EVFTA provides preferential tariffs on $19bln goods exported to EU

According to the Ministry of Industry and Trade, the percentage of items shipped to the EU that receive EUR.1 certificates of origin under the terms of the Vietnam-EU Free Trade Agreement (EVFTA) accounts for 20% of the entire export volume to the EU, which is a greatly optimistic figure.

Vietnamese exports to the EU are often authorized C/O to destinations with European seaports or distribution hubs, such as Belgium, Germany, the Netherlands, and France.

Seafood, vegetables, leather, and other high-turnover items have all received certifications of origin under the EVFTA framework. In which the C/O shipped to Germany received $3.2 billion in funding during the previous year. The payment to Belgium is worth $3.5 billion for the first two years of the EVFTA's implementation.

The approval of EUR.1 C/O for leather and footwear products amounts to $8.9 billion. A total export turnover of $18.7 billion has received C/O in the first two years of EVFTA implementation.

Statistics from the Ministry of Industry and Trade predict that in 2020, 14.8% of export commodities will be given C/O under the EVFTA's tariff preferences, and that number will rise to 20.2% in 2021. The number of exports for which the EU was given a Certificate of Origin (C/O) form EUR.1 was $5.84 billion, up 32.1% from the same time the previous year.

In the two years that the EVFTA was in effect (from August 1, 2020, to July 31, 2022), it was calculated that around $18.7 billion worth of exported products received C/O from EUR.1 to 27 EU nations or nearly 20% of the overall export turnover to this market.