Vietnam has signed and implemented 16 free trade agreements (FTAs), making it the only country to have signed FTAs with all major economic partners globally. These agreements have opened up numerous opportunities for Vietnamese products to enter foreign markets. However, there are challenges related to origin requirements and non-tariff barriers that have prevented businesses from fully utilizing the benefits of FTAs. To optimize the advantages of FTAs, Vietnamese enterprises are advised to study target markets, focus on the country's strengths, and better understand the needs of their partners. The certificate of origin (C/O) plays a crucial role in expanding exports and taking advantage of tariff incentives. Vietnamese businesses have primarily focused on traditional products with low labor costs, but there is untapped potential for increased value through supply chain and marketing development. To fully exploit FTAs, businesses need to participate in the global value chain, meet origin standards, invest in research and innovation, and collaborate to enhance their capacities [f90a3c7e].
In addition, Vietnamese businesses can discharge their export obligations (EO) against advance authorisation (AA) through physical or deemed exports. The DGFT Policy Circular no.1/2024 states that AA holders can fulfill export obligations either by physical exports or by making domestic supplies. This provides flexibility for businesses to meet their export requirements and optimize their trade potential. It is important for businesses to understand the rules and regulations related to export obligations and seek clarification from the DGFT for further confirmation [cf0bd373].