420,000 C/O sets allow Vietnamese products to go to FTA markets
VGP – As many as 420,000 sets of certificates of origin (C/O), worth US$21 billion, were granted to Vietnamese products exported to markets enjoying preferential tariffs under Free Trade Agreements (FTA) in the first four months of 2021, according to the Ministry of Industry and Trade.
The proportion of commodities subject to C/O exported to markets under FTAs accounted for 33.1%. The figure reached 52.02% in the Republic of Korea, 38.35% in Japan and 31.6% in China.
According to the WTO Center, under the Viet Nam Chamber of Commerce and Industry, as of December 2020, the nation has joined 15 FTAs, 14 of which have become effective.
Recent trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Viet Nam FTA (EVFTA), UK-Viet Nam FTA (UKVFTA) in effect, and the upcoming Regional Comprehensive Economic Partnership (RCEP) will match Viet Nam with potential trade partners outside ASEAN.
They will allow the country to take advantage of the reduced tariffs, both within the ASEAN Economic Community (AEC) and with the EU and U.S. to attract exporting companies to produce their commodities in Viet Nam and export to partners outside ASEAN.
Viet Nam’s Ministry of Planning and Investment forecast that the CPTPP could increase Viet Nam’s GDP by 1.3 percentage points by 2035, while the EVFTA could boost GDP by 15 percent. These trade deals along with already signed and upcoming FTAs are likely to ensure that Viet Nam remains competitive in the short-to-medium term.
Remarkably, from August 1, 2020-April 4, 2021, authorized agencies granted 127,296 sets of certificates of origin (C/O) of the EUR.1 form for Vietnamese products worth a total of US$4.78 billion, allowing them to enter 27 EU nations.
Export enterprises made out origin declaration for nearly 3,585 consignments worth more than US$10.88 million.
Viet Nam’s goods exported to the EU market will be granted the certificate of origin (C/O) form EUR.1 to enjoy preferential tariffs reached under the EU-Viet Nam Free Trade Agreement (EVFTA), which has taken effect since August 1, 2020.
By Thuy Dung
