A new decree sets out rules for determining Vietnamese origin for goods manufactured and sold domestically. — Photo tinnhanhchungkhoan.vn

HÀ NỘI — New rules for determining the origin of goods manufactured and circulated domestically will take effect on January 1, 2027 under a new Government decree.

Decree 384/2026/NĐ-CP sets out criteria for goods to qualify as entirely obtained or produced in Việt Nam and goods that do not qualify as wholly of Vietnamese origin.

Where necessary, ministries and ministerial-level agencies may issue specific origin rules for products with distinctive characteristics within their management scope, provided these comply with the decree.

Under the decree, wholly Vietnamese-origin goods include plants and plant products grown and harvested in Việt Nam, animals born or raised in the country and products derived from them, and products obtained through hunting, trapping, fishing, aquaculture, gathering or capturing in Việt Nam.

Minerals and naturally occurring substances extracted or taken from Vietnamese soil, water, seabed or subsoil also qualify.

The category also covers products extracted from waters, the seabed or subsoil beyond Việt Nam's territorial sea, provided the country has the right to exploit those resources under international law.

Fish and other marine products caught on the high seas by vessels registered in Việt Nam and authorised to fly the Vietnamese flag are also considered wholly of Vietnamese origin.

In addition, discarded articles generated during production or consumption in Việt Nam qualify if they can no longer serve their original purpose, cannot be repaired or restored, and can only be discarded, used as raw materials or recycled.

The decree requires goods that are not entirely of Vietnamese origin to meet either a change in tariff classification or a minimum Vietnamese value content (VVC) of 30 per cent, calculated using one of two prescribed formulas.

The value of packaging materials and containers forming part of a product is included in the VVC calculation.

For information technology and digital technology products, value-creating activities carried out in Việt Nam may also be counted towards VVC. These include research and development, design, programming, digitisation, automation, technical testing and software testing associated with the product creation process.

The provisions on simple processing and factors excluded from origin determination do not apply to these value-creating activities, as specified in the decree.

Traders may choose either the direct or indirect formula for calculating VVC and must apply the selected method throughout the financial year.

The decree also sets out responsibilities for traders, organisations and individuals that declare Vietnamese origin on product labels or on documents and materials containing information about goods.

Those identifying goods as Vietnamese-origin must comply with regulations on product labelling, consumer protection, product and goods quality, and other relevant laws.

They are legally responsible for the accuracy and truthfulness of their origin claims and must provide evidence of Vietnamese origin when requested by relevant authorities and comply with Vietnamese laws and the import regulations of destination countries. — BIZHUB/VNS