Facing U.S. tariff pressure and escalating trade tensions between the U.S. and China, the Vietnamese government recently issued an urgent directive to strictly prevent illegal transshipment and origin fraud, implementing more rigorous inspections especially for imports from China. This move aims to avoid becoming a tariff evasion springboard for China and protect Vietnam's economic lifeline of exports to the United States.
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ToggleVietnam's Ministry of Trade and Industry Emergency Action: Combating Illegal Transshipment and Origin Fraud
According to Reuters, the Ministry of Trade and Industry (MOIT) officially issued a nationwide directive on the 15th, requiring local officials to strengthen monitoring of imported goods, with a special focus on strict verification of "origin determination". This indicates that Vietnamese authorities are concerned about potential proliferation of trade fraud amid escalating U.S.-China trade tensions.
If such behaviors are not curbed early, Vietnam may face increased trade sanction risks in the future, potentially impacting its export-oriented economic development model. We call on various departments to actively propose specific measures to block illegal transshipment.
China Becomes Largest Import Country, U.S. Names Vietnam as "Transshipment Platform"
Although the order does not name any specific country, nearly 40% of Vietnam's imported goods come from China, and the United States has already openly accused China of conducting illegal transshipment through Vietnam to circumvent U.S. tariffs:
Chinese goods, without processing or with minimal processing, are re-labeled as "Made in Vietnam" before being exported to the United States to reduce import taxes.
Such operations may not only be potentially illegal but also make Vietnam a "sandwich" in trade disputes. The Trump administration previously imposed up to 46% "reciprocal tariffs" on Vietnam, temporarily frozen until July, but if reimplemented, would significantly impact Vietnam's economy.
(Xi's Southeast Asia Trip | Opposing Trade War! Xi Jinping: Protectionism Has No Way Out, Hopes to Deepen AI and Supply Chain Cooperation with Vietnam)
Vietnamese Prime Minister Orders Thorough Investigation: Made in Vietnam Labels Need Strict Control
Local media reported that facing pressure from the United States, Prime Minister Pham Minh Chinh has ordered all departments to strictly investigate trade fraud and fake origin label practices, also to create better negotiation conditions for upcoming U.S.-Vietnam tariff talks.
The Ministry of Trade and Industry further stipulated that they will strictly review companies with sudden increases in origin certificate applications, conducting on-site factory investigations focusing on raw material sources and actual production processes. Additionally, departments must submit suggestions and propose targeted response measures as appropriate.
China and Vietnam Just Signed Cooperation Agreement, Beijing Warns Against Collaborating with the U.S. "At One's Own Expense"
Ironically, this new policy comes shortly after Chinese President Xi Jinping's visit to Vietnam, where both countries just signed multiple agreements including an "origin certificate cooperation mechanism", calling for joint resistance against tariff barriers and "unilateral bullying", attempting to rally neighboring countries to counter U.S. pressure.
Just yesterday, China even publicly warned against countries engaging in trade arrangements that might harm Chinese interests, indirectly reflecting the delicate and sensitive moment in China-Vietnam relations.
(Chinese Ministry of Commerce Warns Strongly: Will Retaliate Against Countries Cooperating with the U.S. if National Interests Are Harmed)
Facing international pressure and internal risks, Vietnam chooses to take the initiative, strengthening origin verification and policy transparency, hoping to find a balance between the United States and China while maintaining its position as a global manufacturing hub and export powerhouse.
US-Vietnam Trade Relations at a Crossroads, Export Model Facing Transformation Pressure
For many years, Vietnam has relied on exports to the United States as its economic growth axis, attracting massive foreign investment. If the US imposes high tariffs, it will inevitably impact local industrial chains and employment markets, also prompting Vietnam to consider the importance of transformation and risk diversification.
This action to combat illegal transshipment is not only about trade compliance but also a crucial step for Vietnam to maintain its international credibility and investment attractiveness.
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