Vietnam cracks down on Chinese-made goods being shipped to US

Vietnam cracks down on Chinese-made goods being shipped to US

A woman rides a motorcycle as she passes containers at Hai Phong port, Vietnam on Sept 25, 2018. (Reuters file photo)
A woman rides a motorcycle as she passes containers at Hai Phong port, Vietnam on Sept 25, 2018. (Reuters file photo)

HANOI: Vietnam said it will impose higher penalties on Chinese goods transferred to the country and illegally relabelled as made-in-Vietnam for export to the US to dodge tariff hikes.

The customs department has detected dozens of fraudulent certificates of product origin and illegal transfers of goods ranging from agriculture and textile to steel and aluminium, the government said in a post on its website on Sunday.

Vietnam’s exports to the US have surged this year at the same time that China’s shipments to America have slumped amid a trade war between the world’s two largest economies. While there’s evidence of rising foreign investment into Vietnam as businesses adjust their supply chains, there are also worries Chinese products may be being rerouted via the Southeast Asian nation to avoid higher US tariffs.

Do Van Sinh, a standing member of the National Assembly’s economic committee, said Vietnam is concerned it may be punished by the US for allowing fake made-in-Vietnam products to be exported to America, according to the government’s post.

Currency Watchlist

Fraudulent cases discovered by the government include packaging on Chinese goods being changed to say made-in-Vietnam before certificates of origin are processed. It cited an example of the US customs department uncovering Chinese plywood being shipped to America via a Vietnamese company.

Customs officials in Vietnam are beefing up their supervision and inspection of goods to crack down on the practice, the government said.

Vietnam is already under scrutiny from US authorities after the Treasury Department added the nation to a watchlist for currency manipulation last month. Vietnam has said it’s exchange rate won’t be used to create an unfair trade advantage.

Authorities in the Southeast Asian nation are concerned the US-China tensions will hurt economic growth. Deputy Prime Minister Pham Binh Minh told the National Assembly last week that gross domestic product could drop 6 trillion dong (about 8 billion baht) in the next five years because of the trade war.


Do you like the content of this article?
COMMENT (7)

Markets mostly down as virus forces new lockdowns

Asian and European markets mostly fell Monday with sentiment depressed by a spike in coronavirus infections that has forced fresh lockdowns and sparked worries about the impact on the world economy.

15:47

Prosecution drops junta's contempt of court charge against Piyabutr

Contempt proceedings brought against law academic Piyabutr Saengkanokkul for criticising a decision of the Constitutional Court have been brought to an end, with with police deciding not to oppose the prosecutor's decision to drop the charge, his lawyer said on Monday.

15:16

Suspected burglar shot dead by home owner

NAKHON SI THAMMARAT: A man was shot dead after he and another man went into the grounds of a house in Nopphitam district in the small hours on Monday as the house owner thought they were burglars, police said.

15:07