Status of preferential C / O issuance from Ministry of Industry and Trade and preferential C / O utilization rate for Vietnam’s exports in 2018

Regarding the value of using preferential C / O: C / O form E is granted to Vietnamese goods exported to China at the top with the value of more than 12 billion USD. Followed by C / O form AK / VK and D reached 11 billion USD and nearly 8.5 billion USD for Vietnamese goods exported to Korea and ASEAN countries. Sample C / O  form S and X have negligible turnover due to the majority of goods exported to Laos and Cambodia markets using C / O form D (within the ASEAN Trade in Goods Agreement). The rate of taking advantage of C / O form X (0.02%) and S (10%) is not high because Laos and Cambodia are both ASEAN members so enterprises use C / O form D instead of X and S models .

Regarding FTA partner market: the Indian market rose to the highest proportion with 72% of turnover using C / O export model; Although the utilization rate increased by 2% compared to 2017, the Chilean market was pushed down to the second position with the VC utilization rate of C / O at 67%; followed by Korean market with 60% C / O preferential rate for AK / VK model. In general, Vietnam’s utilization rate of FTA incentives in 2018 is 39%, 5% higher than 2017 (34%).

Source: Department of Import and Export – Ministry of Industry and Trade

Regarding commodity structure: Vietnam’s agricultural products (Chapter 01-24) have very good utilization rate of FTA incentives because most meet the pure rules of origin (WO) for raw agricultural products and Other rules for processed agricultural products. Industrial products (Chapter 25 – 98) have low utilization rates because the rules of origin for industrial goods are more difficult to meet than agricultural products.

In recent years, the rate of utilization of tariff preferences from ASEAN + agreements has almost no high growth because basically the partners have implemented tariff reduction and elimination for a while.

Source: VIETNAM EXPORT IMPORT REPORT 2018 -MOIT

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