Over US$100 billion in exports granted preferential C/O
VOV.VN - Thanks to the positive results recorded in leveraging tariff preferences from free trade agreements (FTAs) in 2024, authorised agencies and organisations have issued approximately 1.8 million preferential Certificates of Origin (C/O) for exports valued at over US$100 billion, according to the Import-Export Department under the Ministry of Industry and Trade.
This figure represents an 18% increase in terms of the number of C/Os and a 28% rise in value compared to 2023, accounting for 28% of total Vietnamese export value to FTA signatory markets.
The average preferential C/O issuance rate of 28% does not mean that 72% of Vietnamese exports are subject to high tariffs, as explained by the Import-Export Department.
This is because import duties in certain markets, such as Singapore and Hong Kong (China), are already set at 0%. Moreover, the 28% figure is an average rate for preferential C/O issuance, as well as the specific rate varying by C/O sample, market, and exported goods.
“The 28% increase in preferential C/O issuance in 2024 compared to the previous year is a positive outcome, reflecting Vietnam’s effective utilization of FTA benefits,” said Trinh Thi Thu Hien, deputy director of the Import-Export Department.
This result can be attributed to a series of measures aimed at effectively tapping into existing markets whilst exploring new potential ones in order to enhance import-export performance.
The introduction of electronic C/Os has also significantly helped to reduce costs and time for both businesses and state agencies.
To date, Vietnam has deepened its global market integration with 17 FTAs already signed and put into effect, as well as two FTAs under negotiation, namely the Vietnam-EFTA (Switzerland, Norway, Iceland, Liechtenstein) FTA and the ASEAN-Canada FTA. In total, the nation has either signed or is in the process of negotiating 19 FTAs.
These agreements are expected to further open markets for Vietnamese exports, offering opportunities for the country to strengthen its connections and participate more deeply in global value chains and production networks.
This year, the Ministry of Industry and Trade is aiming to achieve 12% growth in import-export turnover compared to 2024. This goal is considered to be highly challenging, but with the 17 signed FTAs and ongoing negotiations, these agreements present substantial opportunities for Vietnam as it strives to boost market expansion, increase trade, and intensify investment, thereby supporting continued high economic growth.
