Utilization of tariff preferences according to the Vietnam’s FTA in 2019

According to data from the Ministry of Industry and Trade, the total export turnover taking advantage of tariff preferences under the FTA in 2019 reached US $ 47.55 billion, accounting for 37.2% of the total export turnover to the markets that signed FTA. Preferential use of C / O is relatively stable, corresponding to export turnover to these markets.

Please download here: https://drive.google.com/file/d/18_O-c_Q8cJ49mpsiR3APDhvDgDQYlzjN/view?usp=sharing

In 2019, more than 1 million preferential C / O sets were granted (including under FTA and GSP), with a value of USD 61.19 billion, up 14% in value and 10% in the number of C sets. / O compared to 2018.
Regarding the turnover of taking advantage of tariff preferences, Vietnam’s goods exported to China ranked first with a value of 13 billion USD. Followed by Vietnamese goods exported to Korea and ASEAN with the value of 9.82 billion USD and 8.87 billion USD, respectively. The volume of exported goods that take advantage of tariff preferences from Vietnam to Laos and Cambodia markets has a negligible turnover.

Regarding preferential utilization rate of FTA: Chile market has the highest rate of preferential utilization from VCFTA with 67.72%; followed by India and South Korea market with the utilization rate of 65.13% and 49.78% respectively. The rate of taking advantage of preferential treatment from Laos (9.59%) and Cambodia (0.01%) is not high because Laos and Cambodia are both ASEAN members, so businesses often take advantage of incentives directly from the ATIGA Agreement. Generally, the utilization rate of Vietnam’s FTA incentives in 2017 was 37.2%, down 1.8% compared to 2017 (39%). The rate of taking advantage of preferential treatment from the market of CPTPP countries is less than 2% mainly due to the fact that only two markets have FTA with Vietnam, Canada and Mexico. Some major import markets that have FTA with Vietnam, such as Japan, Australia, and New Zealand, are less likely to take advantage of the CPTPP tax incentives due to stricter CPTPP rules of origin and the reduction in tariff commitments in the CPTPP. FTAs already exist.

In addition, Canada allows manufacturers, exporters or importers to self-certify origin, without the need for a C / O issuing authority. Therefore, the rate of utilization of CPTPP incentives does not reflect the proportion of goods exported to Canada enjoying preferential tariffs under the CPTPP. preferential treatment from FTA is very high (91.52%) with preferential C / O granted to the markets signing FTAs ​​with Vietnam is 4.76 billion USD, up 23.31% compared to 2018 Plastic and plastic products ranked second with 71.66% FTA utilization rate, with preferential C / O granted export turnover of US $ 1.95 billion, up 8.93% compared to 2018.

Followed by textile products with preferential C / O export turnover of US $ 8.1 billion, accounting for 66.85% of the total export turnover of this commodity group (over US $ 12 billion). markets with FTA and up by 7.66% compared to 2018. Besides, many products in the group of agricultural and aquatic products also have good utilization rate from FTA as well as seafood (65.25 %), rubber and rubber products (63.34%), pepper and coffee all reach over 50%.

Source: WTO center

Leave a Reply

Notify of