Decree No. 384/2026/ND-CP: New Rules on Determining Vietnamese Origin for Goods Produced and Circulated Domestically
On 9 October 2026, the Government issued Decree No. 384/2026/ND-CP on determining Vietnamese origin for goods produced and circulated domestically (the “Decree 384”). Decree 384 will take effect on 1 January 2027.
Decree 384 establishes criteria for determining whether goods qualify as Vietnamese-origin goods, including wholly obtained or produced goods and non-wholly obtained goods. It also addresses simple processing and manufacturing operations, factors that must be disregarded when determining origin, and the responsibilities of relevant organisations and individuals.
Importantly, Decree 384 governs the determination of Vietnamese origin for goods produced and circulated domestically. It does not govern origin determination for the purposes of applying origin certification measures to exported or imported goods. Nor does it replace the rules on product labelling or traceability.
1. Key Provisions of Decree 384
1.1. Two categories of criteria for determining Vietnamese origin
Under Article 4 of Decree 384, goods qualify as Vietnamese-origin goods if they fall into either of the following categories:
- Wholly Vietnamese-origin goods, as provided for in Article 5.
- Non-wholly Vietnamese-origin goods, as provided for in Article 6.
For goods with specific characteristics, ministries and ministerial-level agencies may formulate separate rules for determining Vietnamese origin within their respective areas of management, provided that those rules are consistent with Decree 384.
1.2. Specific rules for wholly Vietnamese-origin goods
Article 5 of Decree 384 identifies categories of goods considered wholly Vietnamese-origin goods, including:
- Plants and plant products grown and harvested in Vietnam.
- Animals born or raised in Vietnam and products derived from those animals.
- Products obtained through hunting, trapping, fishing, aquaculture or gathering in Vietnam.
- Minerals and naturally occurring substances extracted in Vietnam in accordance with applicable regulations.
- Certain products extracted from the sea and products processed on vessels that satisfy the prescribed conditions.
- Articles obtained from production or consumption processes in Vietnam that can no longer perform their original function and can only be discarded, used as raw materials or recycled.
- Goods obtained or produced from products falling within the categories listed above.
Whether goods fall within this category must be determined by reference to their nature and the relevant conditions under Article 5, rather than solely by the location of the factory or the place where the goods are finished.
1.3. Non-wholly Vietnamese-origin goods: HS code change or a minimum VVC of 30%
Article 6 provides that goods qualify as non-wholly Vietnamese-origin goods if they satisfy either of the following criteria.
First, a change in tariff classification.
Decree 384 defines a change in tariff classification as a change at the four-digit HS code level resulting from the use of non-originating materials to produce goods in Vietnam.
Second, a minimum Vietnam Value Content of 30%.
Vietnam Value Content (“VVC”) is calculated using either of the following formulas:
- Direct method: VVC = (Value of originating materials / Ex-factory price) × 100%.
- Indirect method: VVC = [(Ex-factory price − Value of non-originating materials) / Ex-factory price] × 100%.
Article 6 provides that the value of packaging materials and containers is included in VVC if they form an integral part of the goods.
For goods in the information technology and digital technology sectors, Decree 384 allows certain costs incurred to create product value in Vietnam to be included in VVC. These may include research and development, design, programming, digitisation, automation, technical testing and software testing costs associated with the product creation process.
Traders may choose either the direct or indirect method and must apply the selected method throughout the relevant financial year.
1.4. Simple processing and manufacturing operations that are disregarded when determining origin
Article 7 of Decree 384 identifies operations that do not involve special skills, specialised machinery, production lines or equipment and that must be disregarded when determining Vietnamese origin.
The listed operations include preserving goods during transportation and storage; cleaning, rust removal or degreasing; repackaging and simple packaging; affixing or printing labels, marks or logos; simple sorting or mixing that does not alter the nature of the goods; simple assembly; certain grain and sugar processing operations; simple grinding or cutting; simple inspection or testing; and the slaughtering or butchering of animals.
These operations must be assessed in accordance with the specific provisions of Article 7. Performing one or more operations in Vietnam, such as packaging, labelling or simple assembly, does not automatically confer Vietnamese origin on the goods.
1.5. Factors disregarded when determining origin
Under Article 8 of Decree 384, certain items used in production, inspection or testing but not incorporated into the goods, as well as items used to maintain premises and operate equipment, must be disregarded when determining origin.
The list includes fuel and energy; tools, dies and moulds; spare parts and maintenance materials; lubricants; safety equipment; inspection and testing equipment, tools and machinery; catalysts and solvents; and other materials that do not form part of the goods, provided that their necessity in the production process can be demonstrated.
1.6. Enhanced responsibilities for substantiating origin claims
Article 9 of Decree 384 establishes important responsibilities for traders, organisations and individuals that indicate Vietnamese origin on product labels or in documents or other materials containing information relating to the goods.
These parties must:
- Ensure that published origin information is accurate and truthful.
- Retain records and supporting documents substantiating origin, including input invoices, bills of materials, descriptions of the production process and other relevant documents.
- Demonstrate that goods are of Vietnamese origin when requested by a competent authority.
- Comply with applicable requirements on product labelling, consumer protection, product quality and other relevant laws and regulations.
Records maintained in physical or electronic form must comply with the laws on accounting and archives.
Where goods are produced and circulated domestically before subsequently being exported, enterprises must still comply with Vietnamese laws governing the origin of exported goods and the requirements of the importing country.
2. Transitional Provisions
Under Article 12 of Decree 384, goods bearing labels indicating Vietnamese origin in accordance with the law applicable before Decree 384 takes effect may continue to use those labels until the goods expire.
This transitional provision should not be interpreted as permitting the continued use of all Vietnamese-origin labels regardless of the accuracy of the information or compliance with relevant legal requirements.
3. What Should Enterprises Prepare?
Before 1 January 2027, enterprises should:
1. Review the list of goods for which Vietnamese origin is currently declared or is intended to be declared.
2. Determine the appropriate origin criterion for each product, particularly products made using imported materials.
3. Assess production processes against the requirements on HS code changes, VVC and simple processing or manufacturing operations.
4. Establish an origin substantiation file covering material sources, material values, production processes and relevant accounting documents.
5. Review origin statements on product labels, packaging, websites, marketing materials and commercial documents.
6. Allocate responsibilities among production, procurement, accounting, legal and sales teams for determining, declaring and substantiating origin.
4. Conclusion
Decree No. 384/2026/ND-CP establishes a framework of criteria for determining Vietnamese origin for goods produced and circulated domestically. For enterprises, compliance extends beyond product labelling and requires the ability to substantiate origin through material data, production processes and cost records.
Enterprises should proactively review their products and complete the necessary documentation before Decree 384 takes effect. They should also clearly distinguish the origin determination framework for domestic circulation from the rules of origin applicable to exported and imported goods.
Reference: Decree No. 384/2026/ND-CP on Luat Vietnam.
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