The Ministry of Industry and Trade of Vietnam has proposed to amend Decree 31/2018/ND-CP, a document detailing the Law on Foreign Trade Management on the origin of goods, issued on March 8, 2018 (Decree). This Decree regulates the rules of origin for exports and imports, ensuring compliance with international trade agreements and domestic regulations. In draft 2, the Ministry of Industry and Trade emphasizes the amendment of the Decree to address new challenges in global trade, strengthen compliance with international commitments and promote measures to combat origin fraud.
1. Reasons to amend Decree 31/2018/ND-CP
1.1 Harmonization with new free trade agreements
Vietnam has joined many free trade agreements (FTAs) in recent years, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Regional Comprehensive Economic Partnership (RCEP), the ASEAN Trade in Goods Agreement (ATIGA), and the EU-Vietnam Free Trade Agreement (EVFTA). These agreements provide specific, different or expanded rules of origin compared to those specified in Decree 31/2018/ND-CP. The current Decree lacks detailed definitions and procedures to meet the new requirements, such as the back-to-back Certificate of Origin (C/O) regulation and the self-certification mechanism, which is crucial to take advantage of tariff preferences from FTAs.
The Ministry of Industry and Trade recognizes that updating the decree is necessary to ensure that Vietnam complies with international commitments. The amendments aim to supplement definitions and procedures in line with the latest FTAs, helping Vietnamese exporters make the most of tariff preferences while meeting the specific origin criteria of each agreement.
1.2 Dealing with origin fraud
Origin fraud, including the use of fake certificates of origin, falsification of documents and illegal transshipment, is becoming a growing concern in Vietnam's import and export activities. These fraudulent acts not only cause damage to businesses but also risk damaging the reputation of the entire industry and Vietnam's export market. The Ministry of Industry and Trade emphasized that origin fraud can lead to investigations and trade remedies from importing countries, such as the imposition of anti-dumping duties or quotas, affecting Vietnam's trade relations.
Decree 31/2018/ND-CP currently lacks strong mechanisms to handle these complex forms of fraud. The proposed amendments introduce stricter measures to combat origin fraud, including strengthening the verification process, providing clearer provisions on sanctions, and extending suspension periods for violations. These changes are aimed at protecting the prestige of Vietnamese goods in the global market and protecting domestic production.
1.3 Simplification of administrative procedures
The current Decree requires a number of administrative procedures such as mandatory registration of trader dossiers and complicated documents to issue certificates of origin, making it difficult for businesses, especially small and medium-sized enterprises (SMEs). The Ministry of Industry and Trade aims to simplify these procedures to reduce administrative costs and improve efficiency for traders. By eliminating outdated requirements and leveraging digital platforms such as the eCoSys (www.ecosys.gov.vn) system, the amendments aim to facilitate the issuance of certificates of origin while maintaining regulatory oversight. This is also in line with the trend of cutting administrative procedures stipulated in the Party and State in recent years.
1.4 Adapting to digital transformation
The global trade environment is increasingly dependent on digital solutions for document storage and verification. Decree 31/2018/ND-CP has regulations on the issuance of electronic certificates of origin but lacks comprehensive guidance on digital storage and data sharing. The proposed amendments emphasize electronic record keeping and data integration between the Ministry of Industry and Trade and the Ministry of Finance to improve transparency and efficiency in origin management.
1.5 Strengthen coordination between ministries
The current Decree mainly assigns responsibility to the Ministry of Industry and Trade, with limited regulations on coordination with the Ministry of Finance, especially in verifying the origin of imported goods. The proposed amendments clarify the role of the Ministry of Finance, especially in customs procedures and self-certification of origin for imported goods, in order to ensure a uniform approach in origin management among agencies attached to the Government. Strengthening coordination between these agencies will help businesses more conveniently issue the origin of goods as well as customs clearance of goods entering and exiting Vietnam.
1.6 Solving practical problems
Since its promulgation, Decree 31/2018/ND-CP has revealed a number of practical limitations, such as unclear re-issuance of certificates of origin and handling of goods in bonded warehouses. The consultation process of the Ministry of Industry and Trade has absorbed opinions from businesses and stakeholders to solve these problems. The amendments aim to clarify the procedures for re-issuance of certificates of origin, processing certificates of origin and managing goods that do not change their origin, thereby supporting exporters to meet international requirements.
2. New points in the draft amendment to the Decree
The second draft[1] of the Decree makes a number of significant changes compared to Decree 31/2018/ND-CP, reflecting the efforts of the Ministry of Industry and Trade in addressing the above challenges. Below are the main amendments of the 2nd version of the Draft Decree, 2025.
2.1 Expand definitions to align with FTAs
The draft adds new definitions to match the recent FTAs that Vietnam has joined.
