Vietnam is stepping up efforts to combat trade fraud and illegal transshipment of goods as part of its commitment to a recent trade deal with the United States. These measures aim to address concerns raised by Washington about Chinese goods being routed through Vietnam to avoid high U.S. tariffs on Chinese imports.
Last week, Vietnam reached a preliminary agreement with the U.S., reducing planned tariffs on Vietnamese imports from 46% to 20%. However, goods deemed by the U.S. to be illegally transshipped through Vietnam will face a hefty 40% tariff.
Illegal transshipment occurs when goods are falsely labeled as "Made in Vietnam" despite receiving little or no added value in the country. This allows Chinese exporters to take advantage of Vietnam’s lower tariffs and bypass U.S. trade restrictions on Chinese goods.
To comply with the deal and avoid further penalties, Vietnam is preparing stricter measures to crack down on trade fraud. According to government documents, these efforts include:
New Penalties: A forthcoming decree will introduce tougher sanctions for fraudulent labeling of goods’ origins.
Increased Inspections: Authorities are focusing on exports to the U.S., especially products at high risk of fraud, such as wooden furniture, steel machine parts, bicycles, batteries, wireless headphones, and other electronics.
Fraud Prevention: The government is targeting practices like forged certificates of origin, fake paperwork, and counterfeit imports.
These actions follow weeks of intensified inspections and enforcement targeting goods suspected of trade fraud.
The U.S. has repeatedly accused Vietnam of being a transit hub for Chinese goods. By cracking down on these practices, Vietnam hopes to maintain good relations with Washington and avoid further trade penalties.
14 Jul, 2025
