Vietnam textile and garment has not taken advantage of opportunities with CPTPP
Vitas said that the regulations on goods origin of Vietnam are collecting opinions to copy old regulations on labeling of goods issued previously.
According to the Vietnam Textile and Apparel Association (Vitas) as of September 2019 after nine months of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in Vietnam, currently unused textile goods The opportunities of CPTPP are compared with those of commodities such as agricultural products. Regarding the rules of origin of agricultural products, it seems easier to prove. Whereas, rules of origin textiles require "from yarn onwards".
In addition, Vietnam's C / O certification is still dependent on the relevant authorities while CPTPP member countries have allowed businesses to self-certify the rules of origin.
Also according to Vitas, after the Ministry of Industry and Trade sent to Vitas and related units to consult with the draft circular on criteria for labeling "Made in Vietnam" for domestically produced goods circulating on the domestic market.
According to the draft, the product is considered "Made in Vietnam" if it has a pure origin or is produced entirely in Vietnam when one of the following cases: such as plants and products from plants, minerals ...
If the goods are not wholly obtained or manufactured in Vietnam but undergo final processing and processing and ensure two criteria on code conversion and value added content Increase ... is considered as "Vietnamese goods".
The method of determining the value-added content is determined by two indirect or direct formulas. Directly, goods with raw materials produced entirely in Vietnam, accounting for 30% of the factory price, are considered "made in Vietmam" goods. Indirect determination is the ex-factory price minus the price of non-Vietnamese input materials.
Vitas said that to determine more clearly, the Ministry of Industry and Trade needs to give specific examples of each item with different HS codes to determine the proportion of domestic value added content. Most of these products have 30% of domestic added value content. However, in order to be considered a "made in Vietnam" product, in addition to reaching the domestic value added content rate of 30%, this product must also go through simple processing.
Vitas stated that the regulations on goods origin of Vietnam are collecting opinions that are copying old regulations on goods labeling previously issued in Decree 31 / ND-CP on March 8, 2019. With the content containing provisions on criteria and conditions for products and goods to be identified as Vietnamese goods, the document should be issued in the form of a Decree instead of a Circular.
According to Vitas preliminary statistics, Vietnam's total textile and garment export turnover in nine months was estimated at US $ 29.24 billion, up 9.2% from the same period last year. The trade surplus value reached US $ 15.24 billion, up 16.77% over the same period in 2018.