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What is RVC? What does RVC stand for?

RVC, or Regional Value Content, is a key criterion used to determine the percentage of a product’s value generated within the member countries of a Free Trade Agreement (FTA). Meeting the RVC threshold is often a mandatory condition for a product to qualify for originating status and enjoy preferential tariffs under FTAs.

>> Read More: What is the PSR Origin Criterion? 

RVC in the ASEAN-Korea Free Trade Agreement (AKFTA)

Under AKFTA, general rules such as RVC 40% or CTH (Change in Tariff Heading) apply. However, specific Product-Specific Rules (PSR) provide different thresholds:

• HS Code 1605.10 (Crab) and 1605.20 (Shrimp and Pandan Shrimp): minimum RVC is 35%
• HS Code 8708.40 (Parts of gearboxes): minimum RVC is 45%

>> Read More: What is an HS Code? How to Look Up HS Codes in Logistics

RVC Application

Suppose a product is manufactured in Vietnam using materials from China, Vietnam, Thailand, and Singapore. All these countries are part of ASEAN or have FTAs with ASEAN. If all materials are considered originating within the FTA region, the product achieves RVC 100%. In this case, “RVC 100%” can be stated on the C/O Form E.

However, RVC thresholds vary by FTA and specific product rules (PSR). While 40% is common globally, exceptions exist depending on the agreement.

Common RVC Thresholds Across FTAs

Each FTA sets different RVC requirements based on product type and trade objectives. Common thresholds include:  

Common RVC Thresholds Across FTAs

• RVC 40%: A standard level used in many FTAs, including AKFTA.
• RVC 35%: Seen in agreements like AIFTA (ASEAN–India FTA) and specific product rules under AKFTA (e.g., crab, shrimp).
• RVC 45%: Required for more complex products like automotive parts (e.g., HS 8708.40).

How to Calculate RVC

Direct RVC Method:

Direct RVC Method:

Example: A Honda motorcycle is manufactured in Thailand and exported to Vietnam. FOB value: $1,000

• Labor cost: $250
• Utilities, land lease, etc.: $350
• Thai-sourced materials: $120
• Profit: $150
  

RVC (Direct) = (250 + 350 + 120 + 150) / 1000 × 100% = 87%

→ This product qualifies as ASEAN-originating.

Indirect RVC Method:

Indirect RVC Method

Example: The same motorcycle (FOB: $1,000) includes:

• Imported engine from Japan: $300
• Aluminum frame from China: $150
  

RVC (Indirect) = (1000 – 300 – 150) / 1000 × 100% = 55%

→ Product qualifies as ASEAN-originating with 55% RVC.

When to Apply RVC Criteria?

Use the RVC rule in the following cases:

• HS code conversion (CTH, CTSH) rules are not applicable.
• The product contains many imported components but high local value.
• You need to prove domestic value to access tariff preferences.

FTAs that Use RVC Criteria

• ATIGA (ASEAN) – C/O Form D
• AKFTA (ASEAN – Korea) – Form AK
• AJCEP (ASEAN – Japan) – Form AJ
• EVFTA (EU – Vietnam) – EUR.1
• CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership)
• UKVFTA (Vietnam – UK)

Documents Required to Apply RVC for C/O Issuance

To obtain a Certificate of Origin using the RVC method, businesses must prepare:

• Export declaration
• Commercial invoice & packing list
• RVC calculation sheet (signed and stamped)
• Raw material purchase contracts
• Proof of local value: payroll, utility bills, warehouse records
• Certificates of origin for materials (if available)
  

The Export–Import Department or VCCI may request further verification or explanations → Ensure all documents are clear and traceable.

>> Read More: What Is a Packing List? Its Importance in Import and Export

Currency for RVC Calculation

As per Appendix VIII of Circular No. 05/2018/TT-BCT, RVC should be calculated based on FOB value in USD:

• If the FOB value on the C/O is in USD, convert all costs and material values into USD.
• If the FOB value is in another foreign currency, all values must be converted accordingly.

RVC Declaration Table

Issued alongside Circular No. 05/2018/TT-BTC (April 3, 2018), exporters must use the correct RVC calculation formulas outlined in the relevant FTA legal documents guided by the Ministry of Industry and Trade.

This declaration table includes more detailed fields than regular ones. Exporters must provide complete and accurate information, including:

• Printed customs declarations
• Copies of documents (certified true copies): VAT invoices, preferential C/O, supplier declarations

RVC – Regional Value Content is a crucial criterion that helps businesses prove the legitimate origin of their products in international trade and benefit from tariff preferences under FTAs. Understanding how to calculate RVC, the applicable thresholds, and the required documentation will enable businesses to optimize both cost and time during export procedures.

If you need detailed guidance on RVC calculation and preparing documents for a Certificate of Origin (C/O), please contact our hotline at +84 (0) 938 188 796 – your trusted partner in professional logistics solutions and import-export procedures.