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China-Vietnam cooperation in jeopardy? Vietnam complies with the U.S. strict scrutiny of "Made in Vietnam" labels, becoming a platform for China to evade tariffs.
In response to U.S. tariff pressures and the intensification of U.S.-China trade conflicts, the Vietnamese government recently issued an urgent new directive to strictly prevent illegal transshipment and origin fraud, particularly implementing stricter checks on imports from China. This move aims to avoid becoming a springboard for China to evade U.S. tariffs and to protect the economic lifeline of Vietnam's exports to the U.S.
Vietnam's Ministry of Industry and Trade takes urgent action: combating illegal transshipment and origin fraud
According to a report by Reuters, Vietnam's Ministry of Industry and Trade ( has officially issued a nationwide directive on the 15th, requiring local officials to strengthen the regulation of imported goods, with a particular focus on the stringent procedures for "origin certification." This indicates that Vietnamese authorities are concerned that trade fraud may become increasingly rampant amid rising tensions in U.S.-China trade.
If such behavior is not curtailed soon, Vietnam is likely to face more risks of trade sanctions in the future, which would impact its export-oriented economic development model. We call on all departments to actively propose specific measures to prevent illegal transshipment.
China has become the largest importer, and the United States has named Vietnam as a "transshipment hub."
Although the order did not name any specific country, nearly 40% of Vietnam's imports come from China, and the United States has long publicly accused China of conducting illegal transshipments through Vietnam to evade U.S. tariffs:
Chinese products are exported to the United States after being labeled as "Made in Vietnam" in Vietnam without processing or with minimal processing, in order to reduce import duties.
Such actions not only may violate the law, but also make Vietnam a "sandwich cookie" in trade disputes. The Trump administration had previously imposed "reciprocal tariffs" of up to 46% on Vietnam, which are currently frozen until July, but if reimplemented, they would have a significant impact on the Vietnamese economy.
)Xi Jinping's Southeast Asia Trip | Opposing Trade War! Xi Jinping: Protectionism has no way out, hoping to deepen AI and supply chain cooperation with Vietnam(
Vietnamese Prime Minister orders thorough investigation: Made in Vietnam labels must be strictly controlled.
Local media reported that in response to pressure from the United States, Vietnamese Prime Minister Pham Minh Chinh has ordered various departments to strictly investigate trade fraud and counterfeit origin labeling practices. This move is also aimed at creating better negotiation conditions for the upcoming US-Vietnam tariff negotiations.
The Ministry of Trade and Industry further stipulates that in the future, it will strictly review companies that suddenly apply for certificates of origin, especially conducting on-site inspections of factories regarding the sources of raw materials and the actual production processes. In addition, various departments need to submit suggestions and propose targeted response measures as appropriate.
Vietnam and China have just signed a cooperation agreement, and Beijing warns against colluding with the U.S. for "self-interest at the expense of others."
Ironically, this new policy comes shortly after Chinese President Xi Jinping's visit to Vietnam, where the two countries had just signed several agreements, including a "cooperation mechanism for certificates of origin," calling for joint resistance against tariff barriers and "unilateral bullying," and rallying neighboring countries to collectively counter US pressure.
Just yesterday, China even publicly warned against other countries engaging in trade arrangements with the United States that could harm China's interests, indirectly reflecting that the China-Vietnam relationship is at a delicate and sensitive moment.
)The Chinese Ministry of Commerce issued a strong warning: if national interests are harmed, countermeasures will be taken against countries cooperating with the US(
Faced with international pressure and internal risks, Vietnam chooses to take proactive measures, strengthening origin inspections and policy transparency, hoping to achieve a balance between China and the United States, and maintain its position as a global manufacturing hub and major exporter.
The trade relationship between the US and Vietnam is at a standstill, with export models facing pressure for transformation.
Vietnam has long relied on exports to the United States as a core driver of economic growth, attracting a large amount of foreign investment for manufacturing. If the U.S. imposes high tariffs, it will inevitably affect the local industrial chain and job market, prompting Vietnam to consider the importance of transformation and risk diversification.
This crackdown on illegal transportation not only pertains to trade compliance but is also a crucial step for Vietnam to maintain its international reputation and investment attractiveness.
This article discusses the breakdown of Sino-Vietnamese cooperation. Vietnam complies with the strict scrutiny of 'Vietnam-made' labels by the United States, improperly using China as a tariff evasion springboard. This was first reported by Chain News ABMedia.