The status of utilizing tariff preferences under Vietnam’s FTAs in 2018

According to data from the Ministry of Industry and Trade, the total export turnover taking advantage of tariff preferences under FTA in 2018 reached 46.2 billion USD, accounting for 39% of the total export turnover to the markets signing FTAs, and up 5% compared with 2017. The rate of using C / O is relatively stable, corresponding to export turnover to these markets.

In 2018, 942,371 preferential C / O sets were issued (including FTAs ​​and GSPs), valued at US $ 50.9 billion, up 35% in value and 25% in C / O quantity compared to 2017.

In terms of turnover to take advantage of preferential tariffs, Vietnamese goods exported to China ranked first with the value of 12 billion USD. Next is Vietnamese goods exported to Korea and ASEAN with the value of 11 billion USD and 8.5 billion USD respectively. The volume of export goods taking advantage of preferential tariffs from Vietnam to Laos and Cambodia markets has negligible turnover. Export turnover taking advantage of tariff preferences of Vietnamese goods exported to India is only average, reaching more than USD 4.7 billion but having the highest growth rate, 2.6 times higher than that of Vietnam. 1.8 billion USD in 2017.

Regarding the rate of utilization of FTA incentives, the Indian market accounted for the highest rate of utilization from AIFTA with 72%; followed by Chile and South Korea, with utilization rates of 67% and 60% respectively. The rate of utilizing incentives from Laos (0.02%) and Cambodia (10%) is not high because Laos and Cambodia are both ASEAN members, so businesses often take advantage of direct incentives from the ATIGA Agreement.

In general, Vietnam’s utilization rate of FTA incentives in 2018 is 39%, 5% higher than 2017 (34%).

Regarding commodity structure: Vietnam’s agricultural products (Chapter 01-24) had high rate of using FTA incentives because most goods met the rules of whole 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 basically more complex and difficult to meet than agricultural products.

In recent years, the rate of utilization of tariff preferences from ASEAN + Agreements (Agreement between ASEAN and non-ASEAN partners) has hardly increased, partly because partners have already done the reduction and elimination of tariffs in the Agreements from previous years.

New agreements of Vietnam such as the Agreement between ASEAN – India, Vietnam – Chile, Vietnam – Korea have good growth rates because the partners are continuing to implement tariff reduction and elimination. under the agreement of the Agreement.

The table summarizing the utilization rate of preferential C / O according to Vietnam’s Trade Agreements over the years is attached below:

Leave a Reply

Notify of