Vietnam Fortifies Trade Ties with Updated Rules of Origin in EVFTA and New UAE CEPA

Vietnam is proactively strengthening its position in the global trade arena with significant updates to its rules of origin under the EU-Vietnam Free Trade Agreement (EVFTA) and the newly implemented Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE). These changes, effective in May 2026, underscore the dynamic nature of international trade regulations and the critical role of origin rules in determining market access and tariff benefits.

Under the EVFTA, Circular 14/2026/TT-BCT, which became effective on May 10, 2026, officially replaces the previous regulatory framework for rules of origin. Key revisions include the alignment with the Harmonized System (HS) 2022 code system and an expansion of the Registered Exporter (REX) system. The REX system now mandates registration for self-certification of shipments exceeding 6,000 EUR, while exporters can self-certify origin without REX registration for shipments valued at 6,000 EUR or less. Additionally, the circular introduces specific conditions for origin cumulation, allowing businesses to consider materials from certain partner countries under specific international commitments and administrative cooperation with the EU. This controlled expansion aims to diversify raw material supply chains, reduce market dependence, and optimize input costs while maintaining originating status. Businesses are strongly advised by VANTAGE LOGISTICS CORPORATION to review their HS codes, origin criteria, and raw material sources, and to consider REX registration to ensure compliance and qualify for preferential tariffs when exporting to the EU.

Concurrently, the Ministry of Industry and Trade issued Circular No. 24/2026/TT-BCT on May 5, 2026, detailing the rules of origin for goods under the Vietnam-United Arab Emirates CEPA. This circular, which took effect on the same day, enables goods originating in either the UAE or Vietnam to qualify for preferential tariffs. To benefit from these tariffs, goods must be accompanied by specific documentation, such as a UAE-VN form C/O, a self-certification document from an approved exporter, or a self-certification for consignments valued at no more than 500 USD. The criteria for determining origin include goods being wholly obtained, undergoing sufficient processing or manufacturing, or being produced entirely from originating materials. For goods that are not wholly obtained, origin is determined based on a change in tariff heading (CTH) or a qualifying value content (QVC) of at least 35% of the ex-works price. Customs authorities will accept proof of origin documents issued in accordance with this circular for import declarations registered from February 3, 2026, onwards.

These comprehensive updates highlight Vietnam’s commitment to facilitating trade while ensuring the integrity of its preferential trade agreements. For businesses engaged in trade with the EU and UAE, particularly those based in Vietnam, meticulous review and adaptation of operational procedures are essential to ensure continued compliance and to leverage the significant tariff benefits offered by these agreements. The alignment with HS 2022 and the expanded REX system in the EVFTA, coupled with the detailed origin criteria in the Vietnam-UAE CEPA, signify a global trend towards more precise and verifiable origin declarations. This ongoing evolution necessitates robust internal systems for tracking raw material sourcing, manufacturing processes, and documentation to avoid disruptions and capitalize on trade advantages.