Labeled businesses "Made in Vietnam" must meet criteria

	Concerns about regulations on "Made in Vietnam" goods
	Vietnam products for domestic use no longer labeled as “Made in Vietnam”
	Ministry of Industry and Trade release draft on "Made in Vietnam" goods

Mr. Tran Thanh Hai, Deputy Director of Import and Export Department, Ministry of Industry and Trade.

Could you please tell us the reason why the Ministry of Industry and Trade drafted a Circular on how to identify products asVietnamese products or manufactured in Vietnam while there are regulated laws on origins of products?

So far, for export goods, the provisions on goods origin are relatively complete and strict. With each free trade agreement that we join there is a separate set of rules. However, up to now, there has been no set of rules for determining goods made in Vietnam and circulated in the Vietnamese market. The absence of such regulations has caused some problems.

Firstly, it is possible to lose consumers' confidence when they do not know if a product they are consuming is made in Vietnam. Secondly, forming the reputation of businesses in general; if there is no defined standard, a given product withmistakes will damage the reputation of the business. Thirdly, it is possible to create unequal competition when foreign goods brought into Vietnam only undergo a very short period of processing before beinglabeled as "Made in Vietnam". This will affectthe prestige and confidence of consumers. Facing such pressing needs, the Ministry of Industry and Trade reported to the Prime Minister and coordinated with other ministries and branches to urgently issue a draft circular regulating how to identify Vietnamese goods as made in Vietnam. Provisions of the draft are relatively detailed and consistent with international commitments, previous regulations on Vietnam's goods and ensuring the compatibility of domestic as well as import and export goods. .

In the process of draftingthe Circular, the Ministry of Industry and Trade has consulted many related units. Could you please tell us which contents of this Circular are most important?

Through the recorded information, the opinions of associations and enterprises focus on the method of determining origin. The Draft Circular introduces two basic methods of determination of pure origin and non-pure origin, especially non-pure origin for industrial products currently in the process of division of labor. Since the operation has been spread all over the world, determining the origin of each detail and each component involved in products is not simple.

A problem that businesses also mentioned is the percentage of added value of Vietnam, how much percentage can be considered Vietnamese goods. There are opinions that want to raise the rate higher than 30 percent, but some suggest reducing it. The Ministry of Industry and Trade will consider many factors, but a very important factor is the conformity with the commitments that Vietnam has signed with other countries, in which we basically have implemented and reached 30 percent for goods exported abroad.

Which unit will be responsible for certification of goods labeling for businesses, sir?

According to the Circular, businesses will be the ones who determine and take responsibility for their products that meet the criteria or not. There have been some comments that the state should have a certificate or certification agency, but we have considered this, with a large volume of goods circulating in the market, the issuance of such certificates will create additional administrative procedures, creating additional burdens for businesses as well as for state management agencies. In the current spirit, it is creating the most open conditions for businesses. This Circular will create a measure to help businesses check to obey the law. Only when detected or issues are reported by the press, consumers reflected, the management agencies will come in to check.

According to the provisions of the Circular, the labeling is not compulsory for businesses; will this create an ambiguity for the origin of goods?

When businesses are not confident enough to label, of course, businesses also do not want to label "Made in Vietnam". In this case, if required, enterprises will be required to write, they will not guarantee whether the goods are Vietnamese origin or not. Therefore, the Circular wants to create options for businesses, in case businesses do not meet the criteria, businesses may not be labeled or may have a more appropriate way of expressing. However, if the choice of labeling is made in Vietnam, the criteria must be met.