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The negotiation commenced in October, 2008 and officially ended in November, 2011. However, since the ratification procedure in each country took a significant amount of time, the agreement did not come into force until January, 2014.

With 14 Chapters and 108 Articles together with 8 Annexes, Vietnam-Chile Free Trade Agreement only targets the trade of goods. For example, the FTA entails provisions on facilitating market access, rules of origin, sanitary and phytosanitary measures, technical barriers, safeguards etc…

Chile is the first Latin-American state Vietnam signs FTA with. This is also the eighth FTAs ever signed by Vietnam. In the meanwhile, Chile had become a partner of 25 FTAs and trading with FTA partners comprises of 80% the total import-export value of the country.

Goods exchanges between the two countries in the last five years have been growing at an average pace of 26.8% per annum. Vietnam’s export to Chile, at the same time, has increased at 41% annually. Being a signatory of this FTA not only help Vietnam’s products access Chilean market but also pave the way for Vietnam to exploit the huge and potential Latin American market.

  1. Vietnam's commitment on tariffs

Vietnam committed to eliminate 87.8% of tariff lines (accounting for 91.22% of import volumn from Chile in 2007). Within 15 years, the expected end of schedule to be in 2029, the number of tariff lines that are not committed by Vietnam or only partially cut accounted for 12.2%, focusing on some sensitive areas such as agriculture, Petroleum…

By 2023, Vietnam committed to eliminate 1163 more tariff lines compared to the initial time, increasing the total number of tariff lines with 0% tax rate to 3860 lines, equivalent to 42.42% of the total tariff table. The speed of commitment to eliminate tariffs in the VCFTA Agreement will be accelerated in the last 5 years of the Agreement, reaching a maximum commitment of 87.8% by 2028. The group of Vietnamese goods committed to eliminate is chemicals, wood, textile materials, machinery, chicken, oranges, tangerines, wine, seafood, beer, construction steel...

  1. Chile's commitment on tariff

Chile has a greater openness to Vietnamese goods. Accordingly, 83.54% of the total tariff lines will be eliminated as soon as the Agreement comes into force, accounting for 81.8% of Vietnam's export volumn to Chile in 2007. Some key export products of Vietnam will be able to cut tariff immediately and quickly from the current rate of 6% on textiles, seafood, coffee, tea, computers and components.

By 2029, Chile will eliminate most of the product lines from Vietnam, accounting for 99.62% of the tariff and equivalent to 100% of Vietnam's export turnover to Chile in 2007.

A good is considered to be VCFTA originating if the good is wholly obtained or produced in a Member country, or the good meets either of the following conditions:

  • Goods meeting the general origin criteria:
    • Regional Value Content (RVC): 40% as minimum, or
    • Change tariff classification (CTC at the 4-digit level (CTH – non-originating materials must be in a different HS Group from the HS Group of the finished product).
  • Goods with specific rules: some goods do not apply the general criteria of origin, but the specific rules applicable to such goods are specified in the List of product specific rules.