Flexible criteria of origin of the Vietnam - EU Free Trade Agreement (EVFTA) make it easier for plastics enterprises to take advantage of tariff preferences when exporting to the EU.
Of the 28 markets in the European Union (EU), some markets have a big spending to import plastic products from Vietnam such as the Netherlands: USD 137 million, Germany USD 135.4 million, the UK with USD 111 million, France $ 53 million, Poland $ 35 million ... This shows that the opportunity to export plastic and plastic products to the EU market is positive, if businesses well prepare in the requirements set out in EVFTA.
Mr. Ngo Chung Khanh, Deputy Director of Multilateral Trade Policy Department (Ministry of Industry and Trade), said EVFTA provided quite flexible rules of origin for plastics and plastic products. Accordingly, it is allowed to use up to 50% of non-originating materials in the manufacturing process or the origin criterion is to convert goods codes at the 4-digit level, which allows to use up to 20 % of non-origin materials in the same group (4 digits) with the product.
Especially, in EU market, Vietnam's plastic products are not subject to anti-dumping tax of 8-30% like other countries. Plastic packaging enterprises have been expanding their export markets to the European market in recent years thanks to the double benefit of prices and import tax incentives.
The rules of flexible goods origin with plastic products exported to the EU made enterprises breath-taking, because in terms of competition, Vietnamese plastic enterprises are still passive because domestic raw materials are only meet about 15 - 35% of the demand for different types of plastic materials, the remaining 85% is dependent on imports. Plastic industry currently has more than 2,000 enterprises, of which 84% are in HCMC.