Rules of Origin (C/O) are no longer just a travel permit, but rather the "strategic DNA" of Vietnamese goods. Transparency and compliance are fundamental to exploiting FTA benefits and positioning national brands in the global supply chain.
Certificate of Origin (C/O) – A commitment to transparency and a competitive weapon in the era of expanding FTAs.
International trade has entered a new era where core values lie not only in price but also in transparency and accountability regarding product origin. With Vietnam's extensive participation in 16 effective Free Trade Agreements (FTAs), the Certificate of Origin (C/O) is undergoing a significant transformation, evolving from a purely administrative tool into a solemn commitment to quality and compliance.
The significance of a Certificate of Origin (C/O) lies not only in helping Vietnamese goods access preferential tariff rates in over 50 major markets. Its strategic value also lies in its ability to identify and create a distinct advantage for products. A C/O serves as authentic proof that goods are not involved in fraudulent trade practices, are not evading regulatory procedures, and most importantly, are complying with the highest standards of environmental, labor, and sustainable development in developed markets.
At the seminar "Certificates of Origin within the Framework of Free Trade Agreements" held on the afternoon of October 27th, Mr. Tran Ngoc Binh, Head of the Import-Export Management Department of Ho Chi Minh City (Import-Export Department, Ministry of Industry and Trade ), presented a strategic perspective on the role of Certificates of Origin (C/O).
"We shouldn't view Certificates of Origin (C/O) as a mere formality. A 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 regarding origin and ethical production," Mr. Binh analyzed. He explained that with new-generation FTAs like CPTPP, EVFTA, and UKVFTA, enjoying preferential tax rates is not the ultimate goal, but a well-deserved reward for businesses that have proactively invested in transparency, localization, and improving supply chain management capabilities.
The difference in mastering rules of origin has become a new competitive weapon. While previous FTAs focused primarily on pure origin criteria or simple processing procedures, modern agreements demand greater complexity through the strict application of criteria such as regional value content (RVC) or change in tariff classification (CTH). Businesses that master this RVC calculation, optimizing domestic and regional sourcing, will transform compliance costs into absolute competitive advantages in price and brand.
International macroeconomic experts believe that, in the context of trade wars and protectionist trends, the ability to provide accurate and timely preferential Certificates of Origin (C/O) is a key factor in distinguishing trustworthy businesses. When a Vietnamese product is successfully exported with a preferential C/O, it significantly increases the confidence and credibility of the entire nation within the global supply chain.
From a strategic business perspective, Mr. Le Quang Minh, supply chain executive of a major European retail group in Vietnam, commented that in multi-million dollar purchasing decisions, the ability of Vietnamese partners to provide accurate and complete Certificates of Origin (C/O) with traceability documentation is more important than price reductions. This demonstrates their professional management system, minimizing legal risks and protecting the reputation of our supply chain. Multinational companies require absolute certainty in compliance.
Transparency, digitalization, and compliance: Three new pillars in managing the "origin DNA" of Vietnamese goods.
Today, rules of origin are not just a technical issue but a comprehensive reflection of a company's management capabilities, professionalism, and responsibility within 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.
Today, rules of origin are not just a technical issue but a comprehensive reflection of a company's management capabilities, professionalism, and responsibility within the global supply chain. To conquer demanding markets and protect national brands, Vietnamese goods need to build a solid foundation based on three key pillars, with transparency and compliance being inseparable twins.
Strengthening the monitoring of product origin in the new situation.
In reality, transparency and compliance go hand in hand in determining the legality and core value of goods. Ecological transparency (the IUU lesson), exemplified by the fisheries sector, shows how Certificates of Origin (C/O) become ecological commitments. Mr. Tran Ngoc Binh pointed out that for fisheries, a C/O is a declaration against illegal, unreported, and unregulated (IUU) fishing. It is a mandatory and uncompromising requirement. Non-compliance with IUU means the entire shipment will have its "DNA invalidated"—rejected for a C/O even if the product quality meets international standards. This forces businesses to be absolutely transparent about 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 calculation that determines origin. Compliance here is not just about following regulations, but about 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 other experts all emphasize the decisive shift from paper-based systems to transparent, automated, and centralized data systems.
The development of the National Single Window Mechanism, the application of electronic Certificates of Origin (C/O) issuance systems, and the trend of self-certification of origin according to systems such as REX (EU) not only simplify procedures but also prepare for a future where C/Os are issued automatically through digital technology platforms, based on transparent traceability data from the growing region and production plant to the port.
Source: https://vtv.vn/giai-ma-dna-xuat-xu-khi-co-tro-thanh-tam-ho-chieu-chien-luoc-cua-hang-viet-100251028150315764.htm
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