Country of origin: A key factor determining the competitiveness of Vietnam’s food industry

In a context where tariff preferences are no longer an absolute advantage, country of origin is becoming a decisive factor. It determines the competitiveness and integration capacity of Vietnam’s food industry. Practical experience from Vietnamese food businesses shows that mastering rules of origin is essential. As a result, this is the sustainable pathway to effectively leveraging free trade agreements (FTAs).

International trade is entering a new phase in which free trade agreements (FTAs) not only open up market opportunities. At the same time, they impose increasingly stringent requirements on origin transparency, traceability, and compliance with rules of origin. For the Vietnam’s food industry—a sector subject to strict controls on safety, quality, and sustainability—country of origin is no longer a purely technical procedure. Instead, it has become a critical factor in compliance and market access. It has become a benchmark of production organization capacity and a company’s readiness for integration.

Vietnam’s food industry

Practical experience from production and export shows that only by mastering rules of origin can FTA preferences truly be effective for the Vietnam’s food industry. Mr. Vo Trung Hieu is the Director of International Sales at Vietnam Dairy Products Joint Stock Company (Vinamilk). He said that amid global trade volatility—ranging from inflation and geopolitical conflicts to the growing trend of technical barriers—country of origin is becoming an important “passport.” This “passport” enables Vietnamese export businesses to sustain exports in a stable and long-term manner.

According to Mr. Vo Trung Hieu, in 2024 Vinamilk’s export turnover still grew by over 10%. Entering 2025, the company has continued to maintain this growth momentum. This success is thanks to its proactive market organization and ability to adapt to new requirements. “Vinamilk does not pursue growth at all costs, but instead focuses on enhancing export value, standardizing governance systems, and strengthening brand credibility. This is the foundation that enables the company to remain resilient in the face of cyclical fluctuations in global trade,” Mr. Hieu emphasized.

Currently, Vinamilk exports products to 65 countries and territories and has a presence across most continents. However, market expansion is carried out selectively and is closely aligned with compliance requirements for technical standards, rules of origin, and the consumption characteristics of each market. This approach helps control risks and ensure long-term growth.

In the process of leveraging FTAs, Vinamilk is among the enterprises that have effectively utilized origin preferences in the Vietnam’s food industry. Approximately 95% of its export turnover uses preferential Certificates of Origin (C/O).

Not only the dairy industry demonstrates the increasingly prominent role of country of origin. However, the coconut sector—an agricultural processing industry with its own distinct characteristics—does as well. This factor plays a key role in shaping their export strategies. Ms. Dang Vo Hoang My is the Director of Luong Quoi Coconut Processing Co., Ltd. She noted that exports currently account for around 90% of the company’s total output. Its markets span more than 65 countries and territories.

Vinamilk’s products

According to Ms. Hoang My, these results stem not merely from market expansion. They also arise from a process of restructuring production toward standardization and deep processing. “In addition to producing for international orders, we proactively develop products under Vietnamese brands and have exported them to more than 30 markets. This helps increase the added value of Vietnamese coconuts and reduce dependence on raw exports,” Ms. My shared.

For the coconut industry, major markets such as the United States, Canada, and Europe are not only concerned with the quality of the final product. They also place particular emphasis on the origin of raw materials, production processes, and end-to-end traceability across the supply chain. According to Ms. Hoang My, preferential Certificates of Origin (C/O) provide businesses with tariff advantages. However, their core value lies in affirming the “identity” of Vietnamese coconut products—transparent, sustainable, and compliant with international standards.

In addition, digital transformation in the issuance of C/Os has delivered many positive outcomes. It enables Vietnamese enterprises to be more proactive in completing documentation and organizing export orders. However, the business community recommends that competent authorities continue to shorten C/O issuance timelines. This is especially important for markets with short shipping times. At the same time, they should enhance the interconnection of origin-related data across supply chains. Doing so would help reduce compliance costs and facilitate post-clearance audits.

Amid ongoing global trade volatility, Vietnam’s food industry is standing at a new threshold. Here, tariff preferences are merely a necessary condition. Export–import practices show that when Vietnamese enterprises master rules of origin, this becomes a sufficient condition. As a result, they can truly leverage FTAs, expand markets, and enhance the added value of exported goods.

As requirements for transparency, traceability, and compliance become increasingly stringent, country of origin not only determines how far individual enterprises can go. Moreover, it also shapes their reputation and competitiveness in the market. It also serves as a yardstick for the integration capacity of Vietnam’s food industry within the global value chain.