for the same shipment — what changes is who arranges each piece and where risk transfers. Read the incoterm as a control-and-responsibility decision, not a discount.
What we quote
Our proposals are FOB Vietnamese port by default, because it's transparent and lets you optimise freight. CFR/CIF to your destination port, or DDP in selected markets, are available on request — just tell us which you want, and we'll price it that way. Either way, the certificate of origin that decides your duty is prepared with the shipment, so your broker isn't chasing paper at the port.
Sources & data notes
Incoterms® are the ICC's standard trade terms; this is a plain-language summary for building-material buyers, not the official rule text. Responsibilities, risk-transfer points and named ports must be fixed in your contract, and the current Incoterms edition governs. Confirm the exact term, named port and insurance scope in writing before you order. Not legal advice.
Want a quote on the incoterm that fits you — FOB to compare freight yourself, or CIF/DDP for a single delivered number? Send us one BOM and we'll price it your way within 48 hours. Our own fiber-cement line, DURAGREEN®, ships on the same terms.