FTAs open up markets, and the rules of origin determine eligibility to benefit.
Amidst the uncertainty of global trade, from geopolitical conflicts and rising trade barriers to increasingly stringent requirements for sustainable development, the story of exports is no longer solely about price or volume. A reality is becoming increasingly clear: the origin of goods is becoming a crucial technical and legal pillar determining eligibility for FTA benefits and the position of Vietnamese goods in the international market.
For sectors with a large export share, such as pepper and spices, and wood and forestry products, origin is no longer just an administrative procedure accompanying a shipment, but a "passport" linked to the entire value chain, from raw material sources and production organization to processing, traceability, and environmental and social responsibility.
Speaking with a reporter from the Industry and Trade Newspaper, Ms. Hoang Thi Lien, President of the Vietnam Pepper and Spice Association (VPSA), stated that in the context of deep integration, the origin of goods should be recognized as a competitive advantage, a factor that directly enhances the value and market presence of the Vietnamese spice industry.
The pepper and spice industry is a product group with a pure origin advantage.
According to Ms. Hoang Thi Lien, despite the fluctuations in global trade last year, Vietnam's pepper and spice exports still achieved positive results. It is projected that pepper export revenue could exceed $1.7 billion, with a volume of approximately 235,000–240,000 tons; overall, the export value of the entire spice industry could approach $2 billion. This result is mainly due to favorable price developments, while production did not increase significantly.
However, behind these positive figures lies increasing pressure from import markets. “ FTAs open doors, but they are not free tickets. Businesses only truly benefit when they understand and correctly implement rules of origin, while also meeting requirements for food safety, traceability, and sustainable development, ” emphasized Ms. Hoang Thi Lien.
For the pepper and spice industry, a product group with the advantage of pure origin, cultivated and processed domestically, meeting rules of origin helps businesses more easily access preferential tariffs. Especially in markets where Vietnam has signed FTAs while some competitors have not, the advantage in import tariffs becomes a crucial factor in helping Vietnamese goods compete on price.
However, according to VPSA, this advantage is only truly realized when origin is closely linked to supply chain integration, raw material control, and strict adherence to the regulations of each agreement. Any discrepancies in declaration, blending, or documentation pose potential legal risks and trade disputes.
“ Deep processing requires significant resources, from capital and technology to market development capabilities. If we only export raw materials, the profit margin is very low, only about 1-2%, making it unsustainable. To increase value, we must move from pure origin to a complete value chain ,” Ms. Hoang Thi Lien observed.
Origin is not just a formality, but a measure of integration capacity.
The issue of origin is becoming increasingly "hot" not only in agricultural products but also in the timber industry, an export sector heavily impacted by trade protection measures and environmental requirements.
According to Mr. Ngo Sy Hoai, Secretary General of the Vietnam Wood and Forest Products Association, 2025 will be a challenging year as the US market, which accounts for over 50% of Vietnam's wood export turnover, increases tariffs and safeguard measures. Despite this, Vietnam's exports of wood and wood products are still estimated to reach over $17 billion, an increase compared to 2024.
“ Thanks to FTAs, Vietnamese wood products exported to the EU, CPTPP, or other FTA markets have a clear competitive advantage in terms of tariffs. Therefore, the rate of using preferential Certificates of Origin (C/O) by wood businesses has increased year by year ,” said Mr. Ngo Sy Hoai.
In this context, preferential Certificates of Origin (C/O) under FTAs are becoming an important "lever" helping wood businesses diversify their markets. Currently, Vietnamese wood products are exported to approximately 168 markets, but only 5 major markets account for over 90% of export value. Thanks to effectively utilizing tariff preferences from FTAs, exports to many markets outside the traditional group are recording positive growth.
According to Mr. Ngo Sy Hoai, the key lies in proactively securing legally sourced raw materials. Since 2020, Vietnam has implemented the Vietnam Timber Legality Assurance System (VNTLAS) and expanded the area of sustainably managed certified forests. Simultaneously, the timber industry is meticulously preparing to meet new regulations such as the EU's EUDR, which requires traceability down to the land plot.
“ While many countries are still hesitant, Vietnam is steadfast in choosing the path of only bringing legally sourced and sustainably sourced timber into its supply chain. This is a long-term competitive advantage ,” Mr. Hoai commented.
From pepper and spices to wood and forest products, export practices show that the origin of goods is gradually moving beyond administrative procedures, becoming a decisive factor in the competitiveness of Vietnamese goods. As major markets increasingly tighten technical requirements, tariff preferences are only a necessary condition; the decisive factor lies in the ability to organize sustainable production, control raw materials, and ensure transparent traceability according to international standards.
From the business perspective, the question is no longer "whether or not to have an FTA," but whether or not they have the capacity to leverage it. This requires long-term investment in raw material areas, deep processing, management systems, and compliance. From a policy perspective, perfecting the legal framework on origin, Certificates of Origin (C/O), traceability, and enforcement monitoring is playing a fundamental role, helping businesses confidently integrate while protecting the reputation of Vietnamese goods in the international market.
In the context of major markets continuously tightening technical, environmental, and trade protection standards, the origin of goods is no longer just a procedural matter, but has become a measure of a business's integration capacity. Effectively utilizing preferential Certificates of Origin (C/O) in FTAs is only truly sustainable when based on legally sourced raw materials, transparent traceability, and a well-organized production chain. When origin is genuinely verified from the source, tariff preferences will be fully realized, helping Vietnamese goods maintain market share, expand markets, and elevate their position in the global trade chain.
Source: https://moit.gov.vn/tin-tuc/thi-truong-nuoc-ngoai/xuat-xu-hang-hoa-nen-tang-nang-suc-canh-tranh-hang-viet.html
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