The Ministry of Industry and Trade is submitting to the Government a draft proposal for a Decree on determining the criteria for goods produced in Vietnam.
Asanzo imported electronic components from China, assembled them in Vietnam, and then sold them in the Vietnamese market with labels indicating Vietnamese origin.
According to the Ministry of Industry and Trade, Vietnam has issued several regulations on the origin of goods, including the criteria for a product to be considered of Vietnamese origin. However, these regulations only apply to exported and imported goods, allowing them to enjoy import tax incentives as committed in free trade agreements.
On the other hand, for domestically produced goods, including those manufactured from imported raw materials and then circulated domestically, there are no regulations on when they can be labeled as “Product of Vietnam” or “Made in Vietnam.”
The Ministry of Industry and Trade assessed that the lack of clear criteria for determining “Product of Vietnam” or “Made in Vietnam” has caused confusion for organizations and individuals who want to accurately label the country of origin or source on product labels for domestically circulated goods as required by regulations.
Conversely, some products that undergo simple processing, assembly, or manufacturing steps in Vietnam are also labeled as “Made in Vietnam,” raising questions and even anger among consumers. However, the authorities lack a basis for adjudication in such cases.
The Ministry of Industry and Trade cited a typical case from late 2017, where the market management force discovered that the Khaisilk system was counterfeiting the origin of its products. Specifically, silk scarves from China were relabeled as “Made in Viet Nam.”
Another example is Asanzo, a company that imported electronic components from China, assembled them in Vietnam, and then sold them in the Vietnamese market with labels indicating Vietnamese origin.
In addition, there is a concern about foreign goods that only undergo simple processing and packaging in Vietnam but are labeled as “Made in Viet Nam” before being exported to a third country, which poses a risk of origin fraud.
Therefore, the Ministry of Industry and Trade emphasizes the urgent need to issue legal documents that provide criteria for businesses to accurately determine the origin of goods produced in Vietnam, preventing disputes and potential losses.
The Decree aims to define goods produced in Vietnam as those meeting one of the following criteria: goods of pure Vietnamese origin, goods produced in Vietnam from entirely Vietnamese raw materials, or goods that undergo the final processing or manufacturing stage in Vietnam, significantly altering the nature of the goods.
The Decree specifies that simple processing or manufacturing steps will not be considered sufficient for goods to be labeled as “Made in Vietnam.”
In reality, since 2018, the Ministry of Industry and Trade has proposed to the Government to develop regulations on “made in Vietnam” products, but they have not been issued due to various reasons.
