The Government has issued Decree No. 384/2026/ND-CP dated 9 October 2026 on determining Vietnamese origin of goods produced and circulated domestically (“Decree 384”), which takes effect from 1 January 2027. Decree 384 comprises 12 Articles, setting out the criteria for determining goods of Vietnamese origin and the responsibilities of traders, organizations and individuals who indicate Vietnamese origin on labels or on documents relating to goods. In particular:
- Scope of Regulation and Subjects of Application
- Scope: Determination of Vietnamese origin for goods produced and circulated domestically, including: goods of Vietnamese origin, goods of wholly obtained Vietnamese origin, goods of non-wholly obtained Vietnamese origin, simple processing and handling operations; factors not taken into account when determining origin; and the responsibilities of relevant agencies, organizations and individuals.
- Exclusions: Decree 384 does not govern: the determination of origin of goods for the purpose of applying origin certification measures to exported or imported goods; regulations on how to label goods and how to present other mandatory content on goods labels; or product and goods traceability activities.
- Subjects of application: Traders engaged in the production and trading of goods circulated domestically; and state management agencies, organizations and individuals within the country concerned.
- Goods of Vietnamese Origin (Article 4)
- Goods are of Vietnamese origin if they are either wholly obtained (Article 5) or not wholly obtained (Article 6) in Vietnam.
- Where necessary, ministries and ministerial-level agencies may issue separate rules on Vietnamese origin for specific goods within their management remit, consistent with Decree 384.
- Wholly Obtained Goods of Vietnam (Article 5)
- Plants and plant products grown and harvested in Vietnam;
- Animals born or raised in Vietnam and products derived from such animals;
- Products obtained from hunting, trapping, fishing, aquaculture, gathering or capturing in Vietnam;
- Minerals and naturally occurring substances extracted or taken from the soil, waters, seabed or subsoil beneath the seabed of Vietnam;
- Products taken from the waters, seabed or subsoil beneath the seabed outside the territorial sea of Vietnam, provided that Vietnam has the right to exploit such waters, seabed or subsoil under international law;
- Fish and other marine products caught on the high seas by vessels registered in Vietnam and authorized to fly the flag of Vietnam, and products processed or produced on board such vessels from such catches;
- Articles collected in the course of production or consumption in Vietnam that can no longer perform their original function, cannot be repaired or restored, and can only be discarded or used as raw materials, or for recycling purposes;
- Goods obtained or produced from the products listed above.
- Not Wholly Obtained Goods of Vietnam (Article 6)
- Criteria: Goods satisfying either (i) a change in tariff classification; or (ii) a minimum Vietnam Value Content (VVC) of 30%, calculated under one of two formulas (direct or indirect).
- Choice of formula: The trader selects the direct or indirect formula, applicable for a financial year.
- Packaging: The value of packing materials and containers forming part of the goods is included in VVC.
- Information technology and digital goods: Value-creating stages performed in Vietnam are included in VVC, comprising research and development costs; design, programming, digitization and automation costs; and technical testing and software testing costs associated with the product creation process. The rules on simple processing operations (Article 7.2) and on factors not taken into account (Article 8) do not apply in this case.
- Factors Not Taken into Account in Determining Origin (Article 8)
Factors used in the production, inspection or testing of goods but not forming the goods, or used to maintain premises or operate equipment connected with production, are not taken into account under Articles 4, 5 and 6, including:
- Fuel and energy; tools, dies and moulds;
- Spare parts and materials for maintaining equipment and premises; lubricants, greases, compounds and other materials used in production or to operate equipment and premises;
- Gloves, glasses, footwear, clothing and safety equipment; equipment, instruments and machinery used to inspect or test goods;
- Catalysts and solvents; any other materials not forming part of the goods, the use of which shall be proven necessary in the production process.
- Responsibilities of Traders, Organizations and Individuals Indicating Vietnamese Origin
- Compliance: Traders, organizations and individuals that indicate Vietnamese origin on goods labels, or on documents or items containing information relating to the goods, shall comply with Decree 384, and shall also comply with the laws on goods labeling, consumer protection, product and goods quality, and other relevant legal provisions.
- Responsibility for information: They shall be legally responsible for the accuracy and truthfulness of the information they have published.
- Record keeping: They shall retain records and documents proving origin (including input invoices, bills of materials, descriptions of the production process and related documents) for inspection and examination purposes. Retention in electronic and paper form shall be carried out in accordance with the law on accounting and the law on archives.
- Burden of proof: They shall prove that goods are of Vietnamese origin in accordance with Decree 384 when requested by a competent authority, and shall comply with Vietnamese law on the origin of exported goods and the regulations of the importing country applicable to goods produced and circulated domestically that are subsequently exported.
