Vietnam's Free Trade Agreements: How to Reduce Your Import Tariffs

Vietnam has one of the most extensive free trade agreement networks in Asia, with 16 FTAs currently in force covering 60+ partner countries. For importers sourcing goods from Vietnam, this translates to legal, significant duty reductions that can fundamentally change the economics of a sourcing decision.

Here is what you need to know to use them.

How FTA Tariff Preferences Work

To claim preferential tariff rates under a free trade agreement, goods must:

1. Be manufactured in Vietnam (not simply transshipped through Vietnam from China)

2. Meet the Rules of Origin requirements for the specific agreement

3. Be accompanied by the correct certificate of origin

Rules of Origin (ROO) specify how much of a product's value must be created in Vietnam to qualify. The most common tests are: Regional Value Content (typically 40% of the product's value must be Vietnamese), Change in Tariff Classification, or specific process requirements for certain goods.

Your Vietnamese supplier should be familiar with ROO requirements for their product category. If they aren't, consider that a flag.

Key Agreements and What They Offer

CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)

Partners: Canada, Australia, Japan, Mexico, New Zealand, Singapore, Brunei, Chile, Peru, Malaysia

What it does: Eliminates tariffs on 95%+ of trade for qualifying goods. For a Canadian importer, this means Vietnamese goods pay zero or near-zero duty instead of MFN rates.

EVFTA (EU-Vietnam Free Trade Agreement)

Partners: All 27 EU member states

What it does: Eliminates tariffs on 99% of product categories within 10 years of entry into force (2020). Duty reductions are being phased in — many are already at zero, others reach zero by 2027–2030. Check the current phase-in schedule for your specific HS code.

UKVFTA (UK-Vietnam Free Trade Agreement)

Partners: United Kingdom

What it does: Mirrors much of the EVFTA structure. Significant for UK importers post-Brexit.

RCEP (Regional Comprehensive Economic Partnership)

Partners: China, Japan, South Korea, Australia, New Zealand, and all ASEAN members

What it does: Reduces tariffs within the Asia-Pacific region. Most useful for buyers in Japan, South Korea, and Australia.

VKFTA (Vietnam-South Korea FTA)

Specific bilateral agreement with South Korea. Relevant for Korean buyers.

The Certificate of Origin Process

To claim preferential rates, your supplier must obtain a Form C/O (Certificate of Origin) from the Vietnamese Ministry of Industry and Trade (MOIT) or an authorized issuing body. The specific form varies by agreement:

- Form D: ASEAN trade

- Form AK: ASEAN-Korea

- Form E: ASEAN-China

- Form AI: ASEAN-India

- EUR.1 / REX: EU agreements

Your supplier should handle this — it's a standard export documentation step. Budget 1–3 business days for issuance.

Common Mistakes That Result in Losing Preferential Rates

Insufficient Vietnamese value-added: Goods where the primary manufacturing happens in China and only finishing occurs in Vietnam (transhipment) do not qualify. Customs authorities in destination countries increasingly scrutinize Vietnam-origin claims.

Wrong certificate form: Using Form D when you need EUR.1 voids the preference claim.

Expiry: C/O documents typically expire 12 months from issue date. Goods arriving after expiry lose preferential treatment.

HS code mismatch: The HS code on the C/O must match the HS code on your import declaration. Even minor mismatches trigger duty assessment at MFN rates.

Work with a customs broker in your destination country who is familiar with Vietnam-origin trade. The tariff savings on a meaningful import program — often 5–15% of goods value — more than justify the professional fee.