Ensuring Trade Transparency and Competitiveness Through Strict Rules of Origin
As Vietnam actively strives to deepen its integration into the global economy, trade authorities and industry experts are strongly emphasizing that the rules of origin are fundamentally more than just technical necessities.
They represent the essential foundation for establishing transparency and guaranteeing fairness in international trade, a structure that is crucial for building trust with Vietnam’s trading partners and simultaneously enhancing the competitive standing of Vietnamese goods.
Given the significant increase in trade fraud and the deliberate falsification of origin, the scrupulous management, precise determination, and authentic certification of origin have become absolutely indispensable for preserving the confidence of trading partners.
Nguyễn Anh Sơn, Director General of the Agency of Foreign Trade, pointed out that Vietnam’s involvement in 17 signed Free Trade Agreements (FTAs) requires businesses to fully grasp and strictly follow the rules of origin to maximize the valuable tariff benefits provided by key agreements like the CPTPP, EVFTA, and RCEP.
Compliance with these rules of origin acts as an essential “passport,” allowing Vietnamese products to access demanding markets with superior tariff advantages.
The consistent enforcement of these regulations is paramount for safeguarding the legitimate interests of Vietnamese exporters and, most critically, maintaining the nation’s credibility to preempt the serious risks associated with foreign trade defense actions or anti-fraud investigations.
Proactive Measures to Combat Origin Fraud and Protect Domestic Integrity
To effectively address the increasingly stringent origin requirements from importing markets and proactively counteract illicit activities, the Ministry of Industry and Trade has implemented a comprehensive series of strategic directives and robust inter-sectoral coordination measures.
These measures are specifically designed to prevent origin fraud and deliberate falsification, which includes strengthening the inspection and rigorous oversight of Certificates of Origin (C/O) issued for exports.
This concentrated effort is vital for shielding authentic Vietnamese enterprises from reputational harm and financial loss, while also protecting the credibility of products labeled “Made in Viet Nam” on the global stage.
International experiences have clearly shown that any failure to strictly adhere to established origin regulations can result in substantial economic losses and widespread negative consequences that can destabilize entire domestic industries.
In response to this, the Ministry of Industry and Trade is also prioritizing the integrity of the domestic market by drafting a critical decree that will mandate transparent and consistent criteria for determining Vietnamese origin, even for goods sold within the country.
This essential step aims to finalize a clear and predictable legal framework that not only strengthens consumer trust but also serves to protect local production from unfair competition.
Defining the origin of goods sold domestically is a key mechanism for safeguarding national industries against foreign products that are falsely labeled as ‘Made in Viet Nam,’ thereby ensuring consumers receive truthful and accurate information about the products they purchase and promoting genuine domestic manufacturing.
Addressing Escalating Trade Risks Amidst Global Tensions and E-Commerce Loopholes
Vietnam’s massive foreign trade turnover, which neared $800 billion in 2024 and is expected to soon reach the $1 trillion mark, firmly establishes the country as a top 20 global trading nation.
However, this scale concurrently heightens the inherent risk of sophisticated origin-related fraud, trade violations, and illegal transshipment if regulatory oversight is not maintained with unwavering vigilance.
This elevated risk was a core topic at a 2025 government conference, where the National Steering Committee 389 (anti-smuggling) reported that the escalating trade tensions between the US and China continue to raise the threat of a broader global conflict.
This environment has prompted a growing number of foreign businesses to actively seek ways to bypass US tariff barriers by falsely labeling their products as ‘Made in Viet Nam’ for subsequent re-export to third countries.
The common deceptive tactics are varied: they involve importing fully finished goods from other nations, simply repackaging them, affixing a ‘Made in Viet Nam’ label, and then fraudulently applying for a C/O for export.
Other entities perform only minimal processing—an insufficient transformation level to actually qualify for C/O issuance—yet still deliberately falsify declarations to unlawfully gain preferential tariff treatment.
Furthermore, many violators are exploiting the rapid growth of e-commerce platforms and the anonymity of express delivery services to cleverly disguise smuggled goods, effectively legitimizing fake origin documents through hard-to-trace transactions conducted on social media or unofficial websites.
Products most often targeted by these origin fraud schemes include high-value exports like textiles, wooden furniture, honey, aluminium, steel, and seafood, which are frequently mislabeled due to existing loopholes in the complex rules of origin regulations and the high volume of international demand.
