Decoding “DNA of Origin”: When C/O becomes a strategic passport for Vietnamese goods

VTV.vn - From administrative procedures, rules of origin (C/O) are becoming a strategic "passport" to help Vietnamese goods conquer FTA incentives and affirm their global position.

Rules of origin (C/O) are no longer a passport but the “strategic DNA” of Vietnamese goods. Transparency and compliance are the foundation for exploiting FTA incentives and positioning national brands in the global supply chain.

C/O – A commitment to transparency and a competitive weapon in the era of expanding FTAs

International trade has entered a new era, where the core value lies not only in price but also in transparency and responsibility of product origin. In the context of Vietnam's extensive participation in 16 Free Trade Agreements (FTAs) in effect, the Certificate of Origin (C/O) is strongly transforming from a purely administrative tool into an honorable commitment to quality and compliance.

The importance of C/O is not only in helping Vietnamese goods access preferential tax rates in more than 50 major markets. Its strategic value also lies in its ability to identify and create distinct advantages for products. C/O is authentic evidence that the goods do not participate in fraudulent commercial activities, do not evade management processes, and most importantly, are complying with the highest standards on environment, labor and sustainable development of developed markets.

At the workshop "Origin of goods within the framework of Free Trade Agreements" held on the afternoon of October 27, Mr. Tran Ngoc Binh, Head of Import-Export Management Department in Ho Chi Minh City (Import-Export Department, Ministry of Industry and Trade ) gave a strategic perspective on the role of C/O.

"We should not see C/O as a process of asking and giving. C/O is a strategic VIP ticket for Vietnamese goods to be welcomed in the most demanding markets such as the EU or North America, where consumers are willing to pay a higher price for transparency in origin and production ethics," Mr. Binh analyzed. He explained that, with new generation FTAs ​​such as CPTPP, EVFTA, and UKVFTA, enjoying preferential tax rates is not the final destination, but a worthy reward for businesses that have proactively invested in transparency, localization, and improving supply chain management capacity.

The difference in mastering the rules of origin has become a new competitive weapon. While previous FTAs ​​mainly focused on pure origin criteria or simple processing procedures, modern agreements require more complexity through the strict application of criteria such as regional value content (RVC) or change of tariff classification (CTH). Enterprises that master this RVC calculation, optimizing domestic and regional raw materials, will transform compliance costs into absolute competitive advantages in price and brand.

International macroeconomic experts say: In the context of trade wars and protectionist trends, the ability to provide preferential C/O accurately and quickly is the factor that distinguishes trustworthy businesses. When a Vietnamese product is successfully exported with preferential C/O, it significantly increases the trust and prestige index of the entire country in the global supply chain.

From a strategic business perspective, Mr. Le Quang Minh, Supply Chain Executive Director of a large European retail group in Vietnam, commented that in multi-million dollar purchasing decisions, the ability to provide accurate C/O and complete traceability records from Vietnamese partners is more important than price reduction. That proves they have a professional management system, minimizing legal risks and reputation for our supply chain. Multinational companies need absolute certainty in compliance.

Transparency, digitalization and compliance: Three new pillars in managing the “DNA of origin” of Vietnamese goods

Rules of origin today are not just a technical issue but a comprehensive reflection of the management capacity, professionalism and responsibility of enterprises in the supply chain. To conquer demanding markets and protect national brands, Vietnamese goods need to build a solid foundation based on three pillars: transparency, digitalization and compliance.

Rules of origin today are not just a technical issue but a comprehensive reflection of the management capacity, professionalism and responsibility of enterprises in the global supply chain. To conquer demanding markets and protect the national brand, Vietnamese goods need to build a solid foundation based on three key pillars, in which transparency and compliance are inseparable twins.

Strengthening supervision of goods origin in the new situation

In reality, the two pillars of transparency and compliance go hand in hand in determining the legality and core value of goods. Ecological transparency (IUU Lesson) in the fisheries sector is the most typical example of C/O becoming an ecological commitment. Mr. Tran Ngoc Binh pointed out that, for fisheries, C/O is a declaration against illegal, unreported and unregulated (IUU) fishing. It is a mandatory and uncompromising requirement. Failure to comply with IUU means that the entire shipment will be "DNA disabled" - denied C/O even if the product quality meets international standards. This forces businesses to be absolutely transparent about the origin, digitize fishing logs and trace the vessel's journey.

Quantitative compliance – for industrial goods, the challenge lies in mastering the regional value content ratio – a complex equation that determines origin. Compliance here is not just about following the rules but also mastering the complex technical standards of each FTA.

The next breakthrough to ensure transparency and compliance on a large scale is digital transformation. Mr. Tran Ngoc Binh and experts all emphasized the decisive shift from paper to transparent, automated and centralized data systems.

The development of the National Single Window Mechanism, the application of the electronic C/O issuance system and the trend of self-certification of origin according to systems such as REX (EU) not only simplifies procedures but also prepares for a future when C/O is automatically issued through digital technology platforms, based on transparent traceability data from growing areas, production workshops to ports./.

Source: https://vtv.vn/giai-ma-dna-xuat-xu-khi-co-tro-thanh-tam-ho-chieu-chien-luoc-cua-hang-viet-100251028150315764.htm