The Vietnamese delegation at the recent regular meeting of the World Trade Organisation (WTO) Committee on Rules of Origin. — VNA/VNS Photo

HÀ NỘI — Việt Nam has shared its practical experience in applying rules of origin for export goods at a recent regular meeting of the World Trade Organisation (WTO) Committee on Rules of Origin, held at its headquarters in Geneva, Switzerland.

Trịnh Thị Thu Hiền, Deputy Director of the Agency of Foreign Trade under the Ministry of Industry and Trade, updated WTO members on how Việt Nam implements rules of origin for goods exported to member countries.

In an interview with the Vietnam News Agency (VNA) on the sidelines of the event, Hiền provided further insights into the importance of rules of origin and how they are applied in Việt Nam.

According to Article 3(b) of the WTO Agreement on Rules of Origin, a product is considered to originate in a country if it is wholly produced there, or if multiple countries are involved in its production, the origin is assigned to the country where the last substantial processing takes place. This principle is also reflected in Clause 1, Article 3 of Việt Nam’s Decree No 31/2018/NĐ-CP issued on March 8, 2018.

Hiền explained that rules of origin are a set of criteria used to determine the country where a product is manufactured (i.e. country of origin). These rules are especially important for goods produced using inputs from multiple countries, and require clearly defined methods and standards to identify the origin accurately.

Under WTO and free trade agreement (FTA) frameworks, goods are generally classified into two categories: (i) Wholly obtained goods, such as unprocessed agricultural products grown, harvested or raised entirely within a country. For example, coffee beans grown and harvested in Việt Nam are considered of wholly Vietnamese origin; (ii) Non-wholly obtained goods, which are produced using both domestic and imported inputs. For instance, passion fruit juice made from Vietnamese fruits and sugar but containing imported preservatives can still qualify as Vietnamese origin, though not wholly obtained.

Hiền emphasised that determining the correct origin of goods is critical in formulating and implementing trade policies, as it forms the basis for applying preferential tariffs and trade measures under various agreements. Proper certification allows goods to benefit from trade regimes such as WTO-bound tariffs, the Generalised System of Preferences (GSP) or preferential tariffs under FTAs.

Conversely, if goods do not meet the origin requirements, rules of origin can be used to deny access to those preferential regimes.

Hiền also pointed out a common misunderstanding: the term “origin” is not interchangeable with the label “Made in Việt Nam.” For example, clothing labelled “Made in Việt Nam” might not have a Vietnamese Certificate of Origin (C/O), and vice versa - a shipment with a Vietnamese C/O might not carry the “Made in Việt Nam” label.

On managing origin amid increasing global integration, Hiền said the Agency of Foreign Trade has taken synchronous measure. Key efforts include improving the legal framework with a strong focus on tackling origin fraud, enhancing training for authorised C/O issuing organisations and cooperating with authorities in importing countries on origin verification to ensure that legitimate Vietnamese exports receive appropriate tariff preferences.

In addition, the Ministry of Industry and Trade is actively involved in negotiating rules of origin aligned with Việt Nam’s production capabilities, reforming administrative procedures, digitalising the C/O application process and enhancing support services for businesses seeking clarification on origin-related matters. — VNS