Over $100 billion in exports granted preferential C/O
Over $100 billion in exports granted preferential C/O
Thanks to the positive results of leveraging tariff preferences from free trade agreements, Việt Nam issued 1.8 million certificates of origin for US$100 billion worth of goods exported in 2024.
Pineapples are processed for export at Đồng Giao Foodstuff Export Jsc in northern Ninh Bình Province. — VNA/VNS Photo |
Authorised agencies and organisations issued around 1.8 million preferential certificates of origin (C/O) for exported goods in 2024, with a total value exceeding US$100 billion, according to the Import-Export Department under the Ministry of Industry and Trade (MoIT).
This figure represents an 18 per cent increase in the number of C/Os issued and a 28 per cent rise in value compared to 2023, accounting for 28 per cent of Việt Nam’s total export turnover to markets with free trade agreements (FTAs).
However, the Import-Export Department clarified that the average preferential C/O issuance rate of 28 per cent does not imply that the remaining 72 per cent of exports were subject to high tariffs.
In some markets, including Singapore and Hong Kong (China), import duties are already set at zero per cent. Additionally, the 28 per cent figure is an average rate across different types of preferential C/Os, with specific rates varying by C/O type, market and product category.
"The 28 per cent increase in preferential C/O issuance in 2024 compared to the previous year is a positive result, showing that Việt Nam is effectively leveraging the benefits of FTAs," Deputy Director of the Import-Export Department Trịnh Thị Thu Hiền said.
The implementation of electronic C/O issuance has contributed to reducing costs and time for businesses and State agencies.
For product groups flagged for potential origin fraud, the issuing authorities have strengthened pre-issuance verification processes or conducted post-issuance inspections to verify the origin of goods.
Hiền said that while Việt Nam's exports have significant opportunities to benefit from tariff preferences under FTAs, rules of origin are considered a tool for gaining these benefits. However, they can also nullify tariff benefits if the goods fail to meet origin requirements.
The Import-Export Department has been guiding businesses to ensure compliance with international commitments and Việt Nam’s regulatory framework on origin requirements.
Businesses are also advised to establish comprehensive document storage systems to facilitate origin verification, ensuring that C/Os are accepted for tariff preferences.
To date, Việt Nam has deepened its global market integration with 17 FTAs already signed and put into effect, as well as two under negotiation, the Việt Nam-EFTA (Switzerland, Norway, Iceland and Liechtenstein) FTA and the ASEAN-Canada FTA.
In 2025, the MoIT has set a target of increasing import-export turnover by about 12 per cent compared to the previous year. This is considered a highly challenging goal.
However, with existing and upcoming FTAs, Việt Nam has vast opportunities to expand markets, boost trade and attract investment.
