In the context of economic globalization and increasingly fragmented supply chains, the label “Made in Vietnam” or “Manufactured in Vietnam” has become an important competitive advantage for enterprises. However, the use of this phrase is not merely a marketing slogan – businesses are required to comply with specific legal requirements regarding the determination of origin and labeling of goods under Vietnamese law.
This article, prepared by DNP Viet Nam Law Firm, aims to help enterprises gain a clear understanding of the current standards and legal conditions required to label or be recognized as goods of Vietnamese origin. Based on key regulations such as Decree No. 31/2018/NĐ-CP and Decree No. 111/2021/NĐ-CP, we provide focused analysis, highlight potential legal risks, and offer practical guidance to help businesses ensure effective compliance and control in origin labeling.
1. Current Legal Framework Governing “Made in Vietnam” and Product Origin
In today’s complex international business environment, enterprises must understand that using the label “Made in Vietnam” or the indication “Origin: Vietnam” is not merely a marketing formality, but a serious legal matter concerning the determination and labeling of product origin. The two principal legal instruments currently in effect – and essential for enterprises to understand – are Decree No. 31/2018/NĐ-CP and Decree No. 111/2021/NĐ-CP.
1.1. Decree No. 31/2018/NĐ-CP – Rules on Goods Origin
Issued on 8 March 2018 and effective from the same date, Decree No. 31/2018/NĐ-CP provides detailed guidance on the Law on Foreign Trade Management regarding the determination of goods’ origin – a key compliance requirement for both exporters and importers. Accordingly, enterprises declaring products as having “Vietnamese origin” must satisfy the rules of origin, such as being “wholly obtained” or “entirely produced” in Vietnam, or in another specified country or region. The Decree also sets out procedures for issuing Certificates of Origin (C/O), recordkeeping obligations, and measures for preventing origin fraud.
1.2. Decree No. 111/2021/NĐ-CP – Goods Labeling
Promulgated on 9 December 2021 and effective from 15 February 2022, Decree No. 111/2021/NĐ-CP amends and supplements several provisions of Decree No. 43/2017/NĐ-CP on goods labeling. It introduces additional mandatory labeling requirements, including the name of the product, country of origin, and place of final processing where the origin cannot be determined. Specifically, under Article 10 of Decree No. 111/2021/NĐ-CP, all goods circulated in Vietnam must display the “country of origin”; if the origin is undetermined, the label must state the “place of final processing or completion.” Therefore, enterprises wishing to use the expressions “Made in Vietnam” or “Manufactured in Vietnam” on product labels must ensure that both the declared origin and labeling strictly comply with the provisions of this Decree.
1.3. Distinguishing “Origin of Goods” and “Place of Manufacture”
A common mistake among enterprises is confusing the concepts of “origin of goods” (regulated under Decree No. 31/2018/NĐ-CP) and “place of manufacture” or the indication “Manufactured in Vietnam.”
- “Origin of goods” is a legal concept used to determine where a product is produced or completed – focusing on the final substantial processing stage or domestic value-added content. It primarily applies to export declarations and preferential tariff treatment.
- “Place of manufacture” or “Manufactured in Vietnam” refers to the labeling requirement under the goods labeling regulations, indicating the final place of completion when the precise origin cannot be determined.
Understanding the distinction between these two concepts is crucial for enterprises to avoid incorrect labeling, prevent legal risks, and ensure accurate representation of product origin in both domestic and international markets.
2. Conditions Enterprises Must Meet to Use the Label “Made in Vietnam” or to Be Recognized as Goods of Vietnamese Origin
Enterprises intending to use the expression “Made in Vietnam” or to declare goods as of Vietnamese origin must understand that this is not merely a labeling issue, but a comprehensive system of legal, documentary, and procedural requirements. The following section analyzes four key categories of conditions, with a practical summary to help businesses determine what needs to be done.
2.1. Conditions for Wholly Obtained or Entirely Produced Goods in Vietnam
Under Decree No. 31/2018/NĐ-CP, a product is considered “wholly obtained or entirely produced” in a country when it meets criteria such as:
- Plants grown and harvested in Vietnam;
- Animals born and raised in Vietnam;
- Minerals extracted within Vietnam’s territory.
Enterprises using entirely domestic materials, carrying out core manufacturing processes and final completion in Vietnam may straightforwardly label their products as “Made in Vietnam” or “Origin: Vietnam.” Meeting these conditions allows businesses to confidently use the designation “Made in Vietnam” with minimal risk of origin misrepresentation.
2.2. Conditions for Non-Wholly Obtained Goods: Imported Materials or Multiple Processing Stages Abroad
Where products are made from imported materials or involve production stages conducted outside Vietnam, enterprises must comply with rules of origin under Decree No. 31/2018/NĐ-CP:
- Even if not wholly obtained, goods may still qualify as of Vietnamese origin if they satisfy HS code transformation criteria or regional value content (RVC) requirements under Article 8.
- Enterprises must maintain complete documentation, including purchase contracts, invoices, import customs declarations (if any), and retain such records for at least five years.
