Decree No. 384/2026/ND-CP on the Determination of Vietnamese Origin for Domestically Produced and Circulated Goods

Decree No. 384/2026/ND-CP on the Determination of Vietnamese Origin for Domestically Produced and Circulated Goods

Issued: 09 October 2026
Effective: 01 January 2027

I. Scope and Applicable Subjects

The Decree governs the determination of Vietnamese origin for goods produced and circulated domestically, including:

• Purely Vietnamese-origin goods
• Non-purely Vietnamese-origin goods
• Simple processing operations
• Factors not considered in origin determination
• Responsibilities of relevant agencies, organizations and individuals

The Decree does not cover:

• Origin determination for applying origin certification measures to export or import goods
• How goods are labeled and how other mandatory label content is presented
• Product and goods traceability activities

Applicable to:

• Merchants engaged in production and trade of domestically circulated goods
• Relevant domestic state management agencies, organizations and individuals

II. Key Definitions

• HS code transformation: a change at the 4-digit HS level from non-originating materials used to produce goods in Vietnam.
• Vietnam Value Content (VVC): the value added in Vietnam, calculated on the total value of the goods.
• Ex-works price: the price paid to the producer involved in the final processing or production, including the value of materials and other production costs, excluding taxes and fees that will or may be refunded when sold on the domestic market. If that price does not fully reflect actual production costs in Vietnam, it is total cost less those taxes and fees. If the final stage is subcontracted, the "producer" is the merchant who commissioned the work.
• Material value: the customs value at import or the purchase price in Vietnam, including purchase cost, transport and related costs until the material is used in production.

III. Goods of Vietnamese Origin

1. Purely Vietnamese-origin goods (Article 5)

• Crops and crop products grown and harvested in Vietnam
• Animals born or raised in Vietnam, and products from those animals
• Products from hunting, trapping, fishing, aquaculture, gathering or capture in Vietnam
• Minerals and naturally occurring substances extracted from Vietnam's soil, water, seabed or subsoil
• Products taken from waters, seabed or subsoil outside Vietnam's territorial sea where Vietnam has exploitation rights under international law
• Catch from the high seas by vessels registered in Vietnam and flying the Vietnamese flag, and products processed or made on board from that catch
• Items obtained from production or consumption in Vietnam that can no longer perform their original function, cannot be repaired or restored, and can only be discarded or used as raw materials or for recycling
• Goods obtained or produced from the above products

2. Non-purely Vietnamese-origin goods (Article 6)

Goods meeting one of the following:

a) HS code transformation

b) Minimum VVC of 30%, calculated by one of two formulas:

Direct:    VVC = (Value of originating materials / Ex-works price) x 100%
Indirect:  VVC = [(Ex-works price - Value of non-originating materials) / Ex-works price] x 100%

c) Packaging materials and containers holding the goods are part of the goods and count toward VVC.

d) IT and digital technology goods: value-creating stages performed in Vietnam count toward VVC, including research and development; design, programming, digitization, automation; and technical testing and software testing tied to the product creation process. The simple-processing rule (Article 7.2) and the excluded-factors rule (Article 8) do not apply to this paragraph.

e) Formula selection: merchants choose the direct or indirect formula and apply it for the financial year.

Ministries and ministerial-level agencies may issue separate rules for specific products within their remit, consistent with the Decree.

IV. Simple Processing Operations (Article 7)

These are operations that use no special skills, machinery, production lines or specialized equipment, and are not considered when determining origin. Alone or combined, the following count as simple:

• Preservation during transport and storage (ventilation, drying, cooling, salting, sulfur fumigation, etc.)
• Cleaning, rust removal, degreasing, paint removal
• Changing packaging, breaking up or assembling consignments, bottling, packing
• Affixing or printing trademarks, labels, marks, logos on products or packaging
• Sieving, screening, selecting, sorting, grading, grouping or simple mixing that does not change the nature of the goods
• Simple splitting or assembly
• Milling, husking, whitening, polishing of grain and rice; coloring sugar or forming sugar cubes
• Simple sharpening, grinding or cutting; ironing or pressing fabric
• Simple inspection or testing
• Slaughtering animals

V. Factors Not Considered (Article 8)

Factors used in production, inspection or testing that do not form the goods, or used to maintain facilities or operate equipment, are not considered:

• Fuel and energy
• Tools, dies and molds
• Spare parts and materials for maintaining equipment and facilities
• Lubricants, compounds and other materials used in production or to operate equipment and facilities
• Gloves, eyewear, footwear, clothing and safety equipment
• Equipment, tools and machinery used for inspection or testing
• Catalysts and solvents
• Any other material not forming the goods whose use must be shown to be necessary in production

VI. Responsibilities of Merchants, Organizations and Individuals (Article 9)

• Showing Vietnamese origin on labels or related documents must comply with the Decree, as well as the laws on labeling, consumer protection and product quality.
• They are legally responsible for the accuracy and truthfulness of the information published.
• They must keep records proving origin (input invoices, material schedules, production process descriptions, other related documents) for inspection, in electronic and paper form under the laws on accounting and archiving.
• They must prove Vietnamese origin when a competent authority requests.
• They must comply with Vietnamese law on export origin and the importing country's rules for domestically produced goods later exported.

VII. Responsibilities of State Agencies (Article 10)

Ministry of Industry and Trade:

• Leads and coordinates implementation of the Decree
• Is the focal point assisting the Government in managing origin of domestically produced and circulated goods
• Advises the Government on requirements, technical framework and common criteria; compiles and publicly posts other ministries' guidance on its web portal
• Issues origin rules within its authority to meet the Ministry's management needs
• Coordinates connecting and sharing origin databases

Ministries and ministerial-level agencies:

• Issue separate rules for specific products when necessary
• Lead and coordinate inspection of implementation within their remit
• Report periodically to the Ministry of Industry and Trade

Provincial/city People's Committees:

• Manage, inspect and coordinate implementation locally
• Compile and report on local origin determination

VIII. Implementation and Transition

• Effective date: 01 January 2027
• Transition: goods labeled with Vietnamese origin in line with the law before the Decree takes effect may keep using that label until the goods expire