The ASEAN-China Free Trade Area (ACFTA) removes tariffs on the large majority of goods traded between China and the ten ASEAN member states, including Vietnam. It has been in place since 2010 and is one of the reasons Vietnam’s manufacturing sector can import components and raw materials from China at a lower cost than sourcing them from outside the region.
Where this matters in practice
Many Vietnamese factories, particularly in electronics, textiles, and industrial goods, still rely on Chinese components and raw materials even as final assembly happens in Vietnam. ACFTA keeps that input cost lower, which is part of why Vietnam’s landed cost advantage holds up even for products with a mixed regional supply chain.
What it means for rules of origin
ACFTA does not, on its own, change whether a product qualifies as “Made in Vietnam” for the purposes of a different agreement, like the EVFTA or CPTPP. Those agreements have their own origin requirements, and importing cheap Chinese components does not automatically satisfy them. Companies sometimes assume regional trade agreements stack in their favor without checking, which is a mistake that surfaces at customs, not before.
How we handle it
We help you understand how your supply chain’s mix of Vietnamese and imported inputs affects origin qualification under whichever agreement you are actually relying on for your target market, so the paperwork matches reality.