VINACHEM

The Agency of Foreign Trade (AFT) under the Ministry of Industry and Trade (MoIT) is developing new regulations on rules of origin to enhance the protection of the 'Made in Vietnam' label.

The MoIT is currently seeking public input on a draft decree that details certain measures for the implementation of the Law on Foreign Trade Management concerning the origin of goods. The aim is to promote exports and prevent trade fraud.

The draft decree expands the scope of regulation and introduces updated concepts and criteria.

AFT Director General Nguyễn Anh Sơn said that along with deeper international economic integration, the production and trade of counterfeit goods, banned products and items of unclear origin have become increasingly complex in recent years.

This situation not only harms national interests, but also negatively impacts the global economy, he said.

In response, many countries around the world have adopted effective solutions to combat the manufacturing and trading of counterfeit, prohibited or goods of unknown origin, in order to protect the interests of governments, businesses, producers and consumers.

Although Việt Nam’s current legislation, such as Decree 43/2017/NĐ-CP and its amendments, includes mandatory labelling requirements, including information on product origin, there is still no clear legal criterion for determining what qualifies as 'goods manufactured in Việt Nam' for domestic circulation.

To address this gap, the Government has tasked the MoIT with developing criteria for determining Vietnamese origin for domestically circulated goods. These criteria will help businesses accurately identify whether a product is of Vietnamese origin or manufactured in Việt Nam, serving as a foundation for building a trusted 'Made in Vietnam' brand and preserving domestic market share.

This also helps prevent disputes between distributors and consumers over product origin, which could undermine the competitiveness of Vietnamese goods.

At present, many businesses are confused, while consumers are misled by products labelled as Vietnamese-made. But they are, in fact, simply assembled in Việt Nam from imported components.

This lack of clarity not only affects consumer trust and the competitiveness of Vietnamese goods, but also hinders authorities from effectively identifying and addressing origin fraud.

The draft decree also clearly distinguishes between “wholly obtained” and “non-wholly obtained” goods.

“Wholly obtained” goods refer to those entirely produced in one country, such as minerals, crops and animal products. The criteria for these goods are being tightened, particularly in the case of seafood caught outside a country’s territorial waters.

Meanwhile, “non-wholly obtained” goods must meet certain technical criteria, such as a change in HS code or a specific domestic value-added ratio.

The draft also elaborates on regulations related to self-certification of origin, including full provisions on eligibility, procedures, responsibilities and inspection mechanisms for traders that self-certify origin.

This is intended to provide greater autonomy for enterprises and facilitate smoother implementation of commitments under free trade agreements like the EU–Vietnam Free Trade Agreement or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The newly-introduced concepts of back-to-back certificates of origin (C/Os) and goods that do not undergo a change in origin are particularly noteworthy.

These concepts reflect the reality that goods are transshipped through Việt Nam. The draft outlines specific cases in which back-to-back C/Os may be issued, ensuring continuity in global supply chains while preventing fraud. —   Source: VNS