VIETNAM STRENGTHENS ORIGIN VERIFICATION AMID RISING US TARIFF RISKS

May 2025 | W&A Legal & Trade Insights

Executive Summary:

On April 15, 2025, Vietnam’s Ministry of Industry and Trade (MOIT) issued Directive No. 09/CT-BCT to strengthen the management and supervision of goods origin, aiming to curb origin fraud amid increasingly complex global trade tensions. This move comes as the United States implements retaliatory tariff policies against multiple countries, including Vietnam, making origin compliance a matter of strategic importance for Vietnamese exporters.

This newsletter explores Directive 09 in depth, analyzing its background, key regulatory changes, and practical implications for businesses operating in or exporting from Vietnam.

I. BACKGROUND: RISING TRADE TENSIONS AND THE US TARIFF WAVE

Global trade dynamics are facing unprecedented volatility. In 2025, the United States significantly expanded retaliatory tariffs across a broad spectrum of imported goods, targeting not only strategic rivals but also trade partners like Vietnam.

In response, exporters worldwide are increasingly tempted to engage in origin fraud to circumvent tariffs, triggering stricter enforcement by importing countries.

Vietnam, heavily reliant on exports to the US, must act decisively to safeguard its trade privileges, uphold its reputation, and avoid further sanctions. Directive 09/CT-BCT is the Vietnamese government’s urgent response to this evolving risk environment.

II. HIGHLIGHTS OF DIRECTIVE 09/CT-BCT

Purpose:

• Promote balanced, sustainable trade growth.

• Safeguard Vietnam's commitments under FTAs and WTO agreements.

• Mitigate the risk of anti-circumvention investigations and retaliatory tariffs.

Key Measures Introduced:

Area	New Requirements
Regulatory Framework	Immediate review and amendment of regulations on goods origin under the 2025 Laws on Government and Local Administration Organization.
C/O (Certificate of Origin) Issuance	Strengthened verification procedures, especially for non-preferential C/Os, REX, and CNM systems, ensuring no disruption in C/O issuance.
Input Material Management	Exporters must tighten the control of input materials to comply with hygiene, quality, and origin standards demanded by importing countries.
Customs Cooperation	Customs authorities to increase inspection of imported materials used for export production, and coordinate cross-verification on origin data.
Data Systems	Establish shared databases and electronic networks between MOIT and Customs to track, verify, and audit goods origin information.
e-C/O System Enhancement	Upgrading Vietnam’s eCoSys (electronic Certificate of Origin System) for streamlined, cost-effective digital C/O management and fee collection.
Anti-Fraud Enforcement	Intensified checks to detect illegal transshipment and fraudulent practices; strict penalties to preserve Vietnam’s export reputation.
Administrative Simplification	Promote modernization and simplification of C/O procedures to facilitate compliance while reducing administrative burdens on businesses.

III. IMPLICATIONS FOR VIETNAMESE EXPORTERS

• Stricter Compliance Obligations: Businesses must reassess supply chains, particularly sourcing practices, to ensure traceable, legitimate origins that meet US and FTA partners’ requirements

• Greater Audit and Inspection Risk: Companies should expect more frequent audits and on-site inspections concerning raw material sources, production processes, and C/O issuance.

• Increased Administrative Requirements: While digital systems aim to simplify processes in the long run, the immediate transition may require businesses to invest more resources into documentation and compliance systems.

• Potential Trade Advantages: Enterprises able to demonstrate robust origin compliance may gain a competitive edge in maintaining or even expanding market access, particularly in sensitive markets like the US and EU.

IV. STRATEGIC RECOMMENDATIONS

• Review Supply Chains: Immediately audit supply sources for all export goods to ensure clear, verifiable origin documentation.

• Enhance Internal Controls: Strengthen internal procedures around production records, raw material sourcing, and C/O application processes.

• Leverage Digital Systems: Prepare for full digital adoption of C/O issuance through the upgraded eCoSys platform.

• Monitor Trade Defense Risks: Stay informed about global trade defense investigations and potential anti-circumvention cases related to Vietnamese goods.

• Engage Early with Authorities: Where questions arise, proactively liaise with C/O issuing bodies and customs officials to mitigate risk.

V. FINAL THOUGHTS: A PROACTIVE ERA OF ORIGIN COMPLIANCE

Directive 09/CT-BCT signals a decisive shift towards proactive, preventive trade compliance in Vietnam. Amid rising US protectionism and global supply chain scrutiny, Vietnamese exporters must now view origin compliance not merely as a legal formality, but as a critical pillar of their global competitiveness strategy.

As implementation unfolds, W&A Consulting stands ready to assist clients in navigating this regulatory transformation – from supply chain audits and compliance checks to C/O optimization and trade defense advisory.

Contact us for a customized consultation on how your business can adapt to Directive 09 and stay ahead in this new era of global trade.

For more details, contact us:

☎️ +84 93 594 8688

📧 Email: nam.phan@waco.com.vn

🌐 Website: https://www.waconsulting.vn/

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