Recently, the Ministry of Finance is gathering comments on a draft Decree promulgating Vietnam’s special preferential import tariffs to implement the ASEAN-China Trade in Goods Agreement for the period 2022-2027 (ACFTA). The Decree is expected to take effect from December 1, 2022. If succeeded, then 85.4% of tariff lines in the ASEAN – China Agreement are eliminated, and a series of goods benefited.
It is the consequence of the agreement signed by ASEAN countries with China following the first period 2018-2022. Due to the change in the list from AHTN 2022 to AHTN 2027, the tariff includes 42 lines of goods affected by the change of product code, and separation of lines. For these product lines, the Ministry of Finance sets tax rates on the principle of not eroding international commitments specified in the HS conversion manual in the ACFTA Implementation Committee, and at the same time ensuring the feasibility of implementation. The average tax rate (counting lines with tax rates) for the period 2023 – 2027 calculated on the total tariff schedule issued by the Decree is about 3.05 %”, the Ministry of Finance said.
Vietnam imports a lot from China, especially for raw materials, parts, and machinery. This import turnover in the period 2018-2021 reached 118.6 billion USD, accounting for an average of 45% of the world import proportion. The main products imported from China with a value of 1 billion USD or more include computers, electronic products and components with 7.5 billion USD; phones and components with 6.7 billion USD; machinery and equipment with 2.97 billion USD; gasoline about 2 billion USD; cashew nuts 1.95 billion USD,….. so these traders in these sectors would benefit to boost up the trade between the two countries as well as those in ACFTA.