DETERMINATION OF VIETNAMESE ORIGIN FOR GOODS PRODUCED AND CIRCULATED IN THE DOMESTIC MARKET

On 9 October 2026, the Government issued Decree No. 384/2026/ND-CP on the determination of Vietnamese origin for goods produced and circulated in the domestic market (“Decree 384”). Taking effect on January 1, 2027, Decree 384 establishes for the first time the criteria for determining “Vietnamese origin” for goods produced and circulated in the domestic market, while also imposing requirements on enterprises to determine, declare and substantiate the origin of their goods. 

1. Scope of application

Decree 384 governs the determination of Vietnamese origin for goods produced and circulated in the domestic market. Its scope covers the criteria for determining whether goods have Vietnamese origin, including wholly and non-wholly Vietnamese-origin goods; simple processing operations; elements excluded from origin determination; and the responsibilities of relevant authorities, organizations and individuals.

However, Decree 384 does not govern: (i) the determination of origin for exported and imported goods for the purposes of applying origin certification measures; (ii) requirements concerning the manner of labeling of goods and the presentation of other mandatory information on product labels; or (iii) product and goods traceability activities. These matters are governed by their respective applicable regulations.

2. Criteria for determining whether goods have Vietnamese origin

Under Decree 384, goods are considered to have Vietnamese origin if they fall into either of the following categories: wholly Vietnamese-origin goods or non-wholly Vietnamese-origin goods.

2.1 Wholly Vietnamese-origin goods

Wholly Vietnamese-origin goods are goods wholly obtained, grown, harvested or produced in Vietnam, including:

Plants and plant products grown and harvested in Vietnam.

1. Animals born or raised in Vietnam.
2. Products obtained from animals born or raised in Vietnam.
3. Products obtained through hunting, trapping, fishing, aquaculture, gathering or capturing in Vietnam.
4. Minerals and naturally occurring substances extracted or taken from the soil, water, seabed or subsoil of Vietnam.
5. Products obtained from waters, the seabed or subsoil beyond Vietnam’s territorial sea, provided that Vietnam has the right to exploit the relevant waters, seabed and subsoil under international law.
6. Fish and seafood caught at sea by vessels registered in and flying the flag of Vietnam.
7. Products processed or produced on board vessels from fish and other marine products caught on the high seas by vessels registered in and flying the flag of Vietnam.
8. Scrap and waste derived from production or consumption in Vietnam that can no longer perform their original function.
9. Goods obtained or produced from any of the products specified above

2.2 Non-wholly Vietnamese-origin goods

Goods produced using materials that do not originate in Vietnam may still qualify as Vietnamese-origin goods if they satisfy either of the following criteria:

1. Change in tariff classification: Non-originating materials undergo production in Vietnam, resulting in a finished product whose HS code differs from that of the materials at the four-digit level.
2. Vietnamese Value Content (VVC) of at least 30%, calculated using either of the following formulas:

3. Operations and elements that do not confer Vietnamese origin

3.1 Simple processing operations

Simple processing operations refer to activities that do not require special skills or specialized machinery, production lines, or equipment, and are therefore disregarded when determining the origin of Vietnamese goods, whether performed individually or in combination. This category includes preserving goods during transport and storage (such as ventilation, drying, chilling, salting, or sulfur dioxide treatment); cleaning, dusting, rust removal, degreasing, painting, or surface coating; along with packaging activities like changing packaging, breaking bulk, assembling or disassembling shipments, or simple bottling, canning, bagging, or boxing. Additionally, affixing or printing trademarks, labels, or logos onto products or packaging; simple mixing of products; sharpening or simple cutting; fabric pressing; simple inspection or testing; and animal slaughter are all classified as simple processing operations that do not confer Vietnamese origin.

3.2 Elements not taken into account in determining Vietnamese origin

Elements used in production, inspection, or testing but that do not form part of the goods are also disregarded when determining origin. These include fuel, energy, catalysts and solvents; tools, patterns, molds and casting molds; gloves, clothing and safety equipment; spare parts and materials used to maintain factories, machinery and testing equipment; lubricants and greases; and any other materials that do not form part of the goods.

4 Recommendations for manufacturing enterprises

To comply with Decree 384, enterprises should consider taking the following steps:

1. Review the list of products currently labeled as having Vietnamese origin and determine whether each product qualifies as wholly Vietnamese-origin or non-wholly Vietnamese-origin goods.
2. Review production processes, material sourcing and other production factors to assess whether the VVC threshold is sufficient to qualify the goods as Vietnamese-origin. If the applicable requirements are not met, enterprises should consider appropriate adjustments to satisfy the prescribed criteria.
3. If goods do not satisfy the origin requirements, avoid using wording that could mislead consumers into believing that the goods originate from Vietnam.
4. Maintain records and supporting documents substantiating the origin of goods, including purchase invoices, bills of materials, descriptions of production processes and other relevant documents, for submission to competent authorities during inspections or examinations upon request.

5. Conclusion

Decree 384 establishes specific criteria for determining Vietnamese origin for goods produced and circulated in the domestic market, while requiring enterprises to take responsibility for the accuracy of declared origin information. Accordingly, enterprises should proactively review the origin of their materials, production processes and supporting documentation before Decree 384 takes effect on 1 January 2027. This will help ensure that product labeling and origin declarations are adequately supported by legal grounds, mitigate risks during inspections and examinations, and protect brand reputation in the market. Goods bearing labels that show Vietnamese origin in accordance with the law before the Decree 384 takes effect may continue to use those labels until the goods expire or are used up. Manufacturers are not required to recall or relabel compliant existing stock, subject to the transitional provisions of Decree 384.