Vietnam’s Ministry of Industry and Trade has issued a circular stipulating the certificates of origin (C/O) rules in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Notably, there’s a significant difference that CPTPP has compared to other Free Trade Agreements (FTAs) that Vietnam possess. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership also known as TPP11 is a trade pact between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.
From March 8 this year, goods exported from Vietnam would be applied with the C/O mechanism by agencies and organisations certified by the Ministry.
The mechanism of Vietnamese importers certifying their origin is implemented after 5 years from the effective date of the CPTPP, this enables relishing tariff preferences under the agreement and regulations of importing member countries.
CPTPP rules of origin for yarns are a big bottleneck for the industry. The country still has to trade in about 99 percent cotton, 1.3 million tonnes of fibre and 80 percent fabric. Also, the CPTPP, which came into force from December 30, 2018, is the only pact Vietnam participates in a standalone textile chapter that is not in common with any other chapter.
Markedly, the Vietnam Textile and Apparel Association (VITAS) has set the industry’s export turnover target this year at US $ 40 billion, a 10.8 percent year-on-year increase from 2018.
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