Made in Vietnam: New Origin Rules for Domestic Goods (2026)
By Dee (Diep) Hoang, Khai Ho
Does a product that is only packed and labelled in Vietnam count as a good of Vietnamese origin? Under Decree No. 384/2026/ND-CP, the answer is no.
Decree No. 384/2026/ND-CP was issued by the Government on 9 October 2026 and takes effect on 1 January 2027. For the first time, it sets out the criteria for determining Vietnamese origin for goods produced and circulated in the domestic market (see the full text on the Government Portal — Decree No. 384/2026/ND-CP). The Decree does not govern the origin of exported goods, labelling format, or traceability — so "made in Vietnam" (where the work is done) must be distinguished from "Vietnamese origin" (meeting the Decree's criteria).
The Decree divides goods of Vietnamese origin into two groups: wholly obtained and non-wholly obtained.
Wholly obtained goods of Vietnamese origin
These are goods created entirely in Vietnam, including:
- Plants and plant products grown and harvested in Vietnam.
- Animals born or raised in Vietnam, and products from those animals.
- Products obtained from hunting, trapping, fishing, aquaculture, gathering, or capture in Vietnam.
- Minerals and natural substances extracted from the soil, water, or seabed of Vietnam.
- Fish and seafood caught at sea by vessels registered in and flying the flag of Vietnam, including products processed or produced on board those vessels.
- Scrap and waste derived from production or consumption in Vietnam that can no longer perform their original function.
- Goods produced from the products listed above.
Non-wholly obtained goods of Vietnamese origin
Goods that use materials not of Vietnamese origin still qualify as Vietnamese origin if they meet one of the two criteria below.
Change in tariff classification
Non-originating materials, after being processed in Vietnam, result in goods with a different HS code at the 4-digit level under the Harmonized System of the World Customs Organization. For example:
- A business imports sawn timber (heading 44.07) to manufacture wooden furniture (heading 94.03) in Vietnam. The 4-digit HS code changes, so the goods meet this criterion.
- A business imports cotton yarn (heading 52.05) to weave cotton fabric (heading 52.08) in Vietnam. The goods also meet this criterion.
The change in HS code is only recognised if the production goes beyond simple processing operations (see below).
Vietnam Value Content of at least 30%
Vietnam Value Content ("VVC") is the value added in Vietnam, calculated on the total value of the goods. VVC is determined using one of two formulas:
| Formula | Calculation |
|---|---|
| Direct | VVC = (Value of originating materials / Ex-works price) × 100% |
| Indirect | VVC = [(Ex-works price − Value of non-originating materials) / Ex-works price] × 100% |
Two points to note when applying the VVC criterion:
- Packaging counts toward VVC. The value of packing materials and containers forms part of the goods and is included in the VVC.
- The formula applies for the whole financial year. A business chooses the direct or indirect formula and applies it consistently throughout the financial year, not lot by lot.
Special rule for information technology and digital technology goods
For goods in the information technology and digital technology sector, value-creating stages performed in Vietnam count toward VVC, including research and development costs; design, programming, digitisation, and automation costs; and technical testing and software testing costs tied to creating the product. For this category, the rules on simple processing operations and excluded elements (below) do not apply.
Operations and elements that do not confer Vietnamese origin
Simple processing operations
These are operations that do not use special skills, machinery, production lines, or specialised equipment. Whether carried out separately or in combination, they do not confer Vietnamese origin.
They include work such as: preserving and storing goods; cleaning and washing; packing and changing packaging; affixing or printing marks, labels, and logos; simple sifting, sorting, and mixing; simple splitting and assembly; milling, husking, and polishing cereals and rice; simple testing and inspection; and the slaughter of animals.
The key point for manufacturers is that merely packing, labelling, sorting, or simply assembling goods in Vietnam is not enough for the goods to be of Vietnamese origin.
Other production elements
Elements used in production, inspection, or testing but that do not form part of the goods are also disregarded when determining origin. These include: fuel and energy; tools and moulds; spare parts and maintenance materials; lubricants and substances used in production or to operate equipment; safety equipment; testing and inspection equipment; catalysts and solvents; and other necessary materials that do not form part of the goods.
Goods already on the market before 1 January 2027
Goods bearing labels that show Vietnamese origin in accordance with the law before the Decree takes effect may continue to use those labels until the goods expire or are used up. Businesses do not need to recall or re-label compliant existing stock.
Dilinh Legal's recommendations
Businesses trading in Vietnam should take the following steps before 1 January 2027:
- Review the product list currently marked as Vietnamese origin, and determine for each product whether it is wholly or non-wholly obtained and which criterion applies.
- Review production processes, material sourcing, and other production elements to assess whether VVC is sufficient to reach Vietnamese origin. If not, adjust to meet the condition.
- On labelling: if goods do not meet the conditions, avoid wording that could lead readers to understand the goods as being of Vietnamese origin. If goods meet the conditions, state clearly whether they are wholly or non-wholly obtained to avoid confusing buyers.
- For goods relying on the VVC criterion, choose the formula that fits the business's actual circumstances and prepare documents to support the calculation basis.
- Keep records proving origin — input invoices, bills of materials, and production process descriptions — in accordance with accounting and archiving law, ready to produce when a competent authority requests.
To discuss how Decree No. 384/2026/ND-CP affects your operations, contact Dilinh Legal.
About the author
Diep Hoang is the Founding Partner of Dilinh Legal, a business law firm in Ho Chi Minh City. She founded the firm in 2010 and has built it into one of Vietnam's leading practices in Corporate and M&A. Diep has been ranked by Chambers as a leading lawyer in Corporate & M&A since 2020. Dilinh Legal is ranked by Chambers Asia in Corporate & M&A, Dispute Resolution, and Labour & Employment, and by Legal500 in Corporate & M&A and Dispute Resolution.
This article is for general information only and does not constitute legal advice. For further information, please contact Dilinh Legal at contact@dilinh.com | +84 (28) 73000864 | dilinh.com