- They must also clearly identify the final substantial processing or completion step conducted in Vietnam to substantiate the use of the “Made in Vietnam” label.
2.3. Labeling Requirements under Decree No. 111/2021/NĐ-CP
Effective from 15 February 2022, Decree No. 111/2021/NĐ-CP mandates that goods circulated in Vietnam must bear labels in Vietnamese, including:
- Name of the goods;
- Name and address of the organization or individual responsible;
- Country of origin.
Where the origin cannot be fully determined, the label must indicate the place of final processing, such as “Assembled in Vietnam” or “Finished in Vietnam.”
To use the phrase “Made in Vietnam,” enterprises must ensure that the label:
- Uses the correct and full expression (e.g., “Sản xuất tại Việt Nam” or “Xuất xứ Việt Nam”);
- Does not abbreviate the country name;
- Uses appropriate language;
- Clearly identifies the responsible entity on the label.
2.4. Internal Procedures and Recordkeeping Requirements
Enterprises should establish an internal compliance system to monitor material sourcing, production stages, and final product completion in Vietnam. This includes maintaining origin-related documentation and verifying suppliers where imported materials are used. The documentation should include:
- Material purchase and sales contracts;
- Invoices and customs declarations;
- Technical drawings or assembly records;
- Product completion reports and sample labels.
All records must be retained for at least five years under Article 30 of Decree No. 31/2018/NĐ-CP, ready for inspection or verification by authorities. Additionally, enterprises should train responsible personnel on origin determination and labeling requirements, conduct periodic internal audits, and coordinate with marketing departments to ensure the term “Made in Vietnam” is used accurately and in full legal compliance.
3. Legal Risks and Recommendations for Enterprises
When applying the “Made in Vietnam” label or the designation “Manufactured in Vietnam,” enterprises face not only strict requirements on origin and labeling but also significant legal risks in case of non-compliance. Identifying these risks and implementing practical preventive measures is essential for proactive compliance and business integrity.
3.1. Legal Risks
One of the most common risks involves incorrect labeling or false origin declarations. According to Vietnamese regulations, where the origin cannot be determined, the label must indicate the place of final processing or completion – yet many enterprises still use “Made in Vietnam” without sufficient legal basis.
Another major concern is origin fraud, where goods labeled as “Origin: Vietnam” do not actually undergo the final substantial transformation in Vietnam or fail to meet the required domestic value-added threshold under origin rules. Such violations may result not only in administrative penalties but also in loss of export privileges, denial of preferential tariffs, or even market exclusion.
Violations of labeling requirements are also widespread. Common errors include omitting mandatory details such as “country of origin,” or using only foreign-language labels without the required Vietnamese sub-label. Penalties range from monetary fines to relabeling orders or product recalls.
3.2. Recommendations for Enterprises
To minimize legal risks, enterprises should adopt the following key measures:
- Verify origin from the raw material and production stage:
Confirm that products labeled “Made in Vietnam” either meet the criteria for “wholly obtained or entirely produced” in Vietnam under Article 7 of Decree No. 31/2018/NĐ-CP, or, if not wholly obtained, satisfy the rules of origin prescribed in Article 8. - Establish proper documentation and procedures:
Maintain records including material purchase contracts, import invoices, proof of final processing in Vietnam, and sample labels. These documents serve as evidence during inspection or verification by authorities. - Ensure labeling compliance under Decree No. 111/2021/NĐ-CP:
Labels must state the country of origin, or, if indeterminable, the place of final processing, in Vietnamese, with the responsible entity clearly indicated. The “Made in Vietnam” statement should be used only when the product genuinely meets origin requirements. - Conduct internal training and periodic audits:
Staff in charge of origin and labeling should be properly trained. Enterprises should schedule annual internal audits or additional checks whenever material sources or production processes change. - Stay updated and prepare compliance strategies: As enforcement of origin and labeling regulations becomes increasingly stringent, businesses should maintain updated knowledge of legal requirements and prepare contingency measures – such as product recall or relabeling – in case of inspection or violations.
4. Conclusion
Using the label “Made in Vietnam” or declaring goods as of Vietnamese origin is not a matter of branding – it is a legal commitment for which enterprises bear full responsibility. As analyzed above, compliance involves meeting origin requirements under Decree No. 31/2018/NĐ-CP, following labeling rules under Decree No. 111/2021/NĐ-CP, and establishing internal procedures and recordkeeping systems to ensure full transparency.
Failure in any part of this chain – such as unverified imported materials, unclear final processing stages, or inaccurate origin labeling – may lead to legal penalties, product recalls, and reputational damage. Enterprises should act proactively: review supply chains, train compliance teams, and stay up to date with legal developments.
At DNP Vietnam Law Firm, we are committed to supporting enterprises in ensuring legal compliance and business security when applying the “Made in Vietnam” label. With extensive experience in Vietnam’s regulatory environment and a practical, solution-oriented approach, we stand ready to help businesses transform “Made in Vietnam” into a sustainable competitive advantage.
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