Exports to the EU are more active thanks to meeting the rules of origin in EVFTA

The rate of enterprises and product lines meeting the rules of origin in the Free Trade Agreement between Vietnam and the European Union (EVFTA) is quite positive, bringing practical benefits to the breakthrough of export activities to the EU.

The rate of enterprises and product lines meeting the rules of origin in the Free Trade Agreement between Vietnam and the European Union (EVFTA) is quite positive, bringing practical benefits to the breakthrough of export activities to the EU.

Many industries take advantage of and meet the rules of origin in EVFTA to boost exports to the EU.

Affirming that EVFTA creates great advantages for Vietnam's key footwear products exported to the EU, Ms. Phan Thi Thanh Xuan, Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association (Lefaso) said that the EU market accounts for about 24% - 26% of the total export turnover of the entire leather and footwear industry. The rules of origin in EVFTA for leather and footwear products are quite favorable, requiring only about 40% of added value in Vietnam. This helps maintain export growth to the EU very well, compensating for the decline in turnover in other markets.

“The rules of origin for leather and footwear products are quite favorable when exporting to the EU. This is also one of the reasons why Vietnamese leather and footwear exports have been quite successful, when using the rules of origin of the previous GSP advantage,” Ms. Xuan informed, but noted that in the near future, according to the green agreements issued by the European Commission (EC), there will continue to be a series of laws, such as the Law on Supply Chain Assessment; Requirements for Sustainability Reports... are technical requirements that all exporters are required to comply with and meet.

“New technical standards from the EU will be an extremely big challenge, making it impossible for businesses to export successfully if they are not internally prepared and do not receive information in a timely manner. On the other hand, the EU consumes very strongly such as leather products, or waterproof shoes, safety shoes, etc., but Vietnam's technology has not yet met the requirements. Therefore, businesses are still very limited in receiving orders of this type, and need to focus on improving in the coming time,” Ms. Xuan said.

As a company with many years of experience exporting seafood to the EU, Mr. Ngo Minh Phuong, CEO of Viet Truong Company Limited, shared that before the EVFTA, Vietnam's export tax rate on seafood products was from 6% - 22%, leading to a small export turnover. However, after the EVFTA was implemented, the export turnover of the seafood industry in general and of enterprises in particular increased by about 200%.

“Determining the rules of origin to the EU is important, so the company tries to purchase and trace all input materials to meet the correct standards to have a certificate of origin, qualified to export goods to Europe and customers are very assured. In addition, the company is also focusing on developing a Green strategy; meeting Carbon certification... to meet current consumption trends", said Mr. Phuong.

According to Ms. Trinh Thi Thu Hien, Deputy Director of the Import-Export Department ( Ministry of Industry and Trade ), the use of certificates of origin (C/O) or certificates of origin within the EVFTA framework is gradually increasing. Enterprises' awareness of rules of origin and the use of C/O has changed significantly after being trained, educated, and exposed to guidelines on mechanisms and policies.

In order to increase the rate of compliance with the rules of origin in the EVFTA, in the coming time, the Ministry of Industry and Trade will deploy a series of synchronous solutions to support businesses in increasing the rate of using preferential certificates of origin. In particular, focusing on building mechanisms and policies to create a transparent corridor on the origin of goods, focusing on regulations related to measures to prevent and combat origin fraud.

Enterprises' awareness of rules of origin and use of C/O has had certain changes.

The Ministry of Industry and Trade also guides localities to issue correct C/O, ensuring goods have origin, and export to FTA markets. At the same time, strengthen training and “hands-on” training for each manufacturing and exporting enterprise to meet the rules of origin in FTAs ​​and international commitments.

“The Ministry of Industry and Trade coordinates with the customs authorities of the importing country to ensure that the goods of the right origin enjoy tariff preferences; and takes appropriate measures to handle goods with violations related to origin. The Ministry also consults on the production process for goods during the negotiation of FTAs, or has international commitments with partner countries. More importantly, the Ministry of Industry and Trade is actively reforming administrative procedures, answering questions of manufacturing and exporting enterprises about rules of origin and granting C/O,” Ms. Hien affirmed.

Complying with the rules of origin in the EVFTA will help Vietnamese enterprises take advantage of their competitive advantages and achieve breakthrough growth in the EU market. With the combination of solution groups and the participation of relevant parties, enterprises and export industries will effectively take advantage of the advantages brought by the EVFTA, thereby maintaining growth and developing the market in a sustainable manner.

After 5 years of implementing the Free Trade Agreement between Vietnam and the European Union (EVFTA), bilateral trade has recorded stable and strong growth. According to estimates from the Ministry of Industry and Trade, since the Agreement came into effect, two-way trade turnover between Vietnam and the EU increased from 55.4 billion USD in 2020 to 68.3 billion USD in 2024.

According to Nguyen Quynh/VOV.VN

Source: https://baovinhlong.com.vn/kinh-te/202510/xuat-khau-vao-eu-tich-cuc-hon-nho-dap-ung-quy-tac-xuat-xu-trong-evfta-ff506ad/