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Utilization of tariff preferences under Vietnam’s FTAs in 2023

05/06/2024

According to data from the Ministry of Industry and Trade, total export turnover taking advantage of preferential tariffs under the FTA in 2023 will reach 86.1 billion USD, accounting for 37.35% of total export turnover to FTA-signed markets. In general, the export turnover of FTA preferential tariffs is quite stable, except for a significant reduction in the rate of taking advantage of incentives in the form of VC (VCFTA Agreement) for the group of products exported to the Chilean market. According to the VCFTA Agreement, there has been a significant decrease. In contrast, export turnover to the UK and European Union (EU) markets that enjoy incentives from FTAs ​​has a hierarchical growth rate compared to 2022.

In 2023, there were 1,508,142 sets of preferential C/O issued, an increase of 1.9% in the number of sets compared to 2022.

In terms of turnover taking advantage of tariff preferences: Vietnamese goods exported to China ranked first with a value of 19.4 billion USD. Next are Vietnamese goods exported to ASEAN with a value of 13.5 billion USD. Ranked third and fourth are the European Union with 15.4 billion USD and South Korea with 12.2 billion USD.

In terms of the utilization rate of FTA tariff preferences: Calculating the overall rate of enjoying FTA incentives in Vietnam in 2023 is 37.35%, higher than this rate in 2022 (33.6%), but that does not mean Vietnam's remaining export turnover is subject to high taxes. One of the reasons is that MFN import tax in some markets, such as Singapore and Hong Kong (China), is already 0%, so goods do not need to have a preferential C/O to enjoy 0% tax. For example, export turnover to Singapore issued with preferential C/O (620 million USD) only uses 14.1% of nearly 4.4 billion USD of total export turnover to this market. In addition, many of Vietnam's key export products have low MFN efficiency compared to other partner countries (1%-2% or equivalent to FTA tax), so many commercial products do not require certification. MISS.

In 2023, the Eurasian Economic Union market will use the highest preferential utilization rate from the VN-EAEU FTA at 78.5%; the second is the Indian market with a usage rate of 72.59%. The rate of preferential use from the Laos market (9.88%) is not high and statistics do not record the issuance of C/O form X for goods exported to the Cambodian market because these two countries are both members. As an ASEAN member, businesses often take advantage of direct incentives from the ATIGA Agreement.

Utilization of tariff preferences under Vietnam's FTA in 2022

Utilization of tariff preferences under Vietnam’s FTA in 2021

Utilization of tariff preferences under Vietnam’s FTA in 2020

Utilization of tariff preferences under Vietnam’s FTA in 2019

Utilization of tariff preferences under Vietnam’s FTA in 2018

Utilization of tariff preferences under Vietnam’s FTA in 2017

The summary of the utilization rate of preferential C/O under Vietnam's FTAs over the years to 2023 (Vietnamese) is attached below: