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Vietnam Cracks Down on Transshipment to Prevent Chinese Goods from Evading US Tariffs

by Editor Asiatoday
April 12, 2025
in Business
Reading Time: 2 mins read
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Vietnam Warns of Potential Fraud When Trading With UAE

The Port of Hi Pong, Vietnam. Doc

ASIATODAY.ID, HANOI – The Vietnamese government is preparing decisive measures to prevent misuse of its trade routes by Chinese companies attempting to circumvent high US tariffs. This move comes amid rising global concerns over illegal transshipment and the relabeling of Chinese goods as “Made in Vietnam.”

According to US News, Friday, April 11, 2025, Vietnam is reevaluating its export-import supply chain, especially for goods originating from China that are rerouted to the United States. The goal is to avoid allegations of trade manipulation and reinforce the country’s credibility with global trading partners.

In response to mounting scrutiny from Washington, Vietnam also plans to tighten control over sensitive product exports to China. This comes after White House Trade Adviser Peter Navarro accused China of using Vietnam as a backdoor to avoid US tariffs.

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“China is using Vietnam for transshipment to circumvent tariffs,” Navarro said in an interview with Fox News.

Despite Vietnam’s efforts to demonstrate goodwill, the Trump administration has imposed tariffs of up to 46% on select Vietnamese products. The Vietnamese government is pushing for a reduction in these rates, ideally to between 22% and 28%, through ongoing trade negotiations following high-level meetings between Vietnamese and US officials.

Vietnam’s actions reflect more than just trade compliance — they are part of a broader diplomatic strategy. The country aims to strike a balance between maintaining strong trade relations with the United States and avoiding friction with China, one of its largest investors and a close regional neighbor.

In a swift response, Vietnam’s Office of the Government convened an emergency meeting on April 3, 2025, just hours after the US announced the new tariff measures. The session focused on addressing US concerns over alleged intellectual property violations and illegal transshipment practices.

Vietnam’s Ministry of Trade and Customs Authority were ordered to develop a comprehensive inspection and enforcement plan within two weeks, with a potential extension through the end of April. The timeline reflects the government’s intent to act decisively while navigating sensitive regional dynamics.

In recent years, Vietnam has emerged as a key player in the “China Plus One” strategy, adopted by many multinational companies to diversify manufacturing operations beyond China. While this shift has boosted Vietnam’s economic standing, it also increases the risk of being used as a conduit for illicit trade practices.

By strengthening enforcement and demonstrating a clear commitment to fair trade practices, Vietnam aims to maintain its reputation as a trusted global trade partner, while protecting its long-term economic interests amid rising geopolitical tensions. (AT Network)

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