Firstly, the definition of the certificate of origin and self-certification documents
The new decree clearly defines "back-to-back certificates of origin" and "self-certification documents" to meet procedures under agreements such as ATIGA, RCEP and CPTPP. These definitions clarify that back-to-back certificates of origin can be issued by an exporter, manufacturer or importer in a member country based on previous certificates of origin, enhancing flexibility for goods transiting through Vietnam.
Secondly, the written approval for self-certification of origin
A new definition of "written approval for self-certification of origin" allows the competent authority to grant a license to a trader to self-certify his or her origin, as required in ATIGA. This facilitates compliance with self-certification mechanisms under FTAs.
Third, the definition of goods or raw materials is the same and interchangeable
The draft adds a definition of "goods or materials that are identical and interchangeable," meeting provisions in FTAs such as CPTPP and RCEP, allowing these goods to be considered of origin if they meet specific accounting principles.
These additions ensure that Vietnam's regulations are in line with international standards, helping exporters maximize the benefits from FTAs.
Consultation workshop on the Draft Decree on the origin of goods. Source: Ministry of Industry and Trade of Vietnam
2.2 Simplification of administrative procedures
The draft removes a number of administrative requirements from Decree 31/2018/ND-CP to reduce the burden on traders:
a. Removing the registration of a merchant profile
Articles 13, 14 and 15, which require the registration of trader records and detailed documents for the issuance of certificates of origin, have been abolished. This simplifies the process of applying for a certificate of origin, especially for small and medium-sized enterprises, by reducing paperwork and registration barriers.
b. Simplifying the issuance of certificates of origin for bonded warehouses
The draft consolidates the procedures for issuing certificates of origin for goods in bonded warehouses (e.g., CFS warehouses) in Article 16, eliminating separate provisions (such as Article 24 in Decree 31/2018/ND-CP) to simplify the requirements for documents.
2.3 Strengthening measures against origin fraud
The draft strengthens measures to combat fraud in origin, demonstrating the commitment of the Ministry of Industry and Trade to protect Vietnam's trade reputation. The measures proposed by the Ministry of Industry and Trade to combat origin fraud are (1) Extending the suspension period; (2) Apply the red channel mode; (3) Publicizing information of the violating trader. These regulations are relatively similar to Decree 31/2018/ND-CP. However, the provisions in the Draft are somewhat more detailed, clear and strict with deliberate violations by traders. We think that making this proposal is reasonable to protect the reputation and brand of the industry as well as the country's export activities in the coming time.
2.4 Clarification of regulations on re-issuance of certificates of origin
Article 18 of the draft clarifies the conditions for re-issuance of certificates of origin, settlement of practical issues identified in the process of implementation of Decree 31/2018/ND-CP such as certificates of origin can be re-issued in cases of loss, damage, separation of shipments, etc re-import for recycling or due to unintentional errors. This process ensures that the reissued certificate of origin maintains transparency and complies with international requirements, preventing delays or rejections at the ports of import.
2.5 Strengthening the role of the Ministry of Finance
The draft assigns more responsibilities to the Ministry of Finance, especially in managing the origin of imported goods. Article 25 empowers the Ministry of Finance to self-certify the origin of imported goods, in accordance with the requirements of FTAs and ensure consistency in origin verification. In addition, Article 32 of the Draft also requires the Ministry of Finance to share customs data via the electronic system, creating conditions for coordination with the Ministry of Industry and Trade to manage origin more effectively.
2.6 Supporting digital transformation
The draft emphasizes digital solutions to improve the efficiency of electronic record storage. Article 30 of the Draft allows traders and authorities to store records electronically, complementing the existing eCoSys platform and in line with global digital commerce trends. At the same time, the Draft requires data sharing between the Ministry of Industry and Trade and the Ministry of Finance to improve transparency and reduce the time to verify the origin of goods of traders.
3. Remove regulations that are no longer relevant
The draft removes outdated references, such as the phrase "group of countries" in Article 6 of Decree 31/2018/ND-CP to be consistent with current international terminology. The draft also removes the requirement to cancel certificates of origin with duplicate reference numbers (Article 20), simplifying administrative procedures.
The proposed amendments to Decree 31/2018/ND-CP demonstrate the proactive approach of the Ministry of Industry and Trade in addressing the development requirements of global trade, combating origin fraud and simplifying administrative procedures for Vietnamese enterprises. By harmonizing with free trade agreements, strengthening anti-fraud measures, and leveraging digital solutions, the draft aims to strengthen Vietnam's position in the global market while protecting the prestige of exports. These changes not only facilitate compliance with FTAs but also protect the reputation of Vietnamese goods, ensuring competitiveness and long-term sustainability in international trade.